Course Code: INTL 729

Course Name: Principles of Freight Forwarding

Activity: Direct Bank Collection Form

In this activity, you will complete a direct bank collection form letter. For this air freight shipment you have the
option to either use the traditional bank channel or suggest a different, possibly more efficient, manner of
following shipper’s C.O.D. instructions, especially considering that it is air freight and time is of the essence.

Shipper: Canadian Manufacturing Inc.

20 Royal York Rd.
Mississauga, Ontario
L5S 2R5, Canada
Buyers: Österreichische Fabrikationsbetrieb GmbH.
Vorarlberg Str.
Linz
4020, Austria
Consignment: 1 crate of barbeque parts, 675 kg - 2.5 m3
February 5, 2017, AC AWB 014-1234 4321
Value EXW Montréal: CAN $31,000.00
Canadian bank: Bank of Nova Scotia
Austrian bank: Wiener Handelsbank AG, Vienna
Terms of payment: Cash against documents

1. If you use a direct bank collection method, how would you consign the air waybill?

2. How would you forward the completed direct bank collection letter?

3. What kind of documents would you send with this direct bank collection letter?
Adapted from CIFFA Exercises 1
 INTL729 CENTENNIAL COLLEGE Principles of Freight Forwarding

4. What other option do you think you may have to comply with shipper's instructions for you to arrange for
the C.O.D.? Explain.

5. Complete the direct collection form letter and the bill of exchange.

Adapted from CIFFA Exercises 2

 INTL729 CENTENNIAL COLLEGE Principles of Freight Forwarding

SPACE BELOW FOR ACCEPTANCE STAMP FORWARDING BANK’S

Adapted from CIFFA Exercises 3

 INTL729 CENTENNIAL COLLEGE Principles of Freight Forwarding

DUE _______________________ NUMBER

______________________________ 20 __________

_________________________ AFTER DATE, FOR VALUE RECEIVED.

PAY TO THE ORDER OF _____________________________________________ THE SUM OF

_______________________________________________ DOLLARS $ ________________

RECEIVING BANK’S
NUMBER
TO ________________________________

________________________________

________________________________ ______________________________

Adapted from CIFFA Exercises 4