INTL704: Global Logistics Transportation Case Assignment Analysis

This case study analyzes the global logistics of transporting pharmaceuticals from Toronto to La Ceiba, Honduras. It evaluates two primary transportation options: water and air freight. The analysis includes a detailed cost comparison, considering freight charges, delivery, documentation, insurance, packing, and holding costs, including opportunity cost. The assignment explores the factors influencing transportation decisions, such as safety, working conditions, and the underdeveloped infrastructure of Honduras. The optimal route is determined to be from Toronto Pearson Airport to Goloson, Honduras, via air, due to time efficiency. The case also covers the application of Incoterms, specifically focusing on how they define responsibilities and costs between the buyer and seller, with a recommendation to use C terms for shipment tracking purposes. Additionally, the assignment outlines essential documentation required for international shipments, such as airway bills, dock receipts, certificates of origin, and commercial invoices. The case provides a comprehensive overview of the complexities involved in international logistics and supply chain management.

Running head: GLOBAL LOGISTICS
Global Logistics
Name of the Student:
Name of the University:
Author’s Note:

1GLOBAL LOGISTICS
Table of Contents
In Response to Question 1...............................................................................................................2
In Response to Question 2...............................................................................................................2
In Response to Question 3...............................................................................................................3
In Response to Question 4...............................................................................................................3
In Response to Question 5...............................................................................................................4
In Response to Question 6...............................................................................................................4
Reference.........................................................................................................................................5

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In Response to Question 1
Honduras lying in the Central American region where the Caribbean Sea coastline lies to
the north and in the south the Pacific Ocean lies from the region. The region is having a exposure
with the multi-ethnic population which comprise of around 85% Mestizo, 8% Caucasian, 6%
Amerindian and 1% Black. The country attracts crowds and people in the form of their culture
and artistic creation of the various kind of materials they prepare. The special event “Punta”
attracts a lot of crowd where the people of the region depict there artistic skills and knowledge
(Bing et al. 2016).
The region has a primary population where the majority of the people lies below the
poverty line, the unemployment rate for the country is also high where the rate of unemployment
was around 28%. The country is underdeveloped and the rising unemployment rate and the
poverty growth rate in the population has been growing due to the disrupt macro conditions
under which the economy performs. The climatic condition of the country is admitted to be
favorable in terms of tropical climatic conditions. The Administrative power is vested in the
hands of the National Congress of Honduras. The crime report reported in the country is
widespread in crime and violence making it one of the world’s most noteworthy crime rate
observable in the country.
In Response to Question 2
The total cost for each of the transportation was identified, evaluated, and calculated
where the air transportation was considered much effective and the cost between the air and
water does not differ much (Eroglu & Croxton, 2015).

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Total Cost Involved
Particulars Water Air
Freight Charges 1500 2900
Delivery Charges to Dock 345 -
Delivery Charges to Plant and Machinery 120 -
Documentation 180 150
Insurance Charges 900 850
Packing and Crating 325 140
Holding Costs (Excluding Opportunity Cost) 3370 4040
Opportunity Cost (500,000 @ 12%) 60000 60000
Holding Costs (Including Opportunity Cost) 64895 65180
In Response to Question 3
Various factors should be taken into consideration before deciding upon the initial and the final
stage of the mode of transportation. Safety and protection of the goods acts as the key influential
factor that should be taken into view. The working condition of the region is also observed
unfavorable for the business depending upon the cultural events and holidays under which the
working population operates. The country is underdeveloped and the mode of transportation for
the country is very, less, which will directly influence the working conditions of the company
(Fernie & Sparks, 2014). The company should evaluate ways and manage the best ways so that
the risk could be well managed.
In Response to Question 4
The most appropriate ways and consideration of the route would be from Toronto Pearson
Airport to goloson Honduras. The air route would be recommended the best and the fastest
possible way for the transportation of shipments. The seaways would further delay the shipment,
as they would have to pass through the Caribbean Sea and Gulf of Honduras where the shipment

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would get delay because of various factors. The expected time taken by the air route would be
around 17 hours which is much less than other available modes available.
Map View from Toronto to La Ceiba, Honduras
In Response to Question 5
Incoterms are usually for decreasing the hazards of the shipments furthermore for separating the
cost of shipments in between the purchaser and vendor. The worldwide logistics can ought for

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sending the shipments by using the C terms in the light of fact where the purchaser can track the
shipment. The purchase can track the shipment and will pay till the port of passage but the risk of
shipment is usually with the dealer (Schönsleben, 2016).
In Response to Question 6
 Generating the airway bills
 Collecting Dock and ware house receipts
 Certificate of origin (Signed statement as per origin of export item)
 Commercial invoice.

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Reference
Bing, X., Bloemhof, J. M., Ramos, T. R. P., Barbosa-Povoa, A. P., Wong, C. Y., & van der
Vorst, J. G. (2016). Research challenges in municipal solid waste logistics management.
Waste Management, 48, 584-592.
Eroglu, C., & Croxton, K. L. (2015). Logistics Management. Wiley Encyclopedia of
Management, 1-2.
Fernie, J., & Sparks, L. (2014). Logistics and retail management: emerging issues and new
challenges in the retail supply chain. Kogan page publishers.
Schönsleben, P. (2016). Integral logistics management: operations and supply chain management
within and across companies. CRC Press.