The shipping company in the United States is known as the Allied holdings and its aspiration is to further improve the value of the shareholders by the consistent execution of superior customer value proposition. The shipping company differentiates its services on the basis of the outstanding management which is frontline, the best drivers in the industry, operations that are client focused, a distribution network that is very flexible as well as extensive and also an effective risk management to the customers.
The Allied Holdings are also a parent company with several subsidiaries which are engaged in the provision of logistics, transportation and distribution services to the automotive industry. The services of this shipping company span the whole distribution of the finished vehicles continually and this is inclusive of the logistics, intra-modal transport, car hauling and accessorization, inspection as well as dealer preparation. Similarly the Allied Holdings shipping company through its subsidiaries has become the largest in North America and it specializes in delivering the new and also the used vehicles.The shipping company Allied Holdings has a streamlined organization which is part of the corporations performance driven and also leadership initiative that has transformed the company in providing greater capabilities so as to meet the expectations of the company.
A shipping company in the European community Source; Schumacher cargo logistics (2007): The shipping and moving services retrieved from; .http://schumachercargo. com/, accessed on 22nd November 2007 The Schumacher cargo logistics is a shipping company in Denmark which specializes in cargo shipments around the globe.The company assures the customers of their confidence in that their goods will arrive at their destinations in the same conditions in which they were handed over to the company.
The company offers automobile shipping services and its safety records for the deliveries in the cargo shipment exceeds all the industry standards. The Schumacher cargo logistics shipping company in Denmark moves over ten thousand vehicles annually and this process begins with the customized pick up services to the final destination of the goods.The company either through the container service or air freight ensures that the goods shipped is taken care of and they are also handled with the utmost attention to the deal. (Manuel 1982) A product required by the shipping company in America A product that is required by the Allied Holdings shipping company in America from the Schumacher cargo logistics in Denmark is a car. The shipping rates of this car from Denmark to the United States of America will depend on the amount of traffic moving to the US and the distance between Denmark and the United States of America.
Another consideration that will be made on the determination of the shipping rate of the car will be the size of the vehicle since smaller cars are shipped at lower rates than the large vehicles. The Schumacher cargo logistics company in Denmark will provide details of the vehicle insurance details to the allied holdings shipping company in America. Ex works The term ex-works is a term that is used in sales where for the quoted price the seller merely makes the goods readily available to the buyer at the sellers named place of business.However this trade term places very great responsibility on the buyer and minimum obligations on the seller.
This term is also used in the making of a quotation initially for the sale of the goods without the inclusion of any other costs. In this scenario whereby the Allied Holdings in America requires a vehicle from the Schumacher cargo logistics in Denmark the ex-works here signifies that the Schumacher cargo logistics have minimum obligation.However this means that the only responsibility that is given to the Schumacher cargo logistics is to make the goods available at the company’s premises. (King, Lee and Viehland, 2006) Thus the Schumacher shipping company does not hold any shipping responsibilities in loading the car on the vehicle that is provided by the Allied Holdings unless agreed otherwise.
The full costs and the risks involved in bringing the car from Denmark to the United States of America are bored by the Allied Holdings. Thus ex-works represents the minimum obligation of the Schumacher cargo logistics.In this context the risks as well as responsibility pass from the Schumacher cargo logistics shipping company in Denmark to the Allied Holdings in America when the vehicle has been made available on the ground at the works or on the agreed future date or time un-cleared through the customs. The Schumacher cargo logistics shipping company in Denmark must give an advance notice of availability which is very important.
Both shipping companies should only make a consideration of the EXW when the buyer can make arrangements. (Hofstede, 1980) Documentary credit or documentary collection as a method of paymentThere are several basic methods of receiving the payments for the products sold abroad and a major factor which determines the method of payment to be used is the amount of the trust that is in the ability of the buyer as well as the buyer’s willingness to pay. If for instance the buyer has some good credit then the sales are often made on an open account. For the export sales this method may also be used. In some instances the buyer maybe concerned that the goods may at times not be sent if the payments are made in advance and thus the documentary letter of credit and drafts protects the interests of both the seller and the buyer.Some documents are however required to be presented prior to the payment and both letters of credit and the drafts maybe immediately paid at sight or even on a later date.
(Harwood 1996) The drafts that are to be paid when they are presented for payments are called the sight drafts and the drafts which are to be paid at a later date in the future which is frequently after the buyer has received the goods are called the date drafts or the time drafts. Since the payments under these two methods are however made on the basis of the documents then all the terms of the sale should also be clearly specified.Similarly there should also be a specification on the currency which should be used in the payment procedures. There are also some bank charge fees which are usually a small percentage of the payment amount for the handling of the letters of credit and less for the handling of the drafts. It should also be clarified in all the quotations and in also all the drafts if the fees that are charged by the local and the foreign banks for the collection services should be charged on the account of the buyer.
(George 1998)
