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FITT CITP study materials
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FITT CITP: Global Supply Chain and Logistics Management

FITT CITP · Work through your exam, one topic at a time.

All guide sections

Global Supply Chain and Logistics Management

Global Supply Chain and Logistics Management tests whether you can move goods across borders on time and at the lowest total landed cost, and whether you can allocate cost and risk correctly between buyer and seller. Expect questions on Incoterms 2020, transport mode selection, chargeable weight, and transport documents.

Transport modes

  • Ocean: FCL and LCL. A TEU is a 20-foot container; an FEU is 40-foot. Cheapest per unit for heavy, non-urgent cargo.
  • Air: fastest, dearest; chargeable weight is the greater of actual weight and volumetric weight, typically at 1 kg per 6,000 cm³ (167 kg per m³).
  • Rail and road: strong for landlocked or continental lanes and intermodal moves. Mode selection balances value density, urgency, perishability, reliability, and total landed cost.

Incoterms 2020 essentials

  • Any mode: EXW, FCA, CPT, CIP, DAP, DPU, DDP.
  • Sea and inland waterway only: FAS, FOB, CFR, CIF.
  • Risk passes at the named point; cost obligations may pass later or earlier. Under CIP the seller must insure to Institute Cargo Clauses (A); under CIF the minimum is Clauses (C). Incoterms do not govern title, payment, or product conformity.

Documents

Bill of lading (negotiable if order or bearer; straight if named consignee), sea waybill (non-negotiable), air waybill (non-negotiable), commercial invoice, packing list, certificate of origin, insurance certificate.

Worked example

A shipment weighs 300 kg with a volume of 1.8 m³. Air volumetric weight = 1.8 ÷ 0.006 = 300 kg, so chargeable weight is 300 kg at USD 5/kg = USD 1,500. Ocean LCL at USD 80/m³ = USD 144, but transit is 30 days against 4 by air. Carrying cost at 20% per year on USD 60,000 of goods = USD 12,000 per year, about USD 32.90 per day; 26 extra days costs about USD 855. Air therefore costs roughly USD 1,356 more than ocean plus carrying cost, so ocean wins unless stockout or markdown costs exceed that gap. Show the comparison, not just the mode.

Traps that cost marks

  • Believing FOB means the seller pays freight (that is CFR or CIF).
  • Assuming Incoterms transfer title.
  • Using CIF or FOB for containerised cargo, where FCA, CPT, or CIP fit better.
  • Getting chargeable weight wrong by ignoring volumetric rules.
  • Forgetting that under DDP the seller bears import clearance and duty.