In this situation, which of following is the BEST course of action for FGH to take?

FGH, Inc., a specialty construction company located in Italy, orders bulky customized sound equipment from a sole-source supplier in Asia. The equipment is to be installed in a new auditorium that FGH is constructing. Failure to complete the project in time for its scheduled opening will subject FGH to penalties. FGH receives notice from the supplier that the equipment is packaged and ready to ship as planned via ocean freight but that an impending storm may cause delays. FGH needs to stay within budget.

In this situation, which of following is the BEST course of action for FGH to take?
A . Wait until the storm’s path can be predicted more accurately
B . Evaluate options for a multimodal shipment
C . Arrange for immediate air freight of the equipment
D . Use ocean freight after the storm subsides

View Answer

Answer: D

Explanation:

Marine transportation is the best option for promoting international trade and transporting large quantities of products at a low cost. It allows for economies of scale, making it the most cost-effective mode for bulk shipments.

Reference: Global trade studies frequently cite maritime shipping as a key enabler of international commerce due to its capacity and cost benefits.