Freight Forwarding PDF

CHAPTER I
INTRODUCTION
1.1 GENERAL INTRODUCTION
To move large quantities of goods across the country and around the world, Nations
depend on their freight transportation system a vast network of roads, bridges, rail tracks,
airports, seaports, navigable waterways, pipelines, and equipment. A freight forwarder is an
individual or company that dispatches shipments via asset based carriers and books or otherwise
arranges space for those shipments. Common carrier types could include waterborne vessels,
airplanes, trucks or railroads.
The movement of international freight among nations relies on a complex array of long-
distance transportation services. The process involves many participants, including shippers,
commercial for-hire carriers, third-party logistics providers, and consignees. Moreover, global
trade depends on seaport and airport services to move large volumes of merchandise over long
distances via a variety of transportation modes. The interaction of these services and participants
is vital to successful global trade.
Freight forwarders typically arrange cargo movement to an international destination.
Also referred to as international freight forwarders, they have the expertise that allows them to
prepare and process the documentation and also perform related activities pertaining to
international shipments. Some of the typical information reviewed by a freight forwarder is the
commercial invoice, shipper's export declaration, bill of lading and other documents required by
the carrier or country of export, import, or transshipment. Much of this information is now
processed in a paperless environment. As an analogy, freight forwarders have been called travel
agents for freight. In the U.S., a freight forwarder involved with international ocean shipping is
licensed by the Federal Maritime Commission as an Ocean Transportation Intermediary.
Typical work activities of Freight Forwarders
Typical activities include:
 Researching and planning the most appropriate route for a shipment (taking account of
the perishable or hazardous nature of the goods, cost, transit time and security);
 Arranging appropriate packing (taking account of climate, terrain, weight, nature of
goods and cost) and delivery or warehousing of goods at their final destination;
 Obtaining, checking and preparing documentation to meet customs and insurance
requirements, packing specifications, and compliance with overseas countries'
regulations and fiscal regimes
 Offering consolidation services by air, sea and road - ensuring cost effective and secure
solutions to small shippers with insufficient cargo to utilize their own dedicated units;
 Liaising with third parties to move goods (by road, rail, air or sea) in accordance with
customer requirements;
 Arranging insurance and assisting the client in the event of a claim;
 Offering tailored IT solutions and EDI (electronic data interchange) connections
 Arranging payment of freight and other charges, or collection of payment on behalf of
the client;
 Transmitting data by internet and satellite systems, enabling real-time tracking and
tracing of goods;
 Arranging air transport for urgent and high-value freight and managing the risk door to
door;
 Arranging charters for large volume, out-of-gauge or project movements by air and sea;
 Acting as broker in customs negotiations worldwide to guide the freight efficiently
through complex procedures;
 Arranging courier and specialist hand-carry services;
 Working closely with customers, colleagues and third parties to ensure smooth
operations to deadlines
 Maintaining visibility and control through all phases of the journey, including the
production of management reports and statistical and unit cost analysis
 Acting as consultant in customs matters
 Maintaining current knowledge of relevant legislation, political situations and other
factors that could affect the movement of freight.
Functions of Freight Forwarders

 Best routing
 Packing
 Customs Clearance
 Transport
 Insurance
 Warehousing & Distribution
 Rate and Contract Negotiations
 Findings alternatives
 Grouping & Consolidation
Freight Forwarder can provide the Exporter with an initial quotation on the following:
 Cost & Freight
 Port charges
 Consular fees
 Cost of special documentation
 Cost of insurance
 Fee of the Freight Forwarder
Main Activities of Freight Forwarders in Seamless Cargo Movement

Exports
 Packaging
 Documentation
 Warehousing
 Transportation
 Statutory compliance
 License customs
Imports
 Monitor arrival of carriers
 Monitor arrival of cargoes
 Documentation
 De unitization
 Warehousing delivery & distribution
Multifaceted activities of Freight forwarders:
As a advisor & consultant:
Sourcing
Transportation & Routing
Packing
Statutory requirements
Documentation
Insurance
As a Transporter:
Road haulage
Ocean carriage
Air carriage
Multimodal transport
NVOCC
As a Warehouse Agent:
Bonding facility
Transit bonding
Post & Pre shipment
Warehousing & Inventory management
Retail distribution
Elements considered by shipper while selecting Freight
o Customer service
o Document quality accuracy
o Shipment tracking
o Global coverage
o Pricing
o Information
o On time performance
Other Names of Freight Forwarders
a) Custom house agent
b) Clearing agents
c) Custom brokers
E- FREIGHT-“COMPREHENSIVE SOLUTION FOR FREIGHT FORWARDING
INDUSTRY”
E-Freight is the only solution that can address all your requirements and much more with
the highest level of flexibility. E-Freight is web centric software catering to Freight Forwarding
industry developed using J2EE technology. The system includes modules to cover all complex
operations within the freight forwarding industry covering Air Freight, Sea Freight, and Finance,
Sales, Stores and HRD functions.
Utmost care is given to the architecture such that it has the flexibility to accommodate all
the requirements of the clients, let it be a database choice or a choice of communication medium
or functionalities or platforms.
E-Freight has the facility of drilling down on activities to the level of Identifying the
exact time at which a particular job was finished. Facilities are given for the management to
customize their own reports on top of the standard reports that are provided. On the whole,
working with e-Freight make the dealings in Freight Forwarding industry a different experience.
Integration
E-Freight offers a unique integration between front-end and back-office systems,

avoiding duplicate data entry. The design enhances the accuracy and decreases the probability of
errors or miscalculations
Modular approach
E-Freight comes in six different modules with an integrated approach among modules
 Sea/Air freight operation

 Finance
 Sales
 Stores &HRD
Key features:
 Complete web centric architecture
 Most effective user interface crossing the barriers of web technology End user
comforts
 Online or Offline Multi location data replication
 Usage of bare minimum communication infrastructure in interconnecting
locations
 Facility to send reports through email/Fax directly from the system
 Facility to export to Microsoft Excel, Microsoft Word or Open Office .Org
formats
 Choice of RDBMS (Oracle, Sybase, MS SQL etc
 Integrated modular approach
 Multi Lingual user interface
 Platform Independent
Benefits:
 Anywhere anytime access to data
 End user comforts
 Multi Branch/Location Integration
 No job left unfinished
 Communication Infrastructure Cost reduction
 Flexible medium of transmission
 Flexible interfaces with third party tools
 Avoid duplicate data entry
NON-VESSEL OPERATING COMMON CARRIERS (NVOCC)
Non-vessel operating common carriers (NVOCC) are one type of sea freight forwarders.
Instead of using their own ships, they operate as transportation or logistics intermediaries. That
is, they book space on ships and sell it in smaller quantities, consolidating freight for transport in
standard containers.
NVOCCs are those who own their own containers but don't own and operate vessels.
These NVOCCs buy container space in vessels from vessel operators and in turn will sell sea
freight service in terms of Full Container Load [FCL]/Less than Container Load [LCL] to their
customers.
Smaller shippers, with less-than-container load (LCL) shipments, can take advantage of
the lower costs associated with being a big shipper. Non-vessel operating common carriers
(NVOCCs) book space on steamships in large quantities at lower rates and sell space to shippers
in smaller amounts. NVOCCs consolidate small shipments into container loads that move under
one bill of lading. More favorable rates are passed on to the shipper.
CHARACTERIZATION OF THE FORWARDERS ROLE
The legal distinction between an ocean or actual carrier's bill of lading and a forwarder's
bill of lading is an important issue under Cogsa, and has been the subject of considerable legal
argument in recent years both in Australia and internationally.
In a typical transaction involving an NVOCC, there are four parties:
 Export shipper
 NVOCC
 Ocean Carrier
 Import shipper/holder of the bill
But there will not necessarily (though sometime there will) be a contract binding all of these
parties.
There are three convenient characterizations of the NVOCC‘s legal standing:
 NVOCC as carrier (principal)
 NVOCC as shipper‘s agent
 NVOCC as both carrier principal and shipper‘s agent
(and interestingly perhaps, there has not been an attempt to characterize the NVOCC as an
independent contractor in the same manner as stevedores)
Principal
This relationship is straight forward, and involves the NVOCC issuing its house bill of
lading to the export shipper and representing its house bill to be a bill of lading with the same
rights and liabilities of a negotiable ocean bill of lading, which is then negotiated with the
NVOCC at the destination port by the import shipper/holder of the bill, for delivery of the
goods.
So far as the export/import shipper and holder of the house bill and bank through which
the house bill is negotiated (UCP 500 Art # provides for the negotiation of house bills of lading)
are concerned, it is the only bill of lading they are aware of or concerned about. They will be
blissfully unaware of the contract between the NVOCC and the ocean carrier evidenced by the
ocean bill of lading.
Agent
In this characterization, the transaction is as follows:
 The shipper contracts with the forwarder;
 The forwarder issues a house bill of lading;
 The forwarder contracts with the ocean carrier in its own name as agent for the shipper
who is an undisclosed principal;
 Through agency, privity of contract is established between the shipper and the ocean
carrier;
 If the goods are lost or damaged, the shipper must sue the ocean carrier.
Principal and agent

It has been suggested in this characterization that the NVOCC acts as both principal and
agent simultaneously
Principal or agent
There is no legal reason why the NVOCC‘s role can not change from agent to principal
to agent etc and characterized according to the nature of the transaction at the particular time.
PROBLEMS FOR FORWARDERS

On one view, the forwarder's carriage contract should not be called a bill of lading, as to
call it a bill of lading is a misnomer, as these documents are not really documents of title but
merely receipts. And by calling them bills of lading, forwarders are attracting all the liability
(and often more) of an actual carrier.A more accurate name for these documents is consignment
note.
In addition, a forwarder who asserts he is a principal and thereby sub-contracts to the
actual carrier is involving himself unnecessarily as a defendant in cargo claim litigation, and
attracting liability for loss or damage caused by the actual carrier which he need not have.
When a freight forwarder represents that it is the actual carrier of the goods it is creating a
number of problems which can be avoided:
1 Assumes responsibility for loss or damage to the cargo as if it is the actual carrier under
one of the international conventions, for example, under the amended Hague Rules relating
to sea carriage which imposes a compulsory minimum limitation of 666.67 SDR (about
A$330) per package or shipping unit or 2 SDR (about A$1) per kg, which ever is the
greater;
2 Prevents the cargo interests from pursuing the actual carrier for loss and damage;
3 Voluntarily adopts a package limitation which does not otherwise apply to them (see
above);
4 Loses the right to exclude all liability;
These results are not in the freight forwarder's commercial interests as it voluntarily and
unnecessarily assumes the burden of a defendant in cargo claims.
The problem for freight forwarders appears to arise by default rather than design as it is not
entirely clear why they would want to voluntarily assume the role of a defendant in cargo claims
when this onerous burden can be avoided:
 No thought has been given to the name of the document being used by the freight
forwarder;
 Little thought has been given to the issues which should be addressed;
 Terms and conditions are a 'cut and paste' of those used by competitors;
 The freight forwarder wants to represent that it owns or operates the aircraft or ships on
which the cargo is carried.
1.2 INDUSTRY PROFILE
Federation of Freight Forwarders Associations in India

International Transport is one of the most dynamic and fastest - changing industries in
the world. It needs a responsive, forward-looking and national trade association, operating to the
highest professional standards. FFFAI is that association. We have redefined our Mission and
goals. They, in turn, define what FFFAI is and what it does.
History of Association
On 5th November 1963, the Federation was registered under the Societies Registration
Act, 1860 at Bombay. Mr. Karsandas Tulsidas Khimji of M/s Tulsidas Khimji Pvt. Ltd., was
chosen to be the founder President of the Federation.
Federation was enrolled as National Member of FIATA - The International Federation of Freight
Forwarders Associations, at the World Congress at Copenhagen on 9th September 1965.
Mission & Vission
 To bring in the feeling of togetherness among each and every one of the Custom House
Agents operating at different Custom Houses, ICDs, CFSs & Airports.
 To encourage, support and organise Training Programmes at local, regional and national
level.
 To work closely with Revenue Department i.e. Customs Organisation to create
confidence and establish integrity & respectability for its members.
 To establish and publicise the code of conduct applicable to its members and suitably
modify the constitution to provide strict adherence.
 To promote and educate the Trade & Industry to understand the necessity to engage only
licensed and regulated Custom House Agents.
 To focus attention and educate the members on the advantages of computer system over
manual systems and move them ahead towards total automation.
 Create councils and invite participation of all arms of transportation industry and evolve
a uniform and comprehensive policy.
 Establish a forum to interact with trade and industry and exchange ideas and views to
develop and direct forwarding community to meet their requirements.
 Establish relation, participation and contribute to policy makers and suggest regulation
conducive for us to perform to the expectations of the trade.
 To move towards a full fledged Electronic Data Interchange regime and become a part of
seamless cargo movement.
The Freight Forwarder Is The Party Whose Role Ensures That The Following Big
Problems Will Never Be Faced By The Exporter Or Importer:-
 Missed Flights Or Sailings Of The Shipments
 Failure to Negotiate Competitive Air or Sea Freight Rates
 Mis-delivered or Mis-routed Cargo
 Mis-calculation Of Air Or Sea Freight Rates
 Over billing On Inland, Air Or Sea Freight Costs
 Failure To Insure Cargo Or Arrange Adequate Coverage
 Late Presentation Of Documents On Letters Of Credit
 Failure to Properly Legalize Documents.
Also It Is The Party To Ensure That Internationally Traded Goods Move From Point Of
Origin To Point Of Destination To Arrive:
At The Right Place, At The Right Time. In Good Order and Condition, At the Most
Economic Cost.
Business Process of Freight Forwarding
Import process:
 A foreign partner sends the pre –alert of shipment details along with copies of the Bills
of lading.
 Check if contents of Master B/L as per specimen and House Bill of lading tally. In case
of discrepancy inform foreign partners and ask them to correct the same.
 Check with Liner agent on ETA of vessel and inform the consignee / custom house
agent.
 Submit Master and House B/L to the shipping line for filing the manifest. Within 48
hours before the arrival of the vessel
 Obtain import general manifest no.(igm) and line no, from the shipping line and pass on
the same to the custom, house agent within 24 hours upon receipt of the same from the
shipping line.
 Issue cargo arrival notice cum freight invoice to the consignee/ cha.within 48 hrs before
the arrival of the veeesl
 inform shipping line to move the containers to the designated off dock cfs after checking
with the cha, if required.
 Collect freight and other local charges wherever applicable and hand over the same to
Accounts departments for remittance.
 To issue release order to custom house agent after collection of duly discharged original
house Bill of lading with all relevant endorsements such as bank, if bank is involved ,
consignee and custom house agent after collection of relevant charges.
Export process:
 Receive rate enquiry from foreign partners if applicable.
 Check with local shipping company‘s / Break bulk operator / Consolidator and negotiate
ocean freight.
 If business finalized, obtain routing order from the overseas agent comprising of shipper
details / consignee information.
 Advise shipper via telephone about being nominated to handle the shipment and check
on cargo readiness.
 Obtain copy of invoice/ packing list and ACD (Advance cargo declaration) if shipments
are destined to USA ore Canada.
 If shipment is FCL ( Full container load ) then request for allotting the container is sent
to the shipping line and once the plot permission is received than the same is handed
over to the shipper‘ s CHA. Within 24 hrs after request is received from the shipper/ cha.
 If LCL then advise shipper / CHA name of the LCL consolidator and ask the CHA to
hand over the cargo after customs clearance
 Follow up with the shipping line for issuing the Form 13 to the CHA so that the
container can be offloaded inside CCTL.
 Follow up with the suppliers / Customs house agent for draft of House Bill of lading for
preparation of Original B/L
 Intimate local charges such as Terminal handling charges / documentation charges etc. to
the Shipper/ CHA
 Release the shipping line to give the debit note for THC and local charges and payment
request is given to accounts departments for payment of local charges.
 Release Master B/L from shipping co/ consolidator as soon as the vessel sails. This could
be SEAWAY B/L. If original is released then the same is surrendered to the shipping
line.
Freight Forwarding – Market Report

It is estimated that, in 2005, the UK international freight-services market was worth
around £19.76bn, of which £15.43bn was attributable to freight forwarding. Freight forwarding
is defined to include related warehousing, storage and customs-clearance activity. It supports the
international freight-services market, which includes international freight transport operations by
road, air, sea and rail. Largely because of improvements in transport efficiency, demand for such
freight services has increased less than proportionately to growth in gross domestic product
(GDP). However, over the 5-year review period (2001 to 2005), growth experienced by the
freight-forwarding sector exceeded growth in the freight-transport sector as a whole.
Recent influences supporting the growth of the freight-forwarding sector have included
the trend towards outsourcing of non-core business activities by many firms across the
commercial spectrum, the growing complexity of regulation affecting international trading
relationships, and an increasing awareness of security considerations. All of these factors have
made it more beneficial for clients to use the services of a professional forwarder, but other
developments, which have reduced the regulatory burden on shippers and transport operators
alike, have lessened the benefits of using these specialists. Noteworthy among these has been the
progressive deregulation of transport markets within and between the member countries of the
EU, with the dismantling of customs barriers between member countries removing the need for
many of the specialist services formerly provided by the freight forwarder.
Other influences affecting the sector in the recent past have included the need to comply
with many onerous regulations, including those concerning terms and conditions of
employment, which have had a disproportionate impact on the many smaller freight forwarders
operating in the sector.
Road transport remains the dominant mode for international freight transport, but sea
freight showed the highest growth over the review period, with receipts from cross trades
showing a particularly large increase. Although the share of air freight is small in terms of
tonnage carried, it represents a much higher share in terms of the value of items carried and the
service provided. The international rail-freight sector performed well below its potential over the
period, largely as a result of disruption to services caused by asylum seekers at the SNCF-
operated rail-freight terminal near Calais in 2002 and continuing issues regarding the quality of
service to clients.
Independent forecasts of the development of the UK economy indicate that it will
continue to experience steady if modest economic growth over the period to 2010, with inflation
and unemployment continuing at relatively low levels. This, together with further market
globalisation, an increased awareness of security and environmental issues, and the continuing
development of IT applications to enhance the value of the freight-forwarding product, suggest a
favorable environment for the continued growth of the sector.
FREIGHT FORWARDERS’ ROLES IN DIFFERENT COUNTRIES

Federation of Freight Forwarders’ Association in India
History
Efforts to set up a National Apex body in the form of Federation was started when the
Custom House Agents Associations of Bombay, Calcutta, Madras, and Cochin held a joint
conference in 1960.The final decision was taken on 1st December 1962 at a joint conference at
Bombay by the representatives of the Associations of Bombay, Calcutta, Cochin, Jamnagar,
Bhawnagar, Delhi and Goa.
The next day on 2nd December 1962, Mr. Morarji Desai, the then Honourable Union
Finance Minister inaugurated the Federation in presence of a distinguished gathering. On 5th
November 1963; the Federation was registered under the Societies Registration Act, 1860 at
Bombay. Mr. Karsandas Tulsidas Khimji of M/s Tulsidas Khimji Pvt. Ltd. was chosen to be the
founder President of the Federation.
Federation was enrolled as National Member of FIATA - The International Federation of

Freight Forwarders Associations, at the World Congress at Copenhagen on 9th September 1965.
Objectives of the Association
The main object if the Federation is to organise united action to protect and promote the
interests of the profession in all its aspects at the national level; and for that purpose to co-
ordinate the activities of the Customs House Agents' Associations and their members ; to collect
and disseminate information to members on subjects of common interest ; to take part in
conferences; to help members and to acquaint the authorities with their common problems, to
protect and to improve the common benefits, to help redress legitimate grievances by all
peaceful and constitutional means and procedures to exercise beneficial supervision over the
clearing trade with a view to maintain a high standard of integrity and public confidence; to
evolve a code of ethics for the Customs House Agents and/or members of the Federation.
Australia
In Australia most licensed Customs Clearance Agents (now more commonly referred to
as Customs Brokers), operate under a freight forwarder.
Australian Federation of International Forwarders
History
The Australian Federation of International Forwarders was created in July 1996

following the merger of two distinct organizations, namely: The Australian Federation of
Airfreight Forwarders - 'AFAFF'- formed (as a Federal body) in 1977 and The International
Forwarders Association of Australia -'IFAA'- representing the Sea-freight Forwarders (formed in
1976). The merger was deemed to be a natural progression which mirrored the business of its
combined membership, most of whom were active in both air & sea transport. Existing and new
members could elect to be represented in the Air and /or Sea division of the new entity.
As time progressed, the separate 'divisions' were incorporated into the organization as a
whole and at the same time, the expanding role of the Freight Forwarder into 3rd party logistics
and the resultant wider range of services, was catered for by AFIF as it expanded its
representative involvement. In addition to specific Air & sea matters, AFIF also represents its
members in issues related to: Customs & Quarantine; IT/E-Commerce; Training & Education;
Security; Depot & Warehousing; etc.
AFIF also strengthened its presence at both local committee and regional and world
representative level. More details are covered within this document. During its evolution, the
organization continued to develop and deliver a comprehensive vocational training program
which has progressed to cover most subjects required by operatives in the freight forwarding
industry.
During 2001 AFIF, in partnership with a new specialist group training company 'my
freight career', combined to pioneer a traineeship for our Industry. AFIF continues to increase its
membership services and since 1999 has been the official Australian distribution Agent for
IATA publications and in late 2010, was also appointed by OAG Singapore as it's GSSA for
cargo publications and products for Australia.
Canada
Transport Canada is the federal department responsible for the implementation and
enforcement of the transportation policies and programs of the Government of Canada. The
Canadian freight forwarding industry falls under the regulatory guidance of Transport Canada.
The Canadian Border Services Agency is charged with enforcing the majority of the regulations
that international freight forwarders are required to follow. International security measures are
the dominant concern of freight forwarders and customs brokers.
The Canadian International Freight Forwarders Association (CIFFA) was established in

1948 to support and protect the character, status, and interest of foreign freight forwarders by
establishing uniform trade practice and regulations. CIFFA also holds an educational role by
providing a certificate and advanced certificate programs.
Ireland
Even in smaller markets, such as Ireland, the role of freight forwarders is strategically
important. International merchandise trade is worth €148 billion to the Irish economy. 82% of
manufactured products are exported, further highlighting the importance of the freight
forwarders to a nations' economy. Associations like the Irish International Freight Association
(IIFA) and FIATA help maintain the professionalism of this industry through educational and
representative roles. The FIATA Diploma in Freight Forwarding is an example of how this can
be achieved.
Kenya
In Kenya, Freight Forwarders are commonly referred to clearing and forwarding Agents
and acts as such or as customs brokers. A license is required to operate as a Freight Forwarders
in Kenya which can be acquired from Kenya Revenue Authority. Freight Forwarders in Kenya
are responsible for clearing consignments through Kenya Customs, arrange transportation and
forward the consignment to the consignee. Both exports and imports are required to be cleared
through customs in Kenya.
Nigeria
Freight-forwarding in Nigeria has been in place since the exporting of groundnut as a
cash crop since 1914, though not initially as freight forwarding but as the means of
transportation of both goods and services from one country to another. Following the
methodology of their British forebears, agents were used to facilitate the transport of goods and
services.
United Kingdom
In the U.K., freight forwarders are not licensed, but many are members of the British
International Freight Association (BIFA). Freight forwarders in the UK consolidate various
goods from different consignors into one full load for road transport to Europe, which is often
known as groupage. Some freight forwarders offer additional related services like export
packing.
British International Freight Association
BIFA represents over 1400 UK companies in the logistics and supply chain management
sector. Members of BIFA are organizations engaged in the movement of freight to/from the UK
by all modes of transport: air, road, sea and rail. Some members are also involved in providing
customs clearance and other cross border controls.
The British International Freight Association (BIFA) is the trade association for UK-
registered companies engaged in international movement of freight by all modes of transport,
air, road, rail and sea. BIFA has around 1400 corporate members, known generally as freight
forwarders, which offer a wide range of services within these various modes.
A not-for-profit organization, BIFA is funded by subscription and run by its members for
members. It operates with a full-time Secretariat which administers and manages the
Association‘s affairs.
BIFA members adopt a code of conduct, and trade under a nationally accepted set of
Standard Trading Conditions that are backed in the insurance sector.
The association provides:

•Representation
•Advice and information
•Training and development
• Industry promotion
Representation
BIFA ensures that the views of its members are properly presented, and listened to in
many quarters. This is achieved by BIFA's active participation in other national and international
governing bodies and institutions, and by political lobbying.
Advice and Information
Members of BIFA receive copies of the Association‘s monthly newsletter, BIFA link.
This serves to keep them up to date on all aspects of the industry, including important matters
which may affect their companies. BIFA‘s website contains a full listing of members, and is
constantly updated with information valuable to the entire international trading community. In
addition BIFA runs a number of conferences and seminars throughout the year to ensure that
subjects requiring special attention receive proper coverage.
Training and Development
BIFA provides industry training not only to members, but also to international traders.
Courses are run throughout the year in various locations throughout the UK. The subjects
covered include customs procedures, dangerous goods, security, import/export and international
trade procedures.
Industry Promotion
BIFA is a dedicated to improving the standards of professionalism within the logistics

and supply chain industry. The BIFA Secretariat handles over 2000 enquiries per year. BIFA
encourages logistics as a career path to students, as well as providing assistance to new
importers and exporters. Promotion is also achieved through regular participation at industry
trade fairs throughout the UK.
USA
In the U.S., companies that handle domestic U.S. freight must be registered with the U.S.
Department of Transportation's Federal Motor Carrier Safety Administration. Such forwarders
are "carriers" who accept freight for transportation and are liable for transporting the freight
from origin to destination, under their own bill of lading.
The legal definition at 49 USC 13102 (8)is: FREIGHT FORWARDER.-the term

‗‗freight forwarder‘‘ means a person holding itself out to the general public (other than as a
pipeline, rail, motor, or water carrier) to provide transportation of property for compensation and
in the ordinary course of its business — (A) assembles and consolidates, or provides for
assembling and consolidating, shipments and performs or provides for break-bulk and
distribution operations of the shipments; (B) assumes responsibility for the transportation from
the place of receipt to the place of destination; and (C) uses for any part of the transportation a
[surface carrier] carrier subject to jurisdiction of the Department of Transportation of under this
subtitle.
International ocean freight forwarders arranging for shipments to and from the US must
be licensed by the Federal Maritime Commission as Ocean Transportation Intermediaries. An
Ocean Transportation Intermediary is either an ocean freight forwarder or a Non-Vessel
Operating Common Carrier (NVOCC). An ocean freight forwarder is an individual or company
in the United States that dispatches shipments from the United States via common carriers and
books or otherwise arranges space for those shipments on behalf of shippers.
Ocean freight forwarders also prepare and process the documentation and perform
related activities pertaining to those shipments. An NVOCC is a common carrier that holds itself
out to the public to provide ocean transportation, issues its own house bills of lading or
equivalent document, but does not operate the vessels by which ocean transportation is provided.
Companies may obtain both licenses and may act in both capacities even on the same shipment.
The U.S. legal distinction between the two is that a freight forwarder acts as the agent of a
principal (typically a shipper or consignee) and the NVOCC is a transportation company
(carrier) that is physically responsible for the carriage of goods and acts as its own principal.
Companies acting strictly as an Ocean Freight Forwarder typically do not issue their own
contract of carriage (bill of lading) and as agent are generally not liable for physical loss or
damage to cargo except in cases of errors in judgment or paperwork or fiduciary responsibility.
NVOCC's act as ocean freight carrier and issue their own bill of lading and are legally
responsible for physical loss or damage in accordance with the terms and conditions of their bill
of lading and tariff. Similar to other countries, freight forwarders that handle international air
freight will frequently be accredited with the International Air Transport Association (IATA) as
a cargo agent; however, they must obtain an Indirect Air Carrier (IAC) certification from the
Department of Homeland Security (DHS).
Hong Gong
The Hong Kong Association of Freight Forwarding Agents (HAFFA) was formed in
1966 to represent the interests of freight forwarding industry. It has been renamed as Hong Kong
Association of Freight Forwarding and Logistics Ltd to reflect the sophisticated nature of the
business.
The larger sea freight forwarders tend to target big companies for exclusive deals. They
provide value-added services and invest in information technology to ensure that they meet the
expanding needs of the customer's changing markets. They can also set up individual logistics
subsidiaries to provide tailor-made and specialized services in order to work as a service partner
for their customers. Generally speaking, larger companies' well-established brands and far-
reaching logistics networks have enhanced their significant market shares in the global export
market. The smaller regional players, however, have better understanding of the business
culture, better knowledge of their markets and have established networks in the region.
As reliable and speedy delivery is the key to successful freight forwarding services, Hong
Kong's forwarders' understanding of the international practices and their networks can help them
to secure the confidence of international customers.
Exports
The destinations of freight forwarding services mirror the trade routes. The main markets
for international freight forwarders in 2010 were Asia (34.1% of total share), North America
(33.7%) and Western Europe (27.0%).The Chinese mainland is the most important source of
cargo for Hong Kong's freight forwarders. In 2011, 61.6% of Hong Kong‘s re-exports were
originated from the Chinese mainland.
The larger freight forwarders often follow their big international customers to new
markets. In some instances, transport service providers set up business in the new markets before
recommending their customers to follow suit. They expand overseas usually by setting up
subsidiaries, joint ventures or appointing agents to render global services.
1.3 COMPANY PROFILE
A.S Shipping CFS, Tuticorin

A CFS is an extended arm of Port/ ICD/ Air cargo Complex, where import/ export goods
are kept till completion of their examination and clearance. A Container Freight Station (CFS) is
a place, usually a warehouse where containers are stuffed, de-stuffed and aggregation/
segregation of export/import cargo take place.
The term container freight station at loading ports refers to the location designated for the
receiving of cargo to be packed into containers by the carrier and made ready for shipment. At
discharge ports, the term refers to the location designated in the port area for unpacking and
delivery of cargo. A CFS is typically located in proximity to an ocean, port, or airport,
where cargo containers are transported to and from.
Fig: A.S Shipping Container Freight Station located in Tuticorin-Tirunelveli Highway

A.S Shipping Agencies Pvt Ltd have developed a Container Freight Station in Tuticorin
to meet the rising demands of the import and export community. The CFS is located on the
Tuticorin-Tiruneveli Highway, which is 12 km from the V.O. Chidambaranar Port Trust. The
CFS is spread across a total area of 11 acres. The container freight stations offer EDI
connectivity for zero pilferage and a fully fledged Customs Office so that access to customs
officials on the premises for easy, hassle-free clearances is possible.
The CFS is an ―All Weather CFS‖ as its facilities offer complete protection of cargo and
containers under all weather conditions. The CFS has an uninterrupted power supply with 250
KVA & 125 KVA gensets so that there is continuous functioning at all times. A 100 MT
electronic weigh bridge is present at the CFS for checking the weight of the vehicles and its
cargo.
To ensure the safety of the goods stored from fires, The CFS has installed various safety
systems. The Fire Hydrant System and Fire Extinguishers help in extinguishing fires and
preventing further damage to goods in case of fires. The modern ventilated warehouse is
equipped with CCTV Cameras & Burglar Alarms to prevent any unauthorized entry and
pilferage. The entire area is well protected with high compound walls having barbed wire
crowns. The CFS has also posted highly skilled security guards 24 hours for safety.
The CFS provides a warehousing Facility which spans for 38,000 sq ft of covered shed.
Multiple stuffing points are available with 4 dock levelers. Air coolers have been installed on the
rooftops to provide a dehumidified atmosphere.
Additional 10,000 sq ft of covered shed have been set aside for a Public Bonded
Warehouse. A bonded warehouse is a building or another secured area in which dutiable goods
may be stored without payment of duty. It may be managed by the state or by a private
enterprise. In a Public Bonded Warehouse, the administrator (warehouse keeper) can make the
premises available to anyone that wants to store goods under customs control.
A.S Shipping has also developed another 15 acres of land which includes 1,00,000 sq.ft
of General warehouse for agri-commodities and 10 acres of open space for handling timber logs
and other general cargo just 1 kilometre from CFS. The CFS is also developing another 10 Acres
of land adjacent to the CFS to cater to the rising EXIM demand.
Fig: Rail Mounted Gantry Crane at A.S Shipping CFS, Tuticorin
The CFS is also equipped with the following equipments:

1. 40 Tons Rail Mounted Gantry to handle up to 7 High.
2. 40 Tons INDITAL Reach Stacker for 5 High Stacking.
3. TIL 3 Reach Stacker - 40 Mt Capacity 5 high.
4. 5 Nos. Forklift with capacity of 3 Tons.
5. Escort Mobile Cranes with capacity of 14 Tons.
6. 16 FLT to Handle Granite Blocks.
A.S. Shipping Empty Container Yard, Tuticorin.

Empty container management is an issue that has risen to attention in the recent years.
Since the levels of supply and demand seldom are equal, it causes trade imbalances in import
and export. Consequently, causing an over or under supply of empty containers available for
stuffing. Container shipping lines handles this issue by repositioning empty containers to areas
with higher demand. Repositioning of this kind is referred to as empty container management on
a global level. However, empty container management on regional level can refer to the
movement of empty containers to shippers for stuffing of export cargo. It can also refer to
returns of empty import containers to depots from consignees.
Container yard or container depot refers to an area used for storage of empty containers
when not in use, in either a terminal area or an inland area. The company operating the yard can
offer services such as cleaning, repairing and inspection of the empty containers for the
owners/leasers of the containers. When a container has been returned to a depot it must be
inspected before being reused for an export shipment. This inspection of empty containers is
carried out to categorize and assess the quality of the containers. After inspection containers can
be either be classified operational and ready for reuse or damaged and in need of repair.
A.S.Shipping Agencies have developed empty container yards in Minjur, Chennai and
Tuticorin. In 2014, A.S.Shipping Agencies established an empty container yard in Tuticorin to
provide economical storage, repair work and refurbishment services for empty containers. The
container yard is spread across 4.5 acres. The facility is build 4 feet high over the road level to
prevent water logging and has a storage space of about 3500 TEUs. The yard has 24x7 security
services and reefer points for storage of reefer containers.
An important aspect of the container yard is the location. The A.S.Shipping Empty
Container Yard, Tuticorin is strategically located in such a way that it is easily accessible from
most of the CFS facilities and is at a distance of 7 kilometers from V.O Chidambaranar Port
Trust. Inside the container yard, the yard operators face different challenges such as planning of
container stack depending on customer requirement and container type; movability for reach
stackers and trucks; area of repairs and container types that are in need of special equipments
such as reefers that require electrical supply. Currently the yard provides services to Evergreen
Line, Transvision Shipping line and Ocean Network Express.
Fig: Container handler moving an empty container at A.S Shipping empty container yard,
Tuticorin
1.4 DEPARTMENT PROFILE

Greenways Group
Greenways Group is a multi-national conglomerate offering global shipping and logistics
services. The company was established by Dr. Shri Prakash in 1962. The company offers a wide
range of global logistics solutions.
The Head Office of the company is located in Chennai. Over the years the group has
branched into various sub agencies to provide global supply chain solutions to the export and
import community of India.
A.S Shipping Agencies Private Limited (ASSA)
A.S Shipping Agencies Private Limited (ASSA) is a part of the Greenways Group with
its core focus in the service of the Shipping Industry. The company was established by Dr Shri
Prakash on 22 November 1983. The company initially began its operations as a steamer agent
before subsequently developing diversified interests in shipping and logistics related services.
A.S Shipping Agency now provides end-to-end, State of the art business solutions in the
logistics sector. The company serves clients from all around the world using its Strong network
of own offices and partners.
A.S.Shipping is one of the largest freight forwarders in India, operating within a
worldwide network. We offer customized solutions for your specific Ocean freight & Air freight
requirement at competitive rates. Our long-term relations with all major shipping lines &
Airlines mean we provide you with access to global destinations, covering major ports, with the
best transit times to meet your shipping needs.
We offer all types of Ocean freight services which include Services on offer
 Freight Management services.
 Full container load shipments.
 Less Container load shipments.
 Buyers Consolidation.
 Port-to-port and door-to-door services.
 OOG and Reefer services.
 Value added services.
 Ocean Charter and Project solutions.
A.S Shipping Agencies has offices spread across 10 different locations in India and 7 different
locations around the world.
» Bangalore
» Chennai
» Cochin
» Kakinada
» Krishnapatnam
» Kolkata
» Mumbai
» Mundra
» Tuticorin
» Visakhapatnam
» Abidjan, Ivory Coast
» Haiphong, Vietnam
» Ha Noi, Vietnam
» Ho chi Minh City, Vietnam
» Seoul, Korea
» Singapore
» Tema, Ghana
Salient Features
 Total Area of 11 Acres, Fully Cemented like an Airport.
 Full-fledged Customs Office with 2 MBPS EDI connectivity for zero pilferage.
 Adequate lighting with high mast lights to cover entire CFS.
 Adequate parking facility for trailers and trucks.
 Separate working area for CHA with 2 dedicated systems with internet connectivity.
Uninterrupted Power Supply with 250 KVA & 125 KVS Gensets.
 Safety systems - Fire Hydrant System and Fire Extinguisher.
 Modern Ventilated Warehouse equipped with CCTV Cameras & Burglar Alarms.
 100 M.T (Avery) Electronic Weigh bridge. ¾ Fully Trained / Skilled Security force 24
Hours.
 Special expertise in Garment stuffing.
Infrastructure
 Total area of 27.54 Acres.
 Cemented Area of approx. 10,00,000 sq.ft
 Hardstand Area of approx. 2,00,000 sq.ft for bulk handling.
 Two Well Ventilated Covered Warehouse measuring 24,000 sq.ft Each.
 2 Electronic Weigh Bridge with 80MT and 100MT capacity available.
 Adequately lit with 24x7 security.
 Modern Office Building.
 Customs Office with EDI Connectivity.
 IICL Qualified container repair team.
Equipment list and Repair facilities
 4 nos Reach Stacker with 45 MT SWL.
 1 no Reach Stacker with 10 MT SWL for empty container handling.
 5 Fork Lifts ranging from 3 to 15 ton capacity.
 Ample Cranes for Bulk Handling.
 Electro Magnets for handling metal scrap.
 Orange Peel Hydraulic Grabs (remote control operated) for handling scrap.
 Own fleet of 40' Flat bedded Trailers.
 40,000 sqft. area earmarked for storage and repair of empty containers.
 RST with telescopic spreader having SWL 10 mts dedicated for handling of empty
containers.
General Administration
This department heads by the secretary is responsible for conduct of Board Meeting,
security, establishment matters, public relations and general coordination, industrial relations,
legal matters.
Finance Department
This department headed by the financial adviser & chief account officers responsible for
collections of revenue, processing of the expenditure proposals, accounting of receipts and
payments, preparation of annual accounts and annual reports, costing of services, budgeting and
matters relating to scale of rates, pay fixation and other establishment matters, payment and
statutory charges, making deposits and withdrawals from banks and institutional, EDP matters,
etc. 25
Traffic Department
This department headed by the traffic manager is responsible for allotment of
berths/storage, monitoring cargo handling activities, admission/clearance of cargo, arranging
port equipment‘s or authorizing private equipment‘s for cargo handling operations of labor
through the Tuticorin port trust cargo handling labor pool, marketing etc.
Marine Department
This department headed by the deputy conservator is responsible for conservancy of the
port, berthing, de-berthing and such other movement of vessels, purchase of capital equipment
for navigation, operation of floating crafts pollution control safety, VHF communication and fire
service. The deputy conservator is the port facility security officer under the ISPS code.
Civil Engineering Department
This department is headed by chief engineer is responsible for providing infrastructure
for providing infrastructure for berthing of vessels, marine survey, and maintenance of wharf
structure, warehouse, roads, building and dredging.
Mechanical Department
The department headed by chief mechanical engineer is responsible for procurement of
cargo handling equipment‘s provision of electricity, stores, disposal of surplus and serviceable
materials.
Medical Department
This department is headed by the chief medical officer is responsible for management of
port hospital and providing medical facilities.
Vigilance Department
This department headed by the chief vigilance officer is responsible for vigilance related
matters in the port. The vigilance department keeps a regular watch on the sensitive areas of
activities in the port trust. The chief vigilance officer conduct surprise inspection of such areas
with due reporting to the chairman of the port trust.
CHAPTER II
LITERATURE REVIEW
Since the advent of shipping and maritime trade, it has been a case of fascination to find the
most viable transportation option for providing overall effectiveness to the concerned trade.
Many influential factors and research methods were identified and developed by researchers all
over the world for the process of selection of suitable ports and their merits and demerits. These
port selection studies have been found varying over different trade routes, time periods, cargoes,
methodologies, surveyed population and sampled data. My quest for knowledge has fueled me
to extensively go through the research carried out over the last three decades in my area of
research. Of these myriad studies, i am indicating the following summed up in chronological
order as representation of the contributions, findings and observations of various researchers in
the past pertaining to similar type of study undertaken by me.
Hayuth, Y (1980) . In the International Conference on Ports for Europe held in Brugge, he
projected that the important requirements of a port are :
• Location ( good ocean and hinterland accessibility and vast hinterland potential)
• Operations ( frequency of port calls, high productivity, reasonable transportation and

handling charges, good cargo volumes and good inter-modal connectivity)
• Infrastructure ( warehouses, cranes, other infrastructure and superstructures)
• Integration ( EDI – to facilitate easy monitoring and tracking)
Brian Slack (1985) He focused his study on the containerized traffic between the north
American mid-west , southern Ontario and western Europe. In the study he undertakes a
percentile analysis to find out the most important port selection factors from the shippers
perspective. His respondents were asked to identify the five most important factors among the
following eleven factors :
• Port size
• Port security
• Port charges
• Inland freight rates
• Quality of customs handling
• Free time
• Congestion
• Port equipment
• Number of sailings
• Proximity of port
• Possibility of inter-modal links
He found that the five most important factors are : number of sailings, proximity of port,
congestion, freight rates and inter-modal connectivity. It clearly indicates that for transshipment
activities price and intermodal connectivity rank high in comparison to the ports of entry and
exit selected.
Jansson,J.O and Shneers,D (1987) They studied the feasibility of feedering by sea
transportation. They find that such a maritime shuttle service will beneficial for the following
characteristics:
• Low trade volumes
• Hinterland constitutes to large volumes
• Ports are situated deep or are scattered from main lines

James,B. and Gail,B. (1988) They find that frequency of shipping service, time spent on the
route and labor problems at ports are also the important criteria for the selection of ports by the
freight forwarders.
Suthiwartnarueput (1988). Her study was focused on the efficiency of Thailand‘s waterborne
carriers. She found that shippers rank cost of service to be highest among all the other factors for
port selection.
Bird and Bland (1988) Studied the reason for port selection in eleven European countries
from the freight forwarders perspective. They collected 72 interviews and used likert scale to
evaluate the results. They find that frequency of shipping services, time spent enroute , port
charges, labor issues and guarantee of delivery price are important.
De Ortuzar,D. and Willumsen (1990). They study the impact of cost changes in routing
choice decisions pertaining to maritime container transport. They identify that the routing phase
can have the following choices:
• The choice of modal connectivity in the origin area
• The choice of seaport in the origin area
• The choice of ocean shipping service
• The choice of seaport in destination area
• The choice of modal connectivity in the destination area
They used a logit model to show how the changes in costs and quality of service are
determinant in selection of ports. Their model constraints were that all related costs and quality
factors were not known and hence their model was calibrated with stated preference analysis and
all the common factors of the competing ports were discarded.
Perakis and Jeramillo (1991) . To find an optimal routing strategy for sequences of port
rotations and to minimize costs they developed a linear programming model . However, their
model could not yield proper results due to the rounding of the number of ships assigned to each
route in the program formulation.
Rana and Vickinson (1991) . They used langrangian relaxation and decomposition methods
in a nonlinear programming model for finding optimal sequence of port calls and for
maximizing total profit for each ship. The weakness in their model is that was developed for
only one container vessel and it was too complicated for actual application due to its nonlinear
methodology.
Veldman(1994) . They used a logit model based on set of assumptions to evaluate the market
share in Polish region comparing the costs and time of the routing options.
Hayuth,Y and Fleming,D.K (1994). They explain ― hubs are special nodes that are part of a
network, located in such a way as to facilitate connectivity between interacting places‖. They
coin the word ―intermediacy‖ to the ―en route‖ quality which a port generates because of its
strategic location relative to sources and destination of cargo and / or relative to main ocean liner
trade. They further state that a port‘s hinterland access to local and distant regions is very crucial
for traffic generating. Thus the total intermodal connections are more important than
characteristics of individual ports in comparative selections.
Powell and Perakis (1997). They used an integer programming model to minimize the costs
of operations of ships considering routing, availability and service constraints. But their model
was deterministic in nature and was not suitable for real-life situation and hence the assumptions
and constraints have to be changed periodically. The application of their model offered a saving
of US$ 1.3 million to an liner shipping company.
Ying,S and Kurodo,K( 1997 & 2000). They developed various models for marine container
transportation considering the strategic involvement of the Government, sipping companies and
the shippers. Thomson,B.J(1998). From his research carried out on transshipment ports, he finds
that the following are key factors :
• Berthing time in port
• Number of berths
• Container volumes
• Loading / discharging rates
• Intermodal connectivity
• Port facility and infrastructure
• Working hours
Richard, J.L and Ruby wo(1999). Their study focused on the impact of Hongkong‘s
transshipment business in view of the development of direct trade between Taiwan and China. It
also considered the impact and development of other nearby ports in the south China region such
as Xiamen, Ksohsiung and Yantian. The study discussed the challenges put forward by the
development of neighborhood ports and also the benefits of developing a transshipment hub
ports in the region.
Hoguin, V and Jara,D (1999) . Their study finds the need to offer alternate service to cater to
less expansion scope of container terminals in a market of increasing container volumes.
Fleming and Baird(1999). They find that efficiency of inland transport is a critical factor for
a port‘s potential development and for promotion of overall growth in trade. Sansom et al
(1999). They find that despite higher inland costs involved, a port can attract the shipping
operators. These operators can in turn utilize the ―common haulage‖ according to preferred
frequency in service and port rotation for optimization. They find that with achieving of
economies of scale through increase of ship size and frequency of service, the container traffic
volume will also increase. This phenomenon is called as Mohring effect.
Sternberg,R.W (2000) . His study finds the following are key factors of a transshipment port
• Geographical location
• Flexible operations
• Good market resources and knowledge

• Continuous up gradation of facilities and infrastructure
• Other ancillary businesses
Brooks, M (2000) . The study finds that the factors that come into play while considering
port calls from the carrier‘s perspective also include the service frequency, infrastructure, transit
times, other service elements besides the main considerations of voyage distances and port
times.
Ernst, G.F (2001). The study find the following most important factors necessary for
inducing large scale transshipment:
• Increase of service frequency
• Development of shipping and other intermodal alliances
• Sharing of warehouses, depots, space on ships, etc
Koh (2001). To determine the optimal investment in infrastructure and traffic movement
allocation, he develops a cost system using linear and dynamic programming for the inland
container transportation system in Korea. From his study, he finds and recommends five
alternatives which aim to develop various Korean ports on the basis of lower costs.
CPB et al. (2001). A logit model was used to estimate the market share of Rotterdam port in
the context of entire west European ports scenario. The study also utilized the service quality
variable along with the usual cost and time variables. The cost variable was also used to carry
out an economic analysis in view of the port‘s expansion.
Machow and Kanafani (2001). Their study was to find the port selection factors from the US
cargo liners perspective. They prepared two models, one of which took all the combined
shipments into consideration and the other model utilized each of four commodity types shipped
(bulk, fabrics, manufactured and food). The four factors considered in these models were- ocean
distance, hinterland distance, Shipping frequency and capacity of ships. Eight ports were
compared using these models, which were structured by use of a nesgit logit modeling.
Largo et.al.(2001). Their study compared the routing of west coast and east coast US ports.
They find that carriers decide on the number of port calls before they specify the ports in
particular. They also find that centrally located ports like Oakland are unfavorable because
shippers prefer ports which are closer to foreign destination being the first call for import and the
last call for export. Another finding of their study is that shorter route with low volume cannot
generate economies of scale.
Peters (2001). This study finds that many ports are disabled to develop as transshipment hub
ports due to insufficient water depths in access channels and at berth.
Ircha,M.C (2001). This study discussed the advantage of competition among Canadian ports
by the use of SWOT analysis.
Jn Mak (2001). This study was focused on the comparison between the port of Singapore
and port of Klang, Malaysia. Although the shippers have a cost-neutral choice between the two
ports, the indirect costs such as time, efficiency and sailing frequency were critical factors in the
selection between the ports.
Le Dam,H.(2001). This research was focused on the container port development in Asia. The
following are the findings of this study : • A port‘s relative competitive positioning may be
altered to match the dynamism in environmental factors. • There has been significant
advancement in the Information Technology (IT) • The demand for container ports in Asia will
further increase. • A strong hub & spoke system has become a fundamental characteristic of
Asian ports especially for ports located in ASEAN region.
Tseng, W.J.(2001). This study was undertaken to find the factors, in particular to Kaohsiung
port, which are deemed to be a competitive advantage in the port industry. The study finds that
geographical location, good handling performance, low port charges, good intermodal links and
good port infrastructure were the factors that gave an advantage to Kaohsiung port over other
ports.
Haralambides, H.(2002). The study states that port hinterlands are becoming increasingly
less captive and they extend beyond the reach of rail, road, inland waterways and even national
borders. The price elasticity of demand for container handling service has become high due to
the reduced loyalty of customers of port. It indicates that shippers can easily route their
containers from different ports, suggesting that inefficiency in any 45 aspect can make a port
with strong performance and good framework to wither away the gains.
Mauro, M.C and Pato, M.V.(2002). A hub and spoke model was prepared using integer
linear programming using MS-Excel platform. This study helped in taking decisions pertaining
to assignment of ships to previously defined routes.
 International Freight Forwarding

 Freight Forwarding
 Custom Clearance
 Transportation
CHAPTER III
RESEARCH METHODOLOGY
A research cannot be conducted abruptly. Researcher has to proceed systematically in the

already planned direction with the help of a number of steps in sequence. To make the research
systemized the researcher has to adopt certain methods. The methods adopted by the researcher
for completing the project are called Research Methodology.
TITLE OF THE STUDY
A Study on the Challenges Faced by the Freight Forwarders in AS Shipping Agency
Pvt Ltd.
OBJECTIVES OF THE STUDY

 To study the current practice of forwarding operations in AS Shipping
Agency.
 To find out the problem faced during the storage of the goods in forwarding.
 To identify whether there is any mistakes and errors occurs in

forwarding operations.
 To identify the importance of freight forwarding in the Indian

shipping industry.
 To study the functions and work activities of freight forwarders in

India.
SCOPE OF THE STUDY

This study helps to learn current forwarding procedure at AS Shipping Agency.
By performing the study on the effectives of warehouse operations the company can
improve their business standards and can also get higher return by having good
customer understanding and also reduces the operating cost. This project will
primarily help to analyze certain aspects of the present state of operational procedure
in the AS Shipping Agency.
RESEARCH DESIGN
The term research design is defined as ―The ways and methods that are
followed in analyzing the data available‖.
For this study, the researcher has used descriptive research, which is a fact
finding investigation aimed at describing the characteristics of individual, situation or
a group (or) describing the state of affairs as it exists at present.
POPULATION OF THE STUDY
The population of the study was 1100 respondents from AS Shipping Agency.
SAMPLE SIZE
Sample size refers to the number of items to be selected from the population of
the sample. The sample sizes were taken for the research is at about 100 respondents at
AS Shipping Agency.
SAMPLING METHOD
The sampling method used in the study was simple random sampling. A
randomly selected sample from a larger sample or population, giving all the
individuals in the sample an equal chance to be chosen.
RESEARCH INSTRUMENT USED TO COLLECT THE DATA
In this study closed ended questionnaire is used as a research instrument to

analyze the effectiveness of forwarding operation.
SOURCES OF DATA COLLECTION
This study was based on primary as well as secondary data.
Primary Data:
The primary data is described as the actual information collected by the

researcher for the study which is obtained from the employees in ASSA. The primary
data for this research was collected through a direct survey with the employees
guided by a structured questionnaire and discussed with the employees in ASSA.
Secondary Data:
Data collected from a source that has already been published in any form is
called as secondary data. Secondary data has been collected from organization
website, prospectus, library books, annual reports, journals and magazines etc.
LIST OF HYPOTHESIS
Many problems in management requires that taking decisions about whether to

accept or reject a statement about some parameter. This statement is called hypothesis
and the decision making procedure about the hypothesis is called hypothesis testing.
Null Hypothesis Ho
Null Hypothesis is based on analyzing the problem. The hypothesis test for
possible repetition under the assumption that if true is usually called null hypothesis.
There is no relationship between inbound operations and outbound operations.
Alternative Hypothesis H1
Any hypothesis which is complements to null hypothesis is known as

alternate hypothesis.
There is a relationship between inbound operations and outbound operations.
TOOLS FOR ANALYSIS
Percentage analysis
The percentage analysis is used to calculate the percent of the favourable and
unfavorable responses. The following formulae are used for calculation of percentage
analysis.
Percentage Analysis = (No. of responses/No. of total responses)*100
Weighted Average Method

Weighted average may be defined as the average whose components items are
being divided by the total sum of the ―weight‖ instead of the sum of the items.
Weighted average mean,

X = ∑w.x/∑w
Where,
X= Represents the weighted arithmetic mean
x= Represents the variable
w= Represents the weight attach to the variable X
Chi-square Method
The chi-square test is used to test the statistical significance of the observed
association in cross tabulation. It assists in determining whether a systematic
association exists between two variables.
By using the existing column and row totals the expected frequency is
calculated.
The expected frequency is calculated by,
F = (Nr * Nc) /N
Where,
Nr- Total number in the row
Nc- Total number in the column
N- Total sample size
Degrees of freedom calculated by using the following formula,
DF = (r-1)*(c-1)
Where,
DF- Degree of Freedom
r- Number of Rows
c- Number of Columns
The formula used for chi square test is given below,

Where,
O- Observed frequency
E- Expected frequency
PERIOD OF THE STUDY
This study is made on 90 working days.
LIMITATIONS OF THE STUDY
 The researcher has done the study only on Freight forwarder.

 The researcher has done the research with regard to Chennai and few other sectors.
 The researcher has not considered the financial aspects of Freight forwarders.
 Lack of time available for the research.
CHAPTER IV
DATA INTERPRETATION AND ANALYSIS

1) TYPE OF STORAGE
Table 4.1
Type of Storage
Movements No. of respondents Percentage
Automized storage system 52 52
Drive in storage 31 31
Push back storage 17 17
Total 100 100
Chart 4.1
Type of Storage
60
52%
50
40
30 31%
20 17%
10
0
Automized storage Drive in storage Push back storage
system
No. of respondents Percentage
INFERENCE
From the above table, it is inferred that 52% of the respondents said company
uses automated storage systems, 31% said company used drive in storage and 17%
said company used push back storage. Goods that are located in warehouse by
systematically without the help of human known as automized storage system.
2) IN INBOUND OPERATIONS WHICH IS THE MOST FORWARDING
Table 4.2
Frequency in Inbound Forwarding
Movement No. of respondents Percentage (%)
Stock transfer from other warehouse 58 58
From manufacturing 38 38
Reserve logistics movement 4 4
Total 100 100
Chart 4.2
Frequency in Inbound Forwarding
58%
60
38%
40
20
4%
0
Stock transfer from From Reserve logistics
other warehoue manufacturing movement
INFERENCE
Inbound operations means the processes of receiving, storing and distributing

raw materials for use in production. From the above table, it is inferred that 58% of
respondent said stock transfer from other warehouse, 38% said from manufacturing
and 4% said reserve logistics movement.
3) IN OUTBOUND OPERATIONS WHICH IS THE MOST FORWARDING
Table 4.3
Frequency in Outbound Forwarding
Movement No. of respondents Percentage (%)

Stock transfer from other warehouse 15 15
Whole sale or retail outlet 68 68
Movement of factory 17 17
Total 100 100
Chart 4.3
Frequency in Outbound Forwarding
80 68%
60
40
20 15% 17%
0
Stock transfer from Whole sale or retail Movement of
other warehouse outlet factory
INFERENCE
Outbound operations means the way of goods going out of the warehouse. From
the above table, it is inferred that 68% of respondents said wholesale or retail outlet
and 15% said stock transfer from other warehouse and 17% said movement of
factory.
4) IS THERE ANY DEADLINE FOR DISPATCHING THE STOCK FROM
WAREHOUSE?
Table 4.4
Deadlines on Dispatching Stock
Particulars No. of respondents Percentage (%)

Yes 100 100
No 0 0
Total 100 100
Chart 4.4
Deadlines on Dispatching Stock
120
100 100%
80
60
40
20
0 0%
Yes No
INFERENCE
From the above chart it is inferred that, there is a chance for deadline in
dispatching the stock from the warehouse. By avoiding these deadlines, make the
process more organized.
5) WHAT IS THE TIME PERIOD FOR DISPATCHING OF GOODS FROM
WAREHOUSE?
Table 4.5
Dispatching Goods from Warehouse

6 days 67 67
15 days 23 23
30 days 6 6
45 days 4 4
Total 100 100
Chart 4.5
Dispatching Goods from Warehouse
80
67%
60
40
23%
20
6% 4%
0
6days 15 days 30days 45 days
INFERENCE
Dispatching of goods means assigning goods to the customers. From the above
table, it is inferred that incase of the time period taken for dispatching of goods from
warehouse, 67% of respondents said 1 day, 23% said 2 days, 6% said 3 days and 4%
said 4 days.
6) ARE YOU SATISFIED WITH THE TIMELY DELIVERY RATING?
Table 4.6
Satisfaction with Timely Delivery Rating
Yes 44 44
No 56 56
Total 100 100
Chart 4.6
Satisfaction with Timely Delivery Rating
60 56%
44%
40
20
0
Yes No
INFERENCE
Warehouse is a place for storing goods that will be sold or distributed later.
From the above table, it is inferred that 44% of respondents satisfied and 56% of
respondents dissatisfied about the present system of storage space. Therefore to
warehouse storage space is very important.
7) SPACE FOR STORAGE IN WAREHOUSE
Table 4.7
Space for Storage in Warehouse
Self-storage 48 48
Extra storage 25 25
Lock-self storage 17 17
Public storage 10 10
Total 100 100
Chart 4.7
Space for Storage in Warehouse
50 48%
40
30
25%
20 17%
10 10%
0
Self-storage Extra storage Lock-self Public storage
storage
INFERENCE
From the above table, it is inferred that incase of space for storage in
warehouse, 48% of respondents said self-storage, 25% said extra storage, 17% said
lock-self storage and 10% said public storage. Self-storage indicates that storage of
goods in short-term basis.
8) DOCUMENT NECESSARY FOR STORAGE
Table 4.8
Document Necessary for Storage
Sufficient 84 84
Not-sufficient 16 16
Total 100 100
Chart 4.8
Document Necessary for Storage
100
84%
80
60
40
20 16%
0
Sufficient Not-sufficient
INFERENCE
From the above table, it is inferred that 84% of respondents said that there is
sufficient documents for storage and remaining 16% were not satisfied.
9) STORAGE COST OF GOODS IN WAREHOUSE
Table 4.9
Storage Cost in Warehouse

Rs.600/-pm 12 12
Rs.700/-pm 6 6
Rs. 650/-pm 78 78
Rs. 550/-pm 4 4
Total 100 100
Chart 4.9
Storage Cost in Warehouse
80 78%
60
40
20
12%
6% 4%
0
Rs.600/-pm Rs.700/-pm Rs. 650/-pm Rs. 550/-pm
INFERENCE
Storage cost refers to the amount charged to store goods in transit during the
transport. From the above table, it is inferred that incase of storage cost in warehouse,
12% said Rs.600 per month, 6% said Rs.700 per month,78% said Rs.650 per month
and 4% said Rs.550 per month.
10) MODE OF PAYMENT FROM THE CLIENTS
Table 4.10
Payment from the Clients

Cheque 7 7
Demand draft 18 18
Online payment 75 75
Total 25 100
Chart 4.10
Payment from the Clients
75%
80
60
40
18%
20 7%
0
Cheque Demand draft Online payment
INFERENCE
Payment mode means the way of settling the amount. From the above table, it
is inferred that payment mode by cheque is 7% , by demand draft 18% and by online
payment is 75%. Online payment refers to money that is exchanged electronically that
is through computer network.
11) HOW TO ARRANGE THE GOODS IN WAREHOUSE?
Table 4.11
Arrangement of Stocks in Warehouse

Random 10 10
Data wise 6 6
Floor marking 4 4
Company specific space 50 50
Barcode on availability of space 30 30
Total 100 100
Chart 4.11
Arrangement of Stocks in Warehouse
60
50%
40
30%
20
10%
6% 4%
0
Random Data wise Floor Company Barcode on
marking specific availability
space of space
INFERENCE
From the above table, it is inferred that incase of arrangement of stocks in

warehouse, 10% by random, 6% by datawise, 4% by floor marking, 50% by company
specific space and 30% by barcode on availability of space. When the warehouse uses
perfect arrangement incase of handling of stocks, resulted in avoiding wastage of
time.
12) HOW OFTEN PERPETUAL INVENTORY RECORDED?
Table 4.12
Frequency in Recording Perpectual Inventory

Daily 56 56
Weekly 21 21
Monthly 17 17
Occasionally 6 6
Total 100 100
Chart 4.12
Frequency in Recording Perpectual Inventory
60 56%
50
40
30
21%
20 17%
10 6%
0
Daily Weekly Monthly Occationally
INFERENCE
Perpetual inventory is a method of accounting for inventory that records the

sale or purchase of stocks through the use of computer. From the above table it is
inferred that incase of frequency in recording perpetual inventory, 56% of said daily,
21% said weekly, 17% said monthly and 6% said occationally.
13) WHICH TYPE OF METHOD USED IN DISPATCHING INVENTORY?
Table 4.13
Method Used in Inventory Management
FIFO 66 66
LIFO 34 34
Total 100 100
Chart 4.13
Method Used in Inventory Management
80 66%
60
34%
40
20
0
FIFO LIFO
INFERENCE
Inventory management refers to the process of ordering, storing and using a

company‘s inventory like raw materials, finished products etc. From the above table,
it is inferred that incase of method used in inventory management, 66% said FIFO and
remaining 34% said LIFO.
14) ARE THE STORAGE AND RECEIVING PROCESSES MONITORED AND
CONTROLLED VIA ONLINE?
Table 4.14
Level of Process Control Via Online

Yes 72 72
No 28 28
Total 100 100
Chart 4.14
Level of Process Control Via Online
80 72%
60
40
28%
20
0
Yes No
INFERENCE
From the above table, it is inferred that 72% agreed that storage and receiving
process control via online and 28% are disagreed. If the storage and receiving
processes control via online resulted in avoiding mistakes with the use of less time.
15) WHAT IS THE PRIMARY REASON FOR DAMAGES?
Table 4.15
Frequency in the Primary Damages

Transit damages 64 64
Labour handling damages 15 15
Storage damages 2 2
Internal handling damages 19 19
Total 100 100
Chart 4.15
Frequency in the Primary Damages
80
64%
60
40
20 15% 19%
0 2%
Transit Labour Storage Internal
damages handling damages handling
damages damages
INFERENCE
Primary damages refers to the damages that take place primarily during
handling of goods. From the above table, it is inferred in case of primary reason for
damages, 64% of transit damages, 15% of labour handling damages, 2% of storage
damages and 19% of internal handling damages.
16) HOW THE STOCKS ARE LOCATING IN WAREHOUSE?
Table 4.16
Methods Used in Locating the Stock

Manual 40 40
IT support 30 30
Floor 18 18
CCTV 12 12
Total 100 100
Chart 4.16
Methods Used in Locating the Stock
50
40%
40
30%
30
18%
20 12%
10
0
Manual IT support Floor CCTV
INFERENCE
Stock location helps in locating the products properly in the warehouse. It is

also known as warehouse layout. From the above table, it is inferred that, in case of
methods used in locating stock, 40% by Manual, 30% by IT support, 18% by floor
and 12% by CCTV.
17) WHO ARE THE PEOPLE TAKING CARE OF STORAGE AND LOCATING?
Table 4.17
People Responsible for Storage and Locating

Floor supervisors 54 54
Labourers 25 25
Executives 21 21
Total 100 100
Chart 4.17
People Responsible for Storage and Locating
60 54%
50
40
30 25%
21%
20
10
0
Floor supervisors Labourers Executivves
INFERENCE
From the above table it is inferred that incase of people responsible for storage
and locating, 54% by floor supervisors, 25% by labourers and 21% by executives. It is
very important to monitoring and controlling the goods incase of storage and locating,
that will take care by the responsible person appointed by the management.
18) WHAT IS THE MATERIAL USED FOR STORAGE HANDLING?
Table 4.18
Equipment used for Material Handling

Forklifts 5 5
Trolley 33 33
Conveyor 20 20
Stacker trucks 15 15
Pallets 27 27
Total 100 100
Chart 4.18
Equipment used for Material Handling
40
33%
30 27%
20 20%
15%
10
5%
0
Forklifts Trolley Conveyor Stacker Pallets
trucks
INFERENCE
Material handling is the moving, protecting, controlling and storing materials

such as goods, items etc. for manufacture, disposal and distribution. From the above
table, it is inferred that incase of equipments used for material handling, 5% by
forklifts, 33% by trolley, 20% by conveyor, 15% by stacker trucks and 27% by
pallets.
19) ARE YOU SATISFIED WITH THE PRESENT QUALITY OF OPERATIONS IN
THE WAREHOUSE?
Table 4.19
Present Quality of Operations in Warehouse

Satisfied 78 78
Not-satisfied 22 22
Total 100 100
Chart 4.19
Present Quality of Operations in Warehouse
78%
80
60
40
22%
20
0
Satisfied Not-satisfied
INFERENCE
Efficient warehouse operations can ensure that company ships and receives
vital stock in time for replenishment on store shelves or in manufacturing facilities.
From the above table, it is inferred that 78% are satisfied with the present quality of
operations in warehouse and remaining 22% are dissatisfied.
20) WHICH IS THE MOST MOVEMENT ACCOUNTS?
Table 4.20
Stock Movement with Respect to Region

Within Chennai 17 17
Within state 9 9
Across state 74 74
Total 100 100
Chart 4.20
Stock Movement with Respect to Region
80 74%
60
40
20 17%
9%
0
Within Chennai Within state Across state
INFERENCE
Movement of stocks is the process of goods are transferred from the

warehouse to other region. From the above table, it is inferred that 74% of
respondents says the stocks are mostly moved across state, 9% are within state and
remaining 17% are within Chennai.
21) OPINION ABOUT OPERATIONS IN SAFE STORAGE FACILITY IN
WAREHOUSE
Table 4.21
Weighted Average Method for Operations in Safe and Storage Facility in
Warehouse
Total/ No. of
respondents
percentage
Very good
Very poor
Neutral
Facility
Good
Rank
Total
Poor
Space for 37x5 30x4 23x3 6x2 4x1
390 390/100 3.9 I
storage 185 120 69 12 4
Open space,
34x5 35x4 17x3 9x2 5x1
temperature, 384 384/100 3.84 II
170 140 51 18 5
humidity, etc
Roods within
22x5 31x4 33x3 8x2 6x1
the 355 355/100 3.55 VIII
110 124 99 16 6
warehouse
Transport 37x5 31x4 14x3 11x2 7x1
380 380/100 3.8 III
Facility 185 124 42 22 7
Office 30x5 35x4 21x3 9x2 5x1
376 376/100 3.76 IV
infrastructure 150 140 63 18 5
Safe, storage
27x5 31x4 30x3 8x2 4x1
facility 369 369/100 3.69 VI
135 124 90 16 4
(safety)
Canteen 29x5 18x4 25x3 20x2 8x1
340 340/100 3.4 IX
Facility 145 72 75 40 8
Equipments 33x5 30x4 23x3 7x2 7x1
375 375/100 3.75 V
for handling 165 120 69 14 7
Computer 33x5 22x4 24x3 15x2 6x1
361 361/100 3.61 VII
support 165 88 72 30 6
22) RELATION BETWEEN INBOUND OPERATION AND OUTBOUND OPERATION
OBSERVED DATA:
Table 4.22
Observed data: Relation between inbound operation Vs outbound operation
Inbound operation/ Stock transfer Wholesale Movement Total

Outbound operation from other or Retail of factory
is the most moving warehouse outlet
Stock transfer from 12 37 9 58
other warehouse
From manufacturing 2 20 11 33
Reserve logistics 1 7 1 9
movement
Total 15 64 21 100
EXPECTED DATA:
Table 4.23
Expected data: Relation between inbound operation Vs outbound operation
Inbound operation/ Stock transfer Wholesale Movement Total

Outbound operation from other or Retail of factory
is the most moving warehouse outlet
Stock transfer from 8.7 37.12 12.18 58
other warehouse
From manufacturing 4.95 21.12 6.93 33
Reserve logistics 1.35 5.76 1.89 9

movement
Total 15 64 21 100
CALCULATION OF CHI-SQUARE TEST:
Table 4.24
Chi-square test on inbound operation Vs outbound operation
O E O-E (O-E)^2 (O-E)^2/E
12 8.7 3.3 10.89 1.2517
37 37.12 -0.12 0.0144 0.0003
9 12.18 -3.18 10.1124 0.8302
2 4.95 -2.95 8.7025 1.7581
20 21.12 -1.12 1.2544 0.0594
11 6.93 4.07 16.5649 2.3903
1 1.35 -0.35 0.1225 0.0907
7 5.76 1.24 1.5376 0.2669
1 1.89 -0.89 0.7921 0.4191
1 2.25 -1.25 1.5625 0.6944
12 9.6 2.4 5.76 0.6
2 3.15 -1.15 1.3225 0.4198
Total 8.7809
Degrees of freedom = (r-1) (c-1)
= (3-1) (3-1)
=4
INTERPRETATION
Table value of chi-square at 5% level of significance is 3.841 and the

calculated value is 8.7809. Since the calculated value is greater than table value, reject
Null-hypothesis. Therefore there is a relation between inbound operations and
outbound operations.
CHAPTER V
FINDINGS, SUGEESTIONS AND CONCLUSION

5.1 FINDINGS
 From analysis it is found that 92% are male respondents and remaining 8% are
female.
 From analysis it is found that 54% respondents are under the age category of
18-25, 30% are under the age group of 25-35, 12% are under the age group of 35-45
and 4% are under the age group of 45-55.
 From analysis it is found that 47% respondents are under the category labour,
31% are supervisors, 16% are executives and 6% are managers.
 From analysis it is found that 17% respondents are qualified in diploma, 67%
are under graduate, 8% are post graduate and 8% are HSS.
 In case of best storage type, 52% of the respondents said company uses
automated storage system, 31% said company used drive in storage and 17% said
company used push back storage.
 In case of most moving inbound operations, 58% of respondent said stock
transfer from other warehouse, 38% said from manufacturing and 4% said reserve
logistics movement.
 In case of most moving outbound operations, 68% of respondents said stock
transfer by wholesale or retail outlet, 15% said stock transfer from other warehouse
and 17% said movement of factory.
 100% of respondents agree that there is a chance of deadline in dispatching the
stock from warehouse.
 From analysis, it is found that in case of the time period taken for dispatching
of goods from warehouse, 67% of respondents said 1 day, 23% said 2 days, 6% said
3 days and 4% said 4 days.
 From analysis, it is inferred that 44% of respondents satisfied and 56% of
respondents dissatisfied about the present system of storage space.
 From analysis, it is found that in case of space for storage in warehouse, 48%
of respondents said self-storage, 25% said extra storage, 17% said lock-self storage
and 10% said public storage.
 From analysis, it is found that 84% of respondents said that there is sufficient
documents for storage and remaining 16% were not satisfied.
 From analysis, it is found that in case of storage cost in warehouse, 12% said
Rs.600 per month, 6% said Rs.700 per month, 78% said Rs.650 per month and 4% said
Rs.550 per month. From analysis, it is found that in case of payment mode by client,
7% by cheque, 18% by demand draft and online payment by 75%.
 From analysis, it is found that in case of arrangement of stocks in warehouse,
10% by random, 6% by datawise, 4% by floor marking, 50% by company specific
space and 30% by barcode on availability of space.
 From analysis, it is found that in case of method used in inventory
management, 66% said FIFO and remaining 34% said LIFO.
 56% of respondents said that perpetual inventory recorded are take place daily
 From analysis, it is found that 72% agreed that storage and receiving process
control via online and 28% are disagreed.
 From analysis, it is found that in case of primary reason for damages, 64% of
transit damages, 15% of labour handling damages, 2% of storage damages and 19% of
internal handling damages.
 From analysis, it is found that in case of methods used in locating stock, 40%
by Manual, 30% by IT support, 18% by floor and 12% by CCTV.
 From analysis, it is found that in case of people responsible for storage and
locating, 54% by floor supervisors, 25% by laborers and 21% by executives.
 From analysis, it is found that in case of equipment used for material
handling, 5% by forklifts, 33% by trolley, 20% by conveyor, 15% by stacker trucks
and 27% by pallets.
 From analysis, it is found that 78% are satisfied with the present quality of
operations in warehouse and remaining 22% are dissatisfied.
 From analysis, it is found that 74% of respondents said the stocks are mostly
moved across state, 9% are within state and remaining 17% are within Chennai.
 From chi-square test it is understood that there is a relation between inbound
operations and outbound operations.
 From weighted average method, it is found that in case of warehouse facilities
provided, space for storage got first rank, open space and humidity for storage got
second rank, transport facility got third, office infrastructure got fourth rank and
equipment for handling got fifth rank.
5.2 SUGGESTIONS
 Freight forwarders in India have not taken extra care in retaining the customers i.e. the
CRM strategies followed by freight forwarders companies or not effective in retaining
the customers.
 Major problems identified by the freight forwarders in their business operation Stuffing,
loading and unloading, non-availability of trailers and trucks, Routing and scheduling. A
consortium of freight forwarders could be formed so that problems of non-availability of
trucks and containers could be minimized.
 International Transportation frequently requires ocean or airfreight modes, which many
corporations only rarely use domestically. In addition, combinations such as land bridges
or sea bridges may permit the transfer of freight among various modes of transportations;
resulting in intermodal movements the international logistics manager must understand
the specific properties of the different modes to be able to use them intelligently.
 Ocean Shipping Water transportation is a key mode for international freight movement.
Three types of vessels operating in ocean shipping can be distinguished by their service:
liner service, bulk Service and tramp or charter service. Liner service offers regularly
scheduled passage on established routes. Bulk service mainly provides contractual
services for individual voyages or for prolonged periods of time. Tramp service is
available for irregular routes and scheduled only on demand the demand will be ratified
will not come irregular routes and scheduled.
 Introduction of web based tracking (e-tracking) will help minimize mistakes and improve
transparency of operations.
 Online payment can be introduced to ratify the default in payment.
 Major problems identified in preparing the documentation Data of delivery at the
destination, Terms of payment. Sometimes bottle neck of the businesses i.e. preparing
price quotation.
 Implementation of EDI strengthened by the freighter forwarders.
 Whenever work load increases it becomes difficult for the freight forwarders to handle
the work.
 New routes of commerce have also opened up particularly between the former East and
West political blocs. Yet without the proper infrastructure the opening of market is
mainly accompanied by major new bottlenecks.
5.3 CONCLUSION
A freight forwarder is an individual or company that dispatches shipments via asset based
carriers and books or otherwise arranges space for shipments. Freight forwarders typically
arrange cargo movement to an international destination. The importance of freight forwarder lies
in organizing the safe, efficient movement of goods on behalf of an exporter, importer or another
company or person, sometimes including dealing with packing and storage. Freight forwarders
arrange the best means of transport, using the services of shipping lines, airlines or road and rail
freight operators. In some cases, the freight forwarding company itself provides the service.
Freight forwarders have been called travel agents for freight. The work activities of freight
forwarder include researching and planning the most appropriate route for a shipment.
Obtaining, checking and preparing documentation to meet customs and insurance requirements.
Liaising with third parties to move goods by different modes Freight forwarders are experts that
allows them to prepare and process the documentation and perform related activities pertaining
to international shipments.
The problems faced by freight forwarders is identified from different angles, it is very clear
by the facts and figures that the occurrence of problems is because of government regulations,
liner companies, Non availability of trailers & trucks. To overcome these problems the freight
forwarders should update themselves with the new technologies and current standards, in order
to meet the global customer‘s satisfaction level.
BIBLIOGRAPHY
BOOKS:
 Allan Branch, Elements of Shipping, 8th Edition, Routledge Publisher, USA. Year
 Donald R Cooper and Pamela S Schindler, Business Research Methods, 6 th Edition, Tata
McGraw Hill Public Company Limited, New Delhi.
 F N Hopkins, Business & Law for the Ship Master, 7th Edition, Brown, Son & Ferguson,
Limited. Glasgow.
 Donald J Bowersox & David J Closs, Logistical Management the Integrated Supply
Chain Process, Tata McGraw-Hill Publishing Company Limited. New Delhi.
 Proceedings of the International Maritime-Port Technology and Development
Conference, Research Printing Services, Singapore.
WEBSITES
http://www.wikipedia.com
http://www.google.com
http://www.scribd.com
QUESTIONNAIRE
Name of the Client:
1) Which type of storage is present?
a) Automized Storage System b)Drive in Storage c) Push Back Storage
2) Which inbound operations is the most forwarding?
a) Stock transfer from other warehouse b) From manufacturing c) Reserve logistics movement
3) Which outbound operations is the most forwarding?
a) Stock transfer from other warehouse b) Wholesale or retail outlet c) Movement of factory
4) Is there any deadline for dispatching the stock from warehouse?
a) Yes b) No
5) What is the time period for dispatching of goods from warehouse?
a) 6days b) 15days c) 30days d) 45days
6) Are you satisfied with the present timely delivery system?
a) Yes b) No
7) What is the space for storage in warehouse?
a) Self Storage b) Extra storage c) Lock self storage d) Public storage

8) Are you satisfied with the document necessary for storage?
a) Sufficient b) Not-sufficient
9) What is the storage cost of goods in warehouse?
a) Rs.600/-pm b) Rs.700/-pm c) Rs.650/-pm d) Rs.550/-pm
10) What is the mode of payment from the clients?
a) Cheque b) Demand draft c) Online payment
11) How to arrange the goods in warehouse?
a) Random b) Data wise c) Floor marking d) Company specific space e) Barcode on availability
of space
12) How often perpetual inventory recorded?
a) Daily b) Weekly c) Monthly d) Occasionally
13) Which type of method used in dispatching inventory?
a) FIFO b) LIFO
14) Are the storage and receiving processes monitoring and controlling via online?
a) Yes b) No
15) What is the primary reason for damages?

a) Transit damages b) Labour handling damages c) Storage damages d) Internal handling
damages
16) How the stocks are locating in warehouse?
a) Manual b) IT support c) Floor d) CCTV
17) Who are the people taking care of storage and locating?
a) Floor supervisors b) Labourers c) Executives
18) What is the material used for storage handling?
a) Forklifts b) Trolley c) Conveyor d) Stacker trucks e) Pallets
19) Are you satisfied with the present quality of operations in the warehouse?
a) Satisfied b) Not-satisfied
20) Which is the most movement accounts?
a) Within Chennai b) Within state c) Across state

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CHAPTER I

1.1 GENERAL INTRODUCTION

Typical work activities of Freight Forwarders

Typical activities include:

Functions of Freight Forwarders

Main Activities of Freight Forwarders in Seamless Cargo Movement

E-Freight offers a unique integration between front-end and back-office systems,

 Sea/Air freight operation

NON-VESSEL OPERATING COMMON CARRIERS (NVOCC)

CHARACTERIZATION OF THE FORWARDERS ROLE

Principal and agent

PROBLEMS FOR FORWARDERS

1.2 INDUSTRY PROFILE

Federation of Freight Forwarders Associations in India

Freight Forwarding – Market Report

FREIGHT FORWARDERS’ ROLES IN DIFFERENT COUNTRIES

Federation was enrolled as National Member of FIATA - The International Federation of

Objectives of the Association

The Australian Federation of International Forwarders was created in July 1996

The Canadian International Freight Forwarders Association (CIFFA) was established in

British International Freight Association

The association provides:

Advice and Information

Training and Development

BIFA is a dedicated to improving the standards of professionalism within the logistics

The legal definition at 49 USC 13102 (8)is: FREIGHT FORWARDER.-the term

1.3 COMPANY PROFILE

A.S Shipping CFS, Tuticorin

Fig: A.S Shipping Container Freight Station located in Tuticorin-Tirunelveli Highway

Fig: Rail Mounted Gantry Crane at A.S Shipping CFS, Tuticorin

The CFS is also equipped with the following equipments:

3. TIL 3 Reach Stacker - 40 Mt Capacity 5 high.

4. 5 Nos. Forklift with capacity of 3 Tons.

5. Escort Mobile Cranes with capacity of 14 Tons.

6. 16 FLT to Handle Granite Blocks.

A.S. Shipping Empty Container Yard, Tuticorin.

1.4 DEPARTMENT PROFILE

• Operations ( frequency of port calls, high productivity, reasonable transportation and

• Infrastructure ( warehouses, cranes, other infrastructure and superstructures)

• Integration ( EDI – to facilitate easy monitoring and tracking)

• Inland freight rates

• Quality of customs handling

• Possibility of inter-modal links

• Low trade volumes

• Hinterland constitutes to large volumes

• Ports are situated deep or are scattered from main lines

• The choice of modal connectivity in the origin area

• The choice of seaport in the origin area

• The choice of ocean shipping service

• The choice of seaport in destination area

• The choice of modal connectivity in the destination area

• Berthing time in port

• Loading / discharging rates

• Port facility and infrastructure

• Good market resources and knowledge

• Other ancillary businesses

• Increase of service frequency

• Development of shipping and other intermodal alliances

• Sharing of warehouses, depots, space on ships, etc

 International Freight Forwarding

A research cannot be conducted abruptly. Researcher has to proceed systematically in the

OBJECTIVES OF THE STUDY

 To identify whether there is any mistakes and errors occurs in