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SCM930 Incoterms Costing Exercise Scenario: You are employed at an import company (X2 Machinery) negotiating a purchase for 5 FCL quantity of machinery with a
SCM930 Incoterms Costing Exercise Scenario: You are employed at an import company (X2 Machinery) negotiating a purchase for 5 FCL quantity of machinery with a prospective seller (Excavate Exports) in Sweden. 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 Excavate D2D Malmo OOCL Port of CP Rail CP Intermodal CSA X2 Machinery Exports Trucking Port Canada Halifax Vaughan Transport Brampton, Ontario Copenhagen Canada Sweden Shipping Details/Routing: The goods would be loaded into 5 full containers at Excavate Exports warehouse in Copenhagen and would be picked up by D2D Trucking and delivered to the port terminal Malmo. From there, the containers would clear export customs and be loaded on the ship OOCL Canada for ocean voyage to the Port of Halifax. From the Port of Montreal, the goods would go by rail to CP Intermodal Terminal where they would clear import customs Once cleared, CSA Transport would pick up from there and deliver the containers to X2 Machinery in Brampton, 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 (breakdown of charges below) under each of the given circumstances outlined. Seller's Cost List: $ CAD Product (Machinery cost) 68,000.00 per FCL Loading of Containers at Excavate Exports 350.00 per FCL Marine Insurance 175.00 per FCL Import Clearance including Duties & Taxes 3600.00 per FCL Trucking from CP Intermodal to X2 Machinery 490.00 per FCL Unloading at X2 Machinery in Brampton 330.00 per FCL Export Clearance 42.00 per FCL Export Packaging 270.00 per FCL Rail from Halifax to CP Intermodal (including unloading) 500.00 per FCL Ocean Freight 5000.00 per FCL Unloading from Ship in Halifax 375.00 per FCL Trucking to Port of Malmo 700.00 per FCL Loading on Ship in Malmo 365.00 per FCL. You (buyer) want the exporter to load the goods onto the carrier D2D Trucking. You will accept risk for the goods once they are in possession of D2D Trucking and you will make all the necessary arrangements to bring them to X2 Machinery Brampton. lncoterm: Location: Price: . You (buyer) want the exporter to deliver the goods to the Vaughan lntermodal warehouse. You will arrange for your own cargo insurance, and risk will be transferred when the goods are given to D2D Trucking. lncoterm: Location: Price: . You (buyer) want the goods delivered to X2 Machinery, at that point you will assume risk for unloading them and you will handle all import clearance. lncoterm: Location: Price: . You (buyer) want the exporter to deliver the goods insured to Halifax Port but you will accept all risks as soon as they arrive at the terminal at the port of Malmo. lncoterm: Location: Price: . You (buyer) have determined that the exporter doesn't have great freight rates. You prefer to have the exporter make the goods available and cleared for export. You will take care of the rest. lncoterm: Location: Price: 6. You (buyer) want the goods delivered to X2 Machinery Brampton, where you will assume risk for unloading them. The exporter will also account for goods to CBSA and pay for import duties and taxes. lncoterm: Location: Price: 7. You (buyer) want the goods delivered unloaded from the ship in Halifax. At that point you will take risk and make all arrangements for carriage and clearance from there. lncoterm: Location: Price: 8. You (buyer) want the goods delivered to and unloaded at Vaughan lntermodal Terminal, where you will assume all costs and riskfrom there to X2 Machinery. lncoterm: Location: Price
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