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1、1Transportation modesModeTotal mode costCost per palletTransit timeAdvantagesDisadvantagesSea62024.87daysCheap and large capacitySlow and high risksAir12652534hoursFast and secureExpensive and finite capacityRail1275512daysFast and large capacityLess flexible and need railroadDirect road135067.53day
2、sBetter for shipped and convenientSmall capacity and expensiveMulti-mode118547.47 days 18 hoursReduce handing of cargo and quicker transit timesCost of investment is high Take sea as an example, because the shipping requires 25 pallets and the total cost is 620, the cost per pallet is 620/25=24.8. I
3、n the similar way, other result also can be calculated, except the Multi-mode. The Multi-mode cost is 1185 including 125, 620, 295, and145, thus the cost per pallet is 1185/25=47.4. Air transportation is optimum choice. Air transportation can use the least time to convey goods due to faster speed. B
4、esides, it also ensures the security to a large extent relatively. However, it also has some disadvantages. Air transportation has expensive cost, and airport is distant from municipal center.Sea transportation also can be chosen. Though it is the slowest method and vulnerable to bad weather in ocea
5、n, it is the lowest expenses of freight and carries the largest quantities.Angus Glen also can select rail. Rail has a large capacity and is less refrained by bad weather. Rail has these disadvantages, it is not much flexible and can not work without railroad.2 Consignment delivery termFCAFree Carri
6、er A tradeterm requiring the seller to delivergoods namedairport, terminal, or otherplace where carrieroperates. Cost losstransfer buyer and risk of loss transfer to the buyer after deliver to the carriers. The sellerfulfils his obligation deliverwhen he has handed goodsover, cleared for export, int
7、o the charge of the carriernamed named by the buyer at the named place. When used tradeterms, wordfree means sellerhas an obedience to delivergoods namedplace for transfer to carrier .FOBFree On Boarda term in international commercial law specifying at what point the seller transfers ownership of th
8、e goods to the buyer. Under the Incoterms 2010 standard published by the International Chamber of Commerce, FOB is only used in non-containerized sea freight, and also defines ownership transfer. The owner of the goods is responsible for damage or loss during transport, so the point of ownership tra
9、nsfer is important.CIFCost, Insurance & Freight This term is broadly similar to the above CFR term, with the exception that the seller is required to obtain insurance for the goods while in transit to the named port of destination. CIF requires the seller to insure the goods for 110% of their value
10、under at least the minimum cover of the Institute Cargo Clauses of the Institute of London Underwriters, or any similar set of clauses. The policy should be in the same currency as the contract. CIF can be used by any transport by sea and air not limited to containerized or non-containerized cargo a
11、nd includes all charges up to the port/terminal of entrance. CIP covers additional charges at the port/terminal of entrance.CPTCarriage Paid to The seller pays for the carriage of the goods up to the named place of destination. However, the goods are considered to be delivered when the goods have be
12、en handed over to the first or main carrier, so that the risk transfers to buyer upon handing goods over to that carrier at the place of shipment in the country of Export.The seller is responsible for origin costs including export clearance and freight costs for carriage to the named place of destin
13、ation. If the buyer requires the seller to obtain insurance, the Incoterm CIP should be considered instead.CIPCarriage and Insurance Paid to CIP requires the seller to insure the goods for 110% of the contract value under at least the minimum cover of the Institute Cargo Clauses of the Institute of
14、London Underwriters or any similar set of clauses. The policy should be in the same currency as the contract, and should allow the buyer, the seller, and anyone else with an insurable interest in the goods to be able to make a claim.CIP can be used for all modes of transport, whereas the Incoterm CI
15、F should only be used for non-containerised seafreight.DATDelivered At Terminal This Incoterm requires that the seller delivers the goods, unloaded, at the named terminal. The seller covers all the costs of transport and assumes all risk until arrival at the destination port or terminal.The terminal
16、 can be a Port, Airport, or inland freight interchange, but must be a facility with the capability to receive the shipment.All charges after unloading are to be borne by buyer. However, it is important to note that any delay or demurrage charges at the terminal will generally be for the sellers acco
17、unt.DAPDelivered At Place Under DAP terms, the risk passes from seller to buyer from the point of destination mentioned in the contract of delivery.Once goods are ready for shipment, the necessary packing is carried out by the seller at his own cost, so that the goods reach their final destination s
18、afely. All necessary legal formalities in the exporting country are completed by the seller at his own cost and risk to clear the goods for export.DDPDelivered Duty Paid Seller is responsible for delivering the goods to the named place in the country of the buyer, and pays all costs in bringing the
19、goods to the destination including import duties and taxes. The seller is not responsible for unloading. This term is often used in place of the non-Incoterm Free In Store. This term places the maximum obligations on the seller and minimum obligations on the buyer. No risk or responsibility is trans
20、ferred to the buyer until delivery of the goods at the named place of destination.Incoterm 2010Export-Customs declarationCarriage to port of exportUnloading of truck in port of exportLoading charges in port of exportCarriage to port of importUnloading charges in port of importLoading on truck in por
21、t of importCarriage to place of destinationInsuranceImport customs clearanceImport taxesEXWBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerFCASellerSellerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerFOBSeller Seller Seller Seller BuyerBuyerBuyerBuyerBuyerBuyerCPTSeller Seller Seller Seller Seller
22、Seller Seller Seller Buyer Buyer CIFSellerSellerSellerSellerSellerSellerBuyerBuyerSellerBuyerBuyerCIPSeller Seller Seller Seller Seller Seller Seller Seller Seller Buyer Buyer DATSeller Seller Seller Seller Seller Seller SellerSeller Buyer Buyer DAPSeller Seller Seller Seller Seller Seller Seller Se
23、ller Buyer Buyer DDPSeller Seller Seller Seller Seller Seller Seller Seller Seller Seller For incoterms importance, it can ensure that transactions are finished successfully and safely. By negotiating, sellers and buyers can sign contract containing right and duty and other pertinent item. It also e
24、xplicitly shows the price and cost between buyers and sellers. In general, buyers should pay cost, freight and insurance. It is good for solving conflict. In the end, incoterms is beneficial for relevant agencies to carry out operational activities3 Consolidation and groupage arrangementGroupageLess
25、-than-container load is a shipment that is not large enough to fill a standard cargo container. The abbreviation LCL formerly applied to less than car load for quantities of material from different shippers or for delivery to different destinations carried in a single railway car for efficiency. LCL
26、 freight was often sorted and redistributed into different railway cars at intermediate railway terminals en route to the final destination.Henry, Robert Selph LCL is a quantity of cargo less than that required for the application of a carload rate. A quantity of cargo less than that fills the visib
27、le or rated capacity of an inter-modal container. It can also be defined as a consignment of cargo which is inefficient to fill a shipping container. It is grouped with other consignments for the same destination in a container at a container freight station.2ConsolidationPeople take above Groupages
28、 containers to same warehouse to preserve together. Then, carrying them to different boat according to these containers destination, for example, there are 5 containers and 2 boat. If 2 containers destination is the U.S, they will be carried on A boat.If another 3 containers is to UK, they will be c
29、arried on B boat.Circumstances when they could be usedThe groupage often is normally used by the sea, rail and direct road. Its number is not large and the goods have no rigorous time requirements.Consolidation is fit for air transportation and carries necessities, thus when some emergencies happens
30、 or transportation need less time, the consolidation will be used. It acknowledges the general products instead of the exceptional productsCost effective pallet load levelBy the part 1, the choice is direct road whose cost is 1350 and to per pallet is 108 so result is 1350/108 =12.5. By calculating,
31、 the result is 12.5, so, when the load is equal to or bigger than 12.5 pallets, the direct road mode is effective. However, according to method, the result should be rounded to the nearest integer, thus the result is 13 finally.4 Least total costRoute AModeCostKirriemuir to CoatbridgeRoad145+28=173
32、poundsCoatbridge to SouthamptonRail 315+15+12*2+24.5+55=433.5 poundsSouthampton to Port de montreal CanadaSea1880+24.5+34=1938.5 poundsPort de montreal Canada to Ecosse HotelRoad420+2*18+32=488 poundsHire cost 32*6=192 poundsInsurance 80*=88 poundsTotal cost3313 poundsRoute BModeCostKirriemuir to Ti
33、llburyRoad505+32+6*15=627 poundsTillbury to Port de montreal CanadaSea2010+24.5+34=2068.5 poundsPort de montreal Canada to Ecosse Hotel Road420+2*18+32=488 poundsHire cost 23*6=138 poundsInsurance 80 poundsTotal cost3401.5 poundsRoute Mode Least total cost ARoadRail Sea Road3313 poundsBy above chart
34、, Route A- Kirriemuir Bottling Plant to CoatbridgeRailport to Southampton Container Terminal to Port de Montreal Canada to Ecosse Hotel is optimum choice. Because the cost of Route A is lower than Route B.5 Procedures and documentation tableAreaProcedureDocumentationTransportationForemost, company s
35、elects freight forwarder and sign contract and convey the goods from UK to the port of exports. Then, company loads goods after checking. Next, the purchaser lets bearer to help convey the goods.Then, conveying them to Canada. Next, the purchasers empty the ship. Then, the purchaser convey the goods
36、 to the manufactures factory. Finally, the goods are in the destination, finishing the process.Insurance listCommercial invoice3Goods classificationPacking listCommerceForemost, buyer consult price for seller. Then seller answer the question and offer quotation and pro-forma invoice. Next, buyer goe
37、s to custom and sign CISG5. Then seller export goods.Proforma invoice4Export invoiceCISGInternational commercial contractCustomsCustom staff check whether there are forbidden goods. If goods all are eligible, they will be allowed to enter into Canada and tax goodsCustoms invoiceCustomsdeclaration Go
38、od classificationIn the transportation, this procedures flow chart perhaps is warehouse,station,container freight yard,customs and destination, which involves these documents such as Insurance list, commercial invoice, goods classification, etc. In commerce, the flow chart, consulting,contract, orde
39、r form and preparation goods, whose relevant documents have proforma invoice, export invoice, CISG, international commercial contract. In custom, the pertinent procedure is uploading, checking, taxing and permitting through and its documents have customs invoice, customsdeclaration, good classification and so on.7 / 7
