Case study: International Logistics 05/10/2017

Avda. Meridiana 354, 8ª Planta, Puerta D, Barcelona-08027, (Barcelona), España

Teléfono: +34 93 788 85 99 www.bebs.org

Master in Operations

Management &

Logistics

Case study: International Logistics 05/10/2017

BEBS “Barcelona Executive Business School”

Professor: Jordi Cuello

Avda. Meridiana 354, 8ª Planta, Puerta D, Barcelona-08027, (Barcelona), España

Teléfono: +34 93 788 85 99 www.bebs.org

Test 1 You are a manufacturer of light bulbs and have a customer in Barcelona. You should try to sell their production presenting various offers: 1. INCOTERMS DDP 2. INCOTERMS CIF BARCELONA 3. INCOTERMS FOB (PORT OF YOUR CHOICE) 4. You will reference the costs of freight and shipping containers 20 “40” 40 “HQ, choose the most interesting means of transportation, either by cost or by transit time. Here are some references.

“ALL IN” OCEAN FREIGHT

POL POD TT 20´ 40´ 40´ HC

Bangkok Barcelona 25 $420 $680 $730

Bangkok Barcelona 19 $500 $800 $850

Bangkok Barcelona 33 $325 $600 $700

Calcutta Barcelona 35 $850 $1.800 $1.800

Chiwan Barcelona 28 $300 $500 $550

Guangzhou Barcelona 16 $850 $1.100 $1.150

Ho Chi Minh Barcelona 30 $300 $500 $550

Hong Kong Barcelona 33 $300 $500 $550

Hong Kong Barcelona 25 $450 $700 $750

Hong Kong Barcelona 35 $225 $400 $450

Kaohsiung Barcelona 32 $300 $500 $550

Kaohsiung Barcelona 31 $450 $700 $750

Kaohsiung Barcelona 34 $225 $400 $450

Nantong Barcelona 33 $600 $950 $1.000

Nantong Barcelona 30 $275 $500 $550

Ningbo Barcelona 31 $300 $500 $550

Ningbo Barcelona 36 $450 $700 $750

Ningbo Barcelona 34 $225 $400 $450

Shanghai Barcelona 29 $300 $500 $550

Shanghai Barcelona 39 $450 $700 $750

Shanghai Barcelona 35 $225 $400 $450

Shantou Barcelona 27 $420 $710 $760

Shantou Barcelona 24 $525 $850 $900

Shenzhen Barcelona 24 $580 $840 $890

Shunde Barcelona 24 $775 $1.075 $1.125

Avda. Meridiana 354, 8ª Planta, Puerta D, Barcelona-08027, (Barcelona), España

Teléfono: +34 93 788 85 99 www.bebs.org

5. You need to make the final invoice tacking into account the Incoterms. 6. The DDP shipment must meet the costs of arrival in the port of Barcelona. Attached cost:

CONCEPTO/SERVICE FCL 20′

Dry FCL 40′

Dry FCL 40′ HC

Dry

THC 180,00 € 180,00 € 180,00 €

ISPS 10,00 € 10,00 € 10,00 €

Transporte /Inland transport 225,00 € 225,00 € 225,00 €

DOCUMENTACION 80,00 €

Despacho Aduana/Custom Clearance 150 €

Tasa Portuaria T3 / Port Tax T3 4 € POR TON (MIN 35€ x 20″ y

55€ x 40″

7. The tariff heading of the bulbs is: 8543.70.90.99 and duty 3.7% 8. The invoice must indicate all the elements necessary to perfectly identify conditions of sale, payment term, etc. 9. The invoice should have several product references and a different cost. 10. Once the three invoices are made, you need to send an “e-mail” to your customer in Barcelona, giving them the reasons why you have to use an incoterm or another.

Avda. Meridiana 354, 8ª Planta, Puerta D, Barcelona-08027, (Barcelona), España

Teléfono: +34 93 788 85 99 www.bebs.org

Test 2

Respond to the questionnaire. Only YES or NO

1. If you shop FCA Madrid Airport, do you pay the air freight? 2. If you shop DDP Tarragona, do you pay the maritime freight? 3. What if you sell FOB Mexico D.F., do you pay the maritime freight? 4. What if you sell CFR San Francisco, do you pay the insurance premium of the primary transport? 5. What if you sell DDP Rio de Janeiro, do you pay the insurance premium of the primary transport? 6. If you shop CPT Barcelona, do you pay the main transport? 7. If you shop FCA Milan, do you pay the insurance premium of the primary transport? 8. What if you sell merchandise EXW Peace, do you pay the load On the truck? 9. If you shop FCA Houston airport, do you pay the air freight?

10. If you shop DEQ Bilbao, do you pay the customs duties on the import (tariffs)? 11. If you shop DDU La Coruña, do you pay the customs duties on the import (tariffs)? 12. What if you sell DDU Jeddah (Saudi Arabia), do you pay customs duties on the import (tariffs)? 13. What if you sell CPT Cologne, do you pay the insurance of international transport? 14. If you shop FAS in the containers park of Atlantic Container Line New York, do you pay the maritime freight? 15. If you sell CIP Jeddah (Saudi Arabia), do you pay the export customs formalities? 16. Is the sale FCA Madrid an international sale? 17. If you sell CIF New York and the merchandise is destroyed during the trip, have you broken the contract? 18. If you shop FOB Aqaba, do you pay the stowage in the port? 19. If you shop DDP Manresa, do you pay the costs of customs clearance of export?

Avda. Meridiana 354, 8ª Planta, Puerta D, Barcelona-08027, (Barcelona), España

Teléfono: +34 93 788 85 99 www.bebs.org

20. What If You sell FCA Madrid, do you handle the recruitment of maritime assure?

Avda. Meridiana 354, 8ª Planta, Puerta D, Barcelona-08027, (Barcelona), España

Teléfono: +34 93 788 85 99 www.bebs.org