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页脚内容1
theCharacteristicofFuntionalStructures
1Transportationmodes
ModeTotalmodeCostperTransitAdvantagesDisadvantages
costpallet
time
Sea
Air
Rail
620
1265
1275
24.8
253
51
7daysCheapandSlowandhigh
largecapacityrisks
4hoursFastandExpensiveand
securefinitecapacity
2days
Fastandlarge
capacity
Lessflexibleand
needrailroad
Directroad135067.53daysBetterforSmallcapacity
shippedandandexpensive
convenient
Multi-mode1185
47.4
7days
18hours
Reduce
handing
cargo
Cost
ofinvestment
andhigh
of
is
quickertransit
times
页脚内容2
theCharacteristicofFuntionalStructures
Takeseaasanexample,becausetheshippingrequires25palletsandthetotalcostis620,thecostperpalletis620/25=24.8.Inthesimilarway,otherresultalsocanbecalculated,excepttheMulti-mode.TheMulti-mode’costis1185including125,620,295,and145,thusthecostperpalletis1185/25=47.4.
Airtransportationisoptimumchoice.Airtransportationcanusetheleasttimetoconveygoodsduetofasterspeed.Besides,italsoensuresthesecuritytoalargeextentrelatively.However,italsohassomedisadvantages.Airtransportationhasexpensivecost,andairportisdistantfrommunicipalcenter.
Seatransportationalsocanbechosen.Thoughitistheslowestmethodandvulnerabletobadweatherinocean,itisthelowestexpensesoffreightandcarriesthelargestquantities.
AngusGlenalsocanselectrail.Railhasalargecapacityandislessrefrainedbybadweather.Railhasthesedisadvantages,itisnotmuchflexibleandcannotworkwithoutrailroad.
2Consignmentdeliveryterm
Atradetermrequiringthesellertodelivergoodsnamed
airport,terminal,orotherplacewherecarrieroperates.Cost
losstransferbuyerandriskoflosstransfertothebuyerafter
delivertothecarriers.Thesellerfulfilshisobligationdeliver
whenhehashandedgoodsover,clearedforexport,intothe
chargeofthecarriernamednamedbythebuyeratthenamed
place.Whenusedtradeterms,word“free”meanssellerhasan
FCAFreeCarrier
(namedplaceof
delivery)
页脚内容3
theCharacteristicofFuntionalStructures
obediencetodelivergoodsnamedplacefortransfertocarrier
(,2016).
FOBFreeOnBoard
(namedportof
shipment)
atermininternationalcommerciallawspecifyingatwhat
pointthesellertransfersownershipofthegoodstothebuyer.
UndertheIncoterms2010standardpublishedbythe
InternationalChamberofCommerce,FOBisonlyusedin
non-containerizedseafreight,andalsodefinesownership
transfer.Theownerofthegoodsisresponsiblefordamageor
lossduringtransport,sothepointofownershiptransferis
important(,2016).
CIF
Cost,Insurance
&Freight
(namedportof
destination)
ThistermisbroadlysimilartotheaboveCFRterm,withthe
exceptionthatthesellerisrequiredtoobtaininsuranceforthe
goodswhileintransittothenamedportofdestination.CIF
requiresthesellertoinsurethegoodsfor110%oftheirvalue
underatleasttheminimu)mcoveroftheInstituteCargo
ClausesoftheInstituteofLondonUnderwriters,oranysimilar
setofclauses.Thepolicyshouldbeinthesamecurrencyasthe
contract.CIFcanbeusedbyanytransportbyseaandairnot
limitedtocontainerizedornon-containerizedcargoand
includesallchargesuptotheport/terminalofentrance.CIP
页脚内容4
theCharacteristicofFuntionalStructures
coversadditionalchargesattheport/terminalof
entrance(,2016).
CPTCarriagePaidto
(namedplaceof
destination)
Thesellerpaysforthecarriageofthegoodsuptothenamed
placeofdestination.However,thegoodsareconsideredtobe
deliveredwhenthegoodshavebeenhandedovertothefirst
ormaincarrier,sothattherisktransferstobuyerupon
handinggoodsovertothatcarrierattheplaceofshipmentin
thecountryofExport.Thesellerisresponsiblefororigincosts
includingexportclearanceandfreightcostsforcarriagetothe
namedplaceofdestination.Ifthebuyerrequiresthesellerto
obtaininsurance,theIncotermCIPshouldbeconsidered
instead(,2016).
CIPCarriageand
InsurancePaid
to(namedplace
ofdestination)
CIPrequiresthesellertoinsurethegoodsfor110%ofthe
contractvalueunderatleasttheminimumcoverofthe
InstituteCargoClausesoftheInstituteofLondonUnderwriters
oranysimilarsetofclauses.Thepolicyshouldbeinthesame
currencyasthecontract,andshouldallowthebuyer,the
seller,andanyoneelsewithaninsurableinterestinthegoods
tobeabletomakeaclaim.
页脚内容5
theCharacteristicofFuntionalStructures
CIPcanbeusedforallmodesoftransport,whereasthe
IncotermCIFshouldonlybeusedfornon-containerised
seafreight(,2016).
DATDeliveredAt
Terminal
(named
terminalatport
orplaceof
destination)http
s://en.wikipedi
/w/index.
php?title=Incot
erms&action=e
dit§ion=8
ThisIncotermrequiresthatthesellerdeliversthegoods,
unloaded,atthenamedterminal.Thesellercoversallthe
costsoftransport(exportfees,carriage,unloadingfrommain
carrieratdestinationportanddestinationportcharges)and
assumesallriskuntilarrivalatthedestinationportor
terminal.
TheterminalcanbeaPort,Airport,orinlandfreight
interchange,butmustbeafacilitywiththecapabilityto
receivetheshipment.
Allchargesafterunloadingaretobebornebybuyer.However,
itisimportanttonotethatanydelayordemurragechargesat
theterminalwillgenerallybefortheseller's
account(,2016).
DeliveredAt
DAP
UnderDAPterms,theriskpassesfromsellertobuyerfromthe
Place(named
pointofdestinationmentionedinthecontractofdelivery.
placeof
页脚内容6
theCharacteristicofFuntionalStructures
destination)
Oncegoodsarereadyforshipment,thenecessarypackingis
carriedoutbythesellerathisowncost,sothatthegoods
reachtheirfinaldestinationsafely.Allnecessarylegal
formalitiesintheexportingcountryarecompletedbythe
sellerathisowncostandrisktoclearthegoodsfor
export(,2016).
DDPDeliveredDuty
Paid(namedplaceofdestination)
Sellerisresponsiblefordeliveringthegoodstothenamed
placeinthecountryofthebuyer,andpaysallcostsinbringing
thegoodstothedestinationincludingimportdutiesandtaxes.
Thesellerisnotresponsibleforunloading.Thistermisoften
usedinplaceofthenon-IncotermFreeInStore.Thisterm
placesthemaximumobligationsonthesellerandminimum
obligationsonthebuyer.Noriskorresponsibilityistransferred
tothebuyeruntildeliveryofthegoodsatthenamedplaceof
destination(,2016).
Export-Carria
geto
Custom
portofs
Carriage(S
ea
Freight/Ai
rFreight)
Unloadi
ng
charges
inport
Carriag
eto
place
of
Loadin
gon
truck
inport
Import
custom
s
clearan
Loadin
g
charge
sin
Unload
ingof
truck
inport
Incote
rm
2010
Import
taxes
Insura
nce
页脚内容7
theCharacteristicofFuntionalStructures
EXW
FCA
FOB
CPT
CIF
CIP
DAT
DAP
DDP
declara
tion
Buyer
Seller
Seller
Seller
Seller
Seller
Seller
Seller
Seller
export
Buyer
Seller
Seller
Seller
Seller
Seller
Seller
Seller
Seller
of
export
Buyer
Buyer
Seller
Seller
Seller
Seller
Seller
Seller
Seller
portof
export
Buyer
Buyer
Seller
Seller
Seller
Seller
Seller
Seller
Seller
toport
import
Buyer
Buyer
Buyer
Seller
Seller
Seller
Seller
Seller
Seller
ofof
import
Buyer
Buyer
Buyer
Seller
Seller
Seller
Seller
Seller
Seller
of
import
Buyer
Buyer
Buyer
Seller
Buyer
Seller
Seller
Seller
Seller
destina
tion
Buyer
Buyer
Buyer
Seller
Buyer
Seller
Seller
Seller
Seller
Buyer
Seller
Seller
ce
Buyer
Buyer
Buyer
Buyer
Buyer
Buyer
Buyer
Buyer
Seller
Buyer
Buyer
Buyer
Buyer
Buyer
Buyer
Buyer
Buyer
Seller
Forincoterms’importance,itcanensurethattransactionsarefinishedsuccessfullyandsafely.Bynegotiating,sellers
andbuyerscansigncontractcontainingrightanddutyandotherpertinentitem.Italsoexplicitlyshowstheprice
页脚内容8
theCharacteristicofFuntionalStructures
andcostbetweenbuyersandsellers.Ingeneral,buyersshouldpaycost,freightandinsurance.Itisgoodforsolvingconflict.Intheend,incotermsisbeneficialforrelevantagenciestocarryoutoperationalactivities
3Consolidationandgroupagearrangement
Less-than-containerload(LCL)isashipmentthatisnot
largeenoughtofillastandardcargocontainer.The
abbreviationLCLformerlyappliedtolessthancarloadfor
quantitiesofmaterialfromdifferentshippersorfor
deliverytodifferentdestinationscarriedinasinglerailway
carforefficiency.LCLfreightwasoftensortedand
redistributedintodifferentrailwaycarsatintermediate
railwayterminalsenroutetothefinaldestination.(Henry,
RobertSelph(1942))
LCLis"aquantityofcargolessthanthatrequiredforthe
applicationofacarloadrate.Aquantityofcargolessthan
thatfillsthevisibleorratedcapacityofaninter-modal
container.Itcanalsobedefinedasaconsignmentofcargo
whichisinefficienttofillashippingcontainer.Itisgrouped
withotherconsignmentsforthesamedestinationina
containeratacontainerfreightstation.[2]
Consolidation
PeopletakeaboveGroupage’scontainerstosame
warehousetopreservetogether.Then,carryingthemto
Groupage
页脚内容9
theCharacteristicofFuntionalStructures
differentboataccordingtothesecontainer’sdestination,
forexample,thereare5containersand2boat.If2
containers’destinationistheU.S,theywillbecarriedonA
boat.Ifanother3containersistoUK,theywillbecarriedon
Bboat.
CircumstanceswhentheyThegroupageoftenisnormallyusedbythesea,railand
couldbeuseddirectroad.Itsnumberisnotlargeandthegoodshaveno
rigoroustimerequirements.
Consolidationisfitforairtransportationandcarries
necessities,thuswhensomeemergencieshappensor
transportationneedlesstime,theconsolidationwillbe
used.Itacknowledgesthegeneralproductsinsteadofthe
exceptionalproducts
CosteffectivepalletloadBythepart1,thechoiceisdirectroadwhosecostis1350
levelandtoperpalletis108soresultis1350/108=12.5.
Bycalculating,theresultis12.5,so,whentheloadisequaltoorbiggerthan12.5pallets,thedirectroadmodeiseffective.However,accordingtomethod,theresultshouldberoundedtothenearestinteger,thustheresultis13finally.
页脚内容10
theCharacteristicofFuntionalStructures
4Leasttotalcost
RouteA
Mode
Cost
KirriemuirtoCoatbridgeRoad145+28=173pounds
CoatbridgetoSouthamptonRail315+15+12*2+24.5+55=
433.5pounds
SouthamptontoPortdeSea
montrealCanada
1880+24.5+34=
1938.5pounds
PortdemontrealCanadatoRoad
EcosseHotel
420+2*18+32=
488pounds
Hirecost
Insurance
Totalcost
32*6=192pounds
80*(1+10%)=88pounds
3313pounds
RouteB
Mode
Cost
页脚内容11
theCharacteristicofFuntionalStructures
KirriemuirtoTillburyRoad
505+32+6*15=627pounds
TillburytoPortdemontrealSea
2010+24.5+34=2068.5
Canada
pounds
PortdemontrealCanadatoRoad
EcosseHotel
420+2*18+32=488pounds
Hirecost
23*6=138pounds
Insurance
80pounds
Totalcost
3401.5pounds
Mode
Route
Leasttotalcost
Byabove
A
RoadRailSeaRoad
3313pounds
chart,RouteA--Kirriemuir
BottlingPlanttoCoatbridgeRailporttoSouthamptonContainerTerminaltoPortdeMontrealCanadatoEcosseHotelisoptimumchoice.BecausethecostofRouteAislowerthanRouteB.
5Proceduresanddocumentationtable
页脚内容12
theCharacteristicofFuntionalStructures
Area
Procedure
Documentation
Transportation
Foremost,companyselectsInsurancelist
freightforwarderandsign
contractandconveythe
goodsfromUKtotheportof
exports.Then,company
loadsgoodsafterchecking.
Next,thepurchaserlets
bearertohelpconveythe
goods.Then,conveying
themtoCanada.Next,the
purchasersemptytheship.
Then,thepurchaserconve
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