Export Case

CANPULSE FOODS Ltd. is an export company located in Saskatoon, Saskatchewan and it exports different types of lentils seeds.

CANPULSE FOODS Ltd. wishes to export Urgent upon cargo readiness a container with the lentils seeds to Utrecht, Netherlands.

The cargo will be ready for loading, packaged in 25 kg bagsand placed on skids on Oct. 30, 2020. Skids are stackable and with four entries forklift access.

The Buyer would like, the shipper to select the most economical size of the container and maximize the container load as per the max container permitted weight.

The Buyer prefers the seller to arrange the destination inland movement of the container to the buyer premises.

The Buyer prefers, the shipper to take the risk and responsibilities of the cargo till the final door.

The Buyer will be responsible for the cargo unloading and customs clearance.

The Buyer will perform the cargo payment upon receiving the export documents.

Shipper requires you to find for him the fastest and most economical equipment option for the transportation.

Shipper wants to ensure the Buyer will obtain the product after payment is performed.

For this case study, assume that:

A. The chosen Marine carrier quoted you with the below rates that covered door to door service:

The rates are in USD currency, except the destination charges.

1 EUR=1.15 USD// 1 CAD=0.75 USD

Charges/ container type	20 container	40 /40HC container
Ocean freight rate	$1400	$1800
Origin Terminal Handling charges	$ 350	$ 450
Pre-carriage (origin)	$ 1200	$ 1600
Destination Terminal handling charges	280 Euro	320 Euro
On carriage (destination)	600 Euro	650 Euro
BL documentation fee	$ 50/ BL	$ 50 /BL
Fuel surcharge	$200	$300
Currency surcharge	10%	10%
High Cube surcharge		/10%

B. A trucking carrier quoted for origin inland transportation as per below rate:

The rates are in CAD currency.

Rate	20 container	40 /40 HC container
Road transport	$3550	$ 3850
Fuel surcharge	16%	16%

C. Additional cost that this case will absorb:

The rates are in CAD currency.

Additional cost	20 container	40 /40 HC container
Loading and Bracing	$ 200	$ 250
FFW Logistics cost at origin	$ 350	$ 350
Documentation cost at origin	$ 100	$ 100

Considering all rates provided by all transport carriers, determine the marine freight arrangement (door to door or port to door) which will be most economical for the shipper. Name it and justify your answer.