Question: You are being hired by Best Forwarder Inc, 3456 Airport Road, Mississauga, Ont. L5K 6M8 Your agent in London is London Freight Forwarder Ltd, 123

You are being hired by Best Forwarder Inc, 3456 Airport Road, Mississauga, Ont. L5K 6M8

Your agent in London is London Freight Forwarder Ltd, 123 Main St, London, UK 9H5 1P2

You are going to consolidate the following 2 shipments under master airway bill # 125-12345678 and arrange through British Airway to ship to London Heathrow airport (LHR) from Toronto PIA airport (YYZ).

Shipment#1:

Shipper: Toronto Textiles Ltd, 789 Queens St.W, Toronto, Ont.M5M 5W8

Consignee: UK Clothier Ltd, 321 King St. W. London, UK. 1P5 9K8

Commodity: Men's golf T-shirts

Pieces: 120 cartons

Weight: 5 KG/carton

DIM: 0.5m x 0.4mx 0.3m

Shippment#2

Shipper: Markham Auto Engineering Ltd, 3050 Steels Ave. E, Markham, Ont. 9K6 7L4

Consignee: London Auto Engine Imports Ltd, 345 Edward St, London, UK 5M9 3P4

Commodity: Engine parts

Pieces: 8

Weight: 270 lbs/each piece

DIM: 40" x 36" x 30"

Rates (CAD/kg)

Weight range Airline (Buying) Forwarder(selling)
M 65 85
1-100 6.15 7.15
101-300 5.05 6.03
301-500 4.25 5.15
501-1000 3.35 4.25
1001-5000 2.56 3.34
5001-10000 1.95 2.38

IATA's ratio is 1 KG=6000 cm3 or 1 KG=366 in3

Required:

Please show the steps on how you arrived at your answers including calculations.

1. What is the freight charge the forwarder charges shipper#1? (5 marks)

2. What is the freight charge the forwarder charges shipper#2? (5 marks)

3. What is the total freight charge the airline charges the forwarder? (5 marks)

4. What is the profit for the forwarder? (5 marks)

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