HDT Truck Company

LY THI NGAN HA
1132300029
SCLM 429
CASE STUDY: HDT TRUCK COMPANY
Question 1:
Categories

Seaway
Baltimore

general information cost/truck general information cost/truck load and block to the rail
$40/truck
$40.0
$120/2 trucks
$60.0
rail rate
$180/truck
$180.0
$1,792/2 trucks
$896.0
handle at the port of origin

$200/truck
$200.0
freight rate
$2,400*30 days/50 trucks
$1,440.0
$1,440/truck
$1,440.0
insurance
$210/truck
$210.0
$150/truck
$150.0 wharfage charge
$2*535 feet
$21.4

load and stow cargo
$4,000/50 trucks
$80.0

tolls
$54/truck
$54.0

unload at Doha seaport
$4,200/50trucks
$84.0

total cost/truck $2,109.4 $2,746.0

Question 2:
Recommended routing alternative: SEAWAY (Nola Pino ship)
Reason 1: Cost of transportation
The total cost per truck for using Seaway service is much cheaper than Baltimore with approximately $636.6 in difference. If there is no interest rate or the cost of using money for production is still small than $636.6, it is worth for chartering Nola Pino ship.
Reason 2: Time
Although it would take 30 days which is longer than Baltimore, HDT Company still can deliver all 50 trucks to Doha on time. Moreover, the schedule of the production manager at HDT is also accordant to the schedule of Nola Pino ship. 1-Apr
20-25 Apr
1-May
29-30 May
HDT Company
Start production
Complete production Seaway

Ready for loading
Discharge at Doha

Question 3:
Based on the definition of FAS and FOB terms, HDT should subtract below costs out from the price of trucks for its customer.
Categories
Seaway general information cost/truck ($) handle at the port of origin

freight rate
$2,400 * 30 days / 50 trucks
$1,440.0
insurance
$210/truck
$210.0 wharfage charge
$2 * 535 feet
$21.4
load and stow cargo
$4,000/50 trucks
$80.0
tolls
$54/truck
$54.0 unload at Doha seaport
$4,200/50trucks
$84.0 total cost/truck $1,889.4

Question 4:
Categories
Baltimore general information cost/truck ($) handle at the port of origin
$200/truck
$200.0