Your role is the materials and distribution manager for Apotex Pharmaceuticals in Toronto. You are responsible for all transportation, distribution, materials, and purchasing for that firm. Your freight forwarder is GCA (Global Canadian Agents), and Apotex can take care of the delivery to CGA at the airport terminal using their own trucks.

Your companies have been hired to deliver aid to the civil war zone of Tigray, Ethiopia, supplying emergency pharmaceuticals to Medicin sans Frontiere in that country. The United Nations has brokered a fragile peace plan, and the blockade of Tigray and risks to air traffic will be lifted for a one-week period. Your task is to take this opportunity to deliver 4.8 cubic meters of materials weighing 1.3 metric tonnes and having a value of $6,000,000.00. You are responsible for deciding all logistics necessary to deliver the goods to the hospital in Mik'ele (the Regional capital of Tigray).

You see there has been a recent atrocity and need to minimize risk and, as a result you need to do a complete international risk analysisAir Strike Kills Several in Tigray (Oct 28, 2021)

You have, so far, found the best two choices to get the cargo close to the destination, but you will need to recommend the best choice and the method of delivery to the final destination, Mik'ele.

Alternative 1	Alternative 2
YYZ - JFK - ASM (Air freight, UPS via JFK) Freight rates: Toronto - JFK by express truck, CAN $15.00/100 lb. JFK - ASM: +500 kg - US $11.32/kg	Montreal - Paris - Djibouti (Own consolidation to Paris, then your French agent's consolidation to Djibouti) Freight rates: YUL - CDG: +300 kg - CAN $3.56 CDG - JIB: +500 kg - EUR 7.98

Exchange rate: US $1.00 = CAN $1.23 EUR 1 = CAN $1.44

In teams of two, Apotex, Freight Forwarder, and the customer (Medicin sans Frontiere) decide on the following:

Question 1:

Recommend the Incoterms for Apotex to use in this case, given the available information on your customer. Completely justify your decision.

Reference:

Peter. K. (2020). Global Logistics. Centennial College .