Intro to Transportation

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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. 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. 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...
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