International Freight, Shipment Costs, and Insurance Analysis

This report comprehensively analyzes international freight and shipment costs for goods transported from Brisbane to Tokyo. It delves into various aspects, including calculating ocean and air freight charges, considering volumetric weight, and loadability of containers. The report examines factors like TACT rates, fuel surcharges, and exchange rate impacts on airfreight. It provides costings for sending samples via Australia Post and FedEx, along with the cost of chartering an aircraft for executives. The report investigates rating principles for different transport modes and calculates standard and ancillary costs for shipping Tim Tams and Vegemite. It compares air and sea cargo services and explores cargo insurance options, recommending the most suitable coverage. The report also identifies necessary documents for carriers, forwarders, and insurance providers, offering a complete overview of international shipping logistics and cost considerations.

Task 2; part 3 and 4
Part 3
3. Calculate international freight and other shipment costs
Ocean transport is charged on the premise of varying rates:
Item or duty rate – significant to a specific product (relevant to mass
Load – higher FOB values regularly measures up to a higher cargo rate). Rates might be cited
Per ton or by volume.
Cargo of All Kinds (FAK) – Per TEU/FCL/LCL – Volume or weight
Adve Valorem – "As indicated by Value" – High Value Goods – Commodity Freight Rate +
Premium for Value of Goods
Refrigerated – The freight must be kept chilly e.g. meat
Exceptional – The load is one of a kind or uncommon e.g. transporting an Elephant between zoos
Perilous – The load is risky or unsafe somehow e.g. atomic waste or
Unstable material
Heavy Lifts – The payload requires the utilization of uncommon truly difficult work hardware
Air ship:
Calculation of cubic meters
CBM Formulae= {Length x Width x Height / 1,000,000} =
CBM= {Length meter x Width meter x Height meter} = Cubic meter (m3).
For instance, {35 cm x 35 cm x 46 cm} = 0.06 cbm
CFT Formulae= {Length" x Width" x Height" = divided 1729 = Cubic feet (CFT)

KT Formulae :={ Pounds divided by 2204.62} = Kiloton (Kt)
Once in a while, vast things with a light general weight can be charged by the
Space they take up on air ship. In these cases, Volumetric Weight, or dimensional (Dim)
Weight, is utilized to ascertain the shipment cost. It is prescribed that you compute
The Volumetric Weight for each shipment that you send, then contrast this with its genuine
Weight. The more noteworthy weight of the two is utilized to work out the value that we charge
you.
International volumetric weights are ascertained utilizing the equation beneath:
(Length x Width x Height in centimeters) / 5000 = Volumetric Weight in Kg
Loadability of ocean containers
20ft container approximately 2629 CBM
40ft container approximately 5659 CBM
• 40ft HQ container approximately 6069 CBM
• 46ft HQ container approximately 79 CBM
Store pack of Vegemite and Tim Tams in carton dimension: 31x46x31 cm
Total Tim Tams freight
Carton Dimensions: L 31 * W 46 * H 311cm
Carton Gross Weight: 2 kgs, Carton Quantity: 1 ctns
Total freight volume is 0.039 cubic meters (m³) or 1.44 cubic feet (ft³)
Total gross weight is 2.5 kgs or 4.5 lbs.; volume weight is 8.2 kgs or 18 lbs.
20' GP container can load 647~666 cartons
40' GP container can load 1274~1460 cartons

40' HQ container can load 1460~1650 cartons
Total Vegemite freight
Carton Dimensions: L 31 * W 46 * H 31 cm
Carton Gross Weight: 10 kgs, Carton Quantity: 1 ctns
Total freight volume is 0.39 cubic meters (m³) or 1.44 cubic feet (ft³)
Total gross weight is 11 kgs or 23 lbs.
20' GP container can load 647~666 cartons
40' GP container can load 1275~1410 cartons
40' HQ container can load 10.460~1650 cartons
Volume Workings
All cargo estimations will be on the basis of the greater of the actual weight or the
Volumetric weight. The workings for these are as below. This likewise applies to neighborhood
Costs, including port charges and cartage and so on.
You ought to affirm the real charges before delivery, as least cargo sums
Will apply. For most Sea cargo shipments the base charge is for 1000kg or 1m3, for
Air freight the base sums differ by port.
Ocean Freight Volume Workings.
The count of Sea cargo is for the most part in light of a proportion of 1m3 = 1000kgs.
Volumetric
Weight is ascertained as takes after:
(L) Length in meters x (W) Width in meters x (H) Height in meters x number of bundles =

Volume
For the Tim Tams shipment will be:
250 carton each measuring 31cm x 0.46cm x 31cm, and each weighing 2kg.
The workings will be:
Volume = 0,31x 0, 0.46 x 0,31x 250 = 10,126 m3 giving a volumetric weight of 10.126 kg,
Actual weight = 251 x 2 kg = 501kg.
The Sea freight cost might be worked out on the volume, and will be,
10,126 x freight rate.
For the Vegemite shipment will be:
100 cartons each measuring 31cm x 0.46cm x 31cm, and each weighing 11kg.
The workings would be:
Volume = 0,31x 0.46 x 0,31x 100 = 4, 06 m3 giving a volumetric weight of 4.060 kg,
Actual weight = 100 x 11 kg = 1100kg.
The Sea freight cost will be worked out on the volume, and will be, 4,06 x freight rate.
Air Freight Volume Workings.
The workings for Air freight costs is on the basis of a ratio of 1m3 = 168kgs.
The volumetric weight is calculated as above, then the answer is multiplied by 168 to
Determine the volumetric weight.
For the Tim Tams shipment would be:
Volumetric weight = (0,31cm x 0,46cm x 0,31cm x 251) x 168kg = 1.690,875 kg
In this example the Air freight cost would be on the basis of the actual weight of the
Shipment, and would be 500 x the freight rate.

For the Vegemite shipment would be:
Volumetric weight = (0,31cm x 0,46cm x 0,31cm x 110) x 168kg = 676,36 kg
In this instance the Air freight cost will be on the basis of the actual weight of the
Shipment, and will be 1000 x the freight rate.
Research and report on variations in airfreight charges caused by the applicability of TACT
rates, fuel surcharges and other variants. How does the exchange rate affect exports
 Currency name; Japanese yen
 import rate;63
 export rate;61
 Effective from= 07feb2014
fuel surcharges:
example for air freight aircraft operating cost calculator
Aircraft type: cargo DHC 8100 current fuel cost: 1,66aud/lt
summary of estimated costs:
Cost Summary Per Annum Per Month
Per operating
day
percentage
cost
Fuel 322661 26889 3842 86.0%
Finance 29849 2488 356 8.0%
Fixed cost 16891 1408 202 4.5%
Tyres 442 37 5.3 0.1%
Maintenance 3256 272 39 0.9%
Service 2999 251 36 0.8%
Total Estimates 376098 31345 4480.3 100%

Because is the fuels more expensive and also importing duty in different country
1. The Japanese buyer has requested a sample before shipment. Provide a costing for
sending a 12 kg parcel of Tim Tams by air from Brisbane to Tokyo using:
a. Australia Post
a. FedEx
To send with Australia Post the cost will be;
Service Parcel weight: >13kg 13kg by Express courier international merchandise 204,50 AUD
and by Express Post International 172,50 AUD while by Air Mail 165,50 AUD
The maximum weight able to send is 21kg.
To send with FedEx it will cost:
Australia Promotional Export Rates Zone B Japan 182,00 AUD
(10kg +additional rate per kg and up to 20kg) = 182,00+15,80 = 196,70 AUD
This is by Air mail. T
What is the maximum you can send via air with each of these providers?

By Air will be 13kg by air mail is more suitable use the Australia Post.
1. The Japanese buyer has requested an urgent formal trading conference with senior
executives from your company before shipment. Investigate and report the cost of chartering an
aircraft to fly from Brisbane to Tokyo, Japan, to take these executives to the trade conference.
There will be six executives including you.
Business class ticket flight from Brisbane to Tokyo is a/r 4,675 AUD per person.
(totaling AU$28,043) inclusive of tax and fees.
flight details
mon. mar. 10 Brisbane, qld to Tokyo, Japan Brisbane (bne) to denpasar (dps)
garuda 720 business class ( c), Boeing 737800
depart 9:46am arrive 2:11pm duration: 6h;24m
layover: denpasar (dps) 1h;26m denpasar (dps) to Tokyo (hnd)
garuda 876 business class ( c), airbus industries a380200
depart 3:36pm arrive 11:31pm duration: 6h;57m
2. Investigate and report the rating principles and methods used in domestic sea, road, rail,
and air.
Ocean transport is charged on the premise of varying rates:
Item or duty rate – significant to a specific product (relevant to mass
Load – higher FOB values regularly measures up to a higher cargo rate). Rates might be cited
Per ton or by volume.
Cargo of All Kinds (FAK) – Per TEU/FCL/LCL – Volume or weight
Adve Valorem – "As indicated by Value" – High Value Goods – Commodity Freight Rate +

Premium for Value of Goods
Refrigerated – The freight must be kept chilly e.g. meat
Exceptional – The load is one of a kind or uncommon e.g. transporting an Elephant between zoos
Perilous – The load is risky or unsafe somehow e.g. atomic waste or
Unstable material
Heavy Lifts – The payload requires the utilization of uncommon truly difficult work hardware
Air ship:
3. For your cargo of 500kg of Tim Tams and 1000kg of Vegemite calculate and document
all standard and extraordinary ancillary shipment costs on a door to door basis (4.10)
To calculate the shipping cost, there is need to take into consideration the charges constituent
for A Full Container Load (FCL) cargo:
 Lift on / Lift off: loading and unloading the cargo
 Terminal Handling Charge
 CAF / BAF
 Basic service rate / export wharfage / Port Service Charge / Australian port charge
 TEU equivalent unit rate / Forty foot equivalent unit rate
2. Compare and contrast the costs of shipping 500kg of Tim Tams and 1000kg of Vegemite
from Brisbane to Tokyo using the 3 air cargo services and 3 shipping services you identified in

The conclusion is that the total costs of shipping 500kg of Tim Tams and 1000Kg of Vegemite
from Brisbane to Tokyo is:
 By Cargo Master : $ 759.00 AUD
 By Pack & Send $ 822.00 AUD
 By Express cargo services : $ 724.00 AUD
 This confirms that cheapest is Express cargo service.
3. summaries the total cost concept and all factors that determine whether your cargo
(500kg of Tim Tams and 1000kg of Vegemite) should be carried by air, sea, or a
combination of both.
The cost to consider is’
 cost for transport from origin company to airport/port
 cost of delivery
 cost of indemnity
 cost of labor force
 cost for transport to customer business

Part four
4. Identify cargo insurance and claim requirements for cargo
Your cargo is now ready to go to Japan. The last thing to do is to arrange insurance.
Research and present 3 standard types of insurance cover.
Single Transit : These sort of protection is utilized to sporadic voyages. It isn't an programmed
cover, and consequently is more costly.
Open Policy: Instead the open arrangement is a consequently covers for each shipment you make
amid a year. Clients require not inform guarantors with respect to shipments before cruising, but
rather must make general statements. Rates are focused as the backup plan would typically have
the matter of the shipper.
Annual Policy: Similar to the Open approach there is the Annual arrangement, Renewed yearly.
1. Recommend which insurance cover your company should use for its cargo. Explain your
choice.
Being a transportation of long haul perishable merchandise, and a blended load, the best
alternative of protection for this situation is the "Limited Cover" Insurance advertised by United
Marine Insurance Australia. This sort of protection is especially suggested when the merchandise
are specifically sending by the proprietor or for professionally stuffed products. The protection
cover loss of or harm to the insured merchandise coming about because of the accompanying
occasions: Fire and additionally blast;

crash of vessel or air ship; upsetting as well as wrecking of movement; slamming and
additionally constrained arriving of flying machine; stranding, sinking, or contact of vessel with
any outside question (ice included) other than water; passage of water into any vessel, hold,
holder, lift van or place of capacity; burglary, pilferage or no-conveyance
2. List all of the documents to be lodged with carriers, forwarders, insurance underwriters,
and customs if your cargo is lost or damaged.
guarantors and traditions if your payload is lost or harmed.
If there should arise an occurrence of load harm or cargo misfortune, make certain:
1. Instantly review your payload, cargo, shipment, bundle, and so forth if
there's physical harm, deficiency or misfortune.
2. Any cargo misfortune or payload harm found at the season of conveyance MUST be recorded
on
the conveyance receipt as a special case. Make certain to keep a duplicate for your own load
protection assert record.
3. Any shipment misfortune or harm must be speedily answered to the nearest approved
illustrative of the freight insurance agency so that a surveyor be dispatched. The rundown of
agents can be found at https://marineexpress.rlicorp.com/
4. You MUST likewise instantly document a composed freight protection guarantee against all
other
transporters that might be conceivably in charge of the shipment misfortune or harm (e.g. Truck -

Railroad - Air - Ocean - Warehouse - Port). The composed claim ought to set forward the
misfortune or
harm and request that the bearer pay for such misfortune or harm.
5. Shipping Documentation required: See the rundown beneath.
6. The above methodology and documentation will typically be adequate, yet particular
conditions may require additional. You should dependably act speedily to sensibly and securely
save and ensure your shipment with a specific end goal to ensure your rights.
CLAIMS DOCUMENTATION (International transportation)
a. Suppliers receipt or other record to bolster the qualities and terms of offer.
b. Packing list (where material).
c. Delivery receipts or comparable records as confirmation of the condition and place of
misfortune.
2. Continuously take photographs (if conceivable) before emptying/unloading your cargo.
a. All unique transportation documentation - for instance: sea bill of replenishing, aviation
route charge,
3. trucking receipt as confirmation of the agreement of carriage.
a. Correspondence with transporters, providers, or other outsiders considering them
answerable
4. for any cargo misfortune or payload harm.
a. Original declaration of payload protection.
b. Insurance overview report, if pertinent.