I. Calculation 1. The price quoted by an exporter was “USD38 per case FOB Shanghai”. The importer requested a revised CFR Liverpool price. If the size of each ease was 50cm×40cm×30cm, gross weight per case was 40kg, freight basis was W/M and the quotation for Liverpool is USD 100 per ton of carriage, plus 20% bunker adjustment factor (BAF) and 10% currency adjustment factor (CAF) , what would be the CFR price? 2. One consignment of 10 cartons of leather shoes, measurement of each carton is 50×50×50cm, gross weight of each is 15 KG. The air freight rate quoted for the flight required is USD1.3/KG. How much air freight should be paid to the carrier? 3. Company A is to deliver a small consignment of Hardware (Total: 120ctn/3cbm/6.5mt) from Shenzhen, China to Berlin, Germany. The LCL ocean freight rate is USD45.00 per rate ton (1cbm: 1mt). How much is the freight? 4. Company B is to export their goods by three 1×20’ FCL Containers from Guangzhou, China to Felixstow, UK. The quotation for FCL ocean freight rate is as follows: O/F (Ocean freight) rate: USD750.00/20’; BAF: USD500.00/20’; CAF: 12% on the basis freight ISPS (International ship and port facility security) USD10.00/20’ How much is the total freight? 5. Company C is to deliver by air 10 sets of Hi-fi Equipments to Paris, France. The total weight is 550kg and the measurement is 2.5cbm. The Air freight quoted by a logistics company is as follows: A/F (Airfreight) rate: CNY10.00/kg FSC (Fuel surcharge): CNY11.00/kg SCC (Security surcharge): CNY1.20/kg How much is the total air freight? II. Explain the following terms 1. liner service 2. F. I. O. 3. demurrage 4. dispatch money 5. containerization 6. FCL 7. time of delivery 8. optional ports III. Short questions 1. Under what circumstances does time of shipment equal to the time of delivery? 2. What are the functions of a bill of lading? 3. What are the main types of bills of lading? 4. What are the ways of dividing charges of loading and unloading in a charter party? 5. What factors are to be concerned in stipulating clause of delivery in a contract? IV. Case studies 1. ABC co. signed a contract to export 200 M/T of beans. The letter of credit stipulated, “Partial shipment not allowed”. When the shipment was being made, the exporter loaded 100 M/T each on board the same vessel for the same voyage at the port of Shanghai and the port of Dalian. The shipment document was clearly marked with the ports of shipment and the dates of shipment. Did the exporter violate the terms of the L/C? 2. Dee Co. signed a large export contract stipulating, “Shipment will be made during August of 2011”. But due to the problems with the vessel, the shipment was not made until September 13. Upon Dee's request, the carrier antedated the B/L to August 31. 1) What could be the consequence of antedating? 2) What would be the right thing to do in case of a possible shipment delay? 3. Company E in the mainland of China reached an FOB contract with Company F in China’s Hong Kong, exporting Steel Sheets. To resell the goods, Company F signed another CFR contract with Company G in South Korea. Later, Company E received the relevant L/C for the transaction from Company F. The price showed in the L/C was FOB as contracted. The L/C also stipulated that Busan (in South Korea) should be the port of destination. What’s more, the L/C stipulated that the B/L should be marked with “Freight Prepaid”. (1) Why did Company F have such requests? (2) Should Company E accept these L/C clauses?