You are employed at an import company (Plan4 Imports) negotiating a purchase for 3 FCL quantity of plastic pipes with a prospective seller (Form Exports) in Germany. You are still considering the terms under which you would like to purchase and so have requested some options from the seller (supplier). Shipping Details/Routing: The goods would be loaded into 3 full

You are employed at an import company (Plan4 Imports) negotiating a purchase for 3 FCL quantity of plastic pipes with a prospective seller (Form Exports) in Germany. You are still considering the terms under which you would like to purchase and so have requested some options from the seller (supplier).

Shipping Details/Routing:

• The goods would be loaded into 3 full containers at Form Exports warehouse in Bonn and would be picked up by Staunch Trucking and delivered to the port terminal Hamburg.
• From there, the containers would clear export customs and be loaded on the ship Canmar Venture for ocean voyage to the Port of Montreal.
• From the Port of Montreal, the goods would go by rail to CN Intermodal Terminal where they would clear import customs.
• Once cleared, Bison Transport would pick up from there and deliver the containers to Plan4 Imports in Milton, Ontario.

As part of the negotiation process, you are considering different options and need to identify the most suitable incoterm, location and associated purchase price (breakdown of charges below) under each of the given circumstances outlined. Given the nature of the cargo and mode of transportation it is not recommended that goods be shipped uninsured.

Seller’s Cost List: $ CAD

Product (Piping cost) 25,000.00 per FCL

Loading of Containers at Form Exports 500.00 per FCL

Marine Insurance 175.00 per FCL

Import Clearance including Duties & Taxes 3600.00 per FCL

Trucking from CN Intermodal to Plan4 Imports in Milton 490.00 per FCL

Unloading at Plan4 Imports in Milton 330.00 per FCL

Export Clearance 42.00 per FCL

Export Packaging 320.00 per FCL

Rail from Montreal to CN Intermodal (including unloading) 500.00 per FCL

Ocean Freight 4900.00 per FCL

Unloading from Ship in Montreal 375.00 per FCL

Trucking to Port of Hamburg 700.00 per FCL

Loading on Ship in Hamburg 365.00 per FCL

1. You (buyer) want the exporter to deliver the goods insured to Montreal Port but you will accept all risks as soon as they arrive at the terminal at the port of Hamburg.

Incoterm:

Location:

Price:

2. You (buyer) want the exporter to deliver the goods to the Brampton Intermodal warehouse. You will arrange for your own cargo insurance, and risk will be transferred when the goods are given to Staunch Trucking.

Incoterm:

Location:

Price:

3. You (buyer) want the exporter to load the goods onto the carrier Staunch Trucking. You will accept risk for the goods once they are in possession of Staunch Trucking and you will make all the necessary arrangements to bring them to Plan4 Imports Milton.

Incoterm:

Location:

Price:

4. You (buyer) want the goods delivered to Plan4 Imports Milton, where you will assume risk for unloading them. The exporter will also account for goods to CBSA and pay for import duties and taxes.

Incoterm:

Location:

Price:

5. You (buyer) want the goods delivered unloaded from the ship in Montreal. At that point you will take risk and make all arrangements for carriage and clearance from there.

Incoterm:

Location:

Price:

6. You (buyer) want the goods delivered to and unloaded at Brampton Intermodal Terminal, where you will assume all costs and risk from there to Plan4 Imports.

Incoterm:

Location:

Price:

7. You (buyer) have determined that the exporter doesn’t have great freight rates. You prefer to have the exporter make the goods available and cleared for export. You will take care of the rest.

Incoterm:

Location:

Price:

8. You (buyer) want the goods delivered to Plan4 Imports, at that point you will assume risk for unloading them and you will handle all import clearance.

Incoterm:

Location:

Price:

Expert Answer

Answer: Incoterm: FOB Hamburg Location: Montreal Port Price: $29,742 CAD. In this case, the most suitable incoterm would be FOB Hamburg, since the buyer is taking on all risks once the goods arrive at View the full answer