INTERNATIONAL LOGISTICS #2
docx
keyboard_arrow_up
School
Humber College *
*We aren’t endorsed by this school
Course
5503
Subject
Industrial Engineering
Date
Feb 20, 2024
Type
docx
Pages
6
Uploaded by yuvrajbanga007
INTERNATIONAL LOGISTICS
Assignment #2
SUBJECT CODE
: SCM-5503-0GB
DATE SUBMITTED
: 29/JANUARY/2024
SUBMITTED BY
: AYUSH BANGA
STUDENT NO
: N01609894
INSTRUCTOR’S NAME
: PROF. MANVIR SINGH
Part A: Data – simply fill in the areas in the following table:
What Freight Forwarder did you use?
FREIGHTOS, https://ship.freightos.com/
What routing did you choose? Shanghai (CNSHA) , China TO Vancouver (CAVAN) , Canada)
40 Foot Container Cost
$6,366 (US$4,747)
20 Foot Container Cost
$5,179 (US$3,862)
40 Foot Container Transit Time
32 to 38 Days (Port to Port)
20 Foot Container Transit Time
32 to 38 Days (Port to Port)
Part B: Considering the differences?
Basis
40Ft Load
20ft Load
Transit Time
Best Value
$6731
$5560
16-23 Days
Cheapest
$6181
$5029
32-38 Days
Quickest
$7117
$5875
15-21 Days
* Base Price +Custom Duty +Insurance Cost= Total Price.
The data provided above are the charges of the products being shipped from Shanghai (CNSHA) , China To Vancouver (CAVAN) , Canada). As the table suggests, for the 20 ft. container, I have chosen the cheapest price quotation inclusive of the taxes and duty fees. Here, after converting the amount in CAD it sums up to $5029 and the transit time is 32-38 days which is sufficient for ocean transportation. Whereas for the 40 ft. container, the cheapest price quotation inclusive of the taxes, duty fees and the conversion sum up to $6181 and the transit time is the same as for the 20 ft. containers i.e.: 32-38 days. Here, we can see that the transit time is the same and for a 20 ft. container. Through the numbers drawn from the website of the freight forwarder, we observe that there is immediate cost savings due to its lower upfront costs compared to the 40 ft. containers. This can improve the company's bottom line and overall budget allocation for transportation
expenditures. Using a 20-foot container allows for more effective space use for the transport. This eliminates the possibility of cargo shifting during transit and the requirement for extra
robust systems, hence improving total shipment safety and integrity. Employing smaller containers, such as the 20-foot container, provides heightened adaptability and simplified handling procedures, thereby streamlining logistical operations. This optimized approach facilitates better coordination with freight forwarders, diminishes handling-related setbacks,
and bolsters overall transportation efficacy. Shipments contained within a 20-foot container typically entail reduced customs duty expenses when with larger consignments in a 40-foot container. This potential reduction in costs associated with customs clearance and import tariffs substantially improves the overall cost-efficiency of the shipping process. While we have 2 other quotations based on Value and Transit Time but ignoring these two cost saving is more important than transit time for me at current point of time.
I can choose the fastest way to send goods but it will cost me more.
Selecting the optimum shipper can sometimes be challenging as factors like duration of transit time can be dependent upon nature of product and urgency in Demand.
In my opinion selecting the cheapest way with extra lead time will be beneficial for me as it will have no negative impact on my Customer Satisfaction Rate and nor on my business.
In conclusion, the transit time remains the same, but we are saving in terms of the monetary expenses through the 20 ft. containers.
Before getting the quotations, in my opinion the shipping cost for 40FT container will be way
more higher than 20FT container but I was wrong, It is just that there is not much difference between the cost as compared to the space, as it is just double than 20FT to 40FT.
40 FT Container
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
20 FT Container
Part C: Provide your quotes
40 ft
20 ft
Bibliography
Freighto
. (2024, January Monday). Retrieved from Freighto: https://ship.freightos.com/
(Freighto, 2024)
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help