Question

BCIT TDMT2203 Week 10 Lab Assignment
A buyer in Calgary, Alberta purchased 540 pieces of drill bits from a seller in Tokyo, Japan. The Incoterm for this contract is CIF, Calgary rail terminal (Incoterm 2010). Each drill bit weights 25lbs and its package dimension measures 8x8x12”. 90 drill bits are packed onto a skid measured 48x40x42” with 2300lbs per skid. An ocean freight consolidator offers land-bridge (Ocean+rail) service between Yokohama port and Calgary rail terminal with LCL rate at USD$105 per CBM with 2 CBM minimum charge. The inland trucking cost is USD$500 to move the cargo from the shipper to the consolidator’s terminal. The commercial value of the cargo is USD$200,000. To protect the cargo during the ocean voyage, the shipper incurred USD$3000 to crate the skids. A commercial insurance agent provided an insurance premium rate of 0.27%
What is the freight cost for this shipment?
What is the insurance cost for this shipment?
What is the CIF price for this contract?

Answer 1