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A shipment comprising medical supplies, equipment and parts is to be air-freighted from Amsterdam in the Netherlands to Singapore. Details of the air cargoes are

A shipment comprising medical supplies, equipment and parts is to be air-freighted from Amsterdam in the Netherlands to Singapore. Details of the air cargoes are shown below. The published rates for general cargo from Amsterdam to Singapore is shown below too.

Shipment

Cargo

# of pieces

Total vol (m^3)

Total weight (kg)

Medical supplies

900

13

2000

Medical equipment

24

2

800

Equipment parts

100

0.5

250

General cargo rates

Min rate

US$35

Normal rate

US$3.60/kg

Quantity rate (> 45kg)

US$3/kg

300 kg

US$2

600kg

US$1.50

Appraise the reduction in shipment charges by consolidation. How can you avoid high shipment charges for low density shipments? Assume the conversion factor to volumetric weight is 166.7kg/m^3.

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