Project report

A STUDY ON FREIGHT FORWARDING AT SKYLINK

FREIGHT FORWARDERS PVT. LTD
Department Of B.Voc
ST. ALBERT’S COLLEGE
Ernakulum

MAHATMA GANDHI UNIVERSITY

B VOC DEGREE COURSE 2015-2018

SEMESTER 4

UNDER THE SUPERVISION OF SUBMITTED BY,

MRS.ANNLEE MATHEW SOURAV JOSEPH

REG.NO:150031000422

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 DECLARATION

I hereby declare that this Project Report titled “A STUDY ON FREIGHT

FORWARDING AT SKYLINK FREIGHT FORWARDERS PVT. LTD” submitted to
the Department of Voch.Studies, St. Albert’s College (Autonomous) is a record of
original work done by me under the guidance of Smt. Annlee Mathew.

The information and data given in the report is authentic to the best of my
knowledge.

This project report is not submitted to any other university or institution for the
award of any degree, diploma or fellowship or published any time before.

SOURAV JOSEPH

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 ACKNOWLEDGEMENT

I have immense pleasure in successful completion of my work titled: “FREIGHT

FORWARDING”. The special environment at SKYLINK FREIGHT
FORWARDERS PVT. LTD, that always supports educational activities, facilitated
my work on this project.

I greatly appreciate the motivation and understanding extended for the project work
by all the staff members of Skylink Freight Forwarders Pvt. Ltd, for completing my
training successfully and for responding promptly and enthusiastically to my
requests for frank comments, despite their congested schedules. I ’am indebted to
all of them, who did their best to bring improvements through their suggestions.

I acknowledge the support, the encouragement, extended for this study by Fr.
Christy David Pathiala, Assistant Manager, St. Albert’s College and Prof. Titus
Chorreya, Head of the Logistics Department, St. Albert’s College. With their help
and support, I have been able to complete this work.

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 EXECUTIVE SUMMARY

The internship report contains six chapters in which I try to explain about Freight
Forwarding. The contents of all chapters are broadly explained and it is constructed
after the four weeks training in the company.

The opening chapter is introduction; this chapter includes the introduction part and
the objective, methodology, scope and limitations of this study.

The second chapter is Industry profile, here I mentioned about five Freight
Forwarding companies and brief study about the industry.

In the third chapter I gave details about the company background, its mission,
vision.

The fourth chapter is the main content of this topic. It explains in detail about
Freight forwarding, Benefits of freight forwarders, Cost of using freight forwarding
etc.

The final section of this project; chapter five is about the suggestions on the project
that our company runs and the sixth chapter is the conclusion of the project.

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 TABLE OF CONTENTS

Sl.No: Title Page No:

1 Declaration 2
2 Acknowledgement 3
3 Executive Summary 4
4 Chapter-1:Introduction 6-10
1.1: Objective
1.2: Methodology
1.3: Scope
1.4: Limitations
5 Chapter-2: Industry Profile 11-1
6 Chapter-3: Company Profile 18-21
7 Chapter-4: Freight Forwarding 22-56
8 Chapter-5: Findings & Suggestions 57-59
9 Chpater-6: Conclusion 60-61
10 Bibliography 62

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 CHAPTER 1
INTRODUCTION

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 INTRODUCTION
Freight forwarding is a service used by companies that deal in international or
multi-national import and export. While the freight forwarder doesn’t actually
move the freight itself, it acts as an intermediary between the client and various
transportation services. Sending products from one international destination to
another can involve a multitude of carriers, requirements and legalities. A freight
forwarding service handles the considerable logistics of this task for the client,
relieving what would otherwise be a formidable burden.

Freight forwarding services guarantee that products will get to the proper
destination by an agreed upon date, and in good condition. The freight forwarding
service utilizes established relationships with carriers of all kinds, from air
freighters and trucking companies, to rail freighters and ocean liners. Freight
forwarding services negotiate the best possible price to move the product along the
most economical route by working out various bids and choosing the one that best
balances speed, cost and reliability.

A freight forwarding service generally provides one or more estimates to the client
along with advisement, when necessary. Considerations that effect price will range
from origin and destination to special requirements, such as refrigeration or, for
example, transport of potentially hazardous materials. Assuming the client accepts
the forwarder’s bid, the freight is readied for shipping. The freight forwarding
service then undertakes the responsibility of arranging the transport from point of

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origin to destination. One of the many advantages of using freight forwarding is
that it handles ancillary services that are a part of the international shipping
business. Insurance and customs documentation and clearance are some examples.
As a consolidator, a freight forwarding service might also provide Non-Vessel
Operating Common Carrier (NVOCC) documentation, or bills of lading.
Warehousing, risk assessment and management, and methods of international
payment are also commonly provided to the client by the freight forwarding
service.

A good freight forwarding service can save the client untold time and potential
headaches while providing reliable transportation of products at competitive rates.
A freight forwarding service is an asset to almost any company dealing in
international transportation of goods, and is especially helpful when in-house
resources are not versed in international shipping procedures.

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. Any Organization that is engaged in Imports or Exports would require
the services of a Freight Forwarder. Freight forward manages the transportation
part of the exports and imports.

Freight forwarders typically arrange cargo movement to an

international destination. Also referred to as international freight forwarders, they
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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,
shippers export declaration, bil of lading and other documents required by the
carrier or country of export, import or transshipment.

1.1 OBJECTIVE OF STUDY

 To identify the importance and objectives of freight forwarding.

 To study the functions and work activities of freight forwarders.
 To analyze different freight forwarding systems.
 To know about documents used in freight forwarding.
 To get an experience in office work.
 To know how the tax affects freight forwarding.

1.2 METHODOLOGY

Primary Data:

 Observation through total internship period.

 Observation and direct interview.

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  Conducting interview with staffs of the company without using
questionnaire.
 Personal communication.

Secondary Data:

 The official records of Skylink freight forwarders

 From various journals
 From various websites

1.3 SCOPE OF STUDY

This study was carried out to identify about freight

forwarding. The study was undertaken to get a clear cut idea about the role and
functioning of freight forwarders. The study helps in bridging the gap between the
theory and practice of management. This study is also done to get an office
experience and to study the office work.

1.4 LIMITATION OF STUDY

 The time given for the study was limited.
 Due to their busy work schedule, there was difficulties in
obtaining data.

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 Detailed analysis of the company was not possible, because the
company had limitations to disclose some important details.

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 CHAPTER 2
INDUSTRY PROFILE

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 INDUSTRY PROFILE

At present more companies are coming into the area of freight forwarding, because
of the increase in exports and imports. International trades between countries and
across continents have existed for centuries including previous civilizations.
Traditionally international trade consisted of traded goods like textile, food items,
spices, precious metals, precious stones, and objects of art and various items across
the borders. Everybody has heard of the silk route as well as amber road and other
famous routes that existed and the ports and settlements that flourished due to the
trade, which was carried on through land route as well as sea routes.

We have come a long way since the earlier times and International trade today has
taken on new dimension. It was a fact earlier that impact of trade between two
countries was not limited to economics alone, but fuelled political, social ambitions
too. Today with the advancement of technology and impact of globalization has
made it necessary for all countries to engage necessarily in international trade for
their survival.

With globalization, the world has literally become a global village. As a

result of open trade policies, everyday, more businesses are going global making
the whole world a new marketplace. While it benefits the consumers with lower
pricing and availability of variety of products, the businesses are challenged with
fierce competition. In logistics industry, the competition is even worse considering
the number of factors which affect the business. To succeed, logistics companies
must focus on being more competitive to enhance customer satisfaction and attract
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more business. Although, many of the freight and logistics businesses strive to be
competitive, the challenge is that they all are focusing only on a single factor i.e., “
Pricing. Yes, we all may have to be competitive on pricing sometime or the other.
This happens not only for the customers who always want cheaper pricing and
discounts but also because of the competitors providing aggressive prices. When
everybody is trying to provide better pricing, freight forwarders and logistics
companies must set themselves apart by being more competitive on other important
business functions.

Competitive market is very important as it results in overall market development

and brings benefits to the end consumer. Even though, avoiding competition
completely is not possible today, Logistics companies can boost their
competitiveness to stay ahead. By being assertive about exceeding customer
satisfaction at every step and by continuous improvement in operations freight and
logistics companies can conquer the competition.

Top 5 companies in world

Over our 125 year history, Kuehne + Nagel has evolved from a traditional
international freight forwarder to a leading global provider of innovative and
fully integrated supply chain solutions.

Since 1890, when the business was founded in Bremen, Germany, by August
Kuehne and Friedrich Nagel, Kuehne + Nagel has grown into one of the
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world's leading logistics providers. Today, the Kuehne + Nagel Group has
more than 1,300 offices in over 100 countries, with over 70,000
employees. Our key business activities and market position are built on the
company's truly world class capabilities:

Sea freight:

 Number 1 global sea freight forwarder

 Sustained year-on-year double digit growth in managed freight
 Solid partnerships with an extensive range of preferred ocean carriers

Airfreight:

 Number 2 global air cargo forwarder

 Leader in innovative cargo management concepts
 Global Cargo iQ Phase 2 certification

Contract Logistics & Integrated Logistics:

 Number 2 global contract logistics provider

 Worldwide network of warehouse and distribution facilities
 Number 1 global lead logistics provider

DHL express

DHL Express is a subsidiary of a German Logistics company called Deutsche

Post DHL covering deliveries world-wide.

DHL Logistics provides complete logistics solutions including Freight trans-

potation, Warehousing and Distribution, Customs, Security and Insurance,
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Supply Chain Solutions, Industry sector solutions. DHL has four major
divisions - DHL Express, DHL Global Forwarding, DHL Global Mail and DHL
Supply Chain. The core industry sectors in which they operate include Life
Sciences & Healthcare, Technology, Energy, Automotive and Engineering &
Manufacturing. Their vision is to make DHL “The Logistics Company for the
world”. The company has its operations distributed in 3 regions - Americas,
Asia Pacific, and Europe and has workforce over 325,000 employees. The
headquarters for America is in Florida. Indian head-quarters is in Mumbai.
The company provides different services like same day or time definite Ex-
port, import and domestic support. DHL is also considered one of the most
trusted services for sending urgent documents and goods reliably on-time
door-door and for this has a very comprehensive express network including a
fleet of 250 plus aircrafts. They are now investing in developing Green
solutions and provide Green Express Shipment and Green mail and parcel
shipments services as a part of this initiative. They also release a company
magazine named ‘Delivered’ keeping customers up to date with the latest DHL
developments and solutions. They have a DHL Innovation Centre at Bonn that
helps keep all their customers, investors, partners, and employees connect
and communicate to make DHL Experience the best in the World.
DB Schenker
DB Schenker is a division of Deutsche Bahn AG that focuses on logistics. The
company, created by reorganisation and rebranding of Deutsche Bahn
subsidiaries, comprises a logistics division encompassing air, land, and sea
freight, and a rail division made up from European rail freight companies.

Since December 2007 DB Schenker has been the freight logistics subsidiary
of Deutsche Bahn. DB Schenker combines all transport and logistic activities of
Deutsche Bahn (DB Schenker rail and DB Schenker logistics) employing over
94,600 staff spread across about 2,000 locations in about 140 countries and
now is the biggest freight operator in the UK after buying out English Welsh &
Scottish(EWS). From 1 January 2009 the logistics operations of DB-
Schenker, Railion, EWS, and Transfesawere combined under the brand "DB
Schenker".

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On 2 March 2016, the UK operation was rebranded as DB Cargo UK.

FedEx
FedEx, founded as Federal Express in 1971, is an American company
headquartered at Memphis, Tennessee.

It has a fleet of 325,000 employees working worldwide to provide FedEx

Services in-clouding FedEx Office and FedEx TechConnect, Fed Express service
including FedEx trade networks and FedEx supply chain, FedEx ground
services to deliver FedEx Smart Post and FedEx freight services to provide
FedEx Custom Critical. FedEx started with FedEx Express in 1971, FedEx
Ground in 1985, and global headquarters Pittsburgh, US, FedEx Services in
2000 and FedEx Freight in 2001 both again headquartered at Memphis,
Tennessee. FedEx provides various products and services like post-delivery,
express mail, freight forwarding and third party logistics.
FedEx plans to grow their business by forming new Alliances, covering more
countries, through e-commerce & technology. FedEx in the long term in their
mission statement wants to achieve better profits growing at a faster rate,
improve cash flows, increase return on invested capital and returns to their
shareholders. FedEx Corporation is listed on NYSE with Dow Jones
Transportation, S&P 500 Component. The company in order to expand their
business have undergone mergers and acquisitions including GENCO in 2015,
Bongo International and Sup swift in 2014, Open Sap’s odor., TATEX, and
Rapider Comet in 2012. As a part of their sustainability measures, FedEx has
implemented Earth Smart to encourage environmental responsibility.

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 SNCF
SNCF (Society national’s des chains de far François) or the French National
Railways company is headquartered at Monaco, France.

SNCF Group is France’s state-owned railway company and provides full range
of mobility solutions in 5 spheres including SNCF Infra, Proximities, Voyages,
Logistics and Conations. SNCF Logistics Division was formerly known as SNCF
Geodic. Geodes, a supply chain Operator in Europe is now a part of SNCF
Logistics. SNCF Logistics is No. 1 for logistics and transport in France, and No.
4 in Europe. The company has 43000 employees that pro-vide expertise in 5
areas - Freight Forwarding, Supply Chain optimization, Road Transport,
Distribution & express delivery and Contract Logistics.
Apart from Geodes the company has 3 other specialized experts STVA, TFMM
and Renewal. Geodesist assigned the responsibility for Managing and
Optimizing Logistics Chain, STVA is the multimodal logistics for finished, new
and used vehicles. SNCF has 3 million vehicles transported every year with
3200 trucks and wagons contributing to STVA’s fleet. By 2020, they aim to
expand international operations to 50% of SNCF logistics activity. TFMM helps
SNCF with Rail and multimodal freight transport. The Renewal Group is the
source for Resource Management and Rail Equipment Rentals. Another
service provided by SNCF is named Fret SNCF that offers a full logistics
support package to complement its transport services. They provide rail, road
and storage services for the freight shipment. Aim offers customized, flexible
and reliable solutions in leasing of electric diesel locomotives, mainline and
shutters with the average age of SNCF fleet being 5 years.

Companies in India

Globe Express Services

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Globe Express Services (GES) is one of the world’s leading providers of supply
chain solutions. GES combines its core products of Air Freight, Ocean Freight,
and Logistics services to deliver globally integrated, tailor-made end-to-end
solutions. Drawing on in-depth industry know-how and customized IT
systems, GES manages the needs of its customers’ supply chains, no matter
how demanding or unique they might be.

Since 1974, GES has enabled clients’ supply chain success through ocean & air
freight forwarding, overland transport, Customs brokerage & compliance
consulting, cargo consolidation, warehousing & distribution, specialty cargo
handling, and project logistics. The state-of-the-art technology platform
provides outstanding visibility, flexibility and customization potential, while
highly trained personnel share a commitment to providing the ultimate
customer

GES operates a global network with over 60 corporate offices with total
market presence in over 100 countries via global agents and employs over
1,000 people worldwide who deliver comprehensive services to the highest
quality standards. Offering a robust, well-rounded suite of logistics services to
companies doing business in Asia, Europe, the Middle East, North America,
Latin America and around the world.

Aqua logistics

Established in 1999 and headquartered in Mumbai, Aqua Logistics is India’s

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foremost global logistics and supply chain partner, delivering excellence
across industries, through an integration of empowered people, processes and
technology. At Aqua Logistics, we enable our client’s businesses by aligning
the strategic and the operational perspectives.

Aqua Logistics understands that global supply chain management involves

planning, implementing and controlling a series of complex tasks performed
by persons of different nationalities and cultures and with varying language
capabilities. We integrate these multinational capabilities by combining years
of expertise with the latest in technology.

We understand that synchronization of time, people and place are crucial for
supply chain optimization. To ensure this, we have been gradually building
upon the foundation of varied experienced and highly skilled specialists, who
focus on operating models that integrate functions of the clients’ organization,
their suppliers and customers across the extended supply chain.

Our operations, consulting, and client development teams deliver logistics,

operations strategy, sourcing and procurement planning, fulfilment
operations, customer service and after sales support.

Integrating technology into our expertise, Aqua-Enable, software that enables

collaboration between internal and external stakeholders involved in the
entire supply chain, provides visibility on updated status and any gaps in
terms of documentation or activities.

Our portfolio speaks of our experience, expertise and evolution. Aqua

Logistics has incorporated supply chain consulting and outsourcing work for
various verticals including Power, Pharmaceuticals, Engineering,
Infrastructure, Sports, Events, Retail, Telecom and the Consumer Durables
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industry.

DTDC
Established in 1990 and headquartered at Bangalore, DTDC has 7 Zonal
offices, 20 strategically located Regional Offices and over 430 operating
facilities spread across India. DTDC has a presence in more than 500 district
headquarters through its large network of more than 7500+ franchisees and
extends services to over 10,000 Pin codes while handling more than 12
million shipments every month. DTDC is an ISO 9001:2008 company.

DTDC also has a significant global footprint and services 220 international
locations including USA, UK, Canada, UAE, Hong Kong, Australia, China and all
Asian countries, through its own operations, joint ventures and business
associates. A key part of the success of the DTDC network is the contribution
of the people behind it. DTDC comprises of a family of 35,000 people including
employees, franchisees and their associates who are committed to its spirit of
service.

Capricorn logistics

Capricorn Logistics was founded in 2001 to make a mark in India’s Clearing

and Forwarding industry. Capricorn started its operations with the aim to
take India’s logistics industry to the next level, offering the best in logistics
services.

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Within a short span of time, we rank at par with India’s most reputed logistics
companies. Currently, their network is spread across 32 Indian and 10
overseas offices in major economies like the United States of America, the
Europe, China and the United Arab Emirates, ensuring that our customers not
only enjoy local expertise but also global support.
With an increased competition in the emerging global economy, more and
more companies are outsourcing their logistics functions. We deliver
comprehensive supply chain solutions by adopting the latest technologies and
e-capabilities. We strategize, manage and coordinate all the different assets
and activities of a customer. As a Lead Logistics Provider, our services focus
on strategic, result – oriented approach that combined people, technology and
logistics methodology. their clients benefit through reduced costs, low
inventories, local logistics know – how, enhanced customer service, improved
profits returns on invested capital, management of warehousing,
transportation and distribution with maximum supply chain efficiency. We
have a team of knowledgeable and experienced professionals who generate
measurable profits for our clients.
Capricorn Logistics brings into reality the “Think Global, Act Local” ideology
by giving customers a choice of both the trust of traditional companies and the
expertise & infrastructure of multinationals.
Capricorn Logistics is at a leading edge to offer finest and integrated logistics
services across the spectrum. The array of tailor-made solutions ranges from
Air Freight, Ocean Freight, Surface Transportation, Door To Door Express
Service, Customs Brokerage, 3PL, 4PL & 5PL to Industrial Solutions. By
combining local know-how and global expertise Capricorn Logistics strives to
provide time-specified service, innovative and customized solutions and
maximum satisfaction to its discerning list of clientele.

Yusen Logistics (India) Pvt. Ltd.

On October 1, 2011, NYK logistics (India) Limited and Yusen Air & Sea Service
(India) Private Limited have been integrated to form Yusen Logistics (India)
Limited which later changed the status from Limited Company to Private
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Limited Company and become Yusen Logistics (India) Private Limited on
September 30, 2014. Yusen Logistics (India) Private Limited is uniquely
positioned to provide customers with the most comprehensive set of solutions
available for all their logistics needs.

Both the companies were doing well individually in their respective areas of
operations in India. Yusen Air & Sea Service (India) Private Limited,
incorporated in 2007 at two locations, had an established clientele and had
expanded its presence to 7 locations as of September 30, 2011. Wherein NYK
Logistics (India) Limited, established in 1998, was operating at 8 locations till
the said date.

Thinking behind consolidating of two important entities is to approach

potential areas by strengthening the organization structure and thereby
striking the right areas at right point and in the right manner.

The company's goal is to continue delivering innovative, customized and high-

quality services, for which it will adhere to the established roadmaps of the
existing solutions as well as simultaneously exploring the opportunities to
provide customers with additional value in new areas.

Yusen Logistics (India) Private Limited has a little over 1600 personnel
(including contractual staff), spread over 20 cities with more than
100,000 sq. mt.of warehousing space and revenue $66 million

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 CHAPTER-3
COMPANY PROFILE

COMPANY PROFILE

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SKYLINK FREIGHT FORWARDERS PVT. LTD

Skylink Freight Forwarders Pvt. Ltd, is an established international freight

forwarding company in India(Mumbai) that offers dedicated air freight
forwarding, sea freight forwarding, warehousing and distribution services for
you. We are into providing total international freight logistics support for the
last 27 years having associate offices across 180 cities in 82 countries. Having
been associated with some of the reputed corporate clients in all sectors of the
industry, we have acquired sufficient expertise in handling export and import
shipments.

We can also offer our services to handle your shipments to and from
India as normal shipments or through freight consolidation for those
consignees with multiple suppliers. Our branches are located in major cities,
commercial hubs and seaports across India. In order to meet the growing
demand for a reliable global logistics partner, we have setup our associate
office overseas.

Skylink Freight Forwarders Pvt. Ltd, ranks amongst India’s most

customer centric logistics solution companies, adhering to custom
compliances and accreditations such as CHA, FIATA, IATA, ACAAI, MTO and
SCN. Our strategic association with the international freight forwarders and
customs brokerages allows our clients to avail a wide range, tailor-made
freight services in a timely and cost effective manner.
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We develop a detailed understanding of our clients businesses and partner
them by offering end-to-end logistics solutions, warehousing and distribution
services.

VISION

Our vision is to become the leading and most profitable Indian Organization
offering consistently high standards of Logistics and Exim services through our
excellent customer services, transparency, and technology.

MISSION

Our mission is to maximize customer’s profitability by implementing effective

business processes, Logistics and Exim solutions for optimum yield, maximum
load factors, immediate and seamless information to the customers and reduced
administration.

Our Commitment

Skylinks Freight Forwarders Pvt Ltd brings an unmatched new level of

service to all the business sectors internationally. We are committed to offer
the best teams of experts in each field, a stable financial environment, leading
edge technology, quality assurance systems, excellent facilities and
infrastructure. We are committed to adding value to each and every business
relationship.

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We at Skylinks Freight Forwarders Pvt Ltd are confident that our strategies
and resources more than meet this challenge. We look forward to a long and
mutually rewarding relationship.

SHIPPING AGENCY

Skylinks Freight Forwarders Pvt Ltd functions as agent for following principal
and arranging under mention service to principal/on behalf of principal.

VESSEL OPERATIONS

 Discharging and loading of containerize or break bulk cargo at port of

Colombo.
 Stevedoring arrangements
 Berthing arrangements
 Port disbursement
 Documentation
 Crew attendance
 Ship master assistance
 Clearance and delivery of spares
 Surveys
 Bunker and fresh water service
 Chipping/painting/repairs/tank cleaning
 Container terminal arrangements

CONTAINER CONTROL/LOGISTICS
Our computerized container control system provides complete information on
the container status at any time. We can respond immediately and accurately
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to any inquiries from our clients or principals. Our software specialists
provide the possibilities to report movements in any special format required
by our principals, enabling them to maximize use of their container fleet.

MARKETING
Our information system and extensive database constantly provide statistics
and report on market situation, which enable us to analyze performance rates
and accurately adjust our market strategy, sales policy and achieve planned
targets. Our computer facilities provide online commercial statistics essential
for today’s decision.

DOCUMENTATION
Our skilled staffs punctually and accurately handle preparation of
computerize. Documentation like manifest, printing of bills of landing and
delivery order, inventory report, docs etc. Our competence safeguards our
principals against customs, ports, and agents problems.

OCEAN/AIR TRANSPORT CONSOLIDATION SERVICE

We consolidate freight to almost all major cities all around the world. At the
same time we prepare export declaration, Certificate of Origin, House Bills Of
Lading and Air Way Bills for our clients as part of our service.

In order to transport the goods of our client’s to destination safely and in time.
We select only those reliable carriers with competitive transit time. We offer
the possible lowest freight rates. Including further reduced rates COC or SOC
equipment. We manage air transport services. We have established a good
cooperative relationship with air line in home and abroad. We clear goods
through custom in the shortest of time.

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Thus we can save maximum time for clients. Besides, we are able to give our
clients an exceptionally low rate for airport to airport delivery.

PORT TO DOOR/DOOR TO DOOR DELIVERY SERVICE

Our purpose of operation is to the convenience of our client. We will pick-up,

wrap, pack, crate, mark and label according to the client’s requests. Ship final
to destination by sea or air, scheduling, booking, declaration and
documentation will be well handled by our dedicated professionals.

WAREHOUSE DISTRIBUTIONS
We have an agreement with bonded/general warehouse with good facilities
inside. Compartments with pallet rack are suitable for loading Stores to stores
of fragile goods.Besides the safety of the goods is ensured at all times by our
security patrols on duty for 24 hours a day. Our logistic team is ready for
transportation at any time when ever needed.

INSURANCE SERVICE
We handle all kind of insurance requirements.* With The Letter of attorney
authorized by client. We arrange insurance on behalf of clients.

TRANSSHIPMENT/MULTI COUNTRY CONSOLIDATION

We are capable of handling shipment from/to/via any port in the world. No
matter whether the transshipment cargoes come as our regular FCL basis we
are able to transship them efficiently to their respective destination by ocean
as instructed by respective head.

Therefore we would like to invite you to see the possibilities for join with our
organization and develop the service sector for your and our future benefits.

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MULTI COUNTRY CONSOLIDATION
We are capable of handling shipment from/to/via any port in the world. No
matter whether the transshipment cargoes come as our regular FCL basis we
are able to transship them efficiently to their respective destination by ocean
as instructed by respective head.

Therefore we would like to invite you to see the possibilities for join with our
organization and develop the service sector for your and our future benefits.

DEPARTEMENTS

 Documentation

After receiving the order from the client, they prepare all the documents that are
needed for the clearance process. The additional document regarding the quality or
anything else if needed, will also be provided by the client.

 Customs Clearance

Regarding the customs clearance, one person is allotted for clearance at sea and the
others at airport. The documents which are already prepared will be taken when
the goods have been reached at the sea/air port as per the specified date. After
submitting the documents the clearance is made from the customs as per the rules
and regulations.

 Accounts

The charges regarding the clearance and freight forwarding work is prepared on the
basis of the volume of goods, place of destination, warehouse requirement, other

30
charges at port, transportation charges etc…. Annual audit is conducted and all
other matters regarding finance is managed.

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 CHAPTER 4
FREIGHT FORWARDING

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Freight Forwarder

A freight forwarder, forwarder, or forwarding agent, also known as a non-

vessel operating common carrier (NVOCC), is a person or company that
organizes shipments for individuals or corporations to get goods from
the manufacturer or producer to a market, customer or final point of
distribution. Forwarders contract with a carrier or often multiple carriers to
move the goods. A forwarder does not move the goods but acts as an expert in
the logistics network. These carriers can use a variety of shipping modes,
including ships, airplanes, trucks, and railroads, and often multiple modes for
a single shipment. For example, the freight forwarder may arrange to have
cargo moved from a plant to an airport by truck, flown to the destination city,
and then moved from the airport to a customer's building by another truck. A
company that handles the tasks of preparing goods for transport for a shipper.
Transport tracking, document preparation, warehousing, storage, cargo space
booking, negotiating freight charges, consolidating freight, getting insurance,
and filing claims are some of the tasks handled. Shipping security and
destination services are additional provision using house (forwarders) bill of
lading or house air waybill and using their agents or associates at the
destination. Known as forwarder.
Services:
The services of a freight forwarder can vary between different companies but
the main function of the freight forwarder is to act as an intermediary
between the client who is hiring them and various transportation services that
are involved in getting the product overseas to the customer. Depending on
the final destination and the nature of the items shipped, there may be many
transportation companies involved in the movement of the items from the
supplier to the customer. The freight forwarder may have to deal with many
export and import issues that could be involved in the movement of the goods.
The freight forwarder is hired to get the product to the customer by a specific
date and in an undamaged state.

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The freight forwarder will provide the client insurance services to make sure
that if the items do arrive damaged, they will be reimbursed and not liable for
the damages.

Packaging:

A freight forwarder should provide assistance to the customer on how to

package their products for export. Packaging that would normally be used for
shipping within the US may not be sufficient for extended transportation
where the items may be either loaded in a container or loaded and unloaded
several times along the route. The item may be allowed to be stored in
environments where extreme temperatures or weather may be experienced. If
an item is be shipped via air then the freight forwarder may
suggest packaging that is lighter than normal to keep shipping costs to a
minimum.

Labelling:
Freight forwarders will assist their customers in providing the correct
labelling they require for their items. The correct label will be required
to show the precise items in the shipping container, any hazardous
items, country of origin, correct weight in pounds and kilograms, port of
entry details, and any details that are required in the language of the
destination country.

Documentation:
Documentation is important for the shipment of an item overseas. There
are a number of documents that the freight forwarder needs to prepare
for the shipment that requires specialist knowledge.

Bill of Lading (BOL)

This official legal document issued by the carrier to the shipper is a contract
of carriage that represents the ownership of cargo, a negotiable document to
accept cargo, and the terms and conditions under this contract that identify
the responsibilities and liabilities of each party. Issued B/Ls come usually in a
set of three originals which are signed by the master of the ship or another
authorized person on behalf of the shipping company. On presentation of any
of the three originals (along with appropriate payment), the master or
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authorized person has to turn over the goods to the consignee or delegated
party.

Types of Bills

Straight:
Here the consignment is made directly to the overseas customer of other
entrusted agent to further handle the goods.

Order:
This B/L is negotiable, meaning that it can be bought, traded, or sold. There is
no designated consignee, but rather an agent which is to be notified upon
arrival of the goods. The agent is responsible for properly identifying to the
carrier the right to pay for and pick up the goods. If the agent or overseas
customer is unable to pay, the carrier (after notifying the shipper and a
certain amount of time has expired) has the option to sell the B/L (and thus
the goods) to an interested party. The transfer of title is completed when the
carrier endorses the B/L to the respective agent or buyer.

Through:
This B/L is issued by the freight forwarder or carrier, and covers

Commercial Invoice:
The invoice is the bill for the goods from the seller to the buyer. It can be used
to determine the true value of goods when assessing the amount of customs
duty.
Certificate of Origin (COO):
The COO is a signed statement which identifies the origin of the export item.
Inspection Certificate:
This document may be required by the customer to certify the goods have
been inspected or tested and the quality of the goods is acceptable.
Export License

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 This license is a government document that authorizes the export of goods in
specific quantities to a specific destination.

Shipper's Export Declaration (SED):

The SED is used for export statistics. It is prepared via the US Postal Service
(USPS) when the shipment is greater than $500.
Export Packing List:
This is a detailed packing list that itemizes each item in the shipment, what
type of packaging container was used, gross weight, and package
measurements.

Companies looking to export items can use freight forwarders to not only save
time and effort but to ensure that the goods arrive at the customer’s site on
time and without incident. A freight forwarder can provide the exporter with
all the necessary documentation as well as liaise with the transportation
companies required to get the items to the customer.

The bill of lading will contain the terms of contact for the movement of goods
by a common carrier. This is the contract between the shipper and the carrier
to transport the goods on the bill of lading to the consignee, i.e. the buyer. The
bill of lading contract has nine terms;

1. Common Carrier Liability:

The carrier is liable for loss and damage of the goods being transported,
except if the goods were improperly packed by the shipper or if the goods
themselves would be liable to normal loss like through evaporation. The
carrier is not liable for acts of God, public enemy or public authority.
2. Delay in Transit
The carrier cannot be held liable if the loss or damage is due to a delay in the
transportation of the goods.
3. Freight Not Accepted:
If the goods are not accepted within the time allocated, the carrier can store
the goods at a cost to the owner.
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4. Extraordinary Value:
The carrier is not liable and does not have to carry items of extraordinary
value that are not on the rated in the published classifications or tariffs unless
a special agreement with the shipper has been negotiated.

5. Explosives:
The carrier has to be given full written disclosure when they are shipping
dangerous material, otherwise they are not liable for any losses.

6. Recourse:
The carrier cannot make additional charges to the shipper after making a
delivery.
7. Substitute Bill of Lading:
If the bill of lading is a substitute or exchange for another bill of lading then
the current bill of lading has to include all the clauses from previous
documents.
8. Alterations:
The carrier must note any changes or additions to ensure that they can be
enforceable.
9. Claims:
This clause specifies the details on how to file a claim against the shipper and
the time period after delivery in which the claim will be accepted.

Freight Forwarders’ Benefits to Shippers and Consignees:

 Freight forwarders arrange door-to-door shipments covering

multimodal transportation. No single carrier could offer complex
multimodal transportation services.
 Freight forwarders can find better freight quotes than shippers or
consignees. They know the carriers who are stronger at certain routes
and who are weak. Their market knowledge is surely greater than the
shippers without match.
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  Freight forwarders can learn the latest changes in the export and import
rules and regulations more quickly. Because they are making shipments
more frequently than a single shipper, they can get critical information in
regards to the current changes in regulations sooner.
 Freight forwarders can consolidate “Less Container Loads” in to “Full
Container Loads”.
 Freight forwarders can offer storage, handling, packing or distribution
services to their clients.
 Freight forwarders can offer custom breakage services to their clients

Freight Forwarders’ Benefits to Carriers:

Freight forwarders’ main advantage to the carriers would be decreased

workload. Carriers are always busy. They are working with overcapacity. If
you had to load a container with a carrier direct, you should have
acknowledged this reality in a hard way. You most probably couldn’t reach the
contact person in carrier’s office by phone. If you do not know who you should
be speaking with things are getting worse. One person dials you to another; in
which situation you may have to spend 10-15 minutes until you could figure
out who the right person is for that situation that you should talk with.
Freight forwarders are service providers. They have to be much more
customer friendly than the carriers, otherwise they can’t be successful on the
market. Freight forwarders that dealing with the shippers on a daily basis in a
particular shipment are often manage to solve much of the problems
otherwise shippers would have to reflect to the carriers. As a result freight
forwarders reduce the workloads of the carriers.
Secondly, freight forwarders work as sales agents of the carriers.
Thirdly, some big freight forwarders buy bulk spaces from the carriers in
yearly periods, then they will sell them to their customers thorough out the
year. This will give some stability on the sales side to the carriers.

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 THE COST OF USING FREIGHT FORWARDING
Basic determinants of cost
The five main factors that influence cost are:
1. Mode of transport: Example - airfreight can be significantly more
expensive than transit by road, rail or ship
2. Distance/destination: The farther your goods have to travel, or the
more unusual the destination, the higher costs are likely to be;
particularly due to rising fuel cost.
3. Weight and volume: Charges are usually based on the weight of goods,
but calculation switches to volume above a certain threshold (one cubic
meter per ton for shipping, three for road, and six for air)
4. Value: In some instances, such as earthenware and woolen textiles,
charges are calculated on the basis of goods' value per ton, The type of
contract you have with the freight forwarder - while most forwarders
usually charge per shipment, some will agree an annual service contract,
so you should weigh up the costs and benefits of each type
Extras for which there will be charges
Loads that require special handling of any sort will usually attract an extra
charge.
This covers goods such as:
 Dangerous goods
 Perishable goods and live animals.
 Outsize goods that don't fit in standard containers.
 Other irregular goods: Example - A load that can't have anything stacked
on top of it, or goods that require a special crane for loading

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However, extra charges depend on your contract. Freight forwarders and
carriers sometimes add an additional fee for handling these types of products.
Always ensure that you get a full quotation from your freight forwarder and
understand exactly what you are and what you are not paying for.
Security for road goods
Some dangerous goods travelling by road, normally moving in large
quantities, are subject to legislation. The rules mean any company
transporting dangerous goods must:
 Only offer dangerous goods to carriers that have been appropriately
identified.
 Make sites that temporarily store dangerous goods secure.
 Run security awareness training
 Have a security plan in place, if you deal with high consequence
dangerous goods.
Forwarder CRM and Sales
Each of these aforementioned companies has its own respective CRM and
Sales teams dealing with different set of customers.
Forwarder CRM is a hosted web based Customer Relationship Application
developed specially for the Freight Forwarding Industry. Forwarder CRM
automates the sales process and centralizes customer data categorized with
Freight Forwarding business processes in mind such as standardized locations
taken form United Nations Locodes database (and others) and Harmonized
Tariff Codes. Forwarder CRM modules are designed to keep accurate and
categorical to be used in Logistics Business Processes. Briefly, Forwarder CRM
is the business software for freight forwarding industry worldwide.
Freight forwarders sell organization, coordination, consolidation of various
services which aim at the proper movement of customer’s freight from one
location to another. For the sales people, it is important to know what
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customers are actually looking for and use this knowledge to their benefit by
offering customized services. Salespersons are required to have intensive
knowledge about the potential customers before designing their offerings as
there is a matter of time constraints while approaching potential customers.

HOW AND WHY SHOULD A COMPANY HIRE FREIGHT

FORWARDER?
In every kind of business, the documentation process consumes significant time
and needs to be done according to certain rules and regulations. Otherwise, a
company can face serious costs. In marketing products to the international market,
it is very important to hire an experienced freight forwarder. In this regard, the
primary responsibility of any freight forwarding company is to deliver goods to the
last destination in an efficient and effective manner. However, numerous factors
are taken into consideration when selecting a freight forwarder. For instance, does
the company provide a range of services that are required by a firm? Does the
freight forwarder operate in a specific area? Is the company experienced in dealing
with a same product manufactured in that company? What is the cost of services,
safety, and security of goods? Does the company offer a variety of services such as
handling and documentation of dangerous and non-dangerous goods? Does the
freight forwarder disclose a list of all charger and so on?

ROLE OF FREIGHT FORWARDERS

Usually, the major role of freight forwarders is simply to undertake transportation

and other related matters on behalf of importing or exporting firms. Obviously, an

41
experienced freight forwarder should provide a range of additional services to
compete with others. Detailed roles of freight forwarder agents or companies for
any manufacturing or other business concern are as follows:

 Freight Forwarder

The role of freight forwarder is often undervalued as one of the most significant
element in shipping. In shipping matter, the freight forwarder assures that goods
will receive the priority they need. Moreover, documentation will be appropriately
filled and goods will arrive on time.

 Increasing Specialization

In transportation, exporters and importers of goods prefer to leave all formalities

like damaging, cargo, insurance, etc. to freight forwarders in order to focus on their
business.

 Freight Forwarding Transaction Management

“Freight forwarders are entrusted with the delivery of goods from one party to
another, who often does not know each other. As a result, it is essential that the
freight forwarder follows the set procedure and prepares accurate documentation to
facilitate the transaction process” (Hoy and Steve, 2005)

 Efficiency in Work
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An efficient freight forwarder gives advice on the special requirement of various
nations and provides separate rail, sea, air and road quotations for special
consignments. Furthermore, Monahan said, “Freight forwarders specialize in
moving large quantities of goods over large distances, and may use their own fleet
of vehicles or hire service providers of transportation”. (Monahan, 2005)

 Movement of Dangerous and Non-Dangerous Goods

Freight forwarders also play a significant role in facilitating the movement of

dangerous and non-dangerous cargo by all modes of cargo. Freight forwarders acts
on behalf of the consignor by providing services like generating commercial
transportation, arranging a warehouse, and so on.

 Important Activities

Important activities of freight forwarders include cargo route planning; booking of

cargo space on vessels, trains, airplanes, or other types of goods/cargo
transportation; collection and delivery assignment; insurance; packaging; and so
forth. In addition, freight forwarders provide various services that usually involve
establishment of various inland depots and clearance of goods at the port for
importers. Services also include delivery of goods to consignee’s doorstep, without
really involving the consignee for this purpose. However, there are numerous
factors which determine equipment shipment methods mostly related to
commodity, economic stability, market trends, climate, geographical elements, and
politics.

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  Moving Freight around World

The job of moving freight around the globe is a very interesting subject. Agents are
normally specialized in the following fields (1) General commodities globally by
sea air or land. (2) Sea-freight and Airfreight projects to define areas. (3) Domestic
internal transport. (4) Sea freight or air freight consolidators globally. (5) Sea
freight or air freight consolidators to particular areas. (6) NVOCC/Expeditors
operators.

 Freight forwarders are Not Courier Companies

According to Corlley, “Freight forwarders are not courier companies, which are
often associated with words such as parcel, express, package and air. A prudent
exporter will find that a forwarder offers more options and usually better rates than
a courier for anything other than documentation and small parcels- even if the
forwarder book cargo space on a courier’s air craft” (Corlley, 2002)

Nowadays, both kinds of freight forwarders are providing services. Some provide
services working with appointed agents and others have international offices.
Nonetheless, in any case, a freight forwarder is usually a key link between the
vendor and purchaser and an agent to carrier, both sea and air. From logistics point
of view, freight forwarders have helped greatly in churning the wheels of industry,
while working along with carriers or their representatives.

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FUNCTIONS OF FREIGHT FORWARDERS FOR EXPORTERS

 Quotation of Expenses

Firstly, freight forwarders have to provide exporters with an early quotation of

expenses such as port charges, cost of special documentation, counselor fees, cost
of freight, fee of freight forwarder, insurance costs, and so forth. In addition, the
most important function of any freight forwarder is to recommend safe,
economical, and timely routing and book space with a carrier.

 Labeling, Packaging and Containerization

Freight forwarders advise on or arrange for suitable labeling, packing, marketing

and containerization. Besides, they give advice on stowing and container usage.

 Timely Report of all Activities

While providing services freight forwarders stay in touch with their clients and see
that their shipment of goods, once delivered to the carrier, do indeed shift out and
arrive at their destination.

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  Insurance of Transport

It is a duty of a freight forwarder to insure transport if not done by the exporter.

Obviously, it is a function of freight forwarder to ask about insurance, its coverage,
limitations, etc.

 Distribution and Storage of Goods

For the storage and distribution of goods, freight forwarders arrange warehouses.
These warehouses are arranged either soon after the clearance of goods from
Custom or while goods are in possession of clearance agents. Furthermore, freight
forwarders give advices about services, procedures and charges.

 Handling of Dangerous Goods

“To tackle the problem of hidden dangerous goods (DG) inside air cargo
consignment, ICAO has imposed a requirement that staff of freight forwarders,
regardless of whether they involved in the direct processing of DG, should receive
DG training commensurate to their functions.” (International Freight Forwarding in
Canada, 2006) In light of the aforementioned law, while providing services to
clients, it is the most important function of freight forwarders to work according to
the law.

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  Consolidation services

According to Brooks, “Provide consolidation services to small shippers without

dedicated capabilities, as well as to shippers of all sizes that have opted to
outsource all or part of their logistics functions”. (Brooks, 2007)

“A freight forwarding service generally provides one or more estimates to the

client along with advisement, when necessary. Considerations that effect price will
range from origin and destination to special requirements, such as refrigeration or,
for example, transport of potentially hazardous materials”.

 Degroupage Agents and Group age Agents

As most freight forwarders have worldwide networks with correspondents or

branches in all important cities and major ports, they act as degroupage agents or
groupage agents. Moreover, working for exporters and importers, they work as a
consolidation or groupage. In this regard, they also provide services in
circumstances when smaller shipments have to be shifted into a trailer/carload,
load container.

 Freight Forwarder Acts as an Advisor

The most significant function of a freight forwarder is to act as an advisor and

agent for the shipper. For transportation of dangerous or non-dangerous goods
from one place to another over a long or short period of time and distance a
fundamental function is material handling, which includes many complexities in
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international cross border transportation, such as large number of documentation
required while shifting goods.

 Profoma Invoice and LC (Letter Of Credit)

“Estimate complete Export transportation and related costs for quotes (on Profoma
invoice) and L/C. Advice of drawback opportunities for previously imported cargo
being exported. Can put exporter in touch with experts in the fields of trade
financing, international marketing, government export requirements, international
marketing, and marine insurance” (Freight Forwarders Function)

FUNCTIONS OF FREIGHT FORWARDERS FOR IMPORTERS

 Record of Received Material

When goods are received, the freight forwarder, on behalf of the importer,
establishes appropriate records, which normally include the detail of shipper’s
address, date of receipt of goods, condition of packing (when container arrived at
the destination), inland freight charges, number of pieces in shipment,
NSNs(national stock number), on hand holding location, delivering carrier, and so
forth.

 Payment of Inland Freight Charges

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“Some freight shipments are delivered to the freight forwarder on a collect
commercial bill of lading (CCBL). Prompt settlement of these charges must be
made by the purchaser/freight forwarder or the purchases must establish a credit
arrangement with the delivering carriers”.

 Inspection of Shipping Containers

It is a function of freight forwarder to inspect shipping containers when received

from delivering carriers. In inspection of work, the importing party’s freight
forwarder inspects for any kind of damage, overage, shortage, or misdirected
shipment. However, misdirected and damaged goods should be held in an assigned
area until a claim is filed in accordance with the abovementioned loss against the
carrier.

 Customs Clearance Documents and Making of Movement Documents

The freight forwarder, on behalf of the importer, prepares all custom clearance
documents, which include (1) The BL bill of lading for the movement of goods by
the selected surface or air carrier. (2) Ocean or air manifest. (3) Delivery of dock
receipts for the surface material. (4) Certificate of cargo for explosive and
dangerous goods. (5) Custom declaration and other custom related documents.

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  Preparing Material for Onward Movement

When preparing material for movement of goods for the buying country, the
forwarder usually marks and labels shipment of goods for processing and
identification. Other related services of freight forwarders for importers include
filing of claims against the delivering carrier, identifying shipper discrepancies,
storage charge before transshipment, staging and processing material for onward
movement, shipment consolidation, control of shipment, reporting system, cargo
insurance, and so on.

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 CHAPTER-5

FINDINGS AND SUGGESTIONS

51
FINDINGS

Educated and experienced employers are working in the company

 There exist a good superior-sub ordinate relationship in the company
 Their services have good standard
 They maintain good satisfaction among the customers for the
services they provide
 Employees are free to express their views and opinions relating to
their work environment
 The company provides extra benefits to the employees for achieving
their target.
 The employees give first preference to their work rather than their
personal interests
 The company divides the work among the experienced workers so it
can avoid workload and increase the efficiency of the company.

SUGGESTIONS

Since there is only less space in the organization, there is no specific

place to keep all the accessories. Everything is placed according to
their space availability and in a way that they can easily access. So it
would be much better if the company modify their inner settings so

52
 that the files and other accessories can be properly arranged along
with it can be easily handled. The shelves and cupboards have to be
used in an efficient way so that everything will be in an organized
way though there is only less space.
The company should improve a little more to attain the competitive
advantage over competitors.
Introduction of web based tracking will help minimize mistakes and
improve transperancy of operations.

SWOT ANALYSIS

STRENGTH

 Efficient Customer Service

 Good Customer Relationship
 Good Superior-Subordinate Relationship
 A strong direct marketing
 A strong work team

WEAKNESS

 No importance for online marketing

53
  Limited work space

OPPORTUNITY

 Since there is a growth in international trade the scope for

clearing and forwarding companies will be high. This will be a
great opportunity for the company to expand their operations
and thus earning more profit.

THREAT

 The changing Government policies and rates are threat for such
type of organization.

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CHAPTER-6
CONCLUSION

55
Conclusion:-

The forwarding agents are essentially the transportation experts who hold immense
information associated to the actual rank of the import and export industry.The
freight forwarders act on behalf of the exporter in arranging oceanor air transport
services. They are familier with the import rules and regulations of foreign
countries, methods of shipping and documents connected with foreign trade. It is
also well knowledgeable of the rules and regulations that manage it. The manager
is also well familiar with and fully understands all the vital rules and regulations
suitable for the procedure of international forwarding.

Freight forwarders can provide a number of services. During the initial planning
phases, they can help choose the carrier and the most economical shipment size. At
the beginning of the sale, the freight forwarder can provide an exporter with
quotations on a number of costs. It would be really wise to employ a good
forwarding agent for shipping of products from many nations. The major object of
a forwarding agent is to present 100 per cent declaration for secure and appropriate
release of consignment in spite of weather or other conditions that may be an
obstacle for such services.

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 BIBLIOGRAPHY

BOOKS:

1. Alian Branch,Elements of Shipping,8th Edition, Routledge Publisher, USA.

2. Donald J Bowersox & David J Closs, Logistical Management the Intergrated
Supply Chain Process, Tata McGraw-Hill Publishing Company Limited, New
Delhi.

WEBSITES:

 http://www.managementstudyguide.com
 https://mail.google.com/mail/u/0/#starred/1543ee5cc5d89af8?projector=1
 http://www.wikipedia.com
 http://www.scribd.com

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