Question
Create a TCO for the following shipment. Use the Spreadsheet template you are given for the TCO. A number of items are bought from a
Create a TCO for the following shipment.
Use the Spreadsheet template you are given for the TCO. A number of items are bought from a supplier. The transaction fees for the payment were $1,250. The Incoterm is FOB (Port of Loading in China) Incoterms 2010. The supplier will need to use a 20 container and the freight rate for the container is $2,525, the Fuel Surcharge is $350 if the voyage (port to port) is completed in less than 60 days or $400 if competed in over 60 days. The Assessorial charges for the shipment are $175. The supplier will have to have an inspection done on the goods and provide a Certificate of Inspection for the goods before they ship. This will cost $120 and will take 5 days. The goods are ready for packing when the order is received, and the packing for protection while moving will take 4 days and costs $310. The Forwarder that the Customer appoints estimates the time to make the booking and have the container filled by the Supplier will be 8 days, and cost $100. The delivery to the export port will be 1 day and $75, while the export clearance will be $55. Delivery takes place 2 days before the vessel leaves. There is a THC of $250 for the export port, and $495 for the import port. It is estimated the port THC time to unload until leaving the port will be 3 days. A Fumigation fee is payable as well as a Phytosanitary certificate which costs $300 and $125 respectively, and take 2 days and 1 day respectively. The ship voyage will take 35 days, and the clearance into the USA will be done in 2 days, at a cost of $125 for the documentation and service, and duties will be levied at 4.75% on the purchase price of the goods inclusive of financial transactions. The transport to the final destination will cost $350 and takes 3 days. The goods were purchased at a cost of $750,000, payable on delivery at the port of export. Insurance for the marine movement (port to port) is carried by the buyer at 0.05% of the value of the goods inclusive of financial fees to purchase. While all this is in play, it become evident that a delay is going to occur and the ship will only arrive 5 days later than expected.
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