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 road135067.53da
2、ysBetter 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.
3、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 due to faster speed.
4、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 bad weather in oce
5、an, 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 Carr
6、ier (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 when he has handed
7、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). FOBFree On Board(named port of shipment)a term in
8、 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 transfer. The owner of
9、the goods is responsible for damage or loss during transport, so the point of ownership transfer is important(store.iccwbo.org, 2016).CIFCost, Insurance & Freight (named port of destination)This term is broadly similar to the above CFR term, with the exception that the seller is required to obtain i
10、nsurance 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. The policy should be
11、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.org, 2016).CPTCarria
12、ge 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 upon handing goods over
13、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 should be considered inste
14、ad(store.iccwbo.org, 2016).CIPCarriage 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 similar set of clauses. T
15、he 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-containerised seafreig
16、ht(store.iccwbo.org, 2016).DATDelivered 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 main carrier at destinat
17、ion 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 to be borne by buyer. H
18、owever, 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).DAPDelivered At Place (named place of destination)Under DAP terms, the risk passes from seller to buyer from the point of destination mentioned in the
19、 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 own cost and risk to clear
20、the goods for export(store.iccwbo.org, 2016).DDPDelivered 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 and taxes. The seller is
21、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 at the named place of dest
22、ination(store.iccwbo.org, 2016).Incoterm 2010Export-Customs declarationCarriage to port of exportUnloading of truck in port of exportLoading charges in port of exportCarriage(Sea Freight/Air Freight) to port of importUnloading charges in port of importLoading on truck in port of importCarriage to pl
23、ace of destinationInsuranceImport customs clearanceImport taxesEXWBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerFCASellerSellerBuyerBuyerBuyerBuyerBuyer Buyer BuyerBuyerFOBSeller Seller Seller Seller BuyerBuyerBuyer BuyerBuyerBuyerCPTSeller Seller Seller Seller Seller Seller Seller Seller B
24、uyer Buyer CIFSellerSellerSellerSellerSellerSellerBuyerBuyerSellerBuyerBuyerCIPSeller Seller Seller Seller Seller Seller Seller Seller Seller Buyer Buyer DATSeller Seller Seller Seller Seller Seller Seller Seller Buyer Buyer DAPSeller Seller Seller Seller Seller Seller Seller Seller Buyer Buyer DDPS
25、eller 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 explicitly shows the p
26、rice 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-than-container load
27、(LCL) 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 freight was of
28、ten 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 carload rate. A quantity of cargo less than that fills the visible or ra
29、ted 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 contain
30、ers 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 carried o
31、n 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 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 co
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