A buyer in Calgary, Alberta purchased 720 pieces of drill bits
from a seller in Tokyo, Japan. The Incoterm for this contract is
CIF, Calgary rail terminal (Incoterm 2020). Each drill bit weights
24lbs and its package dimension measures 8x8x12”. 90 drill bits are
packed onto a skid measured 48x40x60” with 2200lbs per skid. An
ocean freight consolidator offers land-bridge (Ocean+rail) service
between Yokohama port and Calgary rail terminal with LCL rate at
USD $155 per CBM with 2 CBM minimum charge. The inland trucking
cost is USD$600 to move the cargo from the shipper to the
consolidator’s terminal. The commercial value of the cargo is
USD$200,000. To protect the cargo during the ocean voyage, the
shipper incurred USD$3000 to crate the skids. A commercial
insurance agent provided an insurance premium rate of 0.37%
What is the freight cost for this shipment?
What is the insurance cost for this shipment?
What is the CIF price for this contract?
A buyer in Calgary, Alberta purchased 720 pieces of drill bits from a seller in Tokyo, Japan. The Incoterm for this cont
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