Intro to Transportation

Intro to TransportationMarch 20, 2013 Page 1 of 1 Assignment #5 New Brunswick Power turbine As it does not clarify in the readings exactly what the terms of shipment assigned were for the agreement between Siemens and NB Power, I have assumed that the agreement would have specified that Siemens specified that the contract was governed by Incoterms 2010 CFR- St John, New Brunswick, Canada. All responsibility for risk of loss or damage, as well as additional transportation costs now transfer to buyer essay writers for hire. Seller responsibility ceases once goods pass the ships rail at the port of shipment (not destination).

NB Power contracted with Irving Equipment to deliver goods via barge to power plant. The bill of lading should read “FOB Destination”. Costs and responsibility: Rescue/Recovery of Goods from Water- Irving Equipment Responsibility: NB Power contracted services with Irving Equipment and BOL stated FOB Destination- damage or loss to the cargo up to the point of delivery to the buyer is responsibility of the shipper. Assessment and Cleaning of Recovered Turbines- Irving Equipment NB Power contracted services with Irving Equipment and BOL stated destination.

Replacement/Repair of Turbines: Irving Equipment. Responsibility: NB Power contracted services with Irving Equipment and BOL stated FOB Destination. Damage or loss to the cargo up to the point of delivery to buyer is responsibility of the shipper. Freight (Load Planning)- Irving Equipment Agreement with manufacturer had clearly stated CFR. As per description above NB Power did enter into agreement with Irving Equipment to handle and deliver goods to destination. This shipment would have required load planning expertise to ensure smooth transition. Loss of Revenue for Power Plant: Irving Equipment.

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As stated above Schedule delays for power plant: Irving Equipment. As stated above NB Power would be able to pursue all identified points above where I believe that Irving Equipment could be held responsible. Unless otherwise specified in their agreement, the liability would probably be limited to a certain amount and NB Power would not recover the costs for the turbines and all extra’s listed above. If NB Power did purchase insurance for this shipment for the full value of goods, they could recover the cost of goods and all other costs depending on type of insurance purchased.

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