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Alternative Transportation Routes Comparative Analysis and Suggested Best Route The transportation and freight logistics industry plays a critical role in international trade. In this scenario,
Alternative Transportation Routes Comparative Analysis and Suggested Best RouteThe transportation and freight logistics industry plays a critical role in international trade. In this scenario, we establish a commercial company in Singapore that exports a key product to a major client in an overseas country. Our company relies on thirdparty logistics companies to deliver shipments to our client. This essay will outline the identity of our organization, propose three sales quotations using incoterms 2020, map out two alternative transportation routes for each quotation, and compare transport costs and time to suggest the best route for each quotation. Identity of our Organization Our organization, known as "Asian Exporters Pte Ltd," is a Singapore-based company that specializes in the export a high-tech electronic device to an overseas major client located in the United States of America. Electronic goods, including smartphones, tablets, and laptops. The key product involved in the transportation plan is this high-tech electronic device. The statement also indicates that the core operations of the organization are located in Singapore , where we source our products from leading manufacturers, including Apple, Samsung, and Huawei. Our major client, "Global Retailers Inc.," is located in the United States, where we export our products. This means that the company has a significant presence in Singapore and that the transportation plan will likely focus on optimizing the transportation of goods from Singapore to the United States of America. Finally, the statement notes that the overseas major client has been a long-term partner of the organization. This suggests that the client is an important customer of the company and that the company has a significant relationship with the client. As such, it is important for the company to maintain good relations with the client and to ensure that the transportation plan meets the client's needs and requirements. b) Sale Quotation using CIF Incoterms: The second sales quotation proposed in the paper is based on Cost Insurance and Freight (CIF), where the organization is responsible for all costs associated with transport, insurance, and freight. This means that the organization will be responsible for arranging and paying for the transport of goods, as well as insuring the goods during transport. This quotation may be suitable for buyers who do not have significant experience or expertise in international trade and logistics, as the organization will take on most of the responsibilities and risks associated with the transport of goods. Under this quotation, we agree to deliver the goods to the port of shipment in Singapore and arrange for the transport of goods to the destination port in the United resources to manage the transportation of goods. The quotation is as follows: Product: 10,000 units of Apple iPhone 13 Price: USD 10,500,000 Incoterms: CIF US Port Role and Responsibility: - Our company will be responsible for the loading of goods on the ship and arranging for the transportation of goods to the destination port in the United States. - Global Retailers Inc. will be responsible for all costs associated with unloading goods from the ship and transporting the goods from the destination port to their final destination. Types of Cost: - Our company will be responsible for the cost of loading the goods onto the ship and arranging for the transportation of goods to the destination port in the United States. - Global Retailers Inc. will be responsible for all costs associated with unloading the goods from the ship and transporting the goods from the destination port to their final destination. c) Sale Quotation using DDP Incoterms (continued): The third sales quotation proposed in the paper is based on Delivered Duty Paid (DDP), where the organization is responsible for all costs associated with transport, insurance, freight, and duty. This means that the organization will be responsible for arranging and paying for all costs associated with the transport of goods, as well as any duties or taxes that may be imposed on the goods at the buyer's destination. This quotation may be suitable for buyers who prefer a "hands-off" approach to international trade and logistics, as the organization will take on all of the responsibilities and risks associated with the transport of goods. - 10,000 units of Apple iPhone 13 - Price: USD 11,000,000 - Incoterms: DDP Destination US - Role and Responsibility: - Our company will be responsible for the loading of goods on the ship, arranging for the transportation of goods to the destination in the United States, and clearing customs. - Global Retailers Inc. will be responsible for unloading the goods at the destination and storing the goods until they are ready for sale. - Types of Cost: - Our company will be responsible for all costs associated with transporting goods to the destination in the United States, including transportation, insurance, and customs clearance. - Global Retailers Inc. will be responsible for unloading the goods at the destination and storing the goods until they are ready for sale
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