Rovault Case Study

Question

Rovault Case Study

We also know that ours pare parts show volume more than weight 7269 cbm and 950.794 t

Volume has to be taken into account as this is a light commodity : we are far from 1t=1cbm

It makes sense to think first about a 40’ container. Having a look at all offers, we know that cost of 40’ is less than twice the cost of a 20’ container so we are going to calcualte our need with a 20’ container.

Let’s consider 56 cbm available volume in a 40’ container or 129,8 x 40’ containers

Keeping in mind that we loose 10% of the expected volume within the container.

The remaining volume 0,203 of a 40’ container is by the way 11.98 cbm. We are probably going to ship it through a consolidation service related to spare parts references not often asked for

Offers options :

Offer no 1 is related to consolidated shipments from Cergy (95) to Gennevilliers (92) Offer FCL for 40’ container shows a cost of more than 2500 US $ (freight+CSC+Drayage)

The line to take is first one related to ports which are note included in the after exceptions, which is the cas of New-York port.

Unit value : 20300000 / 7000 cbm = 2900 € per cbm x 59 cbm = 171100 € FCA Cergy for one container

FCA Cergy = 171100 €

TRANSPORT TO Le Havre 275 €

Port charges Le Havre 135 €

FOB Le Havre 171510 €

Freight to Ntl ports 1475 us$ / 1.20 conversion rate

1229.16 €

CFR New York = 172739.16 €

Please notice that insurance rate is not including. We will have to quote an insurance company Thc New York 500 usd /1.20 = 416.66 €

DAT New York = 173165.82 €

Drayage by railway 800 usd i.e. 666.67 €

DAP MILWAUKEE = 173822,52 x 129 containers = 21380170

Drayage by road1470 USD i.e. 1225 €

DAP MILWAUKEE BY ROAD = 21448840,9

Road is faster by 5 days i.e. Financial advantage is 21448840.9*5*5 divided by 100*300 working days

= 17874.03 € diminishing road cost so 21448840.9-17874.03 = 21430966,8 € which not enough competitive

Consolidation :

Let’s say that we ship the consolidation in 5 different shipments during the year and without any extra information in the same quantity

By the way quantity of one shipment is 2.396 cbm

Tax weight with road transport = 2.396 cbm / 3 = 799 kgs Price list A (from county 95 to county 95)

EXW Value is 6637.21 €

Transport cost 3995 €

FCA Gennevillers cost 10632.20

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