LOGISTICS, IMPORT/EXPORT PLANNING

Don’t take your favorite logistics provider’s costs at face value. Often, establishing the most cost efficient and stable logistics platform requires meticulous planning, competing bids to drive down prices, and careful route/seasonal analysis to mitigate delays and losses of product.

CEC’s network of suppliers has been selected to provide a diverse array of transportation services, such as:

• Air-freight
• Barge transportation
• Bonded, Dangerous-Good Warehousing
• Ocean, Rail and Truck transport
• Special projects – oversized, temperature-controlled, next flight out
• Heavy lift transportation and handling

By conducting the necessary studies, and surveys, CEC’s logistics consultancy business provides a vendor-neutral objective assessment to the best course of action for your logistics planning.

 

Mineral Concentrate Transportation Plan

USD$1M+/month in mineral concentrates to be shipped from the U.S.A. to a smelter in East Asia; the Client required a strategic, vendor-neutral plan to objectively assess their options and costs

CEC’s services were contracted to investigate and deliver the following scope of work:

• Analyze the options available to assemble a supply-chain, including: direct haulage, drayage and trans-loading, and port of departure.
• Issue RFQ’s based on CEC’s best assessment, and receive, rank quotations from all vendors.
• Select best options for the client and determine expected USD$/tonne for shipping to use in budgeting, feasibility and investor pro-formas.

LOGISTICS REPRESENTATION, POWER OF ATTORNEY

Businesses should focus on growing their business. Often, we find that this should not include managing the timing, responsibilities, and endless paperwork that comes with shipping and transportation. CEC is able to provide cost-effective outsourcing for management of logistics departments for small, medium and large sized companies.

Our team is all FITT certified and often have a post-graduate degree with a second language. Each management contract is assigned a Project Manager and a 24/7 phone number. Along with this, CEC is granted Power of Attorney, and in the past has integrated with accounts payable/receivable, in order to file the proper documentation with the relevant vendors and Federal, State and Customs Clearance authorities.

 

Gold-Copper Export Management – USA to Korea

USD$1M+/month in cargo managed from packaging and pick-up at the mine site (Utah), to delivery at the Port of Busan, South Korea

CEC’s services were retained in an ongoing fashion to take responsibility of the following from the client:

• Coordination between site and transportation suppliers.
• Scheduling of concentrate bag pick-up.
• Management of supply-chain including trucking, trans-load facility in Salt Lake City for containerization, rail and ocean freight.
• Generation, and filing of all relevant paperwork (COO, CI, PL, BL etc.) with the relevant parties, and authorities.
• Implementation of quality control practices, documentation and testing.

CREDIT, POLITICAL RISK INSURANCE

CEC is able to offer a wide range of trade credit and political risk mitigation insurance solutions through our trusted partners.  Having purchased, consulted on, and partnered with vendors on these types of insurance policies numerous times, CEC is capable to guide you through the underwriting process.

• insolvency of the buyer
• protracted default
• repudiation (non-acceptance of goods)
• contract frustration and other political risks

• domestic buyers
• export buyers
• single buyer
• excess of loss

• foreign assets
• bank accounts
• receivables
• equipment and inventory
• personnel
• project investment
• equity

• confiscation
• expropriation
• nationalization
• inconvertibility and non-transfer
• license cancellation
• embargo
• kidnap and ransom
• war and revolution
• sovereign payment default
• contract frustration

TERMS OF TRADE ADVISORY

International contracts for the delivery of goods and services are complicated endeavours. Often their clauses are dozens, if not hundreds, of pages long that are designed to mitigate risk and establish responsibilities between both parties. These “terms of trade” can be contentious, and in such number are often under-researched or even borrowed from other sources. CEC has brokered thousands of international transactions across a range of industries and jurisdictions. This wealth of expertise can assist your company avoid common pitfalls and provide a strong foundation for subsequent transactions.

 

Potato Chip Manufacturer – Korean FOB Deal

USD$1M+ negotiated transaction for sale of container loads of Canadian potato chips to Korean retailer

• Deal was written FOB (Freight on Board) – meaning the exporter was responsible for cost of freight, insurance etc. to the Port of Vancouver (from Regina).
• Exporter did not understand the difference between Ex-Works (Pick-Up from Factory) and FOB, which meant they underpriced the transaction.
• CEC was hired to re-negotiate the “terms of trade” and to find a suitable settlement between the two parties, which was done successfully.

We no longer assume that exporters understand Incoterms.