COMPANY PROFILE

SHAAN’S cargo was established in November 1992 at Tirupur , the world renowned
Garment city of India. The initial objective was to perform only as Customs Broker in India.
The Firm soon won the confidence of the major exporters with its personalised and dedicated
services. This encouraged the formation of SHAANS cargo private limited, registered under
Indian Companies Act 1956.

Over the years, SHAANS met the varied challenges of International Freight Forwarding
and experienced tremendous growth. Soon the company qualified as IATA approved cargo
agents, in addition to being recognized under the Indian Customs Regulation Act to function
as Customs Broker(CHA). Further, the company obtained Multimodal Transporter Operator
Licence –issued by Ministry of Shipping, Government of India.

SHAAN’S spread its wings to cover the entire country , and established its own offices in
all major cities and ports of India. This enabled the company to provide integrated and
comprehensive shipping services under one roof to all its esteemed clients.

SHAAN’S further expanded its Transport Division by the name ‘SHAANTRANS’ to

coordinate the heavy lift, customs bonded container, movements under its care. SHAAN’S
with its core strengths, is in a very strong position to provide total logistics services to its
valuable clients.

STRENGTH BEHIND SHAAN’S SUCCESS

 Customer focus
 Team work
 THE BOARD OF DIRECTORS
Mr.P.Shanmugam, Chairman & Managing
Director

Mr.P.raghuraj, President

Mr.G.Padmanabhan,Director

Mr.G.Sampath Kannan, Director

Mr.K.Vijayakumar, Director

Mr.V.Subramaniam, Director

Shaans Cargo handles the following Branding goods from India through their valued
customers

 Columbia sportswear company

 Fuba
 Eastern food products
 Baby vision
 London cat
 INTRODUCTION
INDUSTRY PROFILE

Economy of a developed country heavily depends on Foreign exchange. It earns through the
export of product, projects and services. Foreign trade contributes to economic development
in a number of ways. Freight forwarders are that agent who helps to move cargo to overseas
destination. So they have to play a vital role in foreign trade, especially in the exports of a
country.

Freight forwarding is a vital part of International trade activity. Forwarding company can be
defined as “Help Forward”, “send on further destination”. The forwarder act as a buffer
between the manufacturer/exporter and the sea carrier to assist in efficient flow of goods
down the International transport chain.

The forwarder helps in booking space with the carrier, helping in movement of goods down
the dock, ensuring safe loading, arranging customs clearance and producing the
documentation to and from the sea carrier.

Depending on the terms of shipment, a forwarder may be responsible for import work that
would consist of notifying the receiver of the arrival of goods, arranging customs clearance,
presenting original bills to clarify ownership and obtaining out of charge not to enable the
receiver to pick up his goods.

The forwarders offers their clients door to door quotations and handled the less than container
load traffic. The forwarders bought shipping space with other carriers to the extent the major
consortia had left in covering all traffic in the route.

Forwarder is an independent business person who handles shipments for compensation. He is

an exporter agent who performs usually do all aspects of physical distribution necessary to
move cargo to overseas destination in the most efficient and economic manner.

The forwarder represents shippers in both air and ocean freight shipments because the
procedures and documents required are very similar. The license is given to freight forwarder
under customs act 1962 depending upon the terms of shipment.

Freight forwarders originating cargo for individual loner cargo service receives a commission
which varies according to the tonnage forwarded. Freight forwarder has become the
increasingly involved in the air freight business under the consolidation arrangements.

The responsibility and the liability of the forwarded are spelt out depending on the area of
activity in which the freight forwarder is rendering services at a lower cost.

The forwarders major contribution to the exporter is

 His ability to provide traffic and

 Documentation responsibilities for international freight movements.
The forwarders can assist an exporter from the very beginning in getting shipments ready for
overseas, by providing

 Assistance in preparing quotation

 Advise on freight cost
 Advise on port charge
 Advise on consular fee
 Advise on insurance cost
 Recommended degree of packing needed
 Arrange to have merchandise packed or containerized

The forwarder also prepares,

 Ocean bill loading

 Any special consular documents
 Reviews letter of credit, packing list & so out to ensure that all procedures are in
order.

The forwarder can assist the exporter in other areas also can reverse space abroad on ocean
vessel consolidate small shipments into full container loads. Because forwarders control most
of the smaller shipments and because the less than containers traffic accounts for 17-18% of
business carriers to freight forwarders with extra rebates.

Services of clearing & forwarding agent

The clearing and forwarding agents are provided various services. They are

 Assists in processing of shipping bill

 Pay export/import duty on behalf of the shipper
 Delivers the goods to stevedores, and obtains the master receipt from ship’s captain
 Obtains the ‘Bill Of Lading’ from shipping company, get it to duty filled in with
necessary particulars and submits the same to the shipping company. He also submits
to the shipping company the Master Receipt.

ROLE OF FREIGHT FORWARDERS

The freight forwarder as an intermediary has played an important role in the
transportation of goods & services. The following are the role of freight forwarders

 Advice of financial and trade nature

 Advice on packing
 Planning routes
 Reserving containers
 Advising insurance
 DESIGN OF THE STUDY
METHOD OF COLLECTION OF DATA

The data was collected by direct interview with the manager and other staffs. Some data
are collected through observing the different functions done by the staff and through the
companies website.

SCOPE OF THE STUDY

The project covers the role of clearing and forwarding agents with regard to Shaan’s
cargo. And also to know about the different departments prevailing in the company and
its functions.

OBJECTIVES
 To study the role of freight forwarders in International trade
 To study about the export procedures
 To know the service rendered by Shaan’s cargo
 To know about the different departments and its functions in Shaan’s cargo

LIMITATIONS
 The time period of training was limited to 1 month it was not sufficient to capture all
the functions.
 Data collected may not be same for every transactions as it depends upon the
agreement made with the customer.
 Due to security problem, entry was restricted inside port, customs office etc.
 CONSIGNMENTS
Consignment refers to the packed cargo which is importing or exporting. Shaans cargo
deals with containerised cargo. It deals with both LCL & FCL consignment. LCL(Less than
Container Load) means a container which the cargo of different exporters are stuffed. It is
done when the goods are of small in quantity. FCL(Full Container Load) means a container
which the whole capacity is utilized for stuffing of one single exporter. Each separate
consignment need separate documentation procedure. Service charges are charged per each
consignment.

The container, as the name implies, is an equipment used to store and carry goods. A
container is also known as ‘box’ or ‘van’ in many countries, particularly in USA. Containers
are the best carrier of goods which can be loaded onto any vehicle or type of transport, such
as an ocean cargo ship or a trailor tractor. And also it is the standard option when transporting
goods or materials over long distance.

Leasing of Containers
Containers are taken on lease by carriers from container manufacturing companies or
leasing companies who own containers. There are 4 types of leasing arrangements.

 Trip lease/ short term lease: The lease is for one voyage or one trip.
 Long term Lease: Containers are usually leased for a period of 3 years to 5 years
 Financial lease: This is more of a hire-purchase or installment scheme rather a lease as
in this case at the end of the term for which containers are taken on financial lease, the
ownership of the container is transferred to the lessee.
 Master Lease: In this case one ship owner concludes a deal with a container leasing
company for a period of usually 1-2 years where by the guarantees that a minimum
number of containers will always be under his lease from the leasing company.
 APPENDIX
DIFFERNT TYPES OF CONTAINER USED BY SHAAN’S
CARGO
Shaan’s cargo use three types of containers. They are

 20 Feet Container

This type of container carry goods like machineries, garments, etc.

  40 Feet containers
In this container bulk quantities of goods like raw materials, machineries and
other equipments can be stored. The cubic capacity of this container is 67.3 CBM(Cubic c
  40 High cube Container
The 40 High cube containers are two types- 40 High cube dry container and 40 high
cube reefer containers. The 40 high cube dry containers carry dry goods but in 40 high cube
reefer containers carry cooled foodstuff, meat, fish, vegetables, etc.

40 high cube reefer container

40 high cube dry container

SERVICES RENDERED BY SHAAN’S CARGO CONTAINER
 DOOR TO DOOR SERVICES & PICK UP

The company provides door to door logistics movement to the exacting

requirements of the customers. They utilise expertise and experience to extend this concept to
both local and international customers.

 CARGO CONSOLIDATION

The freight forwarder would assemble parcel cargo from different shippers to
different receivers and use the transport capacity, which he would have negotiated
with the various carriers. This function is usually referred to as ‘Cargo Consolidation’.

 OCEAN TRANSPORT

They have preferential rate agreement with major ocean carriers to meet the
very specific needs of the customers. Also they ensure the safety and speed customers
demand.

 AIR TRANSPORT

The airfreight services are popular with their customers largely due to the
tailor made system packages that best suit the budgetary and delivery commitments of their
customer.

 CARGO MANAGEMENT SERVICES

They are well equipped with various management concepts like JIT(Just In
Time), kaizen, 3PL and the newest 4PL etc.

 CUSTOMS BROKERAGE

They provide both import and export services. Their vast knowledge across
commodities enables them offer consultancy to their clients, there by maximising their
benefits and reducing the duty burden.

 WAREHOUSING SERVICES

They give warehousing services to the customers.the use of information

technology enables them to provide services such as inventory management, purchase order
management, labelling and quality inspection.
  SHIP BROKING

Alternatively through their association with various ship owners/operators,

they can offer vessels from time to time for voyage performance.

 SUPPLY CHAIN SOLUTIONS

The supply chain solution is one of the most important services provided by
the Shaan’s cargo pvt.Ltd.

cm
u
T
b
figIn
e
d
a
rw
o
sth
p S(lO
kC xB
)E

Shaan’s Supply Chain Solution