Assignment Problem:
I want to ask how to calculate the estimated shipping costs if my assignment provides me with the following numbers.
VBC purchases its high-density plastic from a distributor in Shenzhen, China. This specialty plastic is transported by an ocean carrier as LCL through the port of Hai Phong where it is then transported by intermodal rail to VBC in Hanoi and Ho Chi Minh City. The plastic is purchased in a small pellet form and packed in double-walled corrugate cartons measuring 120cm long x 100cm wide x 90cm tall. When filled, each carton weighs 680 kgs x 10 cartons total. For both the ocean and rail portions of transportation, nothing occupies the space above the boxes in the containers as they are not capable of being stacked. The standard shipping lead time is 7 days but there are times when VBC needs their product expedited sooner. Review Incoterms 2020 to understand the following statements.
A packaging facility operates adjacent to the rail terminal in Phnom Penh where the plastic would then be packaged in the same cartons currently being used by the Shenzhen supplier for delivery over the road to VBC. This would add more cost to the process that needs to be addressed. The cartons would be loaded onto trucks and driven to Ho Chi Minh City only 230 kilometers away and additional trucks or ocean liners sent to Hanoi being 1,490 kilometers away.