1、1Transportation modesMode Total mode costCost per palletTransittimeAdvantages DisadvantagesSea 620 24.8 7days Cheap and large capacitySlow and high risksAir 1265 253 4hours Fast and secureExpensive and finite capacityRail 1275 51 2days Fast and large capacityLess flexible and need railroadDirect roa
2、d 1350 67.5 3days Better for shipped and convenientSmall capacity and expensiveMulti-mode 1185 47.4 7 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 pall
3、et is 620/25=24.8. In 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 du
4、e to faster speed. Besides, 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
5、 bad weather in ocean, 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 delive
6、ry termFCA Free Carrier (named place of delivery)A trade term requiring the seller to deliver goods named airport, terminal, or other place where carrier operates. Cost loss transfer buyer and risk of loss transfer to the buyer after deliver to the carriers. The seller fulfils his obligation deliver
7、 when he has handed goods over, cleared for export, into the charge of the carrier named named by the buyer at the named place. When used trade terms, word“free” means seller has an obedience to deliver goods named place for transfer to carrier (store.iccwbo.org, 2016).FOB Free On Board(named port o
8、f shipment)a term in international commercial law specifying at what point the seller transfers ownership of the 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 tra
9、nsfer. The owner of the goods is responsible for damage or loss during transport, so the point of ownership transfer is important(store.iccwbo.org, 2016).CIF Cost, Insurance & Freight (named port of destination)This term is broadly similar to the above CFR term, with the exception that the seller is
10、 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 under at least the minimu)m cover of the Institute Cargo Clauses of the Institute of London Underwriters, or any similar set of clauses.
11、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 and includes all charges up to the port/terminal of entrance. CIP covers additional charges at the port/terminal of entrance(store.iccwbo
12、.org, 2016).CPT Carriage Paid to (named place of destination)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 been handed over to the first or main carrier, so that the risk transfers to buyer up
13、on 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 destination. If the buyer requires the seller to obtain insurance, the Incoterm CIP shou
14、ld be considered instead(store.iccwbo.org, 2016).CIP Carriage and Insurance Paid to (named place of destination)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 London Underwriters or any si
15、milar 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 CIF should only be used for non
16、-containerised seafreight(store.iccwbo.org, 2016).DAT Delivered At Terminal (named terminal at port or place of destination)This Incoterm requires that the seller delivers the goods, unloaded, at the named terminal. The seller covers all the costs of transport (export fees, carriage, unloading from
17、main carrier at destination port and destination port charges) and assumes all risk until arrival at the destination port or terminal.The terminal 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
18、 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 account(store.iccwbo.org, 2016).DAP Delivered At Place (named place of destination)Under DAP terms, the risk passes from seller to buyer from the point of des
19、tination 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 safely. All necessary legal formalities in the exporting country are completed by the seller at his ow
20、n cost and risk to clear the goods for export(store.iccwbo.org, 2016).DDP Delivered Duty Paid (named place of destination)Seller is responsible for delivering the goods to the named place in the country of the buyer, and pays all costs in bringing the goods to the destination including import duties
21、 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 transferred to the buyer until delivery of the goods
22、at the named place of destination(store.iccwbo.org, 2016).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 explicitly shows the price and co
23、st 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 arrangementGroupage Less-than-container load (LCL) is a
24、 shipment that is not large enough to fill a standard cargo container. The abbreviation LCL formerly applied to less than car load Incoterm 2010Export-Customs declarationCarriage to port of exportUnloading of truck in port of exportLoading charges in port of exportCarriage(Sea Freight/Air Freight) t
25、o port of importUnloading charges in port of importLoading on truck in port of importCarriage to place of destinationInsuranceImport customs clearanceImport taxesEXW Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer BuyerFCA Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer Buyer BuyerFOB
26、Seller Seller Seller Seller Buyer Buyer Buyer Buyer Buyer BuyerCPT Seller Seller Seller Seller Seller Seller Seller Seller Buyer Buyer CIF Seller Seller Seller Seller Seller Seller Buyer Buyer Seller Buyer BuyerCIP Seller Seller Seller Seller Seller Seller Seller Seller Seller Buyer Buyer DAT Seller
27、 Seller Seller Seller Seller Seller Seller Seller Buyer Buyer DAP Seller Seller Seller Seller Seller Seller Seller Seller Buyer Buyer DDP Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller for quantities of material from different shippers or for delivery to different destinations
28、 carried in a single railway car for efficiency. LCL freight was often sorted and redistributed into different railway cars at intermediate railway terminals en route to the final destination.(Henry, Robert Selph (1942)LCL is “a quantity of cargo less than that required for the application of a carl
29、oad rate. A quantity of cargo less than that fills the visible 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 contain
30、er freight station.2Consolidation People take above Groupages 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 carri
31、ed on A boat.If another 3 containers is to UK, they will be carried 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 transportatio
32、n and carries necessities, thus when some emergencies happens 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 p
33、er pallet is 108 so result is 1350/108 =12.5. By calculating, 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 tot
34、al costRoute A Mode CostKirriemuir to Coatbridge Road 145+28=173 poundsCoatbridge to Southampton Rail 315+15+12*2+24.5+55=433.5 poundsSouthampton to Port de montreal CanadaSea 1880+24.5+34=1938.5 poundsPort de montreal Canada to Ecosse HotelRoad 420+2*18+32=488 poundsHire cost 32*6=192 poundsInsuran
35、ce 80*(1+10%)=88 poundsTotal cost 3313 poundsRoute B Mode CostKirriemuir to Tillbury Road 505+32+6*15=627 poundsTillbury to Port de montreal CanadaSea 2010+24.5+34=2068.5 poundsPort de montreal Canada to Ecosse Hotel Road 420+2*18+32=488 poundsHire cost 23*6=138 poundsInsurance 80 poundsTotal cost 3
36、401.5 poundsBy above chart, Route A- Kirriemuir Bottling Plant to Coatbridge Railport 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 tableArea Procedure DocumentationTran
37、sportation Foremost, company selects 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. Insur
38、ance listCommercial invoice3Goods classificationPacking listRoute Mode Least total cost A Road Rail Sea Road 3313 poundsThen, the purchaser convey the goods to the manufactures factory. Finally, the goods are in the destination, finishing the process.Commerce Foremost, buyer consult price for seller
39、. Then seller answer the question and offer quotation and pro-forma invoice. Next, buyer goes to custom and sign CISG5. Then seller export goods.Proforma invoice4Export invoiceCISGInternational commercial contractCustoms Custom staff check whether there are forbidden goods. If goods all are eligible
40、, they will be allowed to enter into Canada and tax goodsCustoms invoiceCustoms declaration Good 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, comm
41、ercial invoice, goods classification, etc. In commerce, the flow chart, consulting, contract, order 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, customs declaration, good classification and so on.
