Reference no: EM132924501
Your trading firm is based in Melbourne and you have been asked by a buyer in Vietnam to provide a quotation for a shipment of 180 tons of Australian flour. The trade term agreed is CFR Ho Chi Minh City (INCOTERMS 2020). The following data and information are available to you:
The EX WORKS price your firm buys from a local manufacturer in Dandenong is AUD 250 per ton.
Local transport from the manufacturer's warehouse to Port of Melbourne is AUD 500 per truck, which each truck carries 20 tons of cargo.
The loading fee onto the ship at the Port of Melbourne is AUD 50 per ton.
The unloading fee out of the ship at the Port of Ho Chi Minh is VND 1,000,000 per ton.
Export duty is 2% of the EX WORKS price.
Seafreight from Melbourne to Ho Chi Minh City, best quoted by a shipping line, is USD 9,000 for the whole shipment.
The chartering term is FIFO
Your firm would like to earn 20% profit on top of the EX WORKS price.
Calculate, showing all working steps, and provide your buyer with a quotation in both AUD per ton and USD per ton, knowing that the current exchange rates are 1 USD = 1.4 AUD and 1USD = VND 22,000.