Problem 1. A customer is requesting your assistance in moving 75 pieces (water pumps) via ground transportation (truck) and needs to know how much it will cost? Your rate is $2.50CAN/100 Ibs. The actual weight of the shipment is 8750 Ibs. The volume weight is 6000 Ibs. How much will you charge the customer? Explain your calculation process, and provide the final amount to be charged.
Problem 2. Provide the correct INCOTERM to use for each of the following scenarios. The correct INCOTERM must be accompanied with a named place to achieve 2 full marks for each scenario.
a. The shipper "delivers" the cargo alongside the ship at the named port of loading of Halifax, Nova Scotia.
b. The seller of the merchandise does not want to assume any risk or cost in the delivery of the merchandise at his distribution centre in Winnipeg, Manitoba.
c. The buyer wants the seller to deliver the goods to their distribution centre in San Diego and not have to deal with customs issues.
d. The buyer will send a truck to the seller's warehouse and expects the seller to load the merchandise.
e. With cargo coverage in place, the seller arranges for the transportation to Rotterdam, NL but the ownership is passed to the buyer in the port of loading when the goods pass the ship's rail in Halifax, NS.