Case 3 International transportation cost Introduction MERO is a UAE-based company selling maintenance, repair and operating (MRO) products to businesses and institutions in the Gulf region. MERO works with over 250 suppliers in China. These suppliers produce products to MERO's specifications and ship to the UAE using ocean freight carriers from 4 major ports in China. From these 4 major ports, containers are sent to Jebel Ali port in Dubai. After passing through customs, the containers are transported by trucks to MERO's central distribution center in Abu Dhabi, where the containers are unloaded and quality is checked. From there, individual items are sent to regional warehouses in ten locations in the Gulf region. Information about Chinese supplier shipments The contracts that MERO has with Chinese suppliers currently specify that the supplier owns the products and is responsible for all costs and risks incurred until the product is delivered to the shipping port (Group F incoterm). Currently, about 600000 m of products are shipped annually from China ports to Dubai. Two types of containers are used: the 20-foot container which has a maximum capacity of 42 m of products on average and the 40-foot container which has a maximum capacity of 85 m on average.