A strategic movement from the Port of Houston, USA to Baku, Azerbaijan can be completed via multiple viable routes, with various shipping times, costs, delays, and risks. Our decision was based on our efforts to minimize costs and risks associated with the move, given the need for two modes of transportation.

1. Assignment B
MBA6328
December 3, 2017
GROUP 4: BEAU
TAYLOR, ANDY
CORREA, YEKATERINA
GOLOVANOVA,
GABRIEL LOPEZ,
CHRISTOPHER CONTI,
LAKETTA HAMPTON

2. OBJECTIVE
Create an economical and viable route for the containers of Bromine to move
from Houston (USA) to Baku, Azerbaijan
Sale completed under an FCA (Houston Container Terminal, Port of Houston)
Incoterms 2010 sale
Title transfer at the international border (3 days after sailing)
Point of Payment trigger is reaching International Waters
Payment within no longer than 30 days.
352 barrels loaded on 88 pallets
Each barrel valued at $825

3. Cargo Specifications
352 Barrels, valued at $825 each, weighing 540 pounds each
Barrels packed on pallets; 4 barrels per pallet
Each loaded pallet weighs 2190 pounds
5- 40 foot Dry Cargo containers will be packed with 18 pallets each
Each container has a total weight of 48,238 pounds

4. Shipping Questions to Answer
Which carrier will be used?
How many trans-shipments and Ports?
How many mode changes are necessary?
Does the country that is being crossed to get to the end country have poor or
good LPI ratings?
What are the costs for each leg of the shipment?

5. Which Carrier Will be Used
ZIM Integrated Shipping will be used for Ocean Freight from the Port of
Houston to Poti, Georgia
ZIM is able to ship from the Port of Houston to the Port of Poti with only 2
port stops
Eltrans, LLC will be used for trucking from Poti, Georgia to Baku, Azerbaijan
See slides 6 and 7 for shipping routes from ZIM Integrated Shipping

8. How Many Trans-Shipments and Ports
The shipment will have 4 trans-shipments:
Port of Houston, USA to Port of Valencia, Spain
Depart 07DEC17 on Vessel Uasc Bubiyan
Arrive 23DEC17 in Valencia
Port of Valencia, Spain to Port of Piraeus, Greece
Depart 26DEC17 on vessel Zim Tarragona
Arrive 08JAN18 in Piraeus
Port of Piraeus, Greece to Port of Poti, Georgia
Depart 10JAN18 from Piraeus on a feeder vessel
Arrive 14JAN18 in Poti, Georgia
Port of Poti, Georgia to Baku, Azerbaijan (Truck)

9. Modes and Mode
Changes
There will be 2 total mode changes for the
shipment
The following legs will all be Ocean Freight
From the Port of Houston to the Port of
Valencia
From the Port of Valencia to the Port o Piraeus
From the Port of Piraeus to the Port of Poti
The shipment from the Port of Poti to Baku will
be trucked over land

10. LPI Ratings
The following LPI ratings are based off of World Bank’s LPI ratings and rankings
of 160 countries, current 12/1/2017:
Spain- LPI 3.73 (ranked 23rd of 160)
Greece- LPI 3.24 (ranked 47th of 160)
Georgia- LPI 2.35 (ranked 130th of 160)

11. Shipping Costs
Ocean Freight- Port of Houston to Port of Poti
$2,300 per container; $11,500 total ocean freight
cost
Trucking from Poti, Georgia to Baku Azerbaijan
$1,500 per container; $7,500 total trucking cost

12. Assignment Questions
Reasons for choosing the route
Sequential steps to achieve the movement
Completed SLI and CI documents for the move
Pre-Alert and requirements
Letter of Credit

13. Why the Chosen Route?
We analyzed multiple shipping companies’ routes, availability, costs, number of vessels, trucking
capabilities and reliability and determined that the best fit for each mode of this move is:
Ocean Freight
We minimized and consolidated risk by selecting ZIM Integrated Shipping from the Port of
Houston, USA to the Port of Poti, Georgia
ZIM has the overall ability to ship to the Port of Poti with only two stops, Valencia and
Piraeus, and with minimal delays of transfer
Trucking Freight
We decided to utilize El Trans, LLC to move the 5 containers from the Port of Poti to Baku.
Utilizing a rail shipment was an option, but was much more costly and incurred further delays

14. Alternatives to the Chosen Route
These routes were not chosen because they required an increased number of carriers and the risk
associated with unnecessary added movements did not outweigh the potential benefits. These
alternative routes appeared shorter than our chosen route of 38 days but the elevated cost of
choosing rail in countries where rail freight is in short supply, increased the cost compared to
trucking dramatically. Potential for unforeseen delays from limited rail schedules also affected our
decision to avoid rail.
Therefore, we feel our chosen route minimized risk while also providing a secure shipping route to
our customer.
1. Port of Houston to port of Batumi, Georgia - All Vessel - 30 days
Port of Batumi to Baku, Azerbaijan – Rail - 3 days
Total of 33 days
2. Port of Houston to Port of Iskenderun, Turkey - All Vessel – 30 days
Port of Iskenderun to Port of Baku – Rail - 4 days
Total of 34 days

15. Sequential Steps of Movement
The movement of the goods requires multiple steps that must be completed in order. Some of
the steps of movement include:
Making a booking
Collecting the container
Loading the container
Delivery to the port
Obtain terminal receipt
*The following slide provides a full breakdown of the sequential steps of movement.

16. 23 24 25 26 27 28 29 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1 2
Step Process Time (Days)
1 Schedule Booking (Zim International Shipping) 1
2 Processing of Shipping/Customs Documents 1
3 Collection/Delivery of Shipping Containers to Shipper 5
4 Loading of Merchandise into Container(s) at Shipper Site 1
5
Delivery of Containers to Port & Receipt of "Dock Receipt"
(Houston)
1
6 Storage of Containers at Port (Houston) 3
7 Loading of Shipping Container to Vessel (Uasc Bubiyan) 1
8 Depart Port of Houston & Ocean Transit Time (1st Leg) 16
9
Arrival/Unloading of Shipping Container at 1st Port (Velanica,
Spain)
1
10 Storage of Containers at Port (Valencia, Spain) 2
11 Loading of Shipping Containers to Vessel (Zim Tarragona) 1
12 Depart Valencia & Ocean Transit Time (2nd Leg) 13
13
Arrival/Unloading of Shipping Container at 2nd Port (Piraeus,
Greece)
1
14 Storage of Containers at 2nd Port (Piraeus, Greece) 1
15
Transportation to and Loading of Shipping Containers to Feeder
Vessel (Greece)
2
16 Depart Piraeus & Ocean Transit Time (3rd Leg) 4
17
Arrival/Unloading of Shipping Container at 3rd Port (Poti,
Georgia) & Customs Inspections/Formalities
1
18 Over the Road Transit Time 1st Leg (Poti to Baku 17 Hours) 0.25
19
Customs Inspection of Container(s) (Border of
Georgia/Azerbaijan)
0.25
20 Over the Road Transit Time 2nd Leg (Poti to Baku 17 Hours) 0.25
Rail Option
20
Rail Transit Time (Poti to Baku 18.5 Hours after departing
which only occurs on Tue or Sat - In this scenario, wait &
travel time is 3 days since Jan 18 arrival is a Thursday)
3
Rail Option
21
Unload Containers from Rail Car to Truck for Delivery to
Consignee 2
22
Arrival of Containers to Baku Shipping Yard for Consignee
Pickup (Jan 20th by Truck, 24th if by Rail) & POD
Truck
Rail
Option
Rail Option
Rail
Option
Week 2Week 2 Week 3
Dec-17
Week 1 Week 1
BromineShipment
Nov-17
Week 4 Week 5
Arrival at Destination
352 Barrels of Bromine
5 - 40' Dry Cargo Containers
Shipment from Houston, Texas USA to Baku, Azerbaijan
Shipment Preparation & Delivery to Port Transit/Travel Time
Week 3 Week 4
Jan-18
Week 4

17. Shipper’s Letter of Instruction (SLI)
Transportation of Bromine – Hazardous Chemical to be handled with supervision and in correspondence with an international transportation norms of hazardous chemical.
ZIM Integrated Shipping, Ltd. is responsible for shipping of container under classified norms from Port of Houston, USA to the port of Poti, Georgia. The POD is Baku, Azerbaijan,
the transportation from Poti, Georgia to Baku, Azerbaijan will be carried by El Trans, LLC. Points to be considered while transportation:
1. Certified tanks are to be already used for transportation.
2. Only trained professionals, experienced in handling Bromine (Br) should be allowed to handle the extraction process, whenever deemed necessary.
3. Barrels with Bromine must be stowed on deck only. Must be protected from sources of heat and cold.
4. Import duties are only liable to be paid at POD.
5. Transport fare along with necessary taxes that are incurred by El Trans, LLC will be reimbursed to the former, only after raising valid claims signed by authorized transport
officer.
6. The remaining 70% of transportation and service fee will be wire-transferred to El Trans, LLC only after the product has been received at POD.
First Intercontinental Corporation (Seller) having its registered office at 800 W Airport Fwy, Suit 401, Irving, Texas, USA - 75062 has entered into an agreement with Water
Engineered Technologies (Buyer) having its registered office at 57/59 B.B. Majidov Street, Baku, Azerbaijan – AZ1065; to purchase 190,080 lbs. of Bromine (Br) to be dispatched
from the port of Houston to the POD of Baku, Azerbaijan.
CI is to be done by taking into consideration norms under Incoterms 2010.
The buyer agrees that the use of Bromine shall only be for the purpose of water cleansing in the area near Tbilisi and Baku and which is mentioned by the seller during the
prelim stages of buying information.
The duties and taxes incurred in the transportation are to be taken care by El Trans, LLC.

18. Shipper's Letter of Instructions SLI No.:
Contact:
Telephone: + Fax:
Email: Email:
Contact: Contact: Contact:
Telephone: Telephone: Tel.:
Email: Email: Email:
Contact:
Telephone:
Email:
Voy
Pcs Pcs L x W x H
( in )
5 352 lbs 432 x 48 x 79
x x
x x
5 352 lbs 948 cft
Shipment contains Dangerous Goods?
Item Sub
Br 6.1
Pcs Currency
352 USD
Current Tariff rates apply or
101
Exporter (Name + Address) Ultimate Consignee (Name + Adress) Transportation Reference
First Intercontinental Corp Water Engineered Technologies
Charge Code
800 W Airport Fwy, Ste 401 57/59 B.B. Majidov St. Project Name/Number
Irving, TX 75016 Baku, 1065
USA #REF! Azerbaijan
Contact: Amar Sawla
Cargo Origin / Pick-up Location Forwarding Agent
99-412-596-1899 Accounting Distribution
wetinfo@gmail.com
Telephone: +1 972-721-9964
firstintercontinental@gmail.com
Transport Document "NOTIFY" Other
Requested Transport Detail
Mode of
Transport
Ocean Air Truck Courier
X
7-Dec-17 ZIM Integrated Shipping Houston, TX Poti, Georgia 35.2 days Baku, Azerbaijan
X
Departure Vessel / Conveyance name Port of Export Port of Destination ETA Final Destination
Container Inside Overpack Cargo Detail
Type Packing General Commodity Description Gross Weight
Transport Terms for Carrier Cargo Availability Required at Destination P.O. Number Incoterms
FCA
40' drums Bromine 39,420
Shipper's Dec
Bromine 1744 8 III Not flammable 95925
Totals 39,420
YES
Proper Shipping Name UN Number Class PG Flashpoint MSDS
As per attached Invoice + Packing List
Bromine 290,400.00 USA 2801.30.20 EAR99 No
Commodity detail
Description Value Origin HTS Code ECCN License (Yes/No)?
Special Instructions:
Extremely Hazardous Substance. Storage Temperature: Cool, above 20F to prevent freezing. Must be stored
upright in a cool, dry place. Label Code "Corrosive, Poison".
MUST BE STOWED ON DECK ONLY. MUST BE PROTECTED FROM SOURCES OF HEAT AND COLD.
DO NOT EXPOSE TO ROUGH HANDLING.
Transport Rates
Additional / Special Services Requested
Rate Notes:
Authorization
or Quote applies Quote number Quote Date As per Outlay
Date (mm/dd/yy) Telephone No.: Email address
12/2/2017 1 972 721 9964 firstintercontinental@gmail.com
Written Authorization We hereby authorize the party named in the above "Forwarding Agent" field to act on behalf of the above specified "Principle Party in
Interest" as its true and lawful agent for purposes of creating and filing EEI – Electronic Export Information to the AES – Automated Export System in
accordance with the laws and regulations of the United States. This Written Authorization does NOT constitute a general Power of Attorney and does NOT
authorize the named agent to act on our behalf for anything other than the filing of the EEI. The Principal Party in Interest certifies that all necessary and proper
documentation to accurately transmit the information electronically is and will be provided to the said Agent. The Principal Party in Interest further understands
that civil and criminal penalties may be imposed for making false or fraudulent statements or for the violation of any United States laws or regulations on
exportation and agrees to be bound by all statements of said agent based upon information or documentation provided by the Principal Party in Interest to said
agent.
This SLI is a valid request for services under the Terms and Conditions set forth in the Master Service Agreement between Manufact, Inc. and the forwarder named herein. Rates
for the services requested herein, shall be mutually agreed upon prior to the start of the services. Unless this document refers to special pricing for the named shipment, the rates
from the current rate agreement between Manufact and the named forwarder apply.
Duly Authorized Officer or Employee (Name) Signature Title
Amar Sawla AMAR SAWLA
SLI CONTINUED

19. Commercial
Invoice (CI)

20. Pre-Alert and Requirements
In order to get our products delivered to the final destination, we must prepare a pre-alert for the customs in the final destination. These
documents must be prepared and delivered to the custom broker prior to the delivery arriving in Baku. According to World Bank info, customs
clearance on average takes 10 days for Azerbaijan. The documents that require by Azerbaijan are listed below and these must be delivered to the
States Customs Committee.
 Customs Declaration
 Bill of Lading
 Commercial Invoice
 Packing List
 Certificate of Origin
 Certificate of Quality of the imported merchandise
When importing personal affects or items the following additional documents are required for customs pre-alert.
 Power of Attorney
 Copy of Passport
 Copy of Valid Visa
 Valued Inventory
(Export.gov, 2017)
(Worldwide, 2017)

21. Letter of Credit
(L/C) Page 1

22. Letter of Credit
(L/C) Page 2

23. Letter of Credit
(L/C) Page 3

24. Conclusion
A strategic movement from the Port of Houston, USA to Baku, Azerbaijan can be completed via
multiple viable routes, with various shipping times, costs, delays, and risks. Our decision was
based on our efforts to minimize costs and risks associated with the move, given the need for two
modes of transportation. The end result will be a movement of the following:
 5-40 ft Dry Cargo Containers
Cargo contains 352 pieces valued at $825 each ($290,400 total value)
 Full move will take 38 days from the on-load at the Port of Houston to the delivery in Baku,
Azerbaijan
The total move freight cost from the Port of Houston to Baku, Azerbaijan will be $19,000 USD