HDT Truck Company Case Study

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Issue

- Received an order of 50 heavy trucks from Saudi Arabia


- Delivery date: on or before July 1, 2003
- Destination: Port of Doha
- Received $172,000/truck
- Production: 50-truck and the schedule is from April 2 - April 29 (2.5trucks/day)

Options
Option 1: from Chicago:
- With Nola Pino, charter it for $2,400/day for 30 days (on May 1)
- Loading & Blocking: $40/truck
- To Chicago (Railroad Flatcar): $180/truck
- Travel Time: 1 day to reach + 1 day to load
- Wharfage Charge: $2/foot x 535 feet long x 1 day
- Loading & Stowing: $4,000 for 50 trucks=> $80/ truck
- Seaway Tolls: $54/truck
- Unloading (at Doha): $4,200 for 50 trucks => $84/ truck
- Marine insurance: $210 / truck
Option 2: from Baltimore:
- To Baltimore (Railroad Flatcar): 2 trucks/flatcar, $1,792/flatcar Loading & Blocking:
$120/flatcar
- Travel Time: 4 days to reach + 3 days to load
- Handling at Baltimore: $200/truck
- Ocean freight: $1,440/truck + insurance: $150/truck

Via Chicago Costs ($)

Vessel charter

Load and block ($40/trk)

Rail rate at $180/trk

Wharfage

Loading and stowing ($80/trk) Seaway tolls ($54/trk)


Unloading
Insurance ($210/trk)

Total

Via Baltimore Cost

Rail road (2truck/ flatcar, $1,792/flatcar)

Load and block ($120/trk)

Handling Baltimore ($200/trk) Ocean freight ($1440/trk)


Insurance ($150/trk)

Total

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