This unit applies to individuals with the skills and knowledge to evaluate options when planning for the international trade of goods. The planning activity will usually be in the context of providing a preliminary quotation, a quotation, a supplementary advice on a quotation, or when evaluating a freight contract received from a buyer or seller.

ELEMENT

PERFORMANCE CRITERIA

1. Evaluate the most appropriate transport method, route and protection/security options according to cargo and delivery requirements

1.1. Ascertain business context of cargo movement

1.2. Examine factors to be considered in route/mode selection

1.3. Evaluate conditions and risks of different routes in relation to delivery requirements

1.4. Utilise resources that provide information on the current service status of particular transport routes

2. Review shipping and airfreight services available for transporting cargo

2.1. Identify airlines and air cargo services operating in and out of Australia

2.2. Compare configuration and carrying capacity of different types of aircraft

2.3. Identify shipping services and types of ocean vessels operating in and out of Australia

2.4. Compare different types of shipping services

2.5. Compare configurations and carrying capacities of different types of ocean vessels

3. Evaluate packing, marking and stowage requirements for a variety of cargo

3.1. Analyse and prepare protection, presentation and preservation requirements

3.2. Analyse range of containers available for international cargo and evaluate for use

3.3. Evaluate marking requirements and prepare correct marking advice

3.4. Identify risk factors in relation to packing and storing of goods for transportation and select appropriate options

4. Calculate international freight and other shipment costs

4.1. Examine and apply types of rates, volume-to-weight ratio factors, volume rules including rounding off and allowable projections, principles and methods of rating cargo for international carriage by sea

4.2. Take into account, variations in calculating shipping charges caused by surcharges and other variants

4.3. Calculate and compare costs of shipping a variety of goods by the several types of ocean service

4.4. Examine and apply types of rates, volume-to-weight ratio factors, volume rules including rounding off, principles and methods of rating cargo for international carriage by air

4.5. Explain variations in calculating airfreight charges caused by the applicability of TACT rates, fuel surcharges, other variants, and exchange rates

4.6. Calculate and compare costs of shipping a variety of goods by different air cargo services

4.7. Investigate and communicate postal and courier freight rates and size/weight factors and limitations

4.8. Investigate and communicate rates and costs associated with chartering vessels and aircraft

4.9. Investigate and communicate rating principles and methods used in domestic, sea, road, rail and air transport

4.10. Investigate all standard and extraordinary ancillary shipment costs on a door-to-door basis applicable in each mode

4.11. Investigate and communicate the total cost concept and other factors that may determine whether cargo is carried by air or sea, or a combination of both (multimodal transport)

5. Identify cargo insurance and claim requirements for goods

5.1. Evaluate the need for cargo insurance

5.2. Investigate the standard types of cover arrangements used by underwriters

5.3. Identify documents to be lodged with carriers, forwarders, insurance underwriters and customs in cargo loss or damage situations and complete for a hypothetical situation

Required skills

culturally appropriate communication skills to relate to people from diverse backgrounds and people with diverse abilities

planning and organising skills to arrange and coordinate multimodal transport

problem-solving skills to determine best options for international transport.

Required knowledge

identification and overview knowledge of key provisions of relevant legislation from all levels of government that affects business operations, codes of practice and national standards, such as:

Customs Act

INCOTERMS

international standards for marking cargo and labelling and marking hazardous goods

trade modernisation legislation: Customs Legislation Amendment and Repeal Act, Import Processing Charges Act, Customs Depot Licensing Charges Amendment Act

Trade Practices Act

contract law

Warsaw convention

World Trade Organisation determinations

organisational policies and procedures relating to business operations.

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the following is essential:

choosing appropriate transport modes, route and securing options

demonstrating successful preparation for the international transport for different types of general cargo

documenting completed quotations, supplementary quotations, budget or expressions of interest prepared for external client or own workplace

knowledge of legislation, codes of practice and national standards relevant to the work role.

Context of and specific resources for assessment

Assessment must ensure:

access to an actual workplace or simulated environment

access to office equipment and resources

access to relevant workplace documents.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate

review of risk factors identified in relation to packing and storing of goods for transportation

analysis of responses to case studies and scenarios

oral or written questioning to assess knowledge of INCOTERMS

assessment of completed documents to be lodged with carriers, forwarders, insurance underwriters and customs in cargo loss or damage situations.

Guidance information for assessment

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

planning units, management units or other international business units.

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Business context may include:

preliminary quotation for the seller/buyer prior to negotiation of contract of sale

quotation to seller/buyer

result of receiving freight contract from seller/buyer

supplement to original quotation to note any change in various cost components

Factors may include:

container rates

costs

delivery schedules

direct shipment

risks of delay and damage

transhipment

volume and weight

Airlines and air cargo services may include:

consolidation services

courier and charter

full container

loose package

post

schedules services

Shipping services may include:

break bulk

bulk

charter services

conference lines

full container load (FCL)

less than container load (LCL) - (consolidation/groupage/freight all kinds [FAK])

non-conference lines

non-vessel operating common carriers (NVOCCs)

parcel post

scheduled services

slot charter operations

tanktainers

tramp

Types of ocean vessels may include:

bulk carriers

cellular container ships

combination

conventional

other special purpose ships

roll on/roll off

Protection, presentation and preservation may include:

range of specialised materials and accessories available to protect containerised cargo including:

container liners

data loggers

other monitoring and protection equipment

thermal control materials

water absorption devices

Containers may include:

bags

bales

cartons

cases

drums

lift vans

pallet boxes

pallets

thermal cartons

Marking requirements may include:

accurate marking to avoid misdirection

international standard cargo marks

international standard labelling and marking for hazardous goods

waterproof inks and labels

Standard and extraordinary ancillary shipment costs may include:

booking time slots

break bulk fees

consular or other certification

cranage and oversize considerations

customs clearances

dangerous goods

demurrage

document and handling fees

inland haulage

insurance costs

parcel post

perishable goods

permits

port charges

protective packaging and accessories

storage fees

Standard types of cover may include:

annual policies

open policies

single shipment policies

Unit sector

Business Development - International Business

This unit contains employability skills.