Table 1 Transit time (days)

Air (scheduled)
3000 feet3 per

shipment

Plant

Domestic transport

Container stuffing

Loading port/airport

Vessel

Discharge port

Unstuffing

Warehousing

Consignee
Total

Sea
40 foot
container*
(LCL)

40 foot
container*
(CL)
1

18

18

1
36

1
36

1
8

Sea
20 foot
container**

4
11
18
3
1
2
1
41

Table 2 Shipping costs breakdown (in US $/shipped ft 3)

Air (scheduled)
3000 feet3 per

shipment
Ex work unit price

80.00

Container stuffing
Domestic transportation

1.00

Freight***

9.60

40 foot
container*
(CL)
80.00

80.00

1.80

2.40

2.00

2.80

Container unstuffing

0.70

Warehousing (per day)

Insurance premium rate (per
shipped ft3)****

Sea
40 foot
container*
(LCL)

0.30

0.10

0.10

0.80

0.80

* each 40 foot container has an inner volume of 2,000 feet ;

3

**each 20 foot container has an inner volume of 1,100 feet 3

** *Freight rates are on 'liner term' and including handling in ports on both ends
****the calculation of insurance premium is simplified in this case study; it is based on a set
rate per volume (shipped feet3)

d ft 3)

Sea
20 foot
container**
80.00
1.80
2.00
0.10
0.80

n both ends
udy; it is based on a set

Table 3 Shipping costs and shipped value (in US $)

Air (scheduled)
3000 feet3 per
shipment
Total ex work value

Air (Charter)

Sea
40 foot container*

(CL) 2000
(LCL) 1000
$ 960,000.00 $ 960,000.00 $ 640,000.00 $320,000.00

Shipping costs breakdown

Container stuffing

Domestic transportation $
Freight***
Discount
Container unstuffing
Subtotal of shipping
costs

### $ 14,400.00 $

12,000.00 $ 12,000.00 $

9,600.00

###

$ 115,200.00 $ 115,200.00 $ 16,000.00 $ 11,200.00

$

### $

### $

###
$

2,800.00

$ 127,200.00 $ 127,200.00 $ 30,400.00 $ 23,600.00

Insurance premium****

Warehousing cost
compensation

Total value of the shipped

goods before adjustment

3,600.00 $
-

$130,800.00

3,600.00 $

6,400.00 $

3,200.00

### $

3,200.00 $

800.00

### $ 40,000.00

$27,600.00

Cost adjustment
Additional days interest
cost (0.1% of the total
value of the shipped goods
per day)
Cost implication of the longterm agreement with the
air cargo carrier
Total value after cost
adjustment

* each 40 foot container has an inner volume of 2,000 feet 3;

**each 20 foot container has an inner volume of 1,100 feet 3
** *Freight rates are on 'liner term' and including handling in ports on both ends

****the calculation of insurance premium is simplified in this case study; it is based on a set rate p
(shipped feet3)

US $)

Sea
ot container*

20 foot
container**
total

$ 960,000.00

$
$
$
$
$
$

24,000.00

$ 960,000.00

$ 21,600.00

27,200.00
-

$ 24,000.00
$

3,600.00

2,800.00 $

54,000.00 $ 42,000.00

9,600.00

9,600.00

4,000.00

2,400.00

67,600.00

$ 54,000.00

s based on a set rate per volume