You will play the roles of a Freight Forwarder and a materials and distribution manager for Apotex Pharmaceuticals in Toronto.

Your role is the materials and distribution manager for Apotex Pharmaceuticals in Montreal. You are responsible for all transportation, distribution, materials, and purchasing for that firm. Your freight forwarder is GCA (Global Canadian Agents), and Apotex can take care of the delivery to CGA at the airport terminal using their own trucks.

Your companies have been hired to deliver aid to the civil war zone of Tigray, Ethiopia, supplying emergency pharmaceuticals to Medicin sans Frontiere in that country. The United Nations has brokered a fragile peace plan, and the blockade of Tigray and risks to air traffic will be lifted for a one-week period. Your task is to take this opportunity to deliver 4.8 cubic meters of materials weighing 1.3 metric tonnes and having a value of $6,000,000.00. You are responsible for deciding all logistics necessary to deliver the goods to the hospital in Yemen.

You have, so far, found the best two choices to get the cargo close to the destination, but you will need to recommend the best choice and the method of delivery to the final destination, Mik’ele, the. Regional capital of Tigray.

Alternative 1	Alternative 2
Toronto – New York – Addis Ababa (Air freight, UPS via JFK) Freight rates: Toronto – JFK by express truck, CAN $25.00/100 lb. JFK – RUH: +500 kg - US $11.32/kg	Toronto – Paris – Cairo (Own consolidation to Paris, then your French agent’s consolidation to Cairo) Freight rates: YUL – CDG: +300 kg - CAN $3.56 CDG – CAI: +500 kg - EUR 6.98

Exchange rate: US $1.00 = CAN $1.30
EUR 1 = CAN $1.40

In teams of two, Apotex, Freight Forwarder, and the customer (Medicin sans Frontiere) decide on the following:

1. Calculate the chargeable weights and freight charges for both alternatives. (5 marks)

Target Completion Module 8

2. Conduct a CREEEPSS risk analysis for conducting such delivery to Mik’ele, Tigray. Use this criterion and the above freight costs to recommend a complete route into Mik’ele 

Target Completion Module 9

3. Find the most appropriate mode(s) and routes for the final delivery (from Cairo or Addis Ababa) to the hospital in Mik’ele. Outline the finalized complete route on appropriate maps (door to door). 
   Target Completion Module 10

4. Recommend the Incoterms^® for Apotex to use in this case, given the available information on your customer. Completely justify your decision. (3 marks)
   Target Completion Module 11

5. Outline the role the freight forwarder will play in the transaction and outline all the necessary shipping documentation. 

Answer rating: 100% (QA)

To Calculate Chargeable weight 45 cubic metres of materials equal to 274607 cubic inches To convert cubic inches to Kgs divide cubic inches by 366 as per the US aircargo volume conversion therefore 27... View the full answer