Bolloré Logistics Canada and the Use of Incoterms in International Marine Shipping

Description

Bolloré Logistics Canada and the Use of Incoterms in International Marine Shipping: Abstract

Bolloré Logistics Canada is an international freight forwarder based in Saint-Laurent, Quebec and part of the transportation and logistics division of the Bolloré Group, a conglomerate of French companies headed by Vincent Bolloré. Freight forwarders provide their clients with transport solutions by coordinating the modes of transportation used, customs clearance and documentation, port handling, and supervision of all shipping aspects. This case features Marc Gagnon, a new recruit in the sea freight export department of Bolloré Logistics Canada, who has to respond to calls from three clients. The three have asked about different shipments and transactions (transport of mining equipment to New Caledonia, pharmaceutical products to Chile, and circus show materials to Greece). Each client request involves international maritime shipping calling for the choice of a specific Incoterm (version 2010, as defined by the International Chamber of Commerce) and the corresponding estimate. For each of the three situations, the characteristics of the buyer and seller are described, along with their respective business objectives, their relationship, the merchandise and the destination. The three cases are presented in increasing order of difficulty.

Teaching objectives

• Provide a basic introduction to Incoterms, specifically four groups of Incoterms (EXW, F, C, and D).
• Explain the ins and outs of choosing an Incoterm.
• Give concrete examples of international transactions, specifically with regard to the buyer-seller relationship.
• Look at trends in international shipping and the freight forwarding market.
• Illustrate transportation problems commonly faced by exporters and importers.
• Understand the role of a logistics service provider in the transport chain.

Main themes covered

• Incoterms (2010 edition)
• International seaborne shipping
• Logistics
• Freight forwarders

Concepts and theories related to the case

• Analysis of international trade and its inherent risk factors
• The sharing of responsibilities in international trade, and logistics costs

Additional information

Also available in French.

Teaching notes are available for teachers only. Contact HEC’s Case Centre for more information.