Assignment 1

What would you need to do to get your client’s order from your shop in Calgary, Alberta to Sydney, Australia within three
days from today? You own a high-tech company, named Geosolutions, which deals with highly specialized computer
equipment for geological exploration. You have been dealing with a client in Sydney, Australia who is now in a “panic” to
get the computer hardware you have developed for him. It is a small device that is easily crated in protective packaging
suitable for any mode of transportation. This entire crated box is 2’ wide X 1’6” long X 1’ deep and weighs only 40 lbs.
Your client absolutely must have this package in Sydney, Australia within 3 days therefore air transportation is the only
possible option. Assume that the logical route for this package is an Air Canada flight from Calgary to Los Angeles, an
American Airline Flight to Honolulu, and then a QANTAS flight to Sydney, Australia.

• Map out the physical transportation required.

• Note the borders.

• Consider any documents required.

• Think about and note the information flow.

• Think about the finances required

(a) Mapping out the physical transportation required:

The package will need to be transported by air from Calgary, Alberta to Sydney, Australia, with layovers in Los Angeles
and Honolulu. The physical transportation will involve the following steps:

• Package pick up from Geosolutions in Calgary, Alberta, Canada.

• Transport the package to Calgary International Airport (YYC).
• Load the shipment aboard an Air Canada flight from YYC to Los Angeles International Airport (LAX).
• At LAX, unload the cargo and transfer it to an American Airlines aeroplane bound for Honolulu International
Airport (HNL).
• At HNL, unload the cargo and transfer it to a QANTAS flight from HNL to Sydney Kingsford-Smith Airport (SYD).
• Once the package arrives in Sydney, the product will be processed by customs and handed to the client.

(b) Note the borders:

• Canada-US border
• US-Hawaii border
• Hawaii-Australia border
• Australian customs border.

Proper documentation and customs clearance will be required at the borders.

(c) Documents required:

The following documents will be required for the transportation of the package:

• Air waybill: This document is a contract between the shipper (Geosolutions) and the airline (Air Canada) that
specifies the terms of transportation, including the origin and destination airports, the flight number, the
shipment details, and the transportation charges.
 • Commercial invoice: This document is a bill for the goods being shipped and is used for customs clearance. It
includes a description of the goods, their value, the shipper and consignee information, and the terms of sale. It
is used by customs officials to assess duties and taxes and by the buyer to arrange payment. It is typically
required for all international shipments.
• Bill of Lading: A bill of lading is a legal document that serves as a receipt of goods shipped and evidence of a
contract of carriage. It provides details such as the names of the shipper and the recipient, the port of origin and
destination, the date of shipment, and the goods being shipped. It also serves as a title document, allowing the
recipient to claim ownership of the goods upon delivery. It is typically required for ocean or sea freight
shipments.
• Packing list: This document lists the contents of the package and their dimensions and weights. It is used by the
carrier to ensure that all items are accounted for and by customs officials to assess duties and taxes.
• Export documentation: This includes any permits or licenses required for the export of the goods from Canada.
• Export Declaration: An export declaration is a document that is required by the government of the country of
origin for all exports. It provides information about the goods being exported, the exporter, the recipient, and
the value of the goods. It is used to monitor and control the export of goods from the country.
• Import Declaration: An import declaration is a document that is required by the government of the country of
destination for all imports. It provides information about the goods being imported, the importer, the shipper,
and the value of the goods. It is used to assess duties and taxes and to monitor and control the import of goods
into the country.
• Customs Declaration: Customs clearance documents are documents that are required by customs officials to
clear a shipment for import or export. These documents may include the commercial invoice, bill of lading or
airway bill, packing list, export or import declaration, and any other documents required by the customs officials.
The customs clearance process is necessary to ensure that all legal requirements are met, and that duties and
taxes are assessed and paid.

(d) The Information flow:

The information flow for the transportation of the package will involve the following parties:

Geosolutions: Provides the shipment details, including the origin and destination, the shipment value, and any special
instructions.

Freight forwarder/handler/carrier: Arranges the transportation and ensures that all necessary documentation is in order.

Airline: Transports the package from the origin to the destination and provides tracking information.

Customs brokers: Clear the package through customs at the origin and destination.

Client: Receives the package and confirms delivery.

Geosolutions --> Freight forwarder --> Air Canada (YYC -> LAX) --> American Airlines (LAX -> HNL) --> QANTAS (HNL
-> SYD) --> Customs brokers --> Client

(e) The finances required:

• Transportation charges: These are the costs associated with moving the package from Calgary to Sydney via air
transport. The charges will depend on several factors, such as the airline, routing, and service level selected. For
example, if Geosolutions chooses to use a premium airline or a faster route, the transportation charges will likely
be higher.
• Customs clearance charges: These are the costs associated with obtaining clearance for the package through
customs in both Canada and Australia. Customs clearance charges can vary depending on the complexity of the
clearance process. For example, if the package contains goods that require special permits or certification, the
clearance process may be more complex, and the charges will be higher.
• Insurance: Geosolutions may want to insure the package for its full value to protect against loss or damage
during transport. The insurance cost will depend on the declared value of the package and the insurance
provider's rates.
• Packaging and handling charges: These are the costs associated with preparing the package for transport,
including packaging materials, labor, and any special handling requirements. The charges will depend on the
complexity of the packaging required, such as whether the package needs to be temperature-controlled or if it
requires additional padding or reinforcement to protect fragile components.