Scenario 1 - Airfreight - the main carriage costs $17,500 per unit - $2,800 terminal processing fee at origin and $1,600 at destination - available in three days - leaves out of Chicago O'Hare (162 mi from Moline) directly to Madrid-Barajas (6.4 km from final destination) Scenario 2 - Ocean Freight (roro) - the main carriage costs $8,000 per unit - available in three weeks - see tables below for details Key Considerations The tractors generate a profit of $225 per day when they are used. Each tractor will be taken into production one week after arriving in Madrid. 3% import taxes (on freight value) apply independent of transportation mode and INCOTERMS. The insurance costs $800 for airfreight and $1,200 for ocean per unit. Transportation costs $3.75 per mile in the US and $2.45 per km in Spain. There is a $650 one-time charge for pre-carriage on trips under 250 miles. For on- carriage, there is a $475 one-time charge for trips under 100 km. The Spanish buyer will need to pay a freight forwarder 12% commission on transportation cost for shipments managed in the US and Spain. The American seller will need