A South African mining company wants to export 900 000 tons of coal to China via Richards Bay. In negotiations with the Chinese importer, the mining company agrees to instruct the shipbroker to arrange that the coal is shipped FOB.

1. Who is the shipper – the mining company or the Chinese importer?
2. Who is the consignee – the mining company or the Chinese importer?
3. Who will pay for the ocean leg of the transport chain – the mining company or the Chinese importer?
4. Who will select the ships to move the cargo from Richards Bay to China – the mining company or the Chinese importer?
5. If the shipments are made CIF, how will the shipping arrangements change in terms of payment and choice of ships?
6. If the ships will carry 180 000 tons of coal, how many ships will be needed to move the cargo from Richards Bay to China?