Please use the following information to calculate the total landed cost of importing 34,350 kg of silver from Russia (Polymetal International plc) to Kitchener, Canada. And provide the calculation process.

Name and Location of Supplier

Listed on the London, Moscow, and Astana International Exchange, Polymetal International plc is a top-five global silver producer with business located in Russia and Kazakhstan. (Polymetal International plc, 2022) In addition to selling gold and silver bars, Polymetal International also sell precious metals concentrates to buyers throughout the global market. (Polymetal International plc, 2022)

Commodity Unit Price

As of March 2022, the silver price per once on Russian Ruble is 2,526.24. The exchange rate to Canadian Dollar is 31.85 per once. (Gold Broker, 2022) The average price in 2020 was of US Dollar 20.5/oz. at that time the exchange rate was 1,482.15 Ruble in Canadian Dollar was 25.20 per once. (Polymetal International plc, 2022) This difference on exchange rate from Ruble to Canadian Dollar is due to the effects of the war that is taking place between Russia and Ukraine which has made Ruble slide its value in a 59% between February and March 2022.

Shipping and Handling

To make the most of its hub strategy, the company has acquired vital expertise in inbound logistics and outbound transportation of ores and concentrates in remote regions where it operates. In order to export silver concentrate this must be efficiently transported from mine to port by road, rail, or less usual pipeline, and then from port to the importer by ship. The precious metals handling systems are required at each phase of the operation to handle finely ground material such as Silver. At the same time, mines and ports must have dedicated storage warehouse to protect against wind and rain while ensuring both security and physical safety. (Walker, 2017)

Purchasing from Polymetal International

We determine that our company located at 299 Doon Valley Dr. Kitchener, Ontario, will purchase the maximum load capacity of 34350 kg of silver concentrate for calculation purposes. On a container of 20 ft, external dimensions 6058 length x 2438 width x 2000 height.

We also have determined to use Free Carrier - FCA incoterm. Polymetal International will take the responsibility to arrange the shipment from their warehouse to the Port of Vancouver. They will also be responsible for providing all the needed documentation as the country of origin and their export certification to export silver concentrate. The seller will pay the insurance from the place of origin to the port of Vancouver. you as buyer will cover the transportation arrangement and insurance from the port of Vancouver to its final destination.