SCM930 Incoterms Costing Exercise You have been recently employed by Best Buy, Toronto Canada as an Assistant Buyer. You have been tasked with negotiating a large order of computer monitors, from Nanjing Electronics Company, China. You are in charge of the negotiations with the supplier and also the logistics. Shipping Details/Routing: The goods are to be shipped in a 20-foot FCL from Nanjing Electronics Co. by Nanjing Trucking to the Port of Shanghai China, and be loaded on the ship for ocean voyage to the Port of Seattle Washington USA. From the Port of Seattle Washington USA, the goods will be transported by Union Pacific Railway, crossing the US-Canada Border, to a Mississauga ON intermodal warehouse. Note: the shipment clears import customs at that Mississauga warehouse. From the Mississauga warehouse, the goods will be brought by DHL Trucking to the Best Buy Toronto warehouse. 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 below. Given the nature of the cargo and mode of transportation it is not recommended that goods be shipped uninsured. Associated Costs per FCL: The base cost of goods at Nanjing Electronics Company 90000 Ocean freight Shanghai to Seattle 3700 Inland freight (from Nanjing Electronics Co. to the Port of Shanghai China) 605 Export clearance/documents 130 Import clearance including duties and taxes 2800 Loading on ship in Shanghai 305 Unloading from ship in Seattle 300 Rail cost (Seattle Port, Washington to Mississauga ON warehouse) 900 Marine Insurance 400 Inland freight (from Mississauga warehouse to Best Buy Toronto warehouse) 205 Packaging goods for export (pallets and shrink wrapping) 500 1. You (buyer) want the goods delivered unloaded from the ship in Seattle. At that point you will take risk and make all arrangements for carriage and clearance from there. Incoterm: Location: Price: 2. You (buyer) want the goods delivered to and unloaded at Mississauga Intermodal Terminal, where you will assume all costs and risk from there to Best Buy. Incoterm: Location: Price: 3. You (buyer) want the exporter to deliver the goods to the Mississauga Intermodal warehouse. You will arrange for your own cargo insurance, and risk will be transferred when the goods are given to Nanjing Trucking. Incoterm: Location: Price: 4. You (buyer) want the exporter to deliver the goods insured to Seattle Port but you will accept all risks as soon as they arrive at the terminal at the port of Shanghai. Incoterm: Location: Price: 5. You (buyer) want the goods delivered to Best Buy Toronto, where you will assume risk for unloading them and pay for all import clearance. Incoterm: Location: Price: 6. You (buyer) have determined that the exporter doesnt have great freight rates. You prefer to have the exporter make the goods available ready for export movement. Incoterm: Location: Price: 7. You (buyer) want the exporter to load the goods onto the carrier Nanjing Trucking. You will accept risk for the goods once they are in possession of Nanjing Trucking and you will make all the necessary arrangements to bring them to Best Buy in Toronto. Incoterm: Location: Price: 8. You (buyer) want the goods delivered to Best Buy Toronto, 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: