Blog for the week

Sir ,

MY blog post for this week

Transportation costs for E-business

Transportation within a country might sound less costly and also easy to manage .But most businesses are going global and so the transportation cost for these businesses is increasing with the distance . E-business represents zero inventory model .So ,the goods must be transported to the final user.

But its not just the transportation but the risk associated with transferring the goods in their best form (no damage ) .

So for this ,there are some trade terminology used to account for all the risks.

1)FAS (free alongside ship) - This represents cost incurred in inbound logistics

2)FOB( free on board) - This represents cost incurred till the goods reach the ship in which they are to be transported.

3)CIF ( cost and insurance) - The goods-in-transit are also insured so that the goods reach the destination port without any damage.

4)DEQ (Devilary ex query) - Transportation of goods to the destination warehouse from the destination port.

To summarise this discussion ,I would like to put it that the cost of transportation will depend on till what point is the seller liable .If its just till the home port ,seller adds just FOB. If the seller takes responibility of the goods during the transport (sea route) then he adds CIF to the cost of the goods .

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Thanks and Regards,

Ajmera Karan

12DCP-006

PGDM (2nd year)

Institute of Management Technology

Contact no : 9871801299