Naman Exports has got an export order recently for export of $$Ready Made Garments$$

to Stuttgart in Germany. The destination port would be Hamburg, Germany. However,

this is a small shipment and cannot be sent as a FCL$.$ The only choice Mr$.$ Anand Madhok

of Naman Exports has, is to send it as a LCL shipment. Since the size of the shipment

is comparatively big for LCL shipments, Anand wants to make sure that he gets the

best offer from a Freight Forwarder $($consolidator$)$ and thereafter appoint him as a $$carrier$$

for a Multimodal Bill of Lading from ICD Tughlakabad $($Also referred to as ICD TKD$)$ to

Stuttgart. ICD TKD has been chosen as it is the closest ICD to the manufacturing facility

which is located on the outskirts of Delhi$).$ After stuffing at ICD TKD$,$ the selected freight

forwarder will have the container railed out to the port of Mundra for shipment to Stuttgart

via Hamburg. The freight forwarder will do the custom clearance, move the goods to the

port, pay THC$,$ Ocean freight and have the custom clearance at the destination and have the

shipment delivered to the buyer namely $$Berlin Grip GMBH$,$ Ernst Augustin, Strasse $5,$

Stuttgart, Germany.$$

The contract has been finalised and Incoterms used for this shipment will be CIP $($Stuttgart$).$

Anand calls in for $2$ quotations and compares the rates given below. Since he has to execute the order in the next one week, he is busy in his follow up with his vendors so that the export shipment leaves on time. He has sought your opinion and wishes you to compare the two quotes and give your advice in the matter. The brief details of the shipment are given below. All $75$ cartons will move as one shipment.

Commodity: $$Ready Made Garments$$ packed in cartons

Number of cartons: $75$

Size of cartons: $70$ cms x $60$ cms x $55$cms $($Each carton$)($Total $35$ cartons$)$

$60$ cms x $55$cms x $50$ cms $($Each carton$)($Total $40$ cartons$)$

Total weight of shipment $(75$ cartons$)$: $9,100$ Kgs

Sr$.$ No Charge Head Quote from FF $1$ Quote from FF $2$

$1$ Transportation from warehouse of Naman Exports to ICD TKD INR $9,500$ INR $8,600$

$2$ Off$-$loading from Truck to warehouse at ICD TKD INR $60/$M$.$T$.$ or part thereof INR $60/$M$.$T$.$ or part thereof

$3$ Custom Clearance at ICD TKD $($Lump sum$)$ INR $6,500$ INR $5,800$

$4$ THC $($Stuffing & Handling Charges ICD TKD$,$ Rail charges ICD TKD $$ Mundra, THC Mundra Port$)$ INR $850$ W$/$M INR $850$ W$/$M

$4$ Ocean Freight $($Mundra to Hamburg$)$ USD $58$ W$/$M USD $49$ W$/$M

Insurance charges $($Naman Exports warehouse to Berlin Grip$$s warehouse, Stuttgart$)($Lumpsum$)$ USD $25$ USD $22$

$5$ Custom Clearance at Hamburg

$($Lump sum$)$ Euro $205$ Euro $195$

$6$ On$-$carriage from Hamburg to Stuttgart $($including loading at Hamburg$)($Lump sum$)$ Euro $215$ Euro $210$

$7$ Transit Time $($ICD TKD $$ Stuttgart$)39$ Days $49$ Days

$8$ Transshipment None One $($At Rotterdam$)$

Notes:

$1.$ FF$1$ & FF$2$ mean Freight Forwarder $1$ and Freight Forwarder $2$ respectively

$2.$ All the $75$ cartons will be clubbed and move as one shipment

$3.$ W$/$M means weight $($M$.$T$.)$ or measurement $($Cbm$),$ whichever generates higher revenue

$4.$ GST @ $18\%$ applicable on all INR charges only

$5.$ Exchange rate to be taken: I USD $=$ INR $82\mathrm{.}50$ & $1$ Euro $=$ INR $90\mathrm{.}70$

Question $2$

$($a$)$ Calculate the total charges for each of the above quotes

$($b$)$ Which is the better option and why considering the factors of transit time, transshipment at Rotterdam and all other factors that you can enumerate?