Answer to the question number 1

“Both parties agree…………., DanskFisk will assume all responsibility”, which

means the Incoterm that would best represent the terms of sale between Kalastaa
and Danskfisk is Cost Insurance Freight (CIP). Under the Incoterm CIP, The exporter
(Kalastaa) has all responsibility of delivering the goods onto the vessel of transport,
customs clearance at own country port, and purchasing insurance as well as
Kalastaa is paying all cost up to the port of importer destination when goods are
shipped, DanskFisk (importer) has responsibility of unloading charges, paying duties,
custom brokerage charges and other cost up to warehouse. To avoid confusion
between buyers and sellers, all countries use INCOTERM the terms of sale, and
they are the standard terms used to prevent misunderstanding and to reduce
uncertainty in International trade.

Answer to the question number 2

There are different kinds of ships available for international trade. Almost all ships
have different purpose, but few are common in international transit. It would be
appropriate for Kalastaa to use Cargo vessel or Container vessel for the shipment of
their products.

Container ships are built to hold huge containers which are usually 20 or 40 feet
long, 8 feet wide and high. Such containers are standard in size so that they can be
shipped conveniently to different modes of transport and carried off from and to the
trucks by large cranes. The benefit of using containers is that cargo supplies are
ferried and transported across the world, by providing assurance of safety and
security of the transported cargo supplies.

A cargo ship is that carries goods and materials from one port to another. Cargo
ships are specially designed for the task, often being equipped with crane and other
mechanisms to load and unload as well as they come in all sizes.  The cargo carries
all kinds of goods whether liquid or general cargo. They have separate containers
and storage system for all these goods.

As kalastaa is exporting fish and they obviously need container to ship, these
vessels would be appropriate for container shipment.

Answer to the question number 3

There are some legal documents kalastaa needed to provide for securing the credit.

A letter of credit- it is essentially a financial contract between a bank, a bank's

customer and a beneficiary. Generally issued by an importer’s bank, the letter of
credit guarantees an exporter will be paid once the conditions of the letter of credit
have been met.
This document would be used to minimize risk in international trade transactions
between the Kalastaa and the DanskFisk. The letter of credit is an assurance if the
importer failed to pay for the goods that exporter shipped. the issuing bank will cover
the outstanding amount.

Commercial Invoices – another important document is commercial Invoice. It is a

legal document acts as a contract and proof of sale between buyer and seller and
issued in an international transaction by exporter to the importer. This document is
used used by customs to determin customs duties.

Insurance Policy- It offers protection of shipment while goods in the transit If loss or
damage is occurred due to the fault of the carrier. If party has the nsurance, insurer
promises to pay the insured party.

Marine bill of lading- The bill of lading needed for the transport of a freight shipment
in international boundaries and it contains a detailed list of all of the shipments goods
and is used as a receipt for freight services and also binding contract between the
shipper and the carrier, which ensures that Kalastaa receives payment and
DanskFisk receives products.

Certificate of quality- it is an official inspection certificate which determines the

grades and code for quality of the products. It is conformity assessment applied
by certification bodies demonstrating products in accordance with relevant technical
specifications,

Answer to the question number 4

Hiring Freight forwarding agency would makes the process smooth for importing and
exporting companies. Their professional services provide effective and stress-free
interactions for goods transport. There were some benefits if Kalastaa would have
hired freight forwarder.

 Freight forwarders are highly experience in the supply chain elements. so,
they can meet tight deadlines and establish an efficient distribution network
for the business.
 Handle unexpected obstacles such as delayed shipments or diverted facilities.
 Cost savings, such as Kalastaa would be able to negotiate costs with freight
forwarders because of the large number of containers which pass every day.
 Ensure the goods arrive at the right destinations and save money.
 freight forwarders would give a kalastaa more flexibility, such as getting the
rights to select carriers and they often guarantee higher levels of customer
service.
 Kalastaa would get assistance throughout all shipping levels, from packing
warehouse and customs.
 kalastaa would be able to know where their products are every time by the
Tracking Systems