Mole Creek Wines (MCW) is a boutique winery located in the township of Deloraine, Tasmania. The winery is negotiating a sales contract for the sale of 22,000 bottles of Tasmanian wine with Empanada Hospitality Supplies (EHS) located in St Louis, Missouri, USA. Each bottle will contain 0.75 litres of pinot noir. The ICC Incoterms 2020 used for sale will be DDP (Downtown St Louis).
Since MCW have no prior experience of exporting wine, they are seeking detailed information on the shipment process so that they can factor the shipment costs and risks in their negotiations with MHS. Hence MCW have asked you – a local freight forwarder – to provide advice on the following:
1. The quickest, safest and most economical method of transport from Deloraine to St Louis
2. Selection and engagement of carriers
3. Packing considerations
4. Compliance with legal, safety and security matters
5. Customs clearance
7. Risk mitigation
What advice will you give to MCW? Justify your answer using real-world information and data where publicly available. Where any assumptions are made, they should be clearly stated together with their rationale.
Criteria 1: Recommend suitable, viable and reasonable options for freight forwarding.
Criteria 2: Justify recommendations for freight forwarding using real-world data and credible assumptions.