Fairway Logistics is an international transport company based in South Africa. It has depots in Cape Town and Johannesburg.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2015). The mark or mark type is shown in brackets.

1. [1] One mark for the re-export trade/import to export again
2. [2] Any two reasons × 1 mark each or one well explained point × 2 marks
3. • It may be handling dutiable goods (1) on which duty has not been paid (1)
4. • Owning a bonded warehouse offers another service to its customers
5. • It can offer entre pôt services to its customers without them having to pay duty
6. Any other relevant point
7. [2] One mark for the means of transport and one mark for the reason – ship - bananas are carried in bulk/special conditions can be provided/long distance
8. [2] air - valuable item/speed necessary/more secure than other means/long distance
9. Any other reason
10. [6] Level 2 (4–6 marks)
11. Candidate has discussed whether or not it is better to send a consignment of electronic goods to Sydney using a container ship rather than air freight and has given a reasoned opinion.
12. (If a candidate has discussed only one of the means of transport, award 4 marks max.)
13. It is better to send a consignment of electronic goods to Sydney using a container ship rather than air freight because the electronic goods can be loaded into the container at the factory and not unpacked until they reach their final destination. The container will protect the electronic goods against damage, weather or theft. The container itself will act as storage for the electronic goods instead of having to use a warehouse. There is a fast turnaround for container ships at ports where special gantries are used to unload from container trucks and load on to them.
14. On the other hand, if the electronic goods are required urgently, they are valuable or it is a very small consignment it may be better to use air freight. The consignment will be delivered more quickly, the consignment may be able to bear the greater cost of air freight and it may be more secure.
15. We do not know the size of the consignment, nor its value but a container ship might be preferable when the consignment is not required too urgently.
16. Level 1 (1-3 marks)
17. Candidate has commented on sending a consignment of electronic goods to Sydney using a container ship rather than air freight with/without an opinion.
18. It is better to send a consignment of electronic goods to Sydney using a container ship. The container protects the electronic goods against damage or theft. The container provides storage for the electronic goods. The container can be loaded quickly and also unloaded speedily. Air freight might be suitable.
19. [3] Any one transport document × 1 mark and up to a further 2 marks to explain its purpose
20. • bill of lading - document of title, evidence of a contract of carriage, provides a receipt, gives details of the goods carried
21. • air waybill - advice note for the goods carried, evidence of a contract of carriage, provides a receipt, gives details of the goods carried
22. • consular invoice - gives details of the goods, used to assess customs duties
23. • certificate of origin – gives details of the country of origin, used to assess customs duties
24. Any other relevant document
25. [4] Any two reasons explained × 2 marks
26. • May be sending goods to places without a railway or where the railway is at a distance
27. • Wishes to keep the goods under the direct supervision of company employees (1) as They might be valuable/fragile or to prevent theft (1)
28. • May be sending goods short distances (1) and making many deliveries for which road is more suitable (1)
29. • May be sending goods to other countries in Africa (1) for which there is no long-distance rail route (1)
30. • Is sending goods to other continents (1) for which air and ship are required (1)
31. Any other relevant reason