Question

Find a company that sells gold in Australia or South Africa?

1. Using the profile information, you have already developed to identify a shipment size for

your commodity coming to Canada.

2. Using the information above, along with the supplier’s terms of sale, negotiate an

Incoterm and purchase price for your commodity.

3. Use the Internet to identify logistics suppliers who will pick up your commodity from the

foreign supplier, ship it to Canada and deliver it to your business location in Kitchener.

4. Use the Internet to find logistics suppliers’ rates for the various stages of the journey so

you can begin to calculate total unit costs for your shipment.

5. For this exercise, you are responsible for the procurement component and all of the

logistics and Customs requirements.

6. State all assumptions made in arriving at a total landed cost for your commodity.

* with all references link for all the questions.

Answer 1

I will purchase the gold in the form of biscuits from Savuka Gold Mine, located in Carletonville, South Africa

1. The shipment size will be standard 40” by 48”. The volume will be 9600 cubic inches.

2. Incoterms: The mentioned bellow are the incoterms that I will choose for the delivery of air cargo.

• EXW – Ex Works:
• CPT – Carriage Paid To
• CIP -- Carriage and Insurance Paid To
• DDP -- Delivery Duty Paid
• DAP -- Delivered At Place

3. I will Use USPS Registered mail for importing the gold bards.

4. The rates can ve viewed here. It will cost around $ 2266 for the delivery.