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1、1TransportationmodesModeTotalmodecostCostperpalletTransittimeAdvantagesDisadvantagesSea62024.87daysCheapandlargecapacitySlowandhighrisksAir12652534hoursFastandsecureExpensiveandfinitecapacityRail1275512daysFastandlargecapacityLessflexibleandneedrailroadDirectroad135067.53daysBetterforshippedand
2、convenientSmallcapacityandexpensiveMulti-mode118547.47days18hoursReducehandingofcargoandquickertransittimesCostofinvestmentishighTakeseaasanexample,becausetheshippingrequires25palletsandthetotalcostis620,thecostperpalletis620/25=24.8.Inthesimilarway,otherresultalsocanbecalculated,excepttheMulti
3、-mode.TheMulti-mode’costis1185including125,620,295,and145,thusthecostperpalletis1185/25=47.4.Airtransportationisoptimumchoice.Airtransportationcanusetheleasttimetoconveygoodsduetofasterspeed.Besides,italsoensuresthesecuritytoalargeextentrelatively.However,italsohassomedisadvantages.Airtransport
4、ationhasexpensivecost,andairportisdistantfrommunicipalcenter.Seatransportationalsocanbechosen.Thoughitistheslowestmethodandvulnerabletobadweatherinocean,itisthelowestexpensesoffreightandcarriesthelargestquantities.AngusGlenalsocanselectrail.Railhasalargecapacityandislessrefrainedbybadweather.Ra
5、ilhasthesedisadvantages,itisnotmuchflexibleandcannotworkwithoutrailroad.2ConsignmentdeliverytermFCAFreeCarrier(namedplaceofdelivery)Atradetermrequiringthesellertodelivergoodsnamedairport,terminal,orotherplacewherecarrieroperates.Costlosstransferbuyerandriskoflosstransfertothebuyerafterdeliverto
6、thecarriers.Thesellerfulfilshisobligationdeliverwhenhehashandedgoodsover,clearedforexport,intothechargeofthecarriernamednamedbythebuyeratthenamedplace.Whenusedtradeterms,word“free”meanssellerhasanobediencetodelivergoodsnamedplacefortransfertocarrier(store.iccwbo.org,2016).FOBFreeOnBoard(namedpo
7、rtofshipment)atermininternationalcommerciallawspecifyingatwhatpointthesellertransfersownershipofthegoodstothebuyer.UndertheIncoterms2010standardpublishedbytheInternationalChamberofCommerce,FOBisonlyusedinnon-containerizedseafreigh
