Your role is the materials and distribution manager for Apotex Pharmaceuticals. You are responsible for all transportation,
Question:
Your role is the materials and distribution manager for Apotex Pharmaceuticals. You are responsible for all transportation, distribution, materials, and purchasing for that firm. Your freight forwarder is CGA Inc (Canadian Global 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 the cargo to the civil war zone of Tigray, Ethiopia, supplying emergency pharmaceuticals to The Red Cross 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 5.2 cubic meters of materials weighing 1.6 metric tonnes and having a value of $5,000,000.00. You are responsible for deciding all logistics necessary to deliver the goods to the hospital inMik'ele (the Regional capital of Tigray).
You see there has been a recent atrocity and need to minimize risk and, as a result you need to complete international risk analysisAir Strike Kills Several in Tigray (Oct 28, 2021)
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 alternative. You must also research and describe the method of delivery to the final destination, from the selected airport (ASM or JIB) to Mik'ele.
Alternative 1 | Alternative 2 |
Montreal- New York- Eritrea - Mik'ele (Express Truck via JFK) Freight rates: Montreal - JFK by express truck, CAN $15.00/100 lb. JFK - ASM: +500 kg - US $11.32/kg ASM - Mik'ele | Montreal - Paris - Djibouti - Mik'ele (Own consolidation to Paris, then your French agent's consolidation toDjibouti) Freight rates: YUL - CDG: +300 kg - CAN $3.66 CDG - JIB: +500 kg - EUR 6.98 JIB - Mik'ele |
Exchange rate: US $1.00 = CAN $1.25 EUR 1 = CAN $1.40
In teams of two,Apotex, Freight Forwarder, and the customer (Red Cross) decide on the following:
- Conduct a CREEEPSS risk analysis on the two options for conducting such a delivery to Mik'ele, Tigray.
- Calculate the chargeable weights and freight charges for both alternatives.
- Use this risk assessment(above) and the calculated freight costs (above) to select the preferred optionto Mik'ele.Describe the mode(s) and routes for the final delivery (from Djibouti or Eritrea) toMik'ele. Outline the finalized complete route on appropriate maps (door to door).
- Recommend &b Completely justify the Incoterm for this case, given the available information on your customer's needs and the description of the situation.
- Outline the role the freight forwarder will play in the transaction and outline all the necessary shipping documentation needed for completion of the delivery.