ITT Exercises - Freight Transportation.pdf

# Gross weight chargeable weight nature of goods

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Gross Weight Chargeable Weight Nature of Goods Leather Co. Ltd. 123 Bloor Ave. Toronto, ON., Canada M5H 3K5 Yamacho Shoe Manufacturers Taito-Ku 234, Narita, Japan 20 1,000 kg 1,000 kg 20 sheets of leather; 200 x 50 x 5 cm each; value CAN \$5,000.00 total; HAWB: AX-0912-0001; Freight: prepaid. Kingsway Mattresses Ltd. 456 Avenue Road, Toronto, ON, Canada K2S 1R2 Sleep Country Japan Ltd. Nishi-ichinoe, 132- 0023 Narita, Japan 15 600 kg 2,833 kg 15 foam mattresses; 120 x 36 x 16 in each; value CAN \$1,500.00 total; HAWB: AX-0912-0002; Freight: prepaid Total Pieces: 35 Total Gross Weight: 1,600 Total HAWB: 2 Declared by: CIFFA Forwarder, 480-170 Attwell Dr., Toronto, ON, Canada, M9W 5Z5 Toronto, ON, Canada Signature: Jane Lee

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Answers Air Freight Page | 120 2017 Exercise 4.9 (Answer) 1. This question is basically the same as the previous two questions. The airline views this freight as 1 shipment consisting of 2 types of goods. This is the basis of CONSOLIDATIONS. a) What is the total actual weight of the consolidation? 325 kg + 500 kg = 825 kg b) What is the total volume weight of the consolidation? 14 cartons of books: Volume weight = 46 x 46 x 46 cm x 14 ÷ 6,000 = 1,362,704 cm 3 ÷ 6,000 = 227.11733 = 227.5 kg 20 cartons of umbrellas: Volume weight = 36 x 18 x 16 in x 20 ÷ 366 = 207,360 in 3 ÷ 366 = 566.55737 = 567 kg Total volume weight of the shipment = 227.5 kg + 567 kg = 794.5 kg. c) How much will you charge each customer? Books: actual weight = 325 kg; volume weight = 227.5 kg Chargeable weight to shipper is 325 kg. Charge is: 325 kg x CAN \$2.75/kg = CAN \$893.75 Terms of sale are FCA Jones & Jones, this amount would be collect on the HAWB and charged to the consignee. Umbrellas: actual weight = 500 kg; volume weight = 567 kg. Chargeable weight to shipper is 567 kg. Charge is: 567 kg x CAN \$2.64/kg = CAN \$1,496.88 Terms of sale are CPT London, this amount would be prepaid on the HAWB and charged to the shipper. d) How much will you pay the air carrier? Total actual weight = 825 kg. Total volume weight = 794.5 kg. Chargeable weight to air carrier: 825 kg. Paid to airline: 825 kg x CAN \$1.90/kg = CAN \$1,567.50
Answers Air Freight Page | 121 2017 e) What is the profit on this shipment? Revenue: shipper 1: CAN \$893.75 shipper 2: CAN \$1,496.88 total: CAN \$2,390.63 Expenses: airline: CAN \$1,567.50 Profit: CAN \$823.13 In this example, we actually invoiced out for 892 kg, while we paid the air carrier for 825 kg. This shows the benefits of combining high and low density freight in a CONSOLIDATION. By CONSOLIDATING 2 shipments, we avoided paying for volume freight on one of the shipments.

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Answers Air Freight Page | 122 2017 Shipper’s Name and Address Shipper’s Account Number Not negotiable Air Waybill: 125-7654 1212 Issued by: BRITISH AIRWAYS WORLD CARGO _________________________________________________________________ Copies 1, 2, ands 3 of this Air Waybill are originals and have the same validity. CIFFA Forwarder 480-170 Attwell Dr. Toronto, ON, M9W 5Z5, Canada It is agreed that the goods described herein are accepted in apparent good order and condition (except as noted) for carriage SUBJECT TO THE CONDITIONS OF CONTRACT ON THE REVERSE HEREOF. THE SHIPPER’S ATTENTION IS DRAWN TO THE NOTICE CONCERNING CARRIER’S LIMITATION OF LIABILITY. Shipper may increase such limitations of liability by declaring a higher value for carriage and paying a supplemental charge if required.
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• Fall '18
• Jane Smith
• freight forwarder, Commercial item transport and distribution, CIFFA, Ocean Transportation Intermediary

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