International Trade: Assessment Task 1 and 2 Report

This report, addressing international trade, presents a comprehensive analysis of various aspects within the field. It begins by defining and providing examples of trade policies and procedures, such as tariffs and subsidies, alongside administrative procedures. The report then details information retrieval methods for public transport services. It includes a sample communication regarding transportation methods and rating principles, covering tariff rates and other relevant factors. The report also outlines crucial steps for vehicle exportation, emphasizing the importance of compliance and cost analysis. Furthermore, it identifies key factors to consider in international trade, such as weight, volume, and perishability, along with associated risks like damage or loss during transit. The report further explores methods for transporting various goods, including livestock, vegetables, petroleum, motor vehicles, computers, and grain, while also addressing associated risk factors related to packing and storage. It identifies organizations providing transport route accessibility information and lists different types of air cargo and airlines operating in Australia. The report defines FCL and LCL, and identifies crucial considerations for shipping, such as insurance and cargo identification. It explores different types of ocean vessels, shipping service advantages and disadvantages, and different types of packing materials and containers used for shipping. The report also includes instructions for handling and labeling cargo, as well as outlining processes involved in the movement of goods. Finally, it compares air cargo and ocean freight service providers, offering recommendations for the most suitable shipping methods based on specific needs and risk factors. It concludes with an overview of regulations, codes of practice, and standards that govern international trade.

Running head: INTERNATIONAL TRADE 1
International Trade
Name
Institution

INTERNATIONAL TRADE 2
INTERNATIONAL TRADE
Assessment Task 1
1.1 Answer:
An example of trade policy is the use of tariffs which safeguard domestic industries from
outside competition (foreign competition). The policy uses tax to raise the cost of imported
goods. Another Example of trade policy is subsidies which are a form of support or financial
help granted by the public body or state to business or institution (Jones & Kierzkowski, 2018).
Example of procedures is the Administrative procedures which are the system or set of
rules that guide processes for the organization's management (Jones & Kierzkowski, 2018). They
are established to regulate trade at the border.
1.2 Answer:
Route planner provides information that relates to public transport services. The
information can be retrieved via web. Sources that can be accessed to provide information on a
particular transport route include the quality assurance system, production system, and
Development system.
1.3 Answers:
DATE:
TO:
FROM:
SUBJECT:
Dear Sir/Madam,

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The intention of this is to inform you of the methods and rating principles used in the
entire forms of transportation such as rail and roads. The method and principles of rating used
include the tariff rates, FAK, Ad Valorem, Heavy Lift, Dangerous, Special and Refrigerated.
Thank you,
Name
1.4 Answer:
1) The first step is the advance checking with the consulate of another foreign nation to
which I'm shipping in. This help in the determination of restrictions that may affect my shipment.
2) I will then analyze specific requirements; this will help in the determination of the best
method of transport to provide the best results (McCalman, 2018).
3) I will then analyze the transportation cost
4) The next step is to analyze the insurance cost
5) The fifth step is the preparation of suitable international documentation for the Vehicle
exportation.
6) The last step is to take identification plate approval. This is because Australia prohibits
the importation of Vehicles in some circumstances.
1.5 Answer:
The main Factors that must be considered include Weight, Volume, Perishability,
Insurance, and Types of goods (Examples are Stuff, Food, and services).
1.6 Answer:
1) When the airplane engaged in the accident, the goods may be damaged or lost.

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2) The problem at vessels or air cargo may prevent the goods from reaching the target
destination.
B. Answer:
The risks are: 1) Commodities may be lost at sea; 2) The package may be damaged.
1.7 Answer:
ITEM
LIVESTOCK
VEGETABLES
ACCEPTED METHOD OF
TRANSPORT
. The method used to
move Livestock include on
hoof, by rail, by motor vehicle
and by air or on ship.
. Vegetables can be
transported by air or by sea.
The transportation of
vegetables require the use of
refrigerated container
RISK FACTORS
RELATED TO PACKING
AND STORAGE
. Livestock transport is
the most injurious and
stressful when operating it
between slaughterhouse and
farm and this may contribute
to loss of production and poor
welfare of the animals.
.The transportation of
Vegetable is very complicated.
Different Vegetables and Fruit
require various requirements
for the purpose of safe
preservation (Chowdhury, A.,
Liu, Wang & Wong, 2017).

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PETROLEUM
MOTOR VEHICLES
The best mode of
transporting Petroleum is by
Trains, truck and Pipeline.
.Motor Vehicles can
be transported by cargo
vessels mainly for
The vegetable may be damage
by micro-organisms. The safe
carriage may require that the
vegetables should be
maintained in a favorable
temperature and pre-cooled.
.Petroleum is regarded as the
most dangerous commodity to
transport. The most dangerous
method is by train transport.
Petroleum products plus death
or injury and Truck are
common. Another problem
associated with the Petroleum
is Spilling of fuel content
(gallon semitrailer of fuel).
. Australia prohibited
importation of vehicles.

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COMPUTERS
GRAIN
international freight and by
truck for domestic freight.
. The best way to
transport Computers is by air.
. The best way to
transport Grain is by Cargo
vessels or by sea.
Manufacturing wishing to
import vehicles must therefore
obtain approval which may
take time.
.The main internal
components of the computers
are delicate and need special
packaging methods.
. The shipments of
bulky grain may necessitate
the seller or buyer to charter
the vessel or to transport it
from the loading destination to
the place where unloading
take place (Leamer & Stern,
2017).
1.8 Answer:

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The organizations that can provide information on the accessibility of services of
transport route include the following: PTC (Petroleum transport) and Pasha International Service
(Connolly & Swoboda, 2018).
1.9 Answer:
The three types of air Cargos and airlines include operating out and in of Australia
include: UPS Airlines, China Airlines and FedEx Express.
1.10 Answer:
FCL It represent Full Container Load
LCL It stand for Less than a container Load
1.11 Answer:
- Insurance
- Discharge Location and load (pickup)
- Identification of the best kind of goods (cargo) used for
- Whether the shipment is international or domestic
1.12 Answer:
Types of Ocean vessels include the following: Oil tanker, Bulk carriers, Livestock
carriers, Dry Cargo Vessels and LNG Carriers.
1.13 Answer:
Shipping service ADVANTAGES DISADVANTAGES
PARCEL POST Parcel post is mostly cheap and they are unsafe since they are being

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convenient. send via mail
CHARTER SERVICES they are mostly safer and faster They are very expensive
LINER CONFERENCE It is made up of modern equipment The shipping service is very very
expensive
1.14 Answer:
The three types include the following: 1) Pallets which are used for quick
unloading/loading of small items and cartons. 2) Strong planks and square timber. 3) Steel
gilders.
1.15 Answer:
CONTAINER TYPE
.BAGGED GOODS FOR
SHIPPING
.BALES OF GOODS FOR
SHIPPING
E.G WOOL
. CARTONS OF GOODS FOR
SHIPPING
EXAMPLE OF USE
. Used to protect the goods during transportation.
. They are break bulk cargo packing which must be loaded separately.
They bundles or bale into a unit.
. Used for the purpose of handling the goods. Carton labels and marks
can also be used for identification.
. A case comprise of items which are packed together. They are used for

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. CASES OF GOODS FOR
SHIPPING
.DRUMS OF GOODS FOR
SHIPPING
.LIFT VANS OF GOODS FOR
SHIPPING
.PALLETISED BOXES OF
GOODS
FOR SHIPPING
.GOODS IN THERMAL
CARTONS
FOR SHIPPING
.UNIT LOAD DEVICE (ULD)
the transportation of goods. for example Soda and cereal.
. They are containers in the form of Cylindrical used for shipping heavy
cargo.
. Used to transport household goods internationally and nationally.
.They enables easier freight movements.
.These represents packaging boxes for the transportation of goods. They
help in moving goods over longer distance.
.This is a container or pallet used in loading the freight, mail and
luggage on wide-body aircraft.

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1.16 Answer:
1) Handling instructions- This help in handling fragile goods.
2) Destination information such as name of buyer/name of shipper, this can help when
the goods lost.
3) Label Hazardous cargo, this will provide information on the danger of the
commodities.
1.17 Answer:
a) Truck transportation from the origin (airport or organization)
b) Truck transportation from the airport or port (Destination point) to the organization
buyer
c) Workforce used in loading of commodities to the Company buying the goods.
d) Workforce used in loading of commodities on the truck.
e) Workforce used in loading of the commodities from truck to airplane or container
vessels.
1.18 Answers:
Legislation Legislation include: 1) Registered agents, 2) World Trade Organization and 3)
International operating regulation and treaties.
Codes of practice Codes of practice that protect consumers of employment and work.
Those that encourage the performance of international trade, in ethical way.
Standards The use of ISO. Help to ensure that the goods are of high quality.

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International conventions WTO) World Trade Organization and (WTO) World Customs Organization.
Task 2
2.1 Answer:
AIR CARGO SERVICE PROVIDERS .The majority of the Organizations in Australia provides the same types
of freight, by sea or by air.
The cargo service providers include: Cargo master, Express cargo
services and Pack and send.
OCEAN FREIGHT SHIPPING
SERVICE
PROVIDERS
.The shipping services providers include: Pack and send, CargoMaster
and Express Cargo Service
2.2 Answer:
AIRCRAFT The 2 types of Aircraft include: Embraer 120 Brasilia and HS748
The payload of HS748 Cargo is 6metric tons per 55cbm.
OCEAN VESSELS The two types of Ocean Vessels are Container vessel and Traditional freighter.
Traditional freighters have different deck mounted cranes which functions as
transferring cargo to vessel (Antras & Foley, 2015).
Length or size: the length is between 250ft to 600ft.
The liberty ships measured between 56ft wide and 441ft in length.
Types of cargo include all the varieties of break bulk cargo.
Traditional freighters uses different deck-mounted cranes to move non

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containerized cargo for example bales, cartons and pelletized.
b) Container vessels:
Length and size- container ships differ dramatically in capacity and size. The
specification of containers vessels are in TEUs. The new vessels contain 1000
TEUs.
Types of Cargo- It contain any type of Cargo with any of this container types:
high cube, general purpose, and open top, platform, flat, insulated, refrigerated
and bulk. Can also include merchandise in bales, cartons, cars, drums and
features.
Cargo is mostly loaded by use of Port-based cranes.
2.3 Answer:
Cargo Master (shipping service and air Cargo service) - it is one of the trusted international
companies in Australia, which provide the logistic solution of moving international freight to
every part of the world.
Transport route: air shipping moves the goods from the production industry to the airport
(Melbourne, Brisbane, Sydney, Perth, Darwin, and Adelaide) and then the loading and shipping
process takes place at Tokio's Airport.
Sea shipping moves the goods from the production industry to Melbourne port or Brisbane port
by Truck.

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Park and send (shipping services and air cargo services)- Economy Airfreight Express weigh
over 30kg to 7000kg.
Transport route: air shipping moves the goods from the production industry to the airport
(Melbourne, Canberra, Sydney, Perth, Darwin, and Adelaide) and then the loading and shipping
process takes place at Tokio's Airport (Mansfield & Reinhardt, 2015).
Sea shipping Sea shipping moves the goods from the production industry to Melbourne port or
Brisbane port by Truck.
Express Cargo services (Shipping services and air cargo)- It provides a range of logistics and
freight services. The services include both sea freight services and Air freight services.
Transport route: Air shipping moves the goods from production industry to the airport (North
WA, SA, QLD, Central Australia, Eromanga Basin, Inner NT, Cooper Basin, Bowen Basins and
Surat).
Sea shipping moves goods from the production industry to the Melbourne port or Brisbane by
Truck.
2.4 Answer:
Through evaluation of the various offers provided by the Companies, The best method to ship by
use of Air is with Express cargo services. This is because the Firm guarantees immediate
transport by road, the services of the dual or single driver are also non-stop, there is also the
availability of multiple Vehicles at the airport and they also guaranteed services of NEXT
FLIGHT.
The shipment that needs transportation by Sea, CargoMaster should be used due to low risk
associated with this type of transportation. The firm also has convenient sea freight by FCL and
LCL.

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2.5 Answer:
The risks associated with storage and packing includes the following:
.The food may sometimes expire due to the perishability of the goods
.The packaging may be damaged as well as crushing of chocolate or breaking of jars.
.The ship that arrives at the port may also delay because of bad weather, and this can prevent the
goods from arriving on time to the required destination (McGovern, 2018).
.It may occur that because of the overthrow and accident the goods may lose in the process of
transportation (Low, 2016).
.It may happen that when the airplane engaged in an accident, then the goods are damaged or lost
and never reached the destination.
2.6 Answer:
-The various types of containers include Flat rack container, Dry storage container, Double doors
container, open side container and Tunnel container.
-The most suitable type of container for the transport of the goods is the Frigo-container.
2.7 Answer:
The perishable goods require suitable making and documentation requirements for cargo.
The required documents are the Letter of credit. These are the commonly used form of payment.
Part c
2.9 Answer:
This report discusses the variations in charges of airfreight which is being caused by fuel
surcharges, TACT rates, and other different variants. TACT is made up of comprehensive
information that is related to air cargo regulation, rules, and charges ad rates. TACT is the

INTERNATIONAL TRADE 15
essential guide to people who are working in the international air cargo. TACT covers the
following: Information relating to the facilities of the airport, county regulation, rules and
charges on transit, export and import for more than 200 countries.
2.10 Answer:
Depreciation will make the exporting Firms to benefit because it will make export to be cheaper.
Appreciation will make the export to be so expensive as well as reducing the competitiveness of
the firms that export the commodities.
2.13 Answer:
The calculation of the shipping cost requires the following:
- Lift off/Lift on
-BAF/CAF
-Terminal Handling Charge
- The basic rate of service
2.15 Answer:
Factors that determine whether the cargo should be carried by sea air or as a combination of the
two modes of transport include the following:
Insurance cost, shipping cost, transportation cost from the origin firm to port/airport, cost of
workforce and transportation cost to buyer firm (Moon, 2018).
Task 3
Part 1
DATE:
TO:

INTERNATIONAL TRADE 16
FROM:
SUBJECT:
Dear Sir/Madam,
This is the external export advisor; I wish to take this chance to advice on the things that deal
with taking an insurance cover for your Cargo. First, it is importance to take the insurance
coverage because it can protect your cargo in case of Damage or Loss. The hazards that the
insurance policy can cover include theft, Damage goods, loss goods, the action that may lead to
losing profit as well as penalties related to contract breach with buyer and risks connected to
Cargo transportation (Edmond, Midrigan & Xu, 2015).Taking the insurance contract, have the
following essential steps that can give you a good deal. The steps include the following: it is a
good deal because the seller will be responsible for organizing the ocean freight, the policy will
also follow the INCOTERMS and
Lastly, it will cover risks that are associated with the goods transported from seller to those who
buy the goods.
Thank you,
Name
3.2 Answer:
DATE:
TO:
FROM:

INTERNATIONAL TRADE 17
SUBJECT:
Dear Sir/Madam,
Thank you so much for the positive response to the previous e-mail which I sent to you. These
are answers to the questions which you are seeking clarifications of There are different types of
insurance cover which include Open policy, Annual policy, and single transit. My company uses
restricted cover this is because it is the best when the goods are directly shipped by the owner. In
case of any freight loss or Cargo damage, you should do the following: first, you should inspect
your freight, cargo, package, and shipment. Second, any cargo damage or freight loss that are
found during the delivery should be indicated in the delivery receipt. Thirdly, any shipment
damage or loss should be reported to the nearest concerned authorities for thorough
investigation. Lastly, you must file a written insurance claim when there is a loss of an item.
Thank you,
Name

INTERNATIONAL TRADE 18

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References
Antras, P., & Foley, C. F. (2015). Poultry in motion: a study of international trade finance
practices. Journal of Political Economy, 123(4), 853-901.
Chowdhury, A., Liu, X., Wang, M., & Wong, M. S. (2017). Institutions in International Trade:
The Effect of GATT/WTO Membership on Trade Volatility and Trade Volatility Co-
movement.
Connolly, M. B., & Swoboda, A. K. (2018). International trade and money. Routledge.
Edmond, C., Midrigan, V., & Xu, D. Y. (2015). Competition, markups, and the gains from
international trade. American Economic Review, 105(10), 3183-3221.
Jones, R. W., & Kierzkowski, H. (2018). The role of services in production and international
trade: A theoretical framework. World Scientific Book Chapters, 233-253.
Jones, R. W., & Kierzkowski, H. (2018). The role of services in production and international
trade: A theoretical framework. World Scientific Book Chapters, 233-253.
Leamer, E. E., & Stern, R. M. (2017). Quantitative international economics. Routledge.
Low, P. (2016). International trade and the environment. UNISIA, (30), 95-99.
Mansfield, E. D., & Reinhardt, E. (2015). International institutions and the volatility of
international trade. In THE POLITICAL ECONOMY OF INTERNATIONAL TRADE (pp.
65-96).

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McCalman, P. (2018). International trade, income distribution and welfare. Journal of
International Economics, 110, 1-15.
McGovern, E. (2018). International trade regulation (Vol. 2). Globefield Press.
Moon, B. E. (2018). Dilemmas of international trade. Routledge.