A STUDY ON FUNCTIONS, OBLIGATIONS AND PRACTICAL

DUTIES OF FREIGHT FORWARDERS

A DISQUISITION SUBMITTED IN PARTIAL-FULLFILLMENT OF THE
REQUIREMENT FOR THE AWARD OF THE DEGREE
OF
BACHELOR OF BUSINESS MANAGEMENT

(SHIPPING AND LOGISTICS).

SUBMITTED BY:

ADEWOLE ADEYEMI TITUS

(Reg. No: ABM 13969)

Year 2013-2016

Under the supervision of:

(Mr.J.RENGAMANI)

AMET BUSINESS SCHOOL,

AMET UNIVERSITY.

KANATHUR, CHENNAI-603112, INDIA.

 DECLARATION CERTIFICATE

I hereby declare that this treatise titled “A STUDY ON FUNCTIONS,

OBLIGATIONS AND PRACTICAL DUTIES OF FREIGHT
FORWARDERS” for the degree of Bachelor of Business Management (Shipping
and logistics), is my original work and this dissertation has not formed the basis for
the award of any degree, associate ship, fellowship or any other title.

Date: Signature of the Student

 CERTIFICATE OF APPROVAL

This is to certify that this dissertation titled “A STUDY ON FUNCTIONS,

OBLIGATIONS AND PRACTICAL DUTIES OF FREIGHT
FORWARDERS” is the bona fide research work carried out independently by
ADEWOLE ADEYEMI TITUS, a student of Bachelor of Business Management
(Shipping and logistics) of AMET UNIVERSITY, AMET BUSINESS SCHOOL,
KANATHUR, 603112 INDIA, during 2013-2016 in partial fulfillment of the
requirement for the award of the degree of Bachelor of Business Management
(Shipping and logistics) and that this dissertation has not formed the basis for
award previously of any degree, diploma, associate-ship, fellowship, or any other
similar title.

Date:

Place: Kanathur, Chennai India. Signature of Guide

Viva – Voice – Examination Conducted

Internal examiner external examiner

Director, Amet Business School.

 ACKNOWLEDGEMENT

My profound gratitude to Almighty God for the opportunity, knowledge, strength

and gift of life, he gave me throughout the completion of my course. Also, I will
like to express my deep humility to my adorable parents, Mr. ODUNELA
OLUSEGUN and MRS. ADEBOLA ODUNELA who made me realize that,
“education is the better safeguard of liberty than a standing army and a
progressive discovery of our ignorance”. My colossal thanks to the management of
AMET University. A special thanks to the director of the Department of
Management Studies, Amet Business School, Dr. S. Ramachandran Who has
been a constant source of academic guardian and motivation to me.

Words cannot express my prodigious gratitude to my project supervisor, Dr

Rengamani Jag for his immeasurable support, guidance and encouragement
which she gave me during the course of this study, as well as my appreciation also
goes to the entire faculties of Amet Business school for their shared experience and
knowledge impacted in me which has foster this study in a vast manner. My
dearest thanks to (Mr Prem Kumar) Emmanuel, Joba, Gabriel, Bukky, Madhu,
Ishwarya and Alvin, who has been a pillar of educational support throughout my
entire studies. To mention but a few, my vast thanks to my family and friends
Shoun, Dhirel, Akib, Neharika, Nayif, Sonu, Basit, Soji, Hmanchi, and Seyi,
for being there as brothers and sisters, and to all other people who have contributed
in one way or the other to make this study a success, I say a big thank you.

(ADEWOLE ADEYEMI TITUS)

 TABLE OF CONTENTS

CHAPTER CONTENTS PAGE

1 INTRODUCTION

2 RESEARCH METHODOLOGY

3 LITERATURE REVIEW

4 FREIGHT FORWARDERS SERVICES

5 TABULATIONS AND COMPUTATIONS

6 FINDINGS AND CONCLUSIONS

7 BIBLIOGRAPHY

8 FINDINGS AND CONCLUTION

 CHAPTER 1

INTRODUCTION

OVERVIEW OF THE TOPIC

Exporting products proves difficult for a business once they realize that they have
to deal with numerous barriers to transport a product to the end customer. In most
situations, a business will look to a specialist, called a freight forwarder, who can
manage these obstacles. A Freight Forwarder is a person who professionally,
against remuneration, on his own name but on the account of a Customer or in the
name of a Customer, covenants to forward or receive goods, to organize a part or
whole process of translocation of goods, as well as to render the other services
related with attendance and translocation of the Goods. This freight forwarder
might be a person or company, who facilitates shipping of goods either perishable,
non-perishable, hazardous or dangerous goods, for a third party which may handle
small personal shipments for individuals or small companies or negotiate the
transport of pallets, crates, or shipping containers for large commercial or
industrial firms. His services may include arranging transport of goods
domestically, internationally or both. He may work as an independent contractor or
as a staff member of a shipping company.
As an agent or company that organizes shipments for individuals or other
companies and may also act as a carrier. Acting as a carrier is not the primary
duties of a freight forwarder but as an agent, in other words, Freight forwarders as
a non-asset-based third-party logistics provider, embarked mostly on dispatching
of shipments via asset-based carriers and arrange or booking of space for these
shipments. Carrier types include ships, airplanes, trucks, and railroads. This
research study is about the freight forwarders who act as an intermediate for the
shippers in sending the cargo from one place to another. So the researcher here
used different descriptive methods like interview method, survey method and
observation method to know the various impacts and roles, function as well as
right and liabilities of freight forwarders in the aspect of sending and receiving
their cargoes. In this research, gives the critical details about the services offered
by the freight forwarders in terms of both FCL (full container load) and LCL (less-
than container load) cargoes to the customers.

As many forwarders today have what it takes to undertake on their own premises
the clearance of cargo at the time .The freight forwarders is very closely involved
in the processing arrangements as well as custom clearance both in terms of
importation and exportation. Freight forwarders – including NVOCCs (Non-vessel
operating common carrier) or NVOC (Non vessel operating carrier)-, 3PLs (third-
party logistics), brokers and other transportation intermediaries – play an important
role in conveying or movement of cargo from one region to another either both in
national or international level. In such situation, carriers issues bill of lading for the
carriage of goods on ships which they neither own nor operate working with a
variety of asset-based carriers across multiple modes – land, air, and rail or by sea
– in order to coordinate shipments and ensure goods are delivered on time.

International freight forwarders, have the expertise that allows them to prepare and
process the documentation and perform related activities related to international
shipments. Typical information reviewed by a freight forwarder is the commercial
invoice, shipper's exportdeclaration, bill of lading and other documents required by
the carrier or country of export, import, or transshipment. As an agent working
with asset- based operator like ship-owner, freight forwarders offers a groupage
service by using assigned shipping line and infrastructure as he buys from liner
services providers, at a box rate and offers his own tariffs for the services render .

SCOPE OF THE STUDY

The importance of the study for the research is to gain knowledge and have the full
insight about the functions, obligations, import and export flow, as well as Rights
and liabilities of a freight forwarders, either as a forwarding agent or principal
.This as help researcher in having the full insight and acquisition of knowledge
about the roles, duties, and various services provided by freight forwarders.

This research covers

Functions of freight forwarder

Roles of freight forwarder

Import and export flow

Services offered by freight forwarder

Rights, liabilities and Duties to the Owner

 CHAPTER 2

RESEARCH METHODOLOGY

The review done by the earlier researcher “JAIMANGAL MAURYA” on

“customer satisfaction on freight forwarders” reviews and analyses the
following findings:

➢Awareness level about the company among the existing customers is high.

➢ Most customers compared the researcher’s company with world class

companies.

➢Satisfaction level of existing customers is good, however for the future prospects

more changes and efforts have to be taken.

➢Location of the company is good as targeted by customer value.

➢ There are almost 50% retention of customers visited the store before as per the

analysis.

➢Awareness level of the customers about the company is good.

➢The researcher says India’s freight transport concludes the country will reach

average annual freight traffic growth of 10.2% in the 2009-2011 periods.

RESEARCH METHODOLOGY

RESEARCH OBJECTIVES

To study the function and roles of freight forwarders

To study the impact and service’s offered by freight forwarders

To study the right and liabilities of a freight forwarders

Duties of freight forwarders to his principal

 SOURCE OF DATA AND TYPES

PRIMARY DATA

Primary research data consists in research to collect original data. It is often

undertaken after the researcher has gained some insight into the issue by collecting
secondary data. This can be through numerous forms, including questionnaires,
direct observation and telephone interviews amongst others.

SECONDARY DATA

These are data’s which have already been available and analyzed by someone and
pass through the statistical process which might be published data or not from
various publications of the central, state or local government, international bodies,
reports ,magazine e.t.c. It is often undertaken after the researcher has gained some
insight into the issue by collecting secondary data’s.
IMORTANCE OF DESCRIPTIVE DESIGN

It gives researchers the ability to look at whatever they are studying in so many
various aspects and provide a bigger overview as opposed to other forms of
research.

A descriptive study is undertaken in order to ascertain and be able to describe

the characteristics of the variables of interest in a research.

Descriptive design are also undertaken to understand the characteristics of

organizations that follow certain common practices

Data collection may be spread over a large number of people over a large
geographic area

The advantages of descriptive research include data collection and life

experiences.

It uses both quantitative and qualitative data in order to find the solution to
whatever is being studied.

It is less time consuming

It can identify further area of study

Educational research and experiences may contain many variables that

cannot be realistically controlled.

Educational research may require observations of life experiences

 RESEARCH TOOL

QUESTIONNAIRE:

A questionnaire is a research instrument consisting of a series of questions and

other prompts for the purpose of gathering information from respondents.

Although they are often designed for statistical analysis of the responses, this is not

always the case. The questionnaire was invented by Sir Francis Galton.

Questionnaires have advantages over some other types of surveys in that they are

cheap, do not require as much effort from the questioner as verbal or telephone

surveys, and often have standardized answers that make it simple to compile data.

Questionnaires are also sharply limited by the fact that respondents must be able to

read the questions and respond to them.

QUESTIONNAIRE CONSTRUCTION

A questionnaire is a series of questions asked to individuals to obtain statistically

useful information about a given topic. When properly constructed and responsibly

administered, questionnaires become a vital instrument by which statements can be

made about specific groups or people or entire populations.

Questionnaires are frequently used in quantitative marketing research and social

research. They are a valuable method of collecting a wide range of information
from a large number of individuals, often referred to as respondents. Adequate
questionnaire construction is critical to the success of a survey. Inappropriate
questions, incorrect ordering of questions, incorrect scaling, or bad questionnaire
format can make the survey valueless, as it may not accurately reflect the views
and opinions of the participants. A useful method for checking a questionnaire and
making sure it is accurately capturing the intended information is to pre-test among
a smaller subset of target respondents.

DATA ANALYSIS

The process of evaluating data using analytical and logical reasoning to examine

each component of the data provided. This form of analysis is just one of the many
steps that must be completed when conducting a research experiment. Data from

various sources is gathered, reviewed, and then analyzed to form some sort of

finding or conclusion. There are a variety of specific data analysis method, some of

which include data mining, text analytics, business intelligence, and data

visualizations.

TABULATION

One of the simplest and most revealing devices for summarizing data and

presenting them in a meaningful fashion is the statistical table. A table is statistical

data in columns and rows. The purpose of a table is to simplify the presentation

and facilitate comparison.

CHARTS

One of the most convincing and appealing ways in which statistical results may be

presented is through charts. They give a bird’s eye view of the entire data and

therefore the information presented is easily understood.

LIMITATION OF THE STUDY

Descriptive studies can yield rich data that lead to important recommendations. On
the other hand, descriptive research can be misused by those who do not
understand its purpose and limitations. For example, one cannot try to draw
conclusions that show cause and effect, because that is beyond the bounds of the
statistics employed.

Time constraint

High Cost

Reliability of data

• Only major competitors were considered for the study

• The identification of researcher was not revealed to the respondents to avoid

biased answer.

• Lack of time for the respondents due to their tight schedule

 CHAPTER 3

FUNCTIONS AND ROLES OF FREIGHT

FORWARDERS

This chapter ascertains definitely the legal functions of freight forwarders and its
potential roles not as a NVOCC but in its classical role as a forwarding agent in
MTO (multi-modal transport operation which involve the process of operating a
door-to-door /warehouse-to-warehouse service for the shipper, involving two or
more forms of transportation with the merchandise being conveyed in the same
unitized form for the entire transit, which may also be describe as inter-modalism.

The major functions of freight forwarders include but not limited to the
following:

TRANSHIPMENT

This is an essential feature of modern container operation in which container ships,

usually serve a few so called “hub-ports due to high cost of operation. The carriage
from such ports to regional ports is for most of the time sub-contracted by shipping
lines to local operators of feeder vessels

where at the hub ports, the containers are being transshipped from the mother
vessel to feeder vessels or vice versa.

improvement in modern technology, such as container vessel like post-panamax,

cargo handling facilities at port terminal, RORO ships, and development of
standardized container s, which permit the integrated use of various modes of
transportation, are frequently transfer to other means of transportation (trucks,
train, airplane) for inland carriage. Where cargoes passes in transit through a
country, the freight forwarders co-ordinates the movement of cargo from one
means of convey to another.

This involves:

1. Booking space on transshipment vessel

2. Discharging

3. Sorting

4. Loading

5. And distribution of the cargo to the consignee

As a transshipment agent, freight forwarders act as agent for the shipper/consignee

within the multimodal transport and might act as contracting carrier.
TRANSPORTATION DISTRIBUTION ANALYSIS

The freight forwarder is considered the architect of transport in international trade.

He advises his customer - as principal - on the available transportation options and
plans the most efficient route according to the customer’s needs.

PACKING, WAREHOUSING AND DISTRIBUTION

He may arrange for packing ,warehousing and distribution of cargo depending on

the system adopted by the company and the site selection for locating the
warehouse is the next step which depends on the type of product, consumption
centers, transportation cost, consumer service needs etc. looking at the warehouse
objectives of profit improvement through cost reduction and enhancing customer
service level for gaining a competitive edge, freight forwarders consider as things
to be taking care of:

Maximum utilization of storage space (floor and cubic space)

Higher labour productivity

 Maximum asset utilization

Reduce material handling

Reduce operation cost

Increase inventory turnover

Reduce order filling time.

The latest advancement in information technology and communication network

play a vital role in bringing effectiveness and efficiency in warehousing system
through speedy information processing and internal and external connectivity.
Freight forwarders keep the goods in storage before export as well as subsequent
import whilst awaiting transportation and distribution. He can either operates his
own warehouse and offer ancillary services as principal, to the shipper and other
freight forwarders or as an agent in procuring the services from independent
contractors for his customers. The fact that he does not own the warehouse does
not automatically lead to the conclusion that he offers the service as agents. An
agreement might be established after the carriage of cargoes to storage services
before and after the discharge of the cargoes awaiting custom clearance if so
contemplated by the parties.

ARRANGEMENT OF CARGO INSURANCE

Freight forwarders as agents of their customers, are not cargo underwriters, but
merely arrange for cargo insurance for a service fee. It is a good idea for freight
forwarders to suggest to their customer to procure insurance cover for his cargo on
a grat-tis basis. The selling on ancillary services such as insurance for a

commission is a traditional source of income for freight forwarders while selling

insurance in some countries are illegal unless special authority has been issued or
granted by the government.

CUSTOM CLEARANCE AND DOCUMENTATION

He performs this function as an agent of the customer by provision important

document for import and export goods having regards to legal and customs
requirements and the terms of the sales contract.

PAYMENTOF FREIGHT, TAX AND OTHER CHARGES

As agent to the shipper of cargoes, the freight forwarders coordinate and effects
payment of freight to the actual carrier and payment of local taxes on behalf of the
consignee to avoid delays.

TRANSPORT ARRANGEMENT

After decision on which route and means of transportation by the consignee, the
freight forwarder makes the necessary booking and dispatches the goods as an
agent acting on-behalf of his customer by establishing and arranging contract of
carriage and establishes direct contractual relationships between his customer-the
shipper- and the carrier. With the payment of freight charges, insurance, packing,
customs duties then charges his customer a fee, usually a percentage of the total
expenses.

Instead of passing of passing on the freight that the freight the freight forwarder
will pay to the performing carrier, he can also act as principal contractor arranging
the whole carriage in his own name, as he will charge the shippers a “straight
freight charge”. He arranges to pay lower freight rates to the carrier and obtains his
profit from the rate difference.

CARGO CONSOLIDATION AND MULTIMODAL TRANSPORT

The intermediate service of cargo consolidation is one of the key functions of

freight forwarders nowadays. Revolution of container has provided the perfect
medium for grouping cargo and hence, there has been a natural transition in
moving away from small individual parcels, to cargo consolidation. The container
and the other developments provide for an integrated movement of using different
modes of transportation rather than unimodal movement

The freight forwarder collects and assembles parcel cargo from different shippers,
who are often other freight forwarders, and combine the goods for shipment/
distribution to the respective consignee in the country or port of discharge.
The original function of the forwarder was to arrange for the carriage of his
customers' goods by contracting with various carriers. His responsibilities included
advice on all documentation and customs requirements in the country of

destination. His correspondent agent overseas looked after his customers' and kept
him informed about matters that would affect movement of goods.

In modern times the forwarder still carries out those same responsibilities for his
client. He still operates either as a domestic US carrier, or otherwise with a
corresponding agent overseas or with his own company branch-office. In a single
transaction, it can happen that the forwarder may be acting as a carrier (principal)
or as an agent for his customer or both

International Freight Forwarders, NVOCCs and customs brokers, often charge a

fee for transferring documents to another transportation company at destination.
This fee is a part of the ocean freight charges, being paid by the importer at the
port of discharge in the International Commercial Terms (INCOTERMS).This fee
is separate from documentation fees charged by steamship carriers and NVOCCs
as part of the freight charges on a bill of lading and is separate from other fees for
document preparation or for release of cargo. Some companies may call this an
admin fee, doc fee, doc transfer or other name but it exists in some form in most
destinations around the world and is well known to most importers and exporters.
Steamship carriers do not have this fee.
Due to the inherent flexibility of non-asset-based freight forwarders, they are able
to perform almost any transportation logistics function, ranging from storage to
door-to-door movement of cargo. Forwarders function as middlemen; they
organize transportation of goods among air, land, and sea carriers; pickup and
delivery agents; customs brokers; and even financial institutions. Forwarders help
exporters choose and manage transportation options. Exporters will find many
advantages in working with forwarders. Since a forwarder exports a much larger
volume of cargo than an individual shipper, the forwarder will benefit from better
rates obtained from the actual carriers of the freight. In addition, forwarders have
networks all over the world and experience working with other transportation
agents. Exporters can maximize their relationships with forwarders by
understanding what it takes to ship goods. At its most basic level, each relationship
between a forwarder and an exporter ensues from a discussion of services and rate

ROLES OF FREIGHT FORWARDER’S

A container packed with parcel cargo from different shippers and intended for
different consignees is known as ‘LCL’ (less than container load) in contrast to the
container loaded with cargo from one shipper to one consignee, which is referred
to as ‘FCL’ (full container load). The consolidated cargo is packed and stowed in
containers and dis-patched to the different consignees at the place of destination by
the freight forwarder, issuing using the transport capacity it negotiated with various
shipping lines or other carriers. In these situations the freight forwarder enters into
contracts of carriage with the per-forming carriers and his responsibility towards
the shipper is often that of a contracting carrier.
Quality, value-added service is based on consistently providing customers with
ever-improving solutions to their supply chain needs. Supply chains involve many
groups of trading partners, and logistics is the key to holding them together.
Logistics is defined as the process of planning, implementing, and controlling the
efficient flow and storage of goods and their related information. As global
logistics become more demanding, and as the savings available through supply
chain efficiency become more attractive, the outsourcing of procurement,
distribution, and return logistics has become a common practice.

Increased competition to be the first one in the market with the latest model has put
greater pressure on the supply chain. There are numerous factors that companies
take into consideration when outsourcing and planning their supply chain
activities. First, if a firm independently manages its own logistics, it has to divert
attention from its core competencies and strengths. However, if the firm outsources
some functions, such as warehousing, inventory management, or distribution, it is
better equipped to focus on other tasks. It also benefits from having its goods
handled, stored, and delivered personally.
Movement of goods from the supplier to the buyer, transportation is the most
fundamental and important component of logistics. When an order is placed, the
transaction is not complete till the goods are physically moved to the customer’s
place which involves various modes of transportation.

Freight forwarders choose the mode of transportation depending on the

infrastructure of transportation in the country or region, cost is the most important
consideration in the selection of a particular mode of transportation. Sometimes
urgencies of the goods at the consignee end,

overrides the cost consideration, and the goods are sent through the fastest mode,
which is an expensive alternative

Freight forwarders also carried out the following roles:

 Asist with freight quote and other cost of international forwarding.

 Give a precise and itemized list of forwarding cost.
 Consolidate shipping from various suppliers.
 Prepare necessary documents and certifications for shipment.
 Handling legalization procedure whenever necessary.
 Prepare for insurance coverage when necessary.
 Provides facilities or warehouses in foreign destination.
 Provide adequate information on hazardous materials for shipping when
necessary.
 Give other specialized services when needed.
 CHAPTER 4

IMPORT AND EXPORT FLOW

As shipping Bill is the legal document, required to be filed mandatory for the
exportation of goods from one destination to another by an exporter, so is Bill of
entry are meant to be well filed by an importer of cargoes involving in goods
importation into a country.

Under exportation of cargoes, once the goods arrive at its place of destination with
the preparation of invoice and packing list based on purchased order or letter of
credit (LC), which is a written commitment to pay, by a buyer's or importer's bank
(called the issuing bank) to the seller's or exporter's bank (called the accepting
bank, negotiating bank, or paying bank). LC is a formal trade instruments and are
used usually where the seller is unwilling to extend credit to the buyer. In effect, a
letter of credit substitutes the creditworthiness of a bank for the creditworthiness of
the buyer. Thus, the international banking system acts as an intermediary between
far flung exporters and importers. However, the banking system does not take on
any responsibility for the quality of goods, genuineness of documents, or any other
provision in the contract of sale. Since the unambiguity of the terminology used in
writing a letter of credit is of vital importance, the International Chamber Of
Commerce (ICC) has suggested specific terms (called Incoterms) that are now
almost universally accepted and used. Unlike a bill of exchange, a letter of credit is
a nonnegotiable instrument but may be transferable with the consent of the
applicant. Arrangement of export customs clearance procedure well in advance of
time of shipment mention in export order is very important and appointment of
freight forwarder or customs broker for the completion of export clearance
formalities is important. Normally, a custom house agent is appointed for smooth
and fast clearance procedures under export. Invoice packing list, SDF declaration
and other specific required documents are sent to customs house agents for
completion of necessary export customs formalities.

TYPICAL FLOW CHART OF EXPORT AND IMPORT

PROCEDURE

EXPORT GENERAL MANIFEST (EGM)

After obtaining the hard copy of–said original shipping bills, the respective custom
officials involved in the process, sign on the shipping bills and return to the
exporter of freight forward agent or the appointed customs house agent. Once the
movement of goods from exporting country, the shipping carrier files necessary
export general manifest (EGM) with custom and based on the same, customs
department issue proof of export-Export promotion copy of shipping bill.

EXPORT FLOW
 EXPORTS

NOMINATION RECIEVED

CONTACT SHIPPER

RECEIVED REQUEST TO
ALLOT CONTAINER

FURNISH PLOT
PERMISSION

FURNISH FORM 13 FOR OFFLOADING

CONTAINER

INTIMATE LOCAL CHARGES TO SHIPPER/CHA AFTER

COLLECTION OF LOCAL CHEQUES

RELEASE MASTER BILL OF LADING FROM SHIPPING COMPANY

Once after releasing shipping bills dully signed by customs authorities, custom
house agents delivers the respective shipping bill to freight forwarder agent and to
carrier in order to move the cargo to its destination. Exchange copy of shipping
bills is submitted with bank along with other shipping documents. The authorized
dealer of the exporter sends the of said exchange control copy of shipping bills to
reserve bank of India. RBI requires exchange control copy for regulating inward
and outward remittance of foreign exchange.

While exporter copy of shipping bill is retain by exporter for their future reference.

Manual shipping bill are filed at a customs location where in no facility to file
electronically to complete necessary export customs clearance procedures and
formalities, such shipping bill are filed in six copies. Original and duplicate for
customs, triplicate and EP copy for exporter and the next two copies for carrier to
load goods at port of loading.

IMPORT GENERAL MANIFEST (IGM)

The shipping line has to give a detailed report of all the goods on board in a report
known as "Import General Manifest" (IGM) within 24 hours after arrival of the
vessel to the proper officer. In EDI (Electronic data interchange) System, IGM has
to be filed in the computer at the EDI Service Centre. IGM can also be filed in
advance, i.e. before the arrival of the vessel.

The documents which are required to be submitted alongside with the import
manifest / import report but not limited to the following:
 Deck cargo declaration/ certificate

Last port clearance copy

Amendment application (when relevant)

Immigration certificate

Port trust “No Demand” certificate.

Certificate for payment of export duties

Arrival report

IMPORTS FLOW

IMPORTS

PRE ALERT RECIEVED

SUBMIT DOCUMENTS TO SHIPPING

LINE

NOTIFY CONSIGNEE /CHA

OBTAIN IGM & LINE NUMBER FROM

CARRIER & NOTIFY CONSIGNEE /CHA

ISSUE CARGO ARRIVAL NOTICE FOR CUM

INVOICE
 COLLECT FREIGHT AND LOCAL CHARGES

COLLECT DULY DISCHARGED ORIGINAL BILL OF LADING

& RELEASE BILL OF LADING

RUMMAGING

Rummaging is carried out only when the authorities required to be examining and
not for all shipment. After the arrival of cargo at a custom location, the necessary
information is filled with custom station, which is known as import general
manifest (IGM). IGM is filled in a specified format legally to be followed by
respective customs department. It can be amended later with necessary formalities
and procedures. However, the omission of deletion in filling IGM willfully comes
under “smuggling” activities and thereby the customs preventives officials may
taken necessary steps to cross check whether all goods arrived are said customs
location have been declared in IGM. Such customs officers are authorized to board
the vessel or aircraft to take necessary suitable declaration, crew property list in
order to confirm no items have been left out to declare in IGM. This thorough
checking by customs preventives official in a vessel or aircraft is called
rummaging.

IMPORTANT DOCUMENTS:

Correct documentation is vital for all movement of cargo by Freight Forwarders

especially when moving cargo internationally. Here are some tips on the relevant
types of documentation that will be required. It is worth knowing that exporters
should consider allowing the freight forwarder tohandle the not inconsiderable
amount of documentation that exporting necessitates. This is simply because
freight forwarders are specialists in these processes.

Each of these is necessary for any particular transaction will depend on the
requirements of the government of the country that the freight is being imported
into. Air freight shipments are handled by air waybills, which can never be made in
negotiable form.

For your information, the following documents are commonly used in exporting.

• A Bill of Lading is a contract made between the owner of the goods and the
freight carrier. For carrier vessels, there are two types of this form. These are a
straight bill of lading which is non-negotiable. Then there is a negotiable shipper's
order bill of lading. The shipper's order bill of lading is one that can be bought,
sold, or traded while the goods or cargo are in transit. The customer generally
requires an original as proof of ownership in order to take possession of the cargo.
• A Certificate of Origin is another document that certain countries require. A
certificate of origin is a signed statement describing the origin of the export cargo.
The certificate of origin is generally signed via a semi-official organization, for
instance a local chamber of commerce. A certificate of origin may be required even
if the commercial invoice contains all the necessary information

• A Commercial Invoice is a professional bill for the cargo or goods from the
vendor to the purchaser. This type of invoice is often used by governments in
which to determine the true value of said goods when it comes to assessing
customs duties. Governments of importingcountries that use this commercial
invoice in order to control imports will generally specify which form they require,
its content, the number of copies, the language used and various other
characteristics

• A Consular Invoice is a document that in some countries is a requirement. The

consular invoice describes the shipment of cargo or goods and displays such
information as the consignor, consignee and also the value of the shipment.
Certified by the consular official of the foreign country stationed in the United
States, the consular invoice is used by the country's customs officials to verify
value, quantity and nature of the cargo

• A NAFTA Certificate of Origin is a requirement for products traded among the

NAFTA countries, which are Canada, the U.S. and Mexico.

• An Inspection Certificate is required by some buyers and some countries to

verify the specifications of the cargo. This action is generally performed by a third
party and the certificate usually obtained from independent testing organizations
• A Destination Control Statement is something that will appear on the
commercial invoice and the ocean or air waybill of lading. This is to notify the
freight carrier and all other foreign parties involved that the cargo item can only be
exported to certain destinations.

• A Warehouse Receipt and a dock receipt are used in order to transfer

accountability when the export cargo or goods item is moved by the domestic
carrier to the port of embarkation and then left for export with the shipping line

• An Export License is a government document which provides authority for the

export to a certain destination of specific goods that are in specific quantities. This
export license isgenerally required for most or all of the exports made to certain
countries. It is also required under special circumstances for exports made to other
countries.

• A Shipper's Export Declaration is used to control exports and also to act as a

source document for the use of official United States export statistics. Shipper's
Export Declarations must be prepared for all shipments made through the United
States Postal Service when the value of the shipment exceeds $500. Shipper's
Export Declarations are also required for all freight shipments that are not using
the United States Postal Service and when the value of the export commodities,
classified under any single Schedule B number, exceeds $2,500. Shipper's Export
Declarations are required to be prepared, regardless of the value, for all freight
shipments that require an export license or are destined for certain countries which
are restricted by the Export Administration Regulations. Shipper's Export
Declarations are generally prepared by the exporter or in some instances by the
exporter's agent and are delivered to the exporting carrier. The exporting carrier is
then required to present the necessary number of copies to the United States
Customs Service at the port of export. In many instances the Shipper's Export
Declaration is a document preared as a by-product of the Shipper’s Letter of
Instructions.

• An Export Packing List is a document that is considerably more informative and

detailed than a standard domestic packing list. An export packing list itemizes the
materials in each individual package. It also indicates the type of package, for
instance a box, drum, crate or carton. An export packing list also displays the
individual net, tare, legal and gross weights as well as measurements for each
individual package in both Imperial and metric systems. Package markings must be
displayed as well as the shipper's and purchaser's references. The export packing
list is used by the cargo shipper or freight forwarding agent in order to determine
the total weight and volume of the shipment as well as indicating that the correct
cargo is being shipped. Additionally, the list may be used by both United States
and foreign customs officials to check the cargo.

An Insurance Certificate is necessary to prove to the consignee that the forwarders

insurance is comprehensive enough to cover any damage or loss of the cargo
during transit.

The quantity and type of freight forwarder documents that the exporter has to deal
with will vary depending on the shipment's destination. As each country will have
different import regulations, the onus is on the exporter to be careful that it
provides all of the necessary and correct documentation.

Freight forwarder documentation has to be precise as any slight discrepancy or

omission could prevent the merchandise from being exported, or it could result in
non-payment, or in extreme cases result in the seizure of the exporter's goods by
customs officers in various countries. Collection documents are generally subject
to very precise time limits and run the risk of not be honored by a bank should the
time limit have expired. Most cargo documentation is routine for both freight
forwarders and customs brokers. However, the exporter has the privilege of
beingultimately responsible for the correctness and accuracy of its documents.
 CHAPTER 5

THE CHANGING ROLE OF FREIGHT

FORWARDERS

The problem of supply and demand is the driving force of human history, and it is
directly related to transport: if we cannot produce the food or goods we want to
consume or use, they must be transported to us. In the age of trade between farms
and villages, this transport was relatively simple, if slow, and performed with
animals and wagons or only with manpower. However, as people began exploring
other trading opportunities, cross-country and cross-continental travel began to
spread. With exploration and the birth of global maritime trade came the growth of
merchant shipping and long-distance transport by sea. The Industrial Revolution of
the eighteenth and nineteenth centuries applied steam power to transport,
ultimately facilitating even faster movement of goods.

Today, the products we consume travel long distances along global supply chains
to reach us. Production, inventory control, transport, distribution, specialized
handling and management are all part of these supply chains. As supply chains
become more geographically intricate, their success depends more and more on the
expertise of competent transport intermediaries (freight forwarders, or freight
logistics providers).

Where did these transport intermediaries come from? Levying customs duties by
government agencies has been a basic part of trade throughout history. With the
collection of customs duties came demand for middlemen and agents who would
move goods on behalf of the shipper or consignee. Customs brokers and agents
who acted on behalf of shippers to arrange freight transport and buy space on ships
evolved into freight forwarders. The role of the freight forwarder has further
expanded, and they have long-abandoned the perception of being mere agents for
the transport industry. Today’s freight logistics providers (FLPs) are responsible
for an entire array of services in the supply chain. This paper examines the
changing role of freight forwarders, the importance of their services to the
functioning of global supply chains, and some of the tools they can use to add
value to these supply chains.

As freight forwarder is especially interested in the time demands of your shipment

and providing visibility and control for every mode of transportation, due to their
change in their role, they engaged in the following:

Booking and Reservations: A centralized booking portal provides visibility into

rates, contracts, and shipment details from global locations to enable more
informed decision making and contract development. Carriers can distribute
Product, routing, capacity and rate information to forwarders 24/7 in real time,
while forwarders can access carrier information and make electronic bookings over
the Web or from within their own in-house system.

Activations and Messaging: The Descartes GLN enables electronic

communications between forwarders and their trading partners around the globe,
including carriers (90+ air, 30+ ocean, and 1,600+ ground carriers) and regulatory
agencies, such as the Federal Maritime Commission and US Customs and Border
Protection.
Global Customs Filing and Compliance: Ensures regulatory requirements are
met for international shipments for both international customs agencies and
security initiatives.

Contract and Rate Management: Forwarders can more easily manage their
global rate-making processes. With the ability to use their own data and format,
forwarders can effectively create and manage quoting and contracting procedures.

Transportation Management: Ensures forwarders have much needed control

over contract carrier based shipments. Across the entire contracted transportation
management lifecycle, Descartes enables forwarders to make better consolidation
decisions and streamlines the carrier bid, tendering, settlement, and freight auditing
processes to help reduce costs and improve customer service.

Multimodal Track and Trace: Leverages Descartes’ extensive network of

transportation and logistics services providers to provide forwarders with real-time
visibility into shipment status.

Shipment Management: Enables forwarders to offer house-branded, value-added

supply chain event management services to customers.

Air transit times are obviously considerably shorter than ocean transportation.

A forwarder needs to know when you want the freight picked up, and when you
wish it released to the consignee. Ensuring that all of your documentation is in
order is paramount in meeting desired transits. A good forwarder will always
ensure everything is in order, but even the best ones cannot accomplish this
without cooperation from their customers. The final steps to a quote entail sales
terms and customs clearance of the freight at the destination port. Sometimes a
shipper will ask the forwarder to provide true door-to-door service, providing
clearance and eventual delivery directly to the consignee —something any
established forwarder would be able to provide with a network of foreign agents.
Quite often, the customer or consignee will wish to arrange the clearance and
recovery of the freight themselves. This is logical, since the consignee exists
locally and, if working with imports often, should have his own customs brokerage
contacts. When this is the case, the forwarder looks to the customer to dictate the
method and routing of transportation. Sales terms ensue from Incoterms, which
define the roles of the buyer and seller in the arrangement of transportation, as well
as clarify when the transfer of ownership of the merchandise takes place. Your
forwarder can help you determine the INCOTERM that best suits your situation.
Once the forwarder has the information described above, he will begin to map out
your shipment. He will take many factors into consideration, including but not
limited to:

Can those carriers perform the transportation within the desired time frame?

Do you have specific routing and/or carrier preferences?

If freight is hazardous or of extraordinary dimensions, are those carriers

equipped to handle it?

Is there enough time to meet the carrier’s requirements for tendering of freight?
 Are there any financial issues (e.g., insurance, letters of credit, special payment
arrangements, etc.)?

Are there additional requirements or noteworthy issues in terms of licensing,

handling, or service?

Freight forwarders – including NVOCCs, 3PLs, brokers and other transportation

intermediaries – play an important role in helping shippers move cargo from one
city, state, country or continent to another. Working with a variety of asset-based
carriers across multiple modes – land, air, sea or rail – forwarders coordinate
shipments to ensure goods are delivered on time and on budget. While forwarders
may be likened to a travel agent for cargo, their role is more complex and requires
ongoing interaction with multiple parties throughout the shipment process to meet
varying customer needs. Forwarders are relied on to recommend the best mode of
transport, select carriers and reserve cargo space on the appropriate vessel, aircraft,
train or truck; advise shippers on freight related costs, including port charges,
insurance costs, handling fees, etc.; work with customs entities and brokers to
ensure goods comply with the latest customs compliance regulations; and
numerous other business critical procedures to ensure each shipment moves swiftly
from A to B.

As the middle man in highly complex shipments, one of the biggest challenges that
forwarders face is that they are responsible for everything, yet control nothing.
They are accountable to both shippers and carriers, and although they may never
see nor touch the cargo and have no control over physical assets, they are held
responsible by their customers for any unforeseen delays or issues. This lack of
control is further compounded by limited visibility, making it difficult at times to
determine the lowest cost method to transport shipments; gain real time access to
information on shipment status; and easily connect electronically with customers
and trading partners to lower the cost of doing business. As forwarders already
operate on very tight margins, they are also impacted by the continued weakening
in the global economy.
 CHAPTER 6

SERVICES OFFER BY FREIGHT

FORWARDERS

The services of a freight forwarder depends on the relationships between different

companies, however the core function 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. There may be many transportation
companies involved in the transport of items from the supplier to the customer
depending on the final destination and the nature of the items being shipped.

The freight forwarder is hired to get the product to the customer by a specific date
and in an undamaged state, while also resolving the various export and import
issues that could be involved in the movement of the goods.

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.

Freight forwarders will assist their customers in providing the correct labeling
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 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.

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. Services render by freight forwarders
includes but not limited to the following:

International freight quotations

Warehousing

Containerization and consolidation of freight

Booking of international and inland freight movements

Export packing

Providing schedules of carriers

 Transshipments

Marina and air insurance

Pre-shipment inspections

Supervision of freight movements (loading of good onto carriers)

Applying for export licenses

Export and import documentation

Computerized tracking of international freight movement

Oversea documentation and foreign government requirements

Overseas logistics strategies such as free trade zones and warehousing.

A typical day for a freight forwarder would primarily consist of talking with clients
and warehouse around the world. Taking this information and passing it along to
the appropriate party whether that is a SSL (Steamship Line), United States
Customs or the customer themselves. Along with making sure that the freight the
client is importing or exporting gains entry into the country a freight forwarder
must (most of the time) arrange for said freight to be picked up and delivered to the
final consignee's place of business. This requires contacting trucking companies,
rail lines and even sometimes exporting the goods to a different country for final
delivery. A lot of this is now done over the Internet and phone. A typical freight
forwarder will spend most of the day at a desk in front of a computer.
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 ready for shipping. The freight forwarding service
then undertakes the responsibility of arranging the transport from point of origin to
destination.
One of the many advantages of using freight forwarding is that it handles ancillary
services that are 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 Operation 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.
 CHAPTER 7

RIGHT AND RELIABILITIES

As a person who professionally, against remuneration, on his own name but on the
account of a Customer or in the name of a Customer, covenants to forward or
receive goods, to organize a part or whole process of translocation of goods, as
well as to render the other services related with attendance and translocation of the
Goods. In relation to these activities performed by the Freight Forwarder, the
general rules regulating a special kind of activity or other mandatory rules will
apply, provided that the Freight Forwarder declares that the aforementioned rules,
agreed upon by the third parties, with whom the Freight Forwarder has entered into
agreement in order to perform an accepted forwarding order, are mandatory. The
Freight Forwarder can perform the carriage himself. In such case he has the rights
and obligations of a Carrier at the same time.

He may also undertake to perform other functions connected with the main
contract such as warehousing (including storage in transit) group age or
consolidation, packing, documentation, weighing and measurement of cargo
container leasing, insurance, foreign exchange transaction etc. In case he is
required to be licensed or approved by the Government or other Public Authorities
for the performance of any of his functions, the term ‘Freight Forwarder’ would
mean only such licensed or approval persons. As an agent acting on behalf of his
principal, he moves different compatible consignments from individual consignor
to various consignees usually situated in the same destination (country/area), and
forwarded as one overall consignment. The goods are consolidated into a full
container load with the shipping line issuing groupage bill of lading to the
forwarder. This is the ocean bill of lading and shows a number of consignments of
groupage of a certain weight and cubic measurement in a cargo manifest form. The
forwarder issues house bill of lading cross referring to the ocean bill of lading,
which is merely a receipt for the cargo and does not have the same status as the bill
of lading issued by the ship-owner.

PERFORMANCE OF CONTRACT

(1) He performs carriage by his own means of transportation and issues his own
transport documents. He acts as sea carrier or multimodal transport operator
issuing his own bill of lading or FIATA bill of loading called the Negotiable
FIATA Multimodal Transport Bill of Loading;

(2) He performs a carriage by means of transportation owned by the third party, but
issues his own transport document (contracting carrier).

(3) The forwarder shall perform his duty with due diligence and shall take care of
the goods entrusted to him as a man of ordinary prudence thereby protecting the
interest of his customers. In the event of the Forwarder agent takes the care of the
goods entrusted to him as a man of ordinary prudence he shall not be held
responsible for any loss or damages that may be suffered by the goods entrusted to
him.
(4) A customer shall give the Forwarder such instructions as are necessary for the
performance of the contract and the latter shall abide by these instructions in a
manner suited to the requirements of the customer. If however, the Forwarder is
satisfied, at any stage, that a departure from those instructions is justified in the
interest of the customer, he shall be at liberty to act accordingly. The Forwarder is
not in a position to guarantee a firm date in regard to the arrival of the goods at
destination. In the absence of any specific instructions issued by the customer, the
Forwarder is free to exercise his discretion in the choice of sub-contractors, modes
of transport and transportation, routes. Provide further that in the absence of any
specific instructions in writing the

Forwarder shall be at liberty to exercise his own judgment for the delivery of the
goods and for transport of the goods as a man of ordinary prudence.

(5) Customer shall advance such sums as may be required by the Forwarders for
meeting disbursements on account of the customer.

(6) The Forwarder is not responsible for effecting cargo insurance but may arrange
such insurance if so instructed by the Customer. In such cases, cargo insurance will
be arranged by the Forwarder on account of the customer. On such terms and
conditions as may be acceptable to the insurers.

Liability of the Freight Forwarder

(a) The Forwarder is liable only for his own faults attributable to himself or his
employees.
(b) The Forwarder shall not be liable to the customer for consequential loss or loss
market ever cause.

(c) The Forwarder shall not be liable for acts or omissions for third parties such as
re forwarders, carrier etc. provided he has shown due diligence in the choice of
such third parties. If it can be proved that he has not done so, his liability shall not
exceed that of any third party held liable, and whom he had contracted with.

(d) The liability of the Forwarder for loss or damage to goods will be fixed on the
basis of the market value of the goods at the time of acceptance by the freight
forwarder and will not, under any circumstances, exceed that market value or a
sum at the rate of Rs.14/- per kilo of the gross weight of the goods lost or damaged,
whichever is less subject to a maximum of Rs. 15,000/- for each occurrence of
loss.

(e) The Forwarder may arrange/provide Road Transport for customer and in such
event the Forwarder shall not be held responsible as a carrier or assume the
liability of a carrier.

(f) In the event of the liability of the Forwarder being sought to be varied, the
variation shall only be affected by a written document signed by the Forwarder, in
the absence of such a document the liability of the Forwarder shall be governed as
provided herein.
Right to lien detention:-

(a) Constituents shall pay the bills presented by the Forwarder within 15 days of
their presentation, failing which penal interest at 3% above Bank’s lending rate of
interest shall become due and payable.

(b) The Forwarder has a right to lien and a right of detention over the goods or
other securities and effects lying within his power of disposal in respect of any
amount whether already due for payments or not which the Forwarder is entitled to
receive in respect of services to the customer. In exercise of the lien under this
clause, the Forwarder shall be entitled to dispose of the goods, either by public or
private sales upon which lien is exercised, to recover his dues, provided that he
gives a written notice of at least 7 days to the customer of his intention to do so.
The Forwarder is entitled to recover the entire balance amount from the customer
after recovery of the dues by the safe of the goods under this clause and the right
exercised by Forwarder under this clause shall not be deemed to have been waiver
of his right to take further legal steps to recover the dues.

Time Limit

Claims against the Forwarder shall be time barred within a period of one year
commencing from the day of delivery of the goods to the consignee named in the
contract or, if no delivery has taken place from the date of the conclusion of the
Forwarding contract.

Jurisdiction

Unless expressly agreed to the contrary, claim against the Forwarder shall be
decided at the principal place of his business. All juridical relations between the
Forwarder, the customer or authorized persons shall together with the application
of these conditions, be regulated by Indian law.

Arbitration

Any dispute between the Forwarder and the customer arising in connection with
performance of the contract shall be settled in accordance with the provisions of
the Indian Arbitration Act at the principal place of business of the Forwarder, each
party appointing an arbitrator and the two arbitrators, in the event of disagreement
appointing an umpire whose decision shall be final and binding upon both parties
provided the arbitrators to be appointed under this clause shall be appointed only
from the panel of arbitrators duly approved by FFFAI.

In case the Forwarder has to undertake warehousing of the goods conditions

applicable will be as laid Down in the document finalized by FFFAI with Indian
Bank’s.
 CHAPTER 8

FINDINGS AND CONCLUSIONS

FINDINGS

This researcher emphasis on functions, obligations and duties of a freight

forwarders and realize that freight forwarders play a prominent role in the modern
logistics industry. The idea, innovation as well as expertise that they bring so far,
has facilitate the efficient transportation of goods across the world with drasticall
development in different modes of transportation . While freight forwarders
perform different and many tasks for the shippers, sub-carriers, consignor and
consignee either as agents or as principal, one must not overlook the legal capacity
in which freight forwarders act.

Awareness of the different between a freight forwarders role as agent and as a

principal becomes particularly important mostly when the issue of payment goes
awry .Not only does this role define the legal relationship between the parties, but
it may also establish the various liabilities and defenses’ available for the parties.
Awareness of this, shippers, sub-carriers and freight forwarders may appropriately
arrange their affairs whether by adjusting freight charges or obtaining additional
insurance cargo coverage to ensure that they are protected in the event if that a
transaction is not performed as contemplated. The characteristics of the fright
forwarders as agent or principal becomes important in situations where shippers
has paid the sub-carrier’s freight charges to the freight forwarders and the
forwarder, fail to remit payment to the sub-carrier buy miss- appropriating the
funds through bankrupt. In this, it reveal that the sub-carrier will look to the
shipper for payment and the resolution of this dilemma is contingent upon the
capacity that the freight forwarder is acting on. In other word’s, the sub-carrier
may look to the shipper for payment of its freight if it has a contractual relationship
with the shipper, that is where the fright forwarder is acting as agent for the
shipper. Then it is contractual responsibilities for the payment of the sub-carrier’s
freight since the sub-carrier is not in a

contractual relationship with the shipper. In practice, freight forwarders often

process the payment of the carrier’s freight in order to allow for a smooth
transaction.

The researcher here realize and say that, the changing in roles of freight forwarders
compare to early stage, has increase in prodigious manner as there are little or no
changes in the roles, functions as well as the differences between a forwarder, and
a NVOCC (non-vessel owing common carrier) as both belongs to the same
categories of contractual carrier and a non-asset based which issue bill of lading on
ship which they neither own nor operate.

Furthermore, freight forwarders issue or offers a groupage services using a

nominated shipping line and infrastructure and offers his own tariffs for the service
render but buys from air or shipping line at a box rate with goods arriving within a
schedule programme involving various different transport mode and carriers
operating in different countries as freight forwarders. It also observe that in order
to satisfy the customer( importer/ exporter) either locally or internationally, the

freight forwarders now establish a credit relationship with the shipper or the sub-
carrier to avoid complications associated in delays of payment or the conversion of
currency.

CONCLUSIONS:

This is the step where the researcher concludes about the research project
where he describes the nature of how the project is done and who are the targets in
his research and what is the optimum result that he obtained from doing this
research project. The research here says about the satisfaction level of the
customers and how the freight forwarders meted out their expectations, the
researcher discover that the service offered by the freight forwarders are at the very
best level to the customers. Similarly the freight rates offered and the value added
services rendered are also in a good level, but the customers are expecting a
valuable solutions provided by the freight forwarders. The customers are having a
good relationship with the freight forwarders for more than 5 to 15 years and this
makes them comfortable to move smoothly with the freight forwarders. This
project is done through various surveys like mail, interview and observation
methods. The researcher hereby concludes that the satisfaction levels of the
customers are at a high level and the expectations are clearly meted out by the
freight forwarders in an effective and a precise manner.
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VII may wish to consult the following references: Campbell, “Regression Analysis
in Title VII Cases—Minimum Standards