$1.$ What basic knowledge should you have before quoting a customer?

$2.$ What factors influence the price quote?

$3.$ Why is consolidation so important to a freight forwarder?

$4.$ A carrier quotes a rate of $$60$ per revenue ton. You are shipping a crate of machinery that

weights $850$ kg$.$

DIMS $1\mathrm{.}3$m x $1\mathrm{.}2$m x $0\mathrm{.}70$m$.$

Calculate the ocean freight charge.

$5.$ You are introducing a new, weekly consolidation service Hamburg $$ Halifax, with direct costs as follows:

Ocean freight: US $$1650/40-$ft standard container

Container loading in Hamburg: US $$8/$revenue ton

Halifax unloading: CAD $$10\mathrm{.}50/$revenue ton

Exchange rate: US $$1\mathrm{.}00=$ CAD $$1\mathrm{.}02$

Your sales and marketing department have determined the selling price is an all$-$inclusive rate of US $$58\mathrm{.}00/$revenue ton $($RT$).$

Answer the following: All calculations are based on m$^3$

$1.$ Last week you loaded $60$ m$^3$ in the container. What was your profit$/$loss$?$

$2.$ Last week you only loaded $40$ m$^3$ in the container. What was your profit$/$loss$?$

$6.$ Your customer is importing from a supplier in China and would like an air import quote.

$$ Chargeable weight $1000$ kg

$$ Terms: FCA Air carrier Hong Kong, China to door Toronto GTA Incoterms $2022$

$$ Your pricing desk has suggested a sell rate of CAD $$0\mathrm{.}25$ on the air freight.

$1.$ Create a Rate Quote for your Client

BUY RATE

Chargeable Currency Charges

Air Freight CAD $$3\mathrm{.}50/$ kg

Fuel CAD $$0\mathrm{.}20/$kg

Security CAD $$0\mathrm{.}05/$ kg

Origin Charges

Pick up Fee CAD $$0\mathrm{.}10/$kg

Minimum $$50\mathrm{.}00$

Handling CAD $$45\mathrm{.}00$ per shipment

Terminal Handling CAD $$0\mathrm{.}04/$kg

$$10\mathrm{.}00$ minimum

Destination Charges

Handling CAD $$45\mathrm{.}00/$shipment

Terminal Handling $$0\mathrm{.}08/$kg

$$45\mathrm{.}00$ minimum

NavCan Fee $$0\mathrm{.}07/$kg

Minimum $$7\mathrm{.}00$

Delivery $$0\mathrm{.}03/$kg

Minimum $$50\mathrm{.}00$

$7.$ Your customer is sending product to Rome, Italy and has requested an air export rate.

$$ Commodity: $20$ Boxes of books

$$ Dimensions per box: $70$ in x $100$ in x $5$ in

$$ Weight per box: $100$ kg

$$ Terms: CPT Basel, Switzerland, Incoterms $2022$

$$ Your pricing desk has suggested a sell rate of CAD $$0\mathrm{.}25$ on the air freight per kilo rate

$$ Exchange Rate: $$1$ CHF $=$ $$1\mathrm{.}30$ CAD

$$ US $$1\mathrm{.}00=$ $$1\mathrm{.}30$ CAD

$$ Create a Rate Quote for your Client in Canadian dollars.

Chargeable Currency Charges

Ocean Freight USD $$125\mathrm{.}00/$cbm

Fuel Recovery Charge USD $$17\mathrm{.}00/$cbm

CAF USD $$5\mathrm{.}00/$ cbm

Origin Charges

ACI CAD $$30\mathrm{.}00/$shipment

Handling charge CAD $$60\mathrm{.}00/$shipment

B$13$ export declaration fee CAD $$17\mathrm{.}50/$shipment

Inland Pickup Fee CAD $$150\mathrm{.}00$

Destination Charges

Handling CHF $$50\mathrm{.}00/$shipment

Terminal Handling CHF $$10\mathrm{.}00/$cbm

Customs clearance CHF $$75\mathrm{.}00$ flat fee

Delivery CHF $$150\mathrm{.}00$ flat fee

$8.$

Be prepared to share your answers with the class and upload to Moodle for Grading.