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Fright Transportation Calculation

One of your regular customers has 12 skids of machine parts to move from their regular supplier in Tokyo, Japan, to a manufacturing facility in Hamburg, Germany. Each skid is 1.150 cubic meters and weighs 175 kg. Your customer is concerned about price as well as transit time.

You are able to determine the following:

a) LCL ocean freight: CFS Tokyo – CFS Hamburg

Rate: US \$ 125.00/cubic meter

Scheduled transit time: 28 – 30 days from sailing Tokyo

b) Air freight: Terminal NRT – Terminal HAM (Hamburg)

Rate: +100 kg: Yen 1,576.00/kg

Scheduled transit time: 2-4 business days

c) LCL ocean freight: CFS Tokyo – CFS Vancouver

Rate: US \$95.00/cubic meter

Scheduled transit time: 11-12 days from sailing Tokyo

d) Air freight: Terminal YVR – Terminal HAM

• Rate: +100 kg: CAN \$ 5.15 / kg
• Scheduled transit time: 3-5 business days
• Exchange rates:

• US \$ 1.00 = CAN \$ 1.25
• YEN: 1.00 = CAN \$ 0.012
• Determine the best option to offer your customer, with the given information. Keep in mind their concern about price and transit time.

Questions:

1) What is the total weight for ocean freight?

2) What is the total volume for ocean freight?

3) What is the total weight for air freight?

4) What is the volume weight for air freight?

5) What is the freight charges for alternative #1 (ocean freight from CFS, Tokyo CFS, Hamburg)?

6) What is the freight charges for alternative #2 (air freight from Terminal, NRT to Terminal, HAM)?

7) What is the freight charges for alternative #3 (ocean freight from CFS, Tokyo to CFS, Vancouver + air freight from Terminal YVR to Terminal HAM)?

## Why US?

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