LP $3\mathrm{.}1$ GRADED EXERCISE #$2$: INTERNATIONAL SHIPPING TERMS $4\%$

Course Code: International Transport and Trade

Course Name: ITT$1020$

In$-$Class Activity: Individual$/$Group Work

ACTIVITY:

$1.$ For a term to be appropriate, what $2$ important issues must be addressed?

$2.$ As a freight forwarder, what would you advise your customer in the even that they are not controlling the freight and the and the seller arranges the freight?

$3.$ Name the $4$ main groupings.

$4.$ What rules fall under the rules for any mode of transport?

$5.$ What rules fall under the rules for sea and inland waterway?

$6.$ Describe the following terms:

EXW

FCA

FAS

FAS

FOB

CFR

CIF

CIP

DAP

DPU

DDP

$7.$ Awesome Exporters in Edmonton, Alberta sells products to Rio De Janeiro in Brazil

In each scenario determine if the buyer or seller is responsible

Terms of Sale: CPT$,$ Designated Port, Incoterms $2020$

$140$ ft ocean container

Terms of delivery: Ocean freight

a$)$ Who selects the freight forwarder and pays the ocean charges?

b$)$ The shipment was delayed at the arrival port due to customs clearance problems. Storage charges were $$600$ USD. Who is responsible to pay?

c$)$ When the goods arrive in Brazil at the consignee$$s door, the contents of $2$ pallets were damaged. Who bears the loss?

$8.$ You are employed by Up Front Imports, $127$ Garfield St S$,$ Winnipeg, MB$.$ You have just landed a contract to export furniture to Wu World Furniture, $2$F Nitori Mall Higashi$-$Osaka Japan.

Shipping Instructions:

$$ Goods are to be shipped from Up Front Imports by Jade Transport, $963$ Dugald Rd$,$ Winnipeg, MB to Winnipeg James A Richardson International Airport, $2000$ Wellington Avenue, Winnipeg MB$.$ The goods will be loaded onto a JAL flight to Los Angeles, US$.$

$$ From LA the goods will be loaded on to a flight to Osaka International Airport, $560-00363-555$

$$ Once the goods arrive in Osaka, Saikyo Logistics will deliver the goods to Wu World Furniture $2$F Nitori Mall Higashi$-$Osaka Japan.

The buyer has asked that you provide pricing quotes for the various delivery options below: What complete incoterms $2020$ would apply for the following scenarios?

a$)$ The buyer wants you to deliver the goods to Osaka, where he will assume risk for the goods, account for them to customs, and pay duties and taxes.

Example: DAP, Wu World Furniture $2$F Nitori Mall Higashi$-$Osaka Japan, Incoterms $2020.$

b$)$ The buyer wants the goods delivered insured to Osaka, but he is willing to assume risk for the goods once they are given to Jade Transport in Winnipeg.

c$)$ The buyer wants you to deliver the goods to Jade Transport. The buyer will make his own insurance arrangements, and is willing to assume risk for the goods once they are loaded on to Jade Trucking$$s trailer.

d$)$ The buyer wants you to deliver the goods to Jade Transport. The buyer will accept the risk and cost for the goods once they are in the possession of Jade Transport and will make all of the necessary arrangements to bring them to Osaka.

e$)$ The buyer wants you to deliver the goods to James A Richardson International Airport, $2000$ Wellington Avenue, Winnipeg MB$,$ where he will accept risk and cost for the goods and make necessary arrangements to transport the goods to Osaka.

$9.$ You are employed by A$1$ Imports Inc. $827$ Industriel, Bios$-$des$-$Fillion, QC$.$ You have a new client, S&J Distribution Wholesaler Unit $1$ Enterprise Way, Airedale Business Centre, Skipton, UK $01756796300,$ who wants to import maple syrup.

Shipping Instructions:

$$ H P Rh$$aume Transport $2516$ Lagueux Rte., Levis will deliver the container to Racine Terminals, Port of Montreal.

$$ Eurolines moves the container from the Port of Montreal to the Port of Liverpool, on board the vessel K$-$Line, Voyage #$998$A$,$ dock No$.82.$

$$ Le Dale Transport Automotive, Harwood Fold Farm Showley Road, Blackburn, UK will deliver the goods to S&J Distribution.

The buyer has asked that you provide pricing quotes for the various delivery options below: What complete incoterms $2020$ would apply for the following scenarios?

a$)$ S&J will make all of the transport arrangements and assume risk for the goods once they have been loaded onto the container at your location.

b$)$ S&J wants you to deliver the goods to the Port of Liverpool, however, S&J will assume risk for the goods once they are loaded on to the container.

c$)$ S&J wants you to deliver the goods to their distribution centre in Skipton. At this point, S&J will assume risk for the goods, ad account for them at UK customs.

d$)$ S&J ask that you make the goods available for pick up at your location, where they will assume the risk for the goods and arrange all transportation costs.

e$)$ S&J is willing to accept the risk for the goods once they are loaded into the container, but they have asked you to deliver the goods to the Port of Liverpool and insure the ca