SCM$930$ Incoterms Costing Exercise

Scenario:

You are employed at an import company $($Seneca Inc.$)$ negotiating a purchase for $2$ FCL quantity of computer components with a prospective seller $($Hi$-$Tech Exports$)$ in the Germany. You are still considering the terms under which you would like to purchase and so have requested some options from the seller $($supplier$).$

Customs Customs

Hi$-$Tech D$-1$ Bremerhaven Montreal Port of CN Rail CN Intermodal Bison Seneca Inc.

Exports Trucking Port, Express Montreal Brampton Transport Oakville, Ontario

Hanover. Germany Canada

Germany

Shipping Details$/$Routing:

$$ The goods $($computer components$)$ would be loaded into $2$ full containers at Hi$-$Tech Exports warehouse in Hanover and would be picked up by D$-1$ Trucking and delivered to the port terminal of Bremerhaven.

$$ From there, the containers would clear export customs and be loaded on the ship Montreal Express for ocean voyage to the Port of Montreal.

$$ From the Port of Montreal, the goods would go by rail to CN Intermodal Terminal Brampton where they would clear import customs.

$$ Once cleared, Bison Transport would pick up from there and deliver the containers to Seneca Inc. in Oakville, Ontario.

As part of the negotiation process, you are considering different options and need to identify the most suitable incoterm, location and associated purchase price $/$Seller$$s quote $($breakdown of charges below$)$ under each of the given circumstances outlined.

Seller$$s Cost List: $ CAD

Export Packaging $540\mathrm{.}00$ per FCL

Loading of Containers at Hi$-$Tech Exports $900\mathrm{.}00$ per FCL

Marine Insurance $75\mathrm{.}00$ per FCL

Import Clearance including Duties & Taxes $2500\mathrm{.}00$ per FCL

Trucking from CN Intermodal to Seneca Inc in Oakville $390\mathrm{.}00$ per FCL

Unloading at Seneca Inc in Oakville $300\mathrm{.}00$ per FCL

Export Clearance $95\mathrm{.}00$ per FCL

Rail from Montreal to CN Intermodal $($including unloading$)1200\mathrm{.}00$ per FCL

Ocean Freight $3500\mathrm{.}00$ per FCL

Unloading from Ship in Montreal $475\mathrm{.}00$ per FCL

Trucking to Port of Bremerhaven $500\mathrm{.}00$ per FCL

Loading on Ship in Bremerhaven $565\mathrm{.}00$ per FCL

Product $($computer components$)12,000\mathrm{.}00$ per FCL

$1.$ You $($buyer$)$ want the exporter to deliver the goods insured to Montreal Port but you will accept all risks as soon as the goods are given to D$-1$ Trucking.

Incoterm:

Location:

Price:

$2.$ You $($buyer$)$ want the exporter to deliver the goods to the Brampton Intermodal terminal. You will arrange for your own cargo insurance, and risk will be transferred when the goods are given to D$-1$ Trucking.

Incoterm:

Location:

Price:

$3.$ You $($buyer$)$ want the exporter to load the goods into the containers. You will accept risk for the goods once they are in possession of D$-1$ Trucking and you will make all the necessary arrangements to bring them to Seneca Inc. Oakville.

Incoterm:

Location:

Price:

$4.$ You $($buyer$)$ want the goods delivered to Seneca Inc, where you will assume risk for unloading them. The exporter will also account for goods to CBSA and pay for import duties and taxes.

Incoterm:

Location:

Price:

$5.$ You $($buyer$)$ want the goods delivered unloaded from the ship in Montreal. At that point you will take risk and make all arrangements for carriage and clearance from there.

Incoterm:

Location:

Price:

$6.$ You $($buyer$)$ want the goods delivered to and unloaded from the rail at Brampton Intermodal Terminal, where you will assume all costs and risk from there to Seneca Inc. Oakville.

Incoterm:

Location:

Price:

$7.$ You $($buyer$)$ have determined that the exporter doesn$$t have great freight rates. You prefer to have the exporter load the containers and deliver to the port of Bremerhaven. You will take care of the rest.

Incoterm:

Location:

Price:

$8.$ You $($buyer$)$ want the goods delivered to Seneca Inc, at that point you will assume risk for unloading them and you will handle all import clearance.

Incoterm:

Location:

Price: