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Understanding the Transport Chain

(Maritime Transport)

Case Study
Tyson Enterprise has been appointed as agent to distribute Standard Steel Pipe by a
Korean steel mill for Ipoh Area. The Korean steel mills will be selling the product to Tyson
Enterprise base on FOB term from Busan Port. Volume per month is only 100 ton.
For your information, Mr Tye and his son operate from home; they do not have a
warehouse, therefore they look for an expert or a professional to handle their product from
the Port of Busan until it is delivered to their customer.
As an expert that has been undergone the SFFLA Foundation Course in Freight
Forwarding and Multimodal Transport, you are invited to participate in this RFQ (Request
for Quotation).
Below are the information provided:
Description of Pipe
Weight
Country of Origin
Value of Cargo
Payment
Delivery Point

: 19 feet length, with 5 different (types) of diameter.


: 2 tons per bundle
: Busan, Korea
: RM5000 per ton
: Letter of Credit At Sight
: Ipoh

1. Due to the small tonnage, it is not practical to use conventional ship.


2. Customer does not have a storage area hence they will order base on requirement,
which mean you can only deliver by bundle. Each delivery is not more than 3 bundles.

Questions
1. Please propose the best mode of transport for Mr Tye to move this product to
Ipoh.
2. Explain the reasons for your proposal, in term of cost, safety, timing,
efficiency and other (services) factors.
3. Identify some of the costs related/involved to your suggested mode/s of
transport to Mr Tyes.

SFFLA Foundation Course in Freight Forwarding and Multimodal Transport (supported by UNESCAP)