Suppose a forwarder gives you a quote for the transport of a container from Paris to Shanghai. The cargo consists of 15 pallets, each with a volume of 1 m3 and weighing 210 kg.
Compare the alternatives below in terms of the transport price.
2a. Full 40 ft container. You load the container yourself and it is transported unopened to the destination. Container rent: $100, transport door-to-door $1000.
Calculate the transport price!
2b. Shared container. Forwarder picks up pallets and transports them to destination, they will be consolidated with other cargo for the sea voyage. Density cutoff at 270 kg/m3. Price per kg at 270 kg/m3 is $0,30.
Calculate the transport price!
2c. Two 20 ft containers. You load the containers yourself and they are transported unopened to the destination. Container rent: $70/container, transport door-to-door $600/container.
Calculate the transport price!


Let's calculate the transport price for each of the alternatives provided:

### 2a. Full 40 ft Container
For this option, you are renting a full 40 ft container and paying for door-to-door transport.

- **Container rent**: $100
- **Transport door-to-door**: $1000

Since you are using the full container and the cargo is transported unopened, the total transport price is simply the sum of the container rent and the transport cost.

\[
\text{Total Price} = \text{Container Rent} + \text{Transport Cost} = 100 + 1000 = \text{\$1100}
\]

So, the total transport price for a full 40 ft container is **$1,100**.

### 2b. Shared Container
In this option, the cargo is consolidated with other cargo and transported together. The transport cost is based on the density and weight of the cargo.

- **Volume of cargo**: $15 \, \text{pallets} \times 1 \, \text{m}^3/\text{pallet} = 15 \, \text{m}^3$
- **Weight of cargo**: $15 \, \text{pallets} \times 210 \, \text{kg/pallet} = 3150 \, \text{kg}$
- **Density cutoff**: 270 kg/m³
- **Price per kg at 270 kg/m³**: $0.30

**Step 1**: Calculate the chargeable weight.
Since the density cutoff is 270 kg/m³, we need to compare the actual density of the cargo with this cutoff.

\[
\text{Actual density} = \frac{\text{Total Weight}}{\text{Total Volume}} = \frac{3150 \, \text{kg}}{15 \, \text{m}^3} = 210 \, \text{kg/m}^3
\]

Since the actual density (210 kg/m³) is less than the density cutoff (270 kg/m³), the chargeable weight is calculated using the density cutoff:

\[
\text{Chargeable weight} = \text{Total Volume} \times \text{Density Cutoff} = 15 \, \text{m}^3 \times 270 \, \text{kg/m}^3 = 4050 \, \text{kg}
\]

**Step 2**: Calculate the total price.

\[
\text{Total Price} = \text{Chargeable weight} \times \text{Price per kg} = 4050 \, \text{kg} \times 0.30 \, \text{\$/kg} = \text{\$1215}
\]

So, the total transport price for the shared container option is **$1,215**.

### 2c. Two 20 ft Containers
For this option, you are renting two 20 ft containers and paying for the transport of each container.

- **Container rent per 20 ft container**: $70
- **Transport door-to-door per 20 ft container**: $600

Since you are using two containers:

\[
\text{Total Price} = 2 \times (\text{Container Rent} + \text{Transport Cost}) = 2 \times (70 + 600) = 2 \times 670 = \text{\$1340}
\]

So, the total transport price for two 20 ft containers is **$1,340**.

### Summary of Transport Prices:
- **2a. Full 40 ft Container**: **$1,100**
- **2b. Shared Container**: **$1,215**
- **2c. Two 20 ft Containers**: **$1,340**

Would you like further details or explanations?

---

Here are eight follow-up questions for further exploration:

1. What are the potential risks and benefits of using a shared container compared to a full container?
2. How would the total transport cost change if the weight of the cargo increased?
3. What factors should be considered when deciding between using a 40 ft container versus two 20 ft containers?
4. How does the density cutoff affect the pricing in a shared container scenario?
5. What would be the impact on transport costs if the price per kg in the shared container option increased to $0.35?
6. How would the costs change if the volume of cargo increased to 20 m³?
7. What are the implications of container rent rates on overall transport costs?
8. How might the cost differences influence decisions for a company with regular shipments?

**Tip**: Always consider the cargo's density and weight when comparing shared container options with full container options to optimize transport costs.

Calculate transport prices for different container options (full 40 ft, shared, two 20 ft containers) based on cargo volume, weight, and density cutoff. Detailed breakdown and comparison provided.

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