You are employed at an import company (Aerodynamic Inc.) negotiating a purchase for 5 FCL quantity of aircraft components with a prospective seller (L4C) in France. You are still considerin

Scenario:
You are employed at an import company (Aerodynamic Inc.) negotiating a purchase for 5 FCL quantity of aircraft components with a prospective seller (L4C) in France. You are still considering the terms under which you would like to purchase and so have requested some options from the seller (supplier).
Shipping Details/Routing:
The goods (aircraft components) would be loaded into 5 full containers at L4C Exports warehouse in Toulouse and would be picked up by Challenge Trucking and delivered to the port terminal of Marseille.
From there, the containers would clear export customs and be loaded on the ship Ever Glory for ocean voyage to the Port of Halifax.
From the Port of Halifax, the goods would go by rail to CP Intermodal Terminal where they would clear import customs.
Once cleared, Manitoulin Transport would pick up from there and deliver the containers to Aerodynamics Inc. in Mississauga, 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. Given the nature of the cargo and mode of transportation it is not recommended that goods be shipped uninsured.
Seller’s Cost List: $ CAD
Product (air components) 88000 Per FCL
Rail from Halifax to CP Intermodal (including unloading) 880 Per FCL
Loading on Ship in Marseille 400 Per FCL
Loading of Containers at L4C Exports 1100 Per FCL
Import Clearance including Duties & Taxes 6250 Per FCL
Export Clearance 150 Per FCL
Trucking from CP Intermodal to Aerodynamics in Mississauga 710 Per FCL
Unloading at Aerodynamics Imports in Mississauga 410 Per FCL
Marine Insurance 550 Per FCL
Export Packaging 680 Per FCL
Ocean Freight 5000 Per FCL
Unloading from Ship in Halifax 430 Per FCL
Trucking to Port of Marseille 790 Per FCL
You (buyer) want the goods delivered to Aerodynamic Mississauga, 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:
2. You (buyer) want the goods delivered to and unloaded at Vaughan Intermodal Terminal, where you will assume all costs and risk from there to Aerodynamic in Mississauga.
Incoterm:
Location:
Price:
3. 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 Marseille.
Incoterm:
Location:
Price:
4. You (buyer) want the goods delivered to Aerodynamic in Mississauga, at that point you will assume risk for unloading them and you will handle all import clearance.
Incoterm:
Location:
Price:
5. You (buyer) want the exporter to deliver the goods to the Vaughan Intermodal warehouse. You will arrange for your own cargo insurance, and risk will be transferred when the goods are given to Challenge Trucking.
Incoterm:
Location:
Price:
6. You (buyer) want the exporter to load the goods onto the carrier Challenge Trucking. You will accept risk for the goods once they are in possession of Challenge Trucking and you will make all the necessary arrangements to bring them to Aerodynamic Mississauga.
Incoterm:
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.
Incoterm:
Location:
Price:
8. 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.
Incoterm:
Location:
Price:

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