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1Transportation modes
Mode
Total mode cost
Cost per pallet
Transit
time
Advantages
Disadvantages
Sea
620
24.8
7days
Cheap and large capacity
Slow and high risks
Air
1265
253
4hours
Fast and secure
Expensive and finite capacity
Rail
1275
51
2days
Fast and large capacity
Less flexible and need railroad
Direct road
1350
67.5
3days
Better for shipped and convenient
Small capacity and expensive
Multi-mode
1185
47.4
7 days 18 hours
Reduce handing of cargo and quicker transit times
Cost of investment is high
Take sea as an example, because the shipping requires 25 pallets and the total cost is 620, the cost per pallet is 620/25=24.8. In the similar way, other result also can be calculated, except the Multi-mode. The Multi-mode’ cost is 1185 including 125, 620, 295, and145, thus the cost per pallet is 1185/25=47.4.
Air transportation is optimum choice. Air transportation can use the least time to convey goods due to faster speed. Besides, it also ensures the security to a large extent relatively. However, it also has some disadvantages. Air transportation has expensive cost, and airport is distant from municipal center.
Sea transportation also can be chosen. Though it is the slowest method and vulnerable to bad weather in ocean, it is the lowest expenses of freight and carries the largest quantities.
Angus Glen also can select rail. Rail has a large capacity and is less refrained by bad weather. Rail has these disadvantages, it is not much flexible and can not work without railroad.
2 Consignment delivery term
FCA
Free Carrier
(named place of delivery)
A trade term requiring the seller to deliver goods named airport, terminal, or other place where carrier operates. Cost loss transfer buyer and risk of loss transfer to the buyer after deliver to the carriers. The seller fulfils his obligation deliver when he has handed goods over, cleared for export, into the charge of the carrier named named by the buyer at the named place. When used trade terms,
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