Guidelines for Summer Training Report

Summer Training Project Report

On
“The role of freight broker in logistics industry and Risk management in freight
brokerage”
Submitted to

I.K. GUJRAL PUNJAB TECHNICAL UNIVERSITY KAPURTHALA

In partial fulfillment of the requirement for the award of degree of Master of
Business Administration (MBA)
Submitted By
Name of the Student
Univerity Roll No.

Supervisor
Name (Company Guide)
Designation
CERTIFICATION
 Table Of Contents
Certificate By Guide
Student Declaration
Faculty Declaration
Acknowledgement
CHAPTER NO. CHAPTER TITLE PAGE NO.
1 Introduction to the
Company
2 Introduction to the
Research Problem
3 Need, Scope and
Objective of the Study
4 Research Methodology
5 Data Analysis and
Interpretation
6 Findings of the Study
7 Conclusion, Suggestions
and Recommendations of
the Study
8 References and
Bibliography
9 Questionnaire
Introduction to the Company
Maybach logistics ltd is a service provider with a reputation for excellence
when it comes to facilitating freight shipping in US or Canada. As one of the
premier brokerage companies, our goal is to provide you with hassle-free freight
shipping across border for USA and Canada. We enhance cross border shipping
experience through our extensive carrier network and also assist on custom
paper work.
This is a type of transportation service usually recommended for freight that is
oversized or wide load items. It’s an ideal shipping option for heavy machinery,
equipment as well as building supplies that cannot be transported in a standard
van. With flatbed shipping, you have the versatility and a range of trailer
options to choose from. Try Maybach logistics for this and we would not let you
down.
We understand that it’s not just a power only shipment to you, it’s your
business. It’s ours, too. When you have pre-loaded or self-contained semi-
trailers that need to get across the country safely and on time, you can count on
Mayabch logistics ltd. With our power only services, we transport a variety of
types of trailers including flatbeds, dry vans, trailer mounted equipment, and
portable machinery. We are connected with expert drivers and national network
of project managers are ready to help with your job, no matter how
straightforward or complex.
We provide safe and reliable reefer capacity at affordable prices to transport the
temperature sensitive goods.
Introduction To The Research Problem
To move large quantities of goods across the country and around the world,
Nations depend on their freight transportation system—a vast network of roads,
bridges, rail tracks, airports, seaports, navigable waterways, pipelines, and
equipment. A freight forwarder is an individual or company that dispatches
shipments via asset based carriers and books or otherwise arranges space for
those shipments. Common carrier types could include waterborne vessels,
airplanes, trucks or railroads.

The movement of international freight among nations relies on a complex array

of long-distance transportation services. The process involves many
participants, including shippers, commercial for-hire carriers, third-party
logistics providers, and consignees. Moreover, global trade depends on seaport
and airport services to move large volumes of merchandise over long distances
via a variety of transportation modes. The interaction of these services and
participants is vital to successful global trade.
Freight forwarders typically arrange cargo movement to an international
destination. Also referred to as international freight forwarders, they have the
expertise that allows them to prepare and process the documentation and also
perform related activities pertaining to international shipments. Some of the
typical information reviewed by a freight forwarder is the commercial invoice,
shipper's export declaration, bill of lading and other documents required by the
carrier or country of export, import, or transshipment. Much of this information
is now processed in a paperless environment.
As an analogy, freight forwarders have been called travel agents for freight. In
the U.S., a freight forwarder involved with international ocean shipping is
licensed by the Federal Maritime Commission as an Ocean Transportation
Intermediary

Typical work activities of Freight Forwarders:

Typical activities include:
Researching and planning the most appropriate route for a shipment (taking
account of the perishable or hazardous nature of the goods, cost, transit time and
security);
Arranging appropriate packing (taking account of climate, terrain, weight,
nature of goods and cost) and delivery or warehousing of goods at their final
destination;
Obtaining, checking and preparing documentation to meet customs and
insurance requirements, packing specifications, and compliance with overseas
countries' regulations and fiscal regimes
Offering consolidation services by air, sea and road - ensuring cost effective and
secure solutions to small shippers with insufficient cargo to utilize their own
dedicated units;
Liaising with third parties to move goods (by road, rail, air or sea) in accordance
with customer requirements;
Arranging insurance and assisting the client in the event of a claim;
Offering tailored IT solutions and EDI (electronic data interchange) connections
Arranging payment of freight and other charges, or collection of payment on
behalf of the client;
Transmitting data by internet and satellite systems, enabling real-time tracking
and tracing of goods;
Arranging air transport for urgent and high-value freight and managing the risk
door to door;
Arranging charters for large volume, out-of-gauge or project movements by air
and sea;
Acting as broker in customs negotiations worldwide to guide the freight
efficiently through complex procedures;
Arranging courier and specialist hand-carry services;
Working closely with customers, colleagues and third parties to ensure smooth
operations to deadlines
Maintaining visibility and control through all phases of the journey, including
the production of management reports and statistical and unit cost analysis
Acting as consultant in customs matters
Maintaining current knowledge of relevant legislation, political situations and
other factors that could affect the movement of freight.
Functions of Freight Forwarders:
 Best routing
 Packing
 Customs Clearance
 Transport
 Insurance
 Warehousing & Distribution
 Rate and Contract Negotiations
 Findings alternatives
 Grouping & Consolidation

Freight Forwarder can provide the Exporter with an initial quotation on

the following:
 Cost & Freight
 Port charges
 Consular fees
 Cost of special documentation
 Cost of insurance
 Fee of the Freight Forwarder

Main activities of Freight Forwarders in seamless cargo movement:

Exports
 Packaging
 Documentation
 Warehousing
 Transportation
 Statutory compliance
 License customs
 Imports
 Monitor arrival of carriers
 Monitor arrival of cargoes
 Documentation
 De unitization
 Warehousing delivery & distribution

Multifaceted activities of Freight forwarders:

 As a advisor & consultant:
 Sourcing
 Transportation & Routing
 Packing
 Statutory requirements
 Documentation
 Insurance

 As a Transporter:
 Road haulage
 Ocean carriage
 Air carriage
 Multimodal transport
 NVOCC
 As a warehouse agent:
 Bonding facility
 Transit bonding
 Post & Pre shipment
 Warehousing & Inventory management
 Retail distribution
 Elements considered by shipper while selecting Freight
 Customer service
 Document quality accuracy
 Shipment tracking
 Global coverage
 Pricing
 Information
 On time performance
 Other names of Freight Forwarders:
 Custom house agent
 Clearing agents
 Custom brokers
Need, Scope and Objectives of the Study
Freight is the only solution that can address all your requirements and much
more with the highest level of flexibility. E-Freight is web centric software
catering to Freight Forwarding industry developed using J2EE technology. The
system includes modules to cover all complex operations within the freight
forwarding industry covering Air Freight, Sea Freight, and Finance, Sales,
Stores and HRD functions.
Utmost care is given to the architecture such that it has the flexibility to
accommodate all the requirements of the clients, let it be a database choice or a
choice of communication medium or functionalities or platforms.
E-Freight has the facility of drilling down on activities to the level of
Identifying the exact time at which a particular job was finished. Facilities are
given for the management to customize their own reports on top of the standard
reports that are provided. On the whole, working with e-Freight make the
dealings in Freight Forwarding industry a different experience.

Integration
E-Freight offers a unique integration between front-end and back-office
systems, avoiding duplicate data entry. The design enhances the accuracy and
decreases the probability of errors or miscalculations
Modular approach
E-Freight comes in six different modules with an integrated approach among
modules
Sea/Air freight operation
Finance
Sales
Stores &HRD
Key features:
Complete web centric architecture
Most effective user interface crossing the barriers of web technology End user
comforts
Online or Offline Multi location data replication
Usage of bare minimum communication infrastructure in interconnecting
locations
Facility to send reports through email/Fax directly from the system
Facility to export to Microsoft Excel, Microsoft Word or Open Office .Org
formats
Choice of RDBMS (Oracle, Sybase, MS SQL etc
Integrated modular approach
Multi Lingual user interface
Platform Independent

Benefits:
Anywhere anytime access to data
End user comforts
Multi Branch/Location Integration
No job left unfinished
Communication Infrastructure Cost reduction
Flexible medium of transmission
Flexible interfaces with third party tools
Avoid duplicate data entry

NON-VESSEL OPERATING COMMON CARRIERS (NVOCC)

Non-vessel operating common carriers (NVOCC) are one type of sea freight
forwarders. Instead of using their own ships, they operate as transportation or
logistics intermediaries. That is, they book space on ships and sell it in smaller
quantities, consolidating freight for transport in standard containers.
NVOCCs are those who own their own containers but don't own and operate
vessels. These NVOCCs buy container space in vessels from vessel operators
and in turn will sell sea freight service in terms of Full Container Load
[FCL]/Less than Container Load [LCL] to their customers.
Smaller shippers, with less-than-container load (LCL) shipments, can take
advantage of the lower costs associated with being a big shipper. Non-vessel
operating common carriers (NVOCCs) book space on steamships in large
quantities at lower rates and sell space to shippers in smaller amounts. NVOCCs
consolidate small shipments into container loads that move under one bill of
lading. More favorable rates are passed on to the shipper.

CHARACTERIZATION OF THE FORWARDERS ROLE

The legal distinction between an ocean or actual carrier's bill of lading and a
forwarder's bill of lading is an important issue under Cogsa, and has been the
subject of considerable legal argument in recent years both in Australia and
internationally.

In a typical transaction involving an NVOCC, there are four parties:

Export shipper
NVOCC
Ocean Carrier
Import shipper/holder of the bill

But there will not necessarily (though sometime there will) be a contract
binding all of these parties.
There are three convenient characterizations of the NVOCC’s legal standing:
NVOCC as carrier (principal)
NVOCC as shipper’s agent
NVOCC as both carrier principal and shipper’s agent
(And interestingly perhaps, there has not been an attempt to characterize the
NVOCC as an independent contractor in the same manner as stevedores)
Principal
This relationship is straight forward, and involves the NVOCC issuing its house
bill of lading to the export shipper and representing its house bill to be a bill of
lading with the same rights and liabilities of a negotiable ocean bill of lading,
which is then negotiated with the NVOCC at the destination port by the import
shipper/holder of the bill, for delivery of the goods.

So far as the export/import shipper and holder of the house bill and bank
through which the house bill is negotiated (UCP 500 Art # provides for the
negotiation of house bills of lading) are concerned, it is the only bill of lading
they are aware of or concerned about. They will be blissfully unaware of the
contract between the NVOCC and the ocean carrier evidenced by the ocean bill
of lading.

Agent

In this characterization, the transaction is as follows:

The shipper contracts with the forwarder;
The forwarder issues a house bill of lading;
The forwarder contracts with the ocean carrier in its own name as agent for the
shipper who is an undisclosed principal;
Through agency, privity of contract is established between the shipper and the
ocean carrier;
If the goods are lost or damaged, the shipper must sue the ocean carrier.

Principal and agent

It has been suggested in this characterization that the NVOCC acts as both
principal and agent simultaneously

Principal or agent
There is no legal reason why the NVOCC’s role cannot change from agent to
principal to agent etc and characterized according to the nature of the
transaction at the particular time.

PROBLEMS FOR FORWARDERS

On one view, the forwarder's carriage contract should not be called a bill of
lading, as to call it a bill of lading is a misnomer, as these documents are not
really documents of title but merely receipts. And by calling them bills of
lading, forwarders are attracting all the liability (and often more) of an actual
carrier.A more accurate name for these documents is consignment note.
In addition, a forwarder who asserts he is a principal and thereby sub-contracts
to the actual carrier is involving himself unnecessarily as a defendant in cargo
claim litigation, and attracting liability for loss or damage caused by the actual
carrier which he need not have.

When a freight forwarder represents that it is the actual carrier of the goods it is
creating a number of problems which can be avoided:

1Assumes responsibility for loss or damage to the cargo as if it is the actual

carrier under one of the international conventions, for example, under the
amended Hague Rules relating to sea carriage which imposes a compulsory
minimum limitation of 666.67 SDR (about A$330) per package or shipping unit
or 2 SDR (about A$1) per kg, whichever is the greater;

2Prevents the cargo interests from pursuing the actual carrier for loss and
damage;

3. Voluntarily adopts a package limitation which does not otherwise apply to

them (see above);

4. Loses the right to exclude all liability;

These results are not in the freight forwarder's commercial interests as it
voluntarily and unnecessarily assumes the burden of a defendant in cargo
claims.
The problem for freight forwarders appears to arise by default rather than design
as it is not entirely clear why they would want to voluntarily assume the role of
a defendant in cargo claims when this onerous burden can be avoided:

No thought has been given to the name of the document being used by the
freight forwarder;

Little thought has been given to the issues which should be addressed;

Terms and conditions are a 'cut and paste' of those used by competitors;

The freight forwarder wants to represent that it owns or operates the aircraft or
ships on which the cargo is carried.

FEDERATION OF FREIGHT FORWARDERS ASSOCIATIONS IN

INDIA
International Transport is one of the most dynamic and fastest - changing
industries in the world. It needs a responsive, forward-looking and national
trade association, operating to the highest professional standards. FFFAI is that
association. We have redefined our Mission and goals. They, in turn, define
what FFFAI is and what it does.
Research Methodology
A research cannot be conducted abruptly. Researcher has to proceed
systematically in the already planned direction with the help of a number of
steps in sequence. To make the research systemized the researcher has to adopt
certain methods. The methods adopted by the researcher for completing the
project are called Research Methodology.
RESEARCH OBJECTIVES:
To identify the importance of freight forwarding in the Indian shipping industry
To study the functions and work activities of freight forwarders in India
To investigate the factors which hinder the success of the Freight Forwarding
Industry in India
To suggest possible solutions to the challenges being faced by the Freight
Forwarders in India

RESEARCH DESIGN
Type of research:
The type of research that has been adopted by the researcher is descriptive
research. It described the study on Freight Forwarders in the Indian sector and
the growing importance of Freight Forwarders.
DATA COLLECTION PROCESS:
This study is based on the secondary data in order to identify the challenges
faced by the freight forwarders in India. The researcher has collected
information based on the sources such as Reports, Journal articles, Magazines,
Books, Websites, Previous studies and Industry Experts. The researcher has
also contacted some of the freight forwarders of sea transportation to study the
issues related to the freight forwarding industry in India.

LIMITATIONS OF THE STUDY:

The researcher has done the study only on Freight forwarder.
The researcher has done the research with regard to Chennai and few other
sectors.
The researcher has not considered the financial aspects of Freight forwarders
Lack of time available for the research.
Data Analysis and Interpretation
The main object if the Federation is to organise united action to protect and
promote the interests of the profession in all its aspects at the national level; and
for that purpose to co-ordinate the activities of the Customs House Agents'
Associations and their members ; to collect and disseminate information to
members on subjects of common interest ; to take part in conferences; to help
members and to acquaint the authorities with their common problems, to protect
and to improve the common benefits, to help redress legitimate grievances by
all peaceful and constitutional means and procedures to exercise beneficial
supervision over the clearing trade with a view to maintain a high standard of
integrity and public confidence; to evolve a code of ethics for the Customs
House Agents and/or members of the Federation.

Australia
In Australia most licensed Customs Clearance Agents (now more commonly
referred to as Customs Brokers), operate under a freight forwarder.
Australian Federation of International Forwarders
History
The Australian Federation of International Forwarders was created in July 1996
following the merger of two distinct organizations, namely: The Australian
Federation of Airfreight Forwarders - 'AFAFF'- formed (as a Federal body) in
1977 and The International Forwarders Association of Australia -'IFAA'-
representing the Sea-freight Forwarders (formed in 1976). The merger was
deemed to be a natural progression which mirrored the business of its combined
membership, most of whom were active in both air & sea transport. Existing
and new members could elect to be represented in the Air and /or Sea division
of the new entity.
As time progressed, the separate 'divisions' were incorporated into the
organization as a whole and at the same time, the expanding role of the Freight
Forwarder into 3rd party logistics and the resultant wider range of services, was
catered for by AFIF as it expanded its representative involvement. In addition to
specific Air & sea matters, AFIF also represents its members in issues related
to: Customs & Quarantine; IT/E-Commerce; Training & Education; Security;
Depot & Warehousing; etc.
AFIF also strengthened its presence at both local committee and regional and
world representative level. More details are covered within this document.
During its evolution, the organization continued to develop and deliver a
comprehensive vocational training program which has progressed to cover most
subjects required by operatives in the freight forwarding industry.
During 2001 AFIF, in partnership with a new specialist group training company
'my freight career', combined to pioneer a traineeship for our Industry. AFIF
continues to increase its membership services and since 1999 has been the
official Australian distribution Agent for IATA publications and in late 2010,
was also appointed by OAG Singapore as it's GSSA for cargo publications and
products for Australia.
Canada
Transport Canada is the federal department responsible for the implementation
and enforcement of the transportation policies and programs of the Government
of Canada. The Canadian freight forwarding industry falls under the regulatory
guidance of Transport Canada. The Canadian Border Services Agency is
charged with enforcing the majority of the regulations that international freight
forwarders are required to follow. International security measures are the
dominant concern of freight forwarders and customs brokers.
The Canadian International Freight Forwarders Association (CIFFA) was
established in 1948 to support and protect the character, status, and interest of
foreign freight forwarders by establishing uniform trade practice and
regulations. CIFFA also holds an educational role by providing a certificate and
advanced certificate programs.
Ireland
Even in smaller markets, such as Ireland, the role of freight forwarders is
strategically important. International merchandise trade is worth €148 billion to
the Irish economy. 82% of manufactured products are exported, further
highlighting the importance of the freight forwarders to a nations' economy.
Associations like the Irish International Freight Association (IIFA) and FIATA
help maintain the professionalism of this industry through educational and
representative roles. The FIATA Diploma in Freight Forwarding is an example
of how this can be achieved.

Kenya
In Kenya, Freight Forwarders are commonly referred to clearing and forwarding
Agents and acts as such or as customs brokers. A license is required to operate
as a Freight Forwarders in Kenya which can be acquired from Kenya Revenue
Authority. Freight Forwarders in Kenya are responsible for clearing
consignments through Kenya Customs, arrange transportation and forward the
consignment to the consignee. Both exports and imports are required to be
cleared through customs in Kenya.
Nigeria
Freight-forwarding in Nigeria has been in place since the exporting of
groundnut as a cash crop since 1914, though not initially as freight forwarding
but as the means of transportation of both goods and services from one country
to another. Following the methodology of their British forebears, agents were
used to facilitate the transport of goods and services.

United Kingdom
In the U.K., freight forwarders are not licensed, but many are members of the
British International Freight Association (BIFA). Freight forwarders in the UK
consolidate various goods from different consignors into one full load for road
transport to Europe, which is often known as groupage. Some freight forwarders
offer additional related services like export packing.

British International Freight Association

The British International Freight Association (BIFA) is the trade

association for UK-registered companies engaged in international
movement of freight by all modes of transport, air, road, rail and sea.
BIFA has around 1400 corporate members, known generally as
freight forwarders, which offer a wide range of services within these
various modes.

BIFA represents over 1400 UK companies in the logistics and supply chain
management sector. Members of BIFA are organizations engaged in the
movement of freight to/from the UK by all modes of transport: air, road, sea and
rail. Some members are also involved in providing customs clearance and other
cross border controls.
A not-for-profit organization, BIFA is funded by subscription and run by its
members for members. It operates with a full-time Secretariat which
administers and manages the Association’s affairs.
BIFA members adopt a code of conduct, and trade under a nationally accepted
set of Standard Trading Conditions that are backed in the insurance sector.
The association provides:
•Representation
•Advice and information
•Training and development
• Industry promotion
Representation
BIFA ensures that the views of its members are properly presented, and listened
to in many quarters. This is achieved by BIFA's active participation in other
national and international governing bodies and institutions, and by political
lobbying.
Advice and Information
Members of BIFA receive copies of the Association’s monthly newsletter,
BIFA link. This serves to keep them up to date on all aspects of the industry,
including important matters which may affect their companies. BIFA’s website
contains a full listing of members, and is constantly updated with information
valuable to the entire international trading community. In addition BIFA runs a
number of conferences and seminars throughout the year to ensure that subjects
requiring special attention receive proper coverage.

Training and Development

BIFA provides industry training not only to members, but also to international
traders. Courses are run throughout the year in various locations throughout the
UK. The subjects covered include customs procedures, dangerous goods,
security, import/export and international trade procedures.
Industry Promotion
BIFA is a dedicated to improving the standards of professionalism within the
logistics and supply chain industry. The BIFA Secretariat handles over 2000
enquiries per year. BIFA encourages logistics as a career path to students, as
well as providing assistance to new importers and exporters. Promotion is also
achieved through regular participation at industry trade fairs throughout the UK.
USA
In the U.S., companies that handle domestic U.S. freight must be registered with
the U.S. Department of Transportation's Federal Motor Carrier Safety
Administration. Such forwarders are "carriers" who accept freight for
transportation and are liable for transporting the freight from origin to
destination, under their own bill of lading.
The legal definition at 49 USC 13102 (8)is: FREIGHT FORWARDER.-the
term ‘‘freight forwarder’’ means a person holding itself out to the general public
(other than as a pipeline, rail, motor, or water carrier) to provide transportation
of property for compensation and in the ordinary course of its business — (A)
assembles and consolidates, or provides for assembling and consolidating,
shipments and performs or provides for break-bulk and distribution operations
of the shipments; (B) assumes responsibility for the transportation from the
place of receipt to the place of destination; and (C) uses for any part of the
transportation a [surface carrier] carrier subject to jurisdiction of the Department
of Transportation of under this subtitle.
International ocean freight forwarders arranging for shipments to and from the
US must be licensed by the Federal Maritime Commission as Ocean
Transportation Intermediaries. An Ocean Transportation Intermediary is either
an ocean freight forwarder or a Non-Vessel Operating Common Carrier
(NVOCC). An ocean freight forwarder is an individual or company in the
United States that dispatches shipments from the United States via common
carriers and books or otherwise arranges space for those shipments on behalf of
shippers.
Ocean freight forwarders also prepare and process the documentation and
perform related activities pertaining to those shipments. An NVOCC is a
common carrier that holds itself out to the public to provide ocean
transportation, issues its own house bills of lading or equivalent document, but
does not operate the vessels by which ocean transportation is provided.
Companies may obtain both licenses and may act in both capacities even on the
same shipment. The U.S. legal distinction between the two is that a freight
forwarder acts as the agent of a principal (typically a shipper or consignee) and
the NVOCC is a transportation company (carrier) that is physically responsible
for the carriage of goods and acts as its own principal. Companies acting strictly
as an Ocean Freight Forwarder typically do not issue their own contract of
carriage (bill of lading) and as agent are generally not liable for physical loss or
damage to cargo except in cases of errors in judgment or paperwork or fiduciary
responsibility. NVOCC's act as ocean freight carrier and issue their own bill of
lading and are legally responsible for physical loss or damage in accordance
with the terms and conditions of their bill of lading and tariff. Similar to other
countries, freight forwarders that handle international air freight will frequently
be accredited with the International Air Transport Association (IATA) as a
cargo agent; however, they must obtain an Indirect Air Carrier (IAC)
certification from the Department of Homeland Security (DHS).
Freight Forwarding Industry in Hong Gong
The Hong Kong Association of Freight Forwarding Agents (HAFFA) was
formed in 1966 to represent the interests of freight forwarding industry. It has
been renamed as Hong Kong Association of Freight Forwarding and Logistics
Ltd to reflect the sophisticated nature of the business.
The larger sea freight forwarders tend to target big companies for exclusive
deals. They provide value-added services and invest in information technology
to ensure that they meet the expanding needs of the customer's changing
markets. They can also set up individual logistics subsidiaries to provide tailor-
made and specialized services in order to work as a service partner for their
customers. Generally speaking, larger companies' well-established brands and
far-reaching logistics networks have enhanced their significant market shares in
the global export market. The smaller regional players, however, have better
understanding of the business culture, better knowledge of their markets and
have established networks in the region.
As reliable and speedy delivery is the key to successful freight forwarding
services, Hong Kong's forwarders' understanding of the international practices
and their networks can help them to secure the confidence of international
customers.

Exports
The destinations of freight forwarding services mirror the trade routes. The
main markets for international freight forwarders in 2010 were Asia (34.1% of
total share), North America (33.7%) and Western Europe (27.0%).The Chinese
mainland is the most important source of cargo for Hong Kong's freight
forwarders. In 2011, 61.6% of Hong Kong’s re-exports were originated from the
Chinese mainland.
The larger freight forwarders often follow their big international customers to
new markets. In some instances, transport service providers set up business in
the new markets before recommending their customers to follow suit. They
expand overseas usually by setting up subsidiaries, joint ventures or appointing
agents to render global services.
Findings of the Study
International Overview of Leading Economy
List of Countries by GDP Given by World Bank (1990–2011)
Rank Country/Region GDP Year
(millions of
US$)
World 69,983,693 2011
1 United States 15,094,000 2011
2 China 7,318,499 2011
3 Japan 5,867,154 2011
4 Germany 3,570,556 2011
5 France 2,773,032 2011
6 Brazil 2,476,652 2011
7 United Kingdom 2,431,589 2011
8 Italy 2,194,750 2011
9 Russia 1,857,770 2011
10 India 1,847,982 2011
11 Canada 1,736,051 2011
12 Spain 1,490,810 2011
13 Australia 1,371,764 2011
14 Mexico 1,155,316 2011
15 South Korea 1,116,247 2011

Top exporting countries in the world

Rank Country Exports Date of
Information
World $17,779,000,000,00 2011 est
 0
European $2,131,000,000,000 2011 est
Union (minus
internal trade)
1 China $1,898,600,000,000 2011 est
2 United States $1,511,000,000,000 2011 est

3 Germany $1,408,000,000,000 2011 est

4 Japan $800,800,000,000 2011 est
5 France $578,400,000,000 2011 est

6 Netherlands $576,900,000,000 2011 est

7 South Korea $556,500,000,000 2011 est
8 Italy $522,000,000,000 2011 est
9 Russia $520,900,000,000 2011 est
10 United $495,400,000,000 2011 est
Kingdom
11 Canada $450,600,000,000 2011 est
12 Hong Kong $427,900,000,000 2011 est
13 Singapore $409,200,000,000 2011 est
14 Saudi Arabia $350,700,000,000 2011 est
15 Mexico $336,300,000,000 2011 est
FREIGHT FORWARDER AS A CRUCIAL LINK IN (EXIM) EXPORT-
IMPORT OPERATIONS IN INDIA

Figure 6.1
Government Agencies
The term government agencies cover the government bodies that regulate the
provision of freight transport and freight corridor access services. It is
recognised that all levels of government are involved in the regulation process.
There are several agencies that plays prominent roles in the shipping. These
agencies basically deals with the activities which are involved in a countries
import and export procedures and however fulfilling all regulations. Freight
forwarders serves as a crucial link between their customers and the agencies.
The agencies include; Inspection service, registration and certification service,
port security service, custom service etc.
Responsibilities of government regulators include:
• Collection of taxes associated with: costs of provision of some corridor access
infrastructure (i.e. roads via fuel tax and vehicle registration), regulation and in
some environments broader costs associated with ameliorating the impacts of
freight transport;
• Regulating freight transport service provision for reasons of safety, efficiency
and amenity;
• Planning for future land use and transport infrastructure provision (via
integrated transport plans and corridor plans) and implementing its provision;
and
• Ensuring freight transport is delivered according to governments’ social,
environmental and economic objectives, which are developed in context of
community expectations.
As stated above, government has served and continues to serve other roles in the
provision of freight transport. This may either occur in a competitively neutral
or non-neutral environment.
Insurance Industry
Freight forwarders’ liability insurance protects the Insured’s property and
financial interests. For logistics companies, Insurance companies offers a
special insurance package which satisfies the specific character of forwarding
the goods and mail delivery by any means of transport using the FIATA
multimodal transport bill of lading or by mail and messenger service.
Insurance object:
freight forwarder’s responsibility which he incurs in providing services of
forwarding and transportation of goods and mail by any means of transport and
the third party liability, including liability for payment of customs duties and
taxes which are imposed by customs authorities on a freight forwarder placing
the goods under transit procedure.
Risks covered:
liability for physical loss of or damage to cargo;
liability for physical loss of or damage to third party property;
liability for death, bodily injury or illness (including hospital, medical and
funeral expenses) of any third party caused by the transported cargo;
liability for any financial loss incurred by the competent person under the
contract of carriage resulting from the failing of the freight forwarder, partially
or totally, to perform his contractual obligations;
Customs risks - the risks arising from a breach of import or export regulations
including liability for payment of customs duties and taxes which are imposed
by customs authorities on a freight forwarder and which would not have been
payable but for a breach of import or export regulations.
Liability for loss of, destruction or damage to trailer and/or container during the
transportation.
Exporter
This term export is derived from the conceptual meaning as to ship the goods
and services out of the port of a country. The seller of such goods and services
is referred to as an "exporter" who is based in the country of export whereas the
overseas based buyer is referred to as an "importer". In International Trade,
"exports" refers to selling goods and services produced in the home country to
other markets
Custom
Customs is an authority or agency in a country responsible for collecting and
safeguarding customs duties and for controlling the flow of goods including
animals, transports, personal effects and hazardous items in and out of a
country. Depending on local legislation and regulations, the import or export of
some goods may be restricted or forbidden, and the customs agency enforces
these rules. The customs authority may be different from the immigration
authority, which monitors persons who leave or enter the country, checking for
appropriate documentation, apprehending people wanted by international arrest
warrants, and impeding the entry of others deemed dangerous to the country. In
most countries customs are attained through government agreements and
international laws.
Importer
The term import is derived from the conceptual meaning as to bring in the
goods and services into the port of a country. The buyer of such goods and
services is referred to an "importer" who is based in the country of import where
the overseas based seller is referred to as an "exporter". Thus an import is any
good (e.g. a commodity) or service brought in from one country to another
country in a legitimate fashion, typically for use in trade

Custom Broker
Customs brokerage is a profession that involves the "clearing" of goods through
customs barriers for importers and exporters (usually businesses). This involves
the preparation of documents and/or electronic submissions, the calculation and
payment of taxes, duties and excises, and facilitating communication between
government authorities and importers and exporters.
Custom brokers may be employed by or affiliated with freight forwarders,
independent businesses, or shipping lines, importers, exporters, trade
authorities, and customs brokerage firms.
CONCLUSIONS
A freight forwarder is an individual or company that dispatches shipments via
asset based carriers and books or otherwise arranges space for shipments.
Freight forwarders typically arrange cargo movement to an international
destination. The importance of freight forwarder lies in organizing the safe,
efficient movement of goods on behalf of an exporter, importer or another
company or person, sometimes including dealing with packing and storage.
Freight forwarders arrange the best means of transport, using the services of
shipping lines, airlines or road and rail freight operators. In some cases, the
freight forwarding company itself provides the service.

Freight forwarders have been called travel agents for freight. The work
activities of freight forwarder include researching and planning the most
appropriate route for a shipment. Obtaining, checking and preparing
documentation to meet customs and insurance requirements. Liaising with third
parties to move goods by different modes Freight forwarders are experts, that
allows them to prepare and process the documentation and perform related
activities pertaining to international shipments

The problems faced by freight forwarders is identified from different angles, it

is very clear by the facts and figures that the occurrence of problems is because
of government regulations, liner companies, Non availability of trailers &
trucks. To overcome these problems the freight forwarders should update
themselves with the new technologies and current standards, in order to meet
the global customer’s satisfaction level.

SUGGESTIONS
Freight forwarders in India have not taken extra care in retaining the customers
i.e. the CRM strategies followed by freight forwarders companies or not
effective in retaining the customers.
Major problems identified by the freight forwarders in their business operation
Stuffing, loading and unloading, non-availability of trailers and trucks, Routing
and scheduling. A consortium of freight forwarders could be formed so that
problems of non-availability of trucks and containers could be minimized.
International Transportation frequently requires ocean or airfreight modes,
which many corporations only rarely use domestically. In addition,
combinations such as land bridges or sea bridges may permit the transfer of
freight among various modes of transportations; resulting in intermodal
movements the international logistics manager must understand the specific
properties of the different modes to be able to use them intelligently.
Ocean Shipping Water transportation is a key mode for international freight
movement. Three types of vessels operating in ocean shipping can be
distinguished by their service: liner service, bulk Service and tramp or charter
service. Liner service offers regularly scheduled passage on established routes.
Bulk service mainly provides contractual services for individual voyages or for
prolonged periods of time. Tramp service is available for irregular routes and
scheduled only on demand the demand will be ratified will not come irregular
routes and scheduled.
Introduction of web based tracking (e-tracking) will help minimize mistakes and
improve transparency of operations.
Online payment can be introduced to ratify the default in payment.
Major problems identified in preparing the documentation Data of delivery at
the destination, Terms of payment. Sometimes bottle neck of the businesses i.e.
preparing price quotation.
Implementation of EDI strengthened by the freighter forwarders.
Whenever work load increases it becomes difficult for the freight forwarders to
handle the work.New routes of commerce have also opened up particularly
between the former East and West political blocs. Yet without the proper
infrastructure the opening of market is mainly accompanied by major new
bottlenecks.
 BIBLIOGRAPHY

BOOKS:
Allan Branch, Elements of Shipping, 8th Edition, Routledge Publisher, USA.
Year
Donald R Cooper and Pamela S Schindler, Business Research Methods, 6 th
Edition, Tata McGraw Hill Public Company Limited, New Delhi.
F N Hopkins, Business & Law for the Ship Master, 7 th Edition, Brown, Son &
Ferguson, Limited. Glasgow.
Donald J Bowersox & David J Closs, Logistical Management the Integrated
Supply Chain Process, Tata McGraw-Hill Publishing Company Limited. New
Delhi.
Proceedings of the International Maritime-Port Technology and Development
Conference, Research Printing Services, Singapore.

WEBSITES
http://www.wikipedia.com
http://www.google.com

Questionnaire
Section A: Demographic Information

1. Name:
2. Position in Maybach Logistics:
o Freight Broker
o Dispatcher
o Operations Manager
o Sales/Marketing
o Other (please specify): __________
3. Years of Experience in the Logistics Industry:
o Less than 1 year
o 1-3 years
o 4-6 years
o 7-10 years
o More than 10 years

Section B: The Role of Freight Brokers

4. How would you describe the primary role of a freight broker in the logistics industry?
(Select all that apply)
o Connecting shippers and carriers
o Negotiating rates
o Managing shipping schedules
o Tracking shipments
o Handling documentation and compliance
o Other (please specify): __________
5. What are the key skills required for a successful freight broker? (Select all that apply)
o Communication
o Negotiation
o Market knowledge
o Problem-solving
o Customer service
o Other (please specify): __________
6. How important is technology in the role of a freight broker?
o Not important
o Somewhat important
o Important
o Very important
7. Which technologies do you find most helpful in your role as a freight broker? (Select all
that apply)
o Transportation Management Systems (TMS)
o Load boards
o GPS tracking
o EDI (Electronic Data Interchange)
o CRM systems
o Other (please specify): __________
8. How do freight brokers contribute to customer satisfaction?
o Efficient communication
o Cost savings
o Timely deliveries
o Handling unexpected issues
o Other (please specify): __________
 9. What challenges do freight brokers commonly face? (Select all that apply)
o Finding reliable carriers
o Rate negotiations
o Regulatory compliance
o Market volatility
o Managing customer expectations
o Other (please specify): __________

Section C: Risk Management in Freight Brokerage

10. How do you assess the risk when selecting carriers? (Select all that apply)
o Carrier's safety record
o Financial stability
o Insurance coverage
o Reputation and reviews
o Other (please specify): __________
11. What types of risks are most prevalent in freight brokerage? (Select all that apply)
o Financial risk (non-payment, rate fluctuations)
o Operational risk (delays, accidents)
o Legal and compliance risk
o Market risk
o Reputational risk
o Other (please specify): __________
12. What measures do you take to mitigate risks in freight brokerage? (Select all that apply)
o Contractual agreements
o Insurance policies
o Regular audits and reviews
o Using reliable carriers
o Diversifying carrier base
o Other (please specify): __________
13. How often do you review and update risk management strategies?
o Quarterly
o Annually
o As needed
o Never
14. How do you handle disputes between shippers and carriers?
o Mediation
o Arbitration
o Legal action
o Negotiation
o Other (please specify): __________
15. What role does insurance play in managing risks in freight brokerage?
o Essential
o Important
o Somewhat important
o Not important

Section D: Industry Trends and Future Outlook

16. What industry trends do you think will impact the role of freight brokers in the next 5
years? (Select all that apply)
o Digitalization and automation
 o Increased regulatory scrutiny
o Market consolidation
o Environmental and sustainability concerns
o Customer expectations for faster delivery
o Other (please specify): __________
17. How do you foresee the role of freight brokers evolving in the future?
o Increased focus on technology
o More involvement in supply chain management
o Greater emphasis on customer service
o Expanded role in risk management
o Other (please specify): __________

Section E: Feedback and Suggestions

18. What challenges do you think Maybach Logistics faces in freight brokerage?
o

19. What improvements would you suggest for better risk management in our operations?
o

20. Any other comments or suggestions?

o

Consent

21. Do you consent to share your responses for internal analysis and potential
improvements at Maybach Logistics?
o Yes
o No