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1、T r a nsportati on modesModeTotal mode costCost per palletTran sit timeAdva ntagesDisadva ntagesSea62024.87daysCheap and large capacitySlow and high risksAir12652534hoursFastandsecureExpensive and finite capacityRail1275512daysFast and large capacityLess flexible andneedrailroadDirect road135067.53d
2、aysBetterforshipped and convenientSmall capacity and expe nsiveMulti-mode118547.47 days18hoursReduce handing of cargoandquicker tran sit timesCostofinv estme nt is highTake sea as an example, because the shipp ing requires 25 pallets and the total cost is620, the cost per pallet is 620/25=24.8. In t
3、he similar way, other result also can be calculated, except the Multi-mode. The Multi-mode ost is 1185 including 125, 620, 295, an d145, 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. Besid
4、es, it also ensures the security to a large extent relatively. However, it also has some disadva ntages. Air tran sportati on has expe nsive cost, and airport is dista nt from muni cipal cen ter.Sea transportation also can be chosen. Though it is the slowest method and vulnerable to bad weather in o
5、cea n, it is the lowest expe nsesof freight and carries the largest qua ntities.An gus Glen also can select rail. Rail has a large capacity and is less refra ined by bad weather. Rail has these disadvantages,it is not much flexible and can not work without railroad.Con sig nment delivery termFCAFree
6、 Carrier (n amed placeA trade term requiri ng the seller to deliver goods n amed airport, term in al, or other place where carrier operates.of delivery)Cost loss transfer buyer and risk of loss transfer to the buyer after deliver to the carriers. The seller fulfils his obligati on deliver whe n he h
7、as han ded goods over, clearec for export, into the charge of the carrier n amed n amed by the buyer at the named place. When used trade terms, word “ free ” means shteer an obedienee to deliver goods n amed place for tran sfer to carrier (.FOBFree On Board (n amed port of shipme nt)a term in intern
8、ational commercial law specifying at what point the seller transfers ownership of the goods to the buyer. Un der the In coterms 2010 sta ndard published by the Intern ati onal Chamber of Commerce, FOB is on ly used in non-contain erized sea freight, and also defi nes own ership tran sfer. The owner
9、of the goods is resp on sible for damage or loss duri ng tran sport, so the point of own ership tran sfer is importa nt(.CIFCost, I nsura nee & Freight (n amed port of dest in ati on)This term is broadly similar to the above CFR term, with the excepti on that the seller is required to obta in in sur
10、a nce for the goods while in transit to the named port of desti nati on. CIF requires the seller to in sure the goods for 110% of their value un der at least the mini mu)m cover of the Institute Cargo Clauses of the Institute of London Underwriters, or any similar set of clauses. The policy should b
11、e in the same curre ncy as the con tract. 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 additi onal charges at the port/term inal of entran ce(.CPTCarriage Paid to(n ame
12、dplaceofdest in ati on)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 tran sfers to buyer upon handing goods over to that carrier
13、 at the place of shipment in the country of Export. The seller is responsible for origin costs including export cleara nce and freight costs for carriage to the n amed place of destination. If the buyer requires the seller to obtain in sura nce, the In coterm CIP should be con sidered in stead(.CIPC
14、arriage and In sura nee Paid to(n amedplaceofdest in ati on)CIP requires the seller to in sure the goods for 110% of the con tract value un der 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
15、 same curre ncy as the con tract, and should allow the buyer, the seller, and anyone else with an in surable in terest in the goods to be able to make a claim.CIP can be used for all modes of transport, whereas the In coterm CIF should only be used for non-contain erised seafreight(.DATDelivered At
16、Termi nal(n amedterm inal at port or place of dest in ati on)This In coterm requires that the seller delivers the goods, unioaded, at the named terminal. The seller covers all the costs of tran sport (export fees, carriage, uni oadi ng from main carrier at destination port and destination port charg
17、es) and assumes all risk until arrival at the destination port or termi nal.The termi nal can be a Port, Airport, or in la nd freight interchange, but must be a facility with the capability to receive the shipme nt.All charges after unioading are to be borne by buyer. However, it is important to not
18、e that any delay or demurrage charges at the termi nal will gen erally be for the sellers acco un t(.DAPDelivered At Place (n amed place of dest in ati on)Un der DAP terms, the risk passes from seller to buyer from the point of dest in ati on men ti oned in the con tract of delivery.Once goods are r
19、eady for shipme nt, the n ecessary pack ing is carried out by the seller at his own cost, so that the good 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 the goods for export(.DDPDelivered D
20、uty Paid (n amed placeofdest in ati on)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 not responsible for unioading. This term is often used in
21、 place of the non-1 ncoterm Free In Store. This term places the maximum obligati ons on the seller and minimum obligati ons on the buyer. No risk or resp on sibility is tran sferred to the buyer until delivery of the goods at the named place of dest in ati on(.In coteExport-CarriagUn loadLoad inCarr
22、iage(SeUn loadiLoadinCarriagIn sura nImportImportrmCustometoing ofganggonetocecustomstaxes2010sport oftruckchargesFreight/Airchargestruck inplace ofcleara ndeclaratiexportin portin portFreight) toin portport ofdesti natceonofofportofofimportionexportexportimportimportEXWBuyerBuyerBuyerBuyerBuyerBuye
23、rBuyerBuyerBuyerBuyerBuyerFCASellerSellerBuyerBuyerBuyerBuyerBuyerBuyerBuyerBuyerFOBSellerSellerSellerSellerBuyerBuyerBuyerBuyerBuyerBuyerCPTSellerSellerSellerSellerSellerSellerSellerSellerBuyerBuyerCIFSellerSellerSellerSellerSellerSellerBuyerBuyerSellerBuyerBuyerCIPSellerSellerSellerSellerSellerSel
24、lerSellerSellerSellerBuyerBuyerDATSellerSellerSellerSellerSellerSellerSellerSellerBuyerBuyerDAPSellerSellerSellerSellerSellerSellerSellerSellerBuyerBuyerDDPSellerSellerSellerSellerSellerSellerSellerSellerSellerSellerFor in coterms importa nee, it can en sure that tran sacti ons are fini shed success
25、fully and safely. By n egotiati ng, sellers and buyers can sig n con tract containing right and duty and other pert inent item. It also explicitly shows the price and cost betwee n buyers and sellers. In gen eral, buyers should pay cost, freight and in sura nee. It is good for sol ving con flict. In
26、 the end, in coterms is ben eficial for releva nt age ncies to carry out operati onal activitiesCon solidati on and groupage arra ngeme ntGroupageLess-than-container load (LCL) is a shipment that is not large eno ugh to fill a sta ndard cargo container. The abbreviatio n LCL formerly applied to less
27、 tha n car load for quantities of material from different shippers or for delivery to different destinations carried in a single railway car for efficie ncy. LCL freight was ofte n sorted and redistributed into different railway cars at in termediate railway term in als en route to the final destina
28、tion.(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 rated capacity of an inter-modal container. It can also be defined as a con sig nment of cargo which is in efficie nt to
29、fill a shipp ing container. It is grouped with other con sig nments for the same desti nati on in a container at a container freight statio n.2Con solidati onPeople take above Groupages containers to same warehouse to preserve together. Then, carry ing them to differe nt boat accord ing to these con
30、tainers desti nati on,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 on B boat.Circumsta nces whe n they could be usedThe groupage ofte n is no rmally used by the sea, rail
31、and direct road. Its nu mber is not large and the goods have no rigorous time requireme nts.Consolidation is fit for air transportation and carries n ecessities, thus whe n some emerge ncies happe ns or transportation need less time, the consolidation will be used. It ack no wledges the gen eral pro
32、ducts in stead of the excepti onal 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, the result is 12.5, so, when the load is equal to or bigger than 12.5pallets, the direct road mo
33、de is effective. However, according to method, the result should be roun ded to the n earest in teger, thus the result is 13 fin ally.Least total costRoute AModeCostKirriemuir to CoatbridgeRoad145+28=173 pou ndsCoatbridge to Southampt onRail315+15+12*2+24.5+55=433.5 pou ndsSouthampt onto Port demon
34、treal Can adaSea1880+24.5+34=1938.5 pou ndsPort de montreal Canada toEcosse HotelRoad420+2*18+32=488 pou ndsHire cost32*6=192 pou ndsIn sura nee80*(1+10%)=88 poundsTotal cost3313 pou ndsRoute BModeCostKirriemuir to TillburyRoad505+32+6*15=627 pou ndsTillbury to Port de montrealCanadaSea2010+24.5+34=
35、2068.5 pou ndsPort de montreal Canada toEcosse HotelRoad420+2*18+32=488 pou ndsHire cost23*6=138 pou ndsIn sura nee80 poundsTotal cost3401.5 pou ndsByRouteModeLeast total costARoad Rail Sea Road3313 pou ndsabove chart, Route A- Kirriemuir Bottling Plant to Coatbridge Railport to Southampton Con tai
36、ner Termi nal to Port de Mon treal Ca nada to Ecosse Hotel is optimum choice. Because the cost of Route A is lower than Route B.Procedures and docume ntati on tableAreaProcedureDocume ntati onTran sportati onForemost, compa ny selects freight forwarder and sig n con tract and convey the goods from UK to the port of exports. Then, compa ny loadsgoodsaftercheck ing.Next,thepurchaser lets bearer to help convey the goods. Then, con vey ing them to Ca nada.Next,thepurchasers empty the ship. Then, the purchaser convey the goods to the manu facturesfactory.
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