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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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