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.