Posted: September 19th, 2022

Question

GlobalLogisticGroupAssignment x

1

Global Logistic Group Assignment

Group Members’ Names

Professor’s Name

Course Name/No

Date

1.
Calculate the chargeable weights and freight charges for both alternatives. (5 marks)

Ref.: Module 8

To Calculate Chargeable weight:

4.5 cubic metres of materials equal to 274607 cubic inches

To convert cubic inches to Kgs. divide cubic inches by 366 (as per the US aircargo volume conversion)

Therefore 274607 cubic inches equals to 274607 / 366 = 750.30 kgs.

Since the actual weight of the consignment is 1200 kgs.that is more than the chargeable weight, we shall consider 1200 kgs for freight calculation.

The weight of the consignment is 1.2 metric tons that are 1200 kgs.

Given; US $ 1 = CAN $ 1.30

EURO 1 = CAN $ 1.40

Conversion of EURO and Canadian dollar to the US dollar and pound to Kg.

EURO 1 equals to US $ 1.21

CAN $ 1.41 equals to US $ 1.08

100 pounds equals to 45.36 Kgs.

Freight Calculation:

Alternative 1

Montreal – JFK by express truck

CAN $ 15.00 / 100 lb = US $ 11.62 / 45.36 kgs.

A. For 1200 kgs consignment (1200 / 45.36) * US $ 11.62 = $ 307.41

JFK – RUH; +500 – US $ 11.02 /kg

B. For 1200 Kgs. consignment 1200 * US $ 11.02 = $ 13224

Total Freight charges (A + B) $ 307.41 + $ 13224 = $ 13531.41

Alternative 2

YUL -CDG; +300 Kgs – CAN $ 3.36/ Kg = US $ 2.60 /Kg.

C. For 1200 Kgs of consignment = 1200 Kgs * US $ 2.60 /kg. = $ 3120

CDG – CAI; + 500 Kgs. – EURO 6.93 / Kg. = US $ 8.39 /kg.

D. For 1200 Kgs of consignment = 1200 Kgs * US $ 8.39/kg = $ 10068

Total freight charges (C + D) ($ 3120 + $ 10068) = $ 13188

2.
Conduct a CREEEPSS risk analysis for conducting such a delivery to Yemen. Use this criteria and the above freight costs to recommend a route See:

The Consequences of War in Yemen

(3 marks)

Ref.: Module 9

Transportation is the following system in the Global Flow Association including Yemen. Risks and problems in transportation are different based on factors like road closures, vehicle accidents, weather conditions, product theft, improper packaging, improper temperatures, and car accidents. Therefore, during the import-free period there are many potential hazards such as delays, blockages, documentation problems, investigation problems. After disposal of goods, the cycle of calculating costs and contributions can be understood. The main purpose of this technique is to identify the potential types of frustration, assess the state and the end result of the various parts that can reduce or eliminate the possibility of frustration. Findings can help researchers identify and eliminate frustrations that negatively impact the framework.

3.
Find the most appropriate mode(s) and routes for the final delivery (from Cairo or Riyadh) to the hospital in Amran. Outline the finalized complete route on appropriate maps (
door to door). (3 marks)
Ref.: Module 10

Air transport is the most appropriate means from Cairo to Riyadh. Airplanes are proving increasingly important in local and global trade. With the continuous evolution of progress and the largely unlimited price prospects, air transportation is the fastest growing and most efficient mode of shipping over time. As air travel becomes more sophisticated and reliable, more and more companies are entrusting airplanes with cargo and valuables. The increase in ubiquitous travel as a preferred means of travel further makes air shipping more useful as shipments are routinely carried out by passenger aircraft, making air transport another method of delivery of goods. There are several drawbacks to air travel. Air transportation in its current form is still the most expensive means of transportation. Likewise, due to the notion of air transport, the weight and volume of cargo must remain insignificant to ensure the well-being of aviation. The amount of emissions released by the air is also the most extraordinary of all modes of transportation.

4.
Recommend the Incoterms® for Apotex to use in this case, given the available information on your customer. Completely justify your decision. (3 marks)
Ref.: Module 11

The incoterms for Appotex that can be used in this case include the following:

EXW – former job (Cairo to Riyadh).

FCA – Free Carrier (Cairo to Riyadh)

CPT – Carriage Paid To (Cairo to Riyadh)

CIP – Transportation and insurance paid to (Riyadh)

All agreements using any type of Incoterms are valid if deemed fulfilled by all exchanges on the exchange and clearly marked in the commodity archives. Although the ICC proposes the use of Incoterms 2020 starting January 1, 2020, the transaction meeting may approve the use of post-2020 Incoterms adjustments. Of course, you must specify the form of Incoterms to use.

5.
Outline the role the freight forwarder will play in the transaction and describe all the necessary transportation documentation. (3 marks)

The freight forwarder prepares and submits documentation for goods and imports of goods in accordance with legal and customs requirements and understanding of transactions. The freight forwarder contacts the principal in debt settlement, customs assessment and collection of cargo and archives from customs after clearance. The forwarder’s duties vary depending on the type and size of the company (goods owner). Here are the main duties of a freight forwarder.

· Suggest suggestions to operators

Forwarding specialists advise and assist customers to get products from buyer to seller more efficiently. They notify customers in advance of possible difficulties in transporting goods. They negotiate with transportation professionals to reduce transportation costs.

Carrier details on shipping policies, banking practices and shipping costs can ease the shipping cycle.

· Reservation of loading space for transportation means

One of the main tasks of a freight forwarder is the reservation of cargo space on airplanes, trains, ships or various means of transportation. Many freight forwarders have the specialized skills and broad organization to enable their customers to import products from their respective countries. Most regular freight forwarders offer transportation options such as containers, ground transportation, and air vessels.

· Packing, Storage and Circulation

Before delivery or after the arrival of the goods, the carrier can arrange packaging, storage and distribution. Freight forwarders can store products in front of goods or imports pending transportation or distribution. Sometimes the contract of carriage may include managing the carrying capacity of the goods until the goods are cleared sufficiently for customs capacity.

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