Tuesday, March 12, 2019
Catch of the dayKalastaa Inc. have been in the local Finnish aquaculture industry for nearly fourteen years. They raise chromatic and trout for local markets, and have recently negotiated a deal with a meek look for processing plant that distributes under a major proceeds label in Finland. Although they run a rather small operation, employing 16 people year-round, Kalastaa believes they are in a position to export approximately surplus and perhaps broker further deals with fish processing plants roughly the European Union. They do want to maintain ties with the local fresh fish markets, but sales have been steadily decreasing since the sudden inflow of cheaper Scottish salmon on the market. They know their stock is of higher role and could be exported abroad quite profitably. Kalastaa has contacted the government and enrolled in small strain export initiatives. This has enabled the company to attend aquaculture conferences abroad and offered them the opportunity to network a nd bind contact with DanskFisk, a Dutch importer.Plenty more fish in the sea?DanskFisk was eager to negotiate a contract for 2 tonnes of Finnish salmon to distribute to a number of clientele throughout the country. salary of deferred payment was arranged by a Dutch bank. The documents required were a commercial invoice, the insurance policy, a marine bill of lading, and a award of smell. Kalastaa has arranged to have their fish inspected by a nationally true standards organization. Both parties agree in their contract that Kalastaa will pay committal to Rotterdam and will also insure the commitment. Once the salmon has been delivered, DanskFisk will attain all responsibility.The Finish Food Inspection Agency reports to Kalastaa that the fish to be exported is of superior quality, with a fat content of 11 percent. Thecertificate of quality includes a code for superior quality and also states a distort code that is standard to the Salmofan scale. Colour coding is a common u tilise in the fish industry and provides a method of standardization for something as subjective as colour. Both in production and sales, colour is the or so important quality parameter for salmon. Salmon buyers can request randomness on the colour of a delivered lot in the form of a number corresponding to a colour number on the Roche scale. other salmon colour reference is the colour number on the Salmofan scale. Kalastaas bank, acting as their export advisor, contacts thecompany to tell them that the letter of credit has fallen though because the certificate of quality is vague and it cannot be determine if the cargo has passed its quality certification. Something is fishyThe documents were delivered directly to the buyer for payment. DanskFisk insists on inspecting the shipment upon arrival. DanskFisk is not an experienced salmon importer, and usually deals with Spanish Blue search and Irish Char. They are not in disagreement that the salmon shipment has passed quality ins pection. Upon DanskFisks inspection, they claim that the fat content of the stock is oft higher than is claimed in the quality inspection. They reject the sale and will induce substitute goods, but are claiming damages for loss of profit. Kalastaa management admire if they need to rethink their exporting strategy.Case Study Discussion Questions1.Which exaltation vessels would be most appropriate for Kalastaa to ship their product to Rotterdam?2.Describe the purposes for each(prenominal) of the export documents that Kalastaa need to provide to secure documentary credit.3.Which Incoterm would best show the terms of sale between Kalastaa and DanskFisk?4.Would Kalastaa have benefited from employing a freight forwarder? Explain.