Principles of Freight Forwarding
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ExecutiveSummary
Global Logistics Enterprise (GLE) has been hired to ship a less-than-container-load (LCL) of dangerous goods from Beijing, China to Toronto, Canada. Centennial College, Toronto, Progress Campus needs to receive hazardous materials, including toxic, flammable, as well as explosive compounds, for use in the chemistry laboratories. Alice Johnson, Material and Distribution Manager at GLE, has hired the services of freight forwarder Global Reach Logistics to ensure the secure shipment of these chemicals. They have the choice between walking and riding bicycles to go about. Gases also fluids According to the numbers, using Aeroplan to transport freight cuts the travel time in half, from 35 to 5 days. Shipping by sea is more expensive than shipping by air. Remember that exporting hazardous items requires special packaging, insurance, and cooperation with the appropriate government agencies. Because those conditions were outlined, CIF is the appropriate Incoterm to use. Using a freight forwarder, the buyer (who is also the risk taker) will transport chemicals from Beijing to Toronto. Because of the urgency with which Centennial College needs the chemical imported, the air route is suitable.
Contents
Introductoryletter
Global Reach Logistics offers a wide range of services designed to enhance and simplify your supply chain. Some kind of logistical task, no matter how big or little, may be completed by us.
Due to our reliability and low rates, we are a leading international freight forwarder. Our activities are managed by dedicated professionals with years of relevant expertise. We provide logistics solutions for road, air, rail, and marine transport, serving the transportation needs of local and international clients with headquarters in Canada as well as beyond.
Because of our unparalleled mix of knowledge, effort, professionalism, inventiveness, and care for our customers, we have set ourselves apart as a leading freight forwarding company. Because of this, both foreign and local customers have grown to depend on us for shipments of any size, including those carrying the nation’s most vital imports and exports. As part of our commitment to providing excellent service, we will always make every effort to ensure that your package arrives on time and in one piece.All the services we provide are summarized in this proposal. Consider this proposal seriously, thank you. We hope to continue helping you with your logistics needs for a long time to come.
Thanking you
Yours faithfully
ManagingDirector
UpCare, situated in Toronto, is a Canadian national distributor of cutting-edge medical products. To whom it may concern: a buyer, with shipment to UTC’s Tegalcigupta Campus in Honduras, C.A. To facilitate the shipment of products from Canada to Honduras, he requests that your company provide freight forwarding solutions.
Company Background
In 2002, we founded Global Reach Logistics with the intention of providing our customers with first-rate logistics management services. A few of our partners have taken CIFFA’s International Freight Forwarding Course and are now operating independently. Since its inception, the company has grown tremendously, and it is now widely regarded as a frontrunner among logistics companies thanks to its capability to provide first-rate services at competitive rates.We provide worldwide logistics management services, and at Global Reach, we have years of experience doing so. We value the trust our customers have placed in us and work hard to maintain enduring partnerships with them.
Services
AirFreightServices:To guarantee the timely and secure delivery of cargo through air, we have established connections with the world’s premier commercial airlines. We also help with getting all the paperwork for transfer from the country of origin to the country of destination.
RoadTransport: We are a global provider of road transportation services. Through our carefully vetted network of road and rail freight providers, we can operate.
OceanFreight: The world’s top shipping lines are partners of Global Reach’s, so we can meet the needs of our customers anywhere in the globe, quickly, and with enough room.
CustomClearance: We’re aware that clearing goods through customs requires expert knowledge of international trade to get the most favorable results for importing and exporting goods. Customers may rely on us to handle all paperwork necessary for customs clearance of their shipments, both domestically and internationally.
CREEEPSS Analysis
Creeps is defined as a single, gradual deformation that occurs around the edges of a piece of machinery because of thermal and mechanical stress. Furthermore, the phenomena of creep in materials subjected to high temperature and stress is a hot issue in many scientific communities, making creep analysis increasingly important in many sectors. Creeepss analysis necessitates the inception of a non-linear research, the activation of machinery, a Creeepss effect box, and various constant fields. This is necessary to get a precise accounting of information on a single component of the organisation.
To be more precise, it may be said that this study is especially important to the development of commerce between Canada and India. CATA is also familiar with the challenges posed by the many, social, political, environmental, economic, educational, religious, and cultural factors over which it has no say.
Competitive Analysis
| PESTLE | FACTORS | IMPACT |
| Political | ● Different types of taxes, including services tax, income tax, and sales tax, are being correctly applied by the liable government due to a well-developed taxation method.
● Effective measures are being taken to influence privatisation. |
Opportunity |
| Economical | ● In 2022, India’s interest rate is predicted to be close to 5.90%.
● In 2022, India’s inflation rate is predicted to be close to 7.4 percent. ● In 2021, India’s GDP was around $3,173.40B. |
Threat |
| Social | ● In 2022, the birth rate in India is projected to be about 17.163 births per 1000 people.
● The current mortality rate in India is around 7.380 per 1000 people. ● By 2022, the crime rate in India is predicted to have decreased by around 7.6 percent. |
Opportunity |
| Technical | ● By 2022, India is projected to have a 7.7 percent increase in its technical capacity.
● According to a 2022 poll, there are around 0.467 billion internet users in India. |
Neutral |
| Legislative | ● Equal Pay Act
● Health and safety act and law ● Consumers’ Rights Act |
Opportunity |
| Environmental | ● High rate of air pollution
● Natural disaster ● Covid-19 pandemic ● Flood |
Opportunity |
Table 1: PESTLE ANALYSIS
(Source: Self-developed)
Answer2:
CostingwithoutHoldingCost(OpportunityCostofCapital)
| BYWATER | BYAIR | |
| Water/Air freight | $3250 | $4855 |
| DockinNewYork | $385 | – |
| DeliveryinCanada | $220 | – |
| Insurance ($770×2) | $1540 | $250 |
| Packingandcrating | $675 | $120 |
| Documentation | $180 | $275 |
| TOTAL | $6250 | $5500 |
CostingwithHoldingCost(OpportunityCostofCapital)
| BYWATER | BYAIR | |
| Water/Air freight | $3250 | $4855 |
| DockinNewYork | $385 | – |
| DeliveryinCanada | $220 | – |
| Insurance ($770×2) | $1540 | $250 |
| Packingandcrating | $675 | $120 |
| Documentation | $180 | $275 |
| Opportunity cost of capital:10% = $32000 | $32000 x (35/365)=
$3068.49 |
$32000x (5/365)=
$438.35 |
| TOTAL | $ 9318.49 | $5938.35 |
Answer3:
The Product’s Guaranteed Delivery is Conditional on the Following:
Packaging:
If the items being sent are damaged in transit due to poor packing, not only will the shipment cost more, but the business will lose money.
- The TDGR are sufficient guidelines for shipping and receiving hazardous commodities when moving through maritime methods. However, the International Maritime Dangerous Goods (IMDG) code must also be followed if the shipment is to be delivered overseas. Toxins and infectious materials should only be packaged for shipment by, or under the supervision of, trained persons in a containment zone with the appropriate containment level. It is acceptable to complete final packing (i.e., placing into secondary shipping container, labelling) of sealed shipping containers containing poisons or infectious materials outside the containment zone.
- If shipping by aeroplane, use packaging that complies with International Air Transport Association (IATA) standards. For further information on the maximum allowable quantity of specific items that may be sent by aeroplane, please refer to section 2.6 of the IATA’s Shipping Regulations. There must be an Excepted Quantities Label on the packaging itself. When assuming an exception from IATA rules, further caution is required.
Insurance:
Suppliers of chemical products or chemicals that are completely controlled are required to give a transport document (shipper’s declaration for hazardous goods) that includes all of the information necessary to identify the substances being sent and the risks associated with transporting them. Shipping goods involves a variety of potential hazards. Its transfer through water poses more dangers. We advise getting ALL-RISK cargo insurance to protect against the possibility of any physical harm coming to the shipment. Given that the target location might be unfamiliar and dangerous, the policyholder has opted for the Named Perils Insurance.
GovernmentBodies:
The Regional Aviation Dangerous productsAgencies of Transport Canada oversee and enforce laws and regulations regarding the aviation transport of hazardous materials.
Shipping these items through air, sea, rail, or road is strictly governed by theThis is a violation of the federal Transportation of Unsafe Goods Act of 1992. Transporting hazardous materials must adhere to strict guidelines outlined in the Transportation of Dangerous Goods rules, which have been enacted by all Canadian territories and provinces.
There is a long range of items, chemicals, and creatures that must be regulated under federal and provincial regulations as hazardous commodities. There is a national initiative to improve transportation security for hazardous materials, and Transport Canada serves as its nerve centre. The TDG Directorate is the primary point of contact for the public, businesses, and government agencies seeking information and recommendations on transporting hazardous products. The Directorate’s subcomponents coordinate closely with their counterparts in other federal and provincial organizations to carry out the safety programme.
The ICAO Technical Instructions for the Safe Transport of Hazardous Goods by Air (TI’s) are the guidelines for the safe transport of dangerous goods by air, and the TDGR includes them by reference. The U.N Recommendations on the Transport of Dangerous Goods, Model Rules, and the Global Atomic Energy Agency Rules for the Secure Transport of Radioactive Material serve as the basis for both the ICAO Technical Instructions and the TDGR.
Research the most appropriate complete routes and ALL modes that will be used in eachcaseandoutlinethemonamap.Selectyourmode/routeandfullyjustifyyourdecisiononmode(s)?
Answer4:
RouteasperGivenCost
AlternateRoute:
FuzhouPorttoVancouverPortbyShip–(26Days)
RoutefromYanshanPetroChemicaltoFuzhouPortbyTransit–(1Day)
RoutefromVancouverPorttoCentennialCollegebyTransit-(4Days)
Tran
sittime estimate:32days
RoutebyAirFrom BeijingtoToronto
Routes:
- ByWater:
- The transport of the cargo from Yanshan Petrochemicals to Fuzhou port, Fujian, China, will take around 2 days via transit (Truck).
After that, the cargo will be loaded onto a Maersk vessel at Fuzhou port, Fujian, China, and sent to Vancouver port, British Columbia, Canada. This trip will take 26 days at sea.
- Then, the items will take three to four days to travel by rail from Vancouver port, British Columbia, Canada, to the centennial college progress campus.
TotalTransittimewillbe32days
- ByAir:
From Beijing to Toronto by plane takes roughly 24 hours, and another 24 hours by car to reach Centennial College.We estimate that the amount of chemical needed for the Centennial College laboratory will not be too great. That is why flying is, in our view, the most convenient and efficient option. When transporting a smaller number of products, air shipping is not only the most cost-effective option, but also the fastest. We may have thought of using maritime transport if the chemicals needed to be moved were to be sent in large quantities.
Recommendations
Since we will be transporting chemicals by air, the incoterm “cost insurance and freight” (CIF) is the most appropriate, as it shifts responsibility for loss or damage from the seller to the buyer once the goods have been loaded on the ship and the seller has arranged for payment to the specified port of destination.Ultimately, we have decided that air transport is the best option since the chemicals needed for the Centennial College laboratory don’t need to be sent in huge quantities and the items will arrive more quickly. Additionally, this means of transportation will prove to be more cost-effective for international logistics companies.Also, many people in India value and use ancient woodworking techniques. Canada’s exports to India are highly valued since the country is a major market for wood of many varieties. The Indian culture values house decorating, and Indians are known to often seek advice on how to create beautiful designs for their homes and other spaces. Wooden furniture and other decorative items are produced in abundance in Uttarakhand and Andhra Pradesh. India places a high priority on manufacturing, and the country offers specialised training in the skill of crafting furniture out of various woods. Despite this, cultural, economic, and political linkages exist between India and Canada because of the countries’ common goals and ideals
References
CargoRouter.com.(n.d.).CargoRouter-routingtoolforcontainerizedcargo.Retrievedfromhttp://www.cargorouter.com/
Cbsa-asfc.gc.ca.(2018).CommercialCarrierandFreightForwarderIdentificationandEligibility.Retrievedfrom:https://www.cbsa-asfc.gc.ca/services/carrier-
Internationalcommercialterms.guru. (2018). Incoterms. Retrieved from:https://internationalcommercialterms.guru/incoterms-cif/
Maerskroute.(n.d.).Retrievedfromhttps://www.maersk.com/schedules/#?
from=0D56BH9WK13ZY&to=365AMOGYI98RD&fromServiceMode=CY&toService
05&dateType=D&numberOfWeeks=4&containerIsoCode=42G1&vesselFlag
TransportCanada,&SecurityGroup.(2017,September21).Whoweare.Retrievedfromhttps://www.tc.gc.ca/eng/tdg/who-233.htm
Tc.gc.ca. (2018). Transportation of dangerous goods – Transport Canada. Retrieved from:https://www.tc.gc.ca/eng/civilaviation/standards/commerce-dangerousgoods-menu-
Appendix
| PESTLE | FACTORS | IMPACT |
| Political | ● Different types of taxes, including services tax, income tax, and sales tax, are being correctly applied by the liable government due to a well-developed taxation method.
● Effective measures are being taken to influence privatisation. |
Opportunity |
| Economical | ● In 2022, India’s interest rate is predicted to be close to 5.90%.
● In 2022, India’s inflation rate is predicted to be close to 7.4 percent. ● In 2021, India’s GDP was around $3,173.40B. |
Threat |
| Social | ● In 2022, the birth rate in India is projected to be about 17.163 births per 1000 people.
● The current mortality rate in India is around 7.380 per 1000 people. ● By 2022, the crime rate in India is predicted to have decreased by around 7.6 percent. |
Opportunity |
| Technical | ● By 2022, India is projected to have a 7.7 percent increase in its technical capacity.
● According to a 2022 poll, there are around 0.467 billion internet users in India. |
Neutral |
| Legislative | ● Equal Pay Act
● Health and safety act and law ● Consumers’ Rights Act |
Opportunity |
| Environmental | ● High rate of air pollution
● Natural disaster ● Covid-19 pandemic ● Flood |
Opportunity |
AlternateRoute:
FuzhouPorttoVancouverPortbyShip–(26Days)
