Question

Assume you work for a New Zealand company exporting a container of kiwis to Haiti. The customs official informs you that there is a delay in clearing your container through customs and it may last a month. However, if you are willing to pay an “expediting fee” of US$200, he will try to make it happen in one week. What would you do? Explain your reasoning for your decision.

Answer 1

Payment of expediting fees:

I would pay the expediting fees to make the export of containers faster. Because it is considered to be the best method to speed up the things faster and pay the charges as soon as possible. Once the payment is made, the shipment can be immediately released for delivery.

Though the expediting fees of $US200 can be a higher amount, rather than wasting one month of time period, it is worth to make the payment of fees. Because if the exporter waits for one month, he would lose all the profits and income that he would be earning in this one month. Even if he makes the fees payment, he can get it back by making good profits and also by including some portion of the charges in the price charged to the customers.