Questions about Global logistics
CENTENNIAL COLLEGE Global Logistics International Delivery from Canada Assignment – 15% of final marks Project delivered at the conclusion of Global Logistics course. Scenario Your team will play the roles of a Freight Forwarder and a materials and distribution manager for Apotex Pharmaceuticals in Montreal. Your freight forwarder is GCA (Global Canadian Agents) and Apotex can take care of the delivery to GCA at the airport terminal using their own trucks. Your team is responsible for all transportation, distribution, materials, and purchasing for your firm. Your companies have been hired to deliver aid to the conflict zone of Yemen, supplying emergency pharmaceuticals to Medicin sans Frontiere in that country. The United Nations has brokered a fragile peace plan, and the blockade of Yemeni Ports and risks to air traffic will be lifted for a one-week period. Your task is to take this opportunity to deliver 4.5 cubic meters of materials weighing 1.2 metric tonnes and having a value of $8,000,000.00. You are responsible for deciding all logistics necessary to deliver the goods to the hospital in Yemen. 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 in the Governorate of Amran, in the north-west interior of Yemen. Alternative 1 Alternative 2 Montreal – New York – Riyadh (Air freight, UPS via JFK) Freight rates: Montreal – JFK by express truck, CAN $15.00/100 lb. JFK – RUH: +500 kg - US $11.02/kg Montreal – Paris – Cairo (Own consolidation to Paris, then your French agent’s consolidation to Cairo) Freight rates: YUL – CDG: +300 kg - CAN $3.36 CDG – CAI: +500 kg - EUR 6.93 Exchange rate: US $1.00 = CAN $1.30 EUR 1 = CAN $1.40 As a team, Apotex, Freight Forwarder, and the customer (Medicin sans Frontiere) decide on the following: 1. Calculate the chargeable weights and freight charges for both alternatives. (5 marks) Ref.: Module 8 2. Conduct a CREEEPSS risk analysis for conducting such a delivery to Yemen. Use this criteria and the above freight costs to recommend a route See: The Consequences of War in Yemen (3 marks) Ref.: Module 9 MSF. (2019, June 25). Indirect consequences of war in Yemen | MSF. Médecins Sans Frontières (MSF) International. https://www.msf.org/indirect-consequences-war-yemen 3. Find the most appropriate mode(s) and routes for the final delivery (from Cairo or Riyadh) to the hospital in Amran. Outline the finalized complete route on appropriate maps (door to door). (3 marks) Ref.: Module 10 4. Recommend the Incoterms® for Apotex to use in this case, given the available information on your customer. Completely justify your decision. (3 marks) Ref.: Module 11 5. Outline the role the freight forwarder will play in the transaction and describe all the necessary transportation documentation. (3 marks) Group Assignment Due Module 12: Submit your completed assignment before the end of Module 12 on Saturday, 11:59 P.M. Eastern Time (EST). Professionalism, style, organization and format (3 marks) Total 20 marks (value 15%) Project Marking Rubric Names: Section Mark Cost of Option 1 & 2 /5 CREEEPSS, Other Criteria /3 Route /3 Incoterms® /3 Roles & Documents /3 Professionalism, style, organization, and format /3 Case Total /20 /15% Comments © 2020 CENTENNIALCOLLEGE.CA All rights reserved. 1 © 2020 CENTENNIALCOLLEGE.CA All rights reserved. 3 Exercise 9.1 1. What are the key gateway hub airports for Canada and the USA (and their 3-letter codes) on this map? 2. What are the major international airports for Europe (and their 3-letter codes) on this map? Answers Air Freight Answers Air Freight Global Logistics Exercises: Module 8 Answers Page | 101 2019 Page | 132 2019 CIFFA 2019 Page | 2 3. What are the major international airports for Asia (and their 3-letter codes) on this map? Answers Answers Global Logistics Exercises: Module 8 Answers CIFFA 2019 Page | 3 Exercise 9.2 For each of the following questions, determine the chargeable weight (the weight that the air carrier will charge the shipper). 1. Globes, total weight is 75 kg, total volume is 0.425 m3 Step 1: determine the actual weight of the shipment. Actual weight = 75 kg Step 2: determine the volume weight of the shipment. Convert m3 to cm3 0.425 m3 x 1,000,000 = 425,000 cm3 Volume weight = 425,000 cm3 ÷ 6,000 = 70.83333 = 71 kg Step 3: determine the chargeable weight. Therefore, the chargeable weight is the actual weight = 75 kg 2. Drilling rods, total weight is 260 kg, dimensions are 65 cm x 30 cm x 30 cm (assume dimensions are the overall shipment dimensions). Step 1: determine the actual weight of the shipment. Actual weight = 260 kg Step 2: determine the volume weight of the shipment. Volume weight = 65 x 30 x 30 cm ÷ 6,000 = 58,500 cm3 ÷ 6,000 = 9.75 = 10 kg Step 3: determine the chargeable weight. Therefore, the chargeable weight is the actual weight = 260 kg 3. A single shipment consisting of two different kinds of cargo: fashion goods and books: · 10 cartons of fashion goods, the dimensions of each carton are 60 cm x 45 cm x 60 cm, and each carton weighs 20 kg. · 10 cartons of books, the dimension of each carton are 35 cm x 45 cm x 35 cm, and each carton weighs 24 kg. One method to deal with this shipment is to determine the volume weight of each piece of cargo, and then compare the totals of both, i.e., sum up the total volume weights and the total actual kg. This concept is the basis of how a freight forwarder can earn “his keep” in the business. Fashion goods: Step 1: determine the actual weight of the shipment. Actual weight = 20 kg x 10 cartons = 200 kg Step 2: determine the volume weight of the shipment. Volume weight = 60 x 45 x 60 cm x 10 ÷ 6,000 = 1,620,000 ÷ 6,000 = 270 kg Books: Step 1: determine the actual weight of the shipment. Actual weight = 24 kg x 10 cartons = 240 kg Step 2: determine the volume weight of the shipment. Volume weight = 35 x 45 x 35 cm x 10 ÷ 6,000 = 551,250 cm3 ÷ 6,000 = 91.875 = 92 kg Step 3: determine the chargeable weight. Add up the individual volume weights in order to combine (consolidate)