A STUDY ON PROBLEMS FACED BY FREIGHT FORWARDERS WITH

REFERENCE TO HYUNDAI GLOVIS

Submitted in partial fulfilment of the requirements for the award of Degree in

MASTER OF BUSINESS ADMINISTRATION

by

SANCHANA A A

Register No.40410266

DEPARTMENT OF BUSINESS ADMINISTRATION

SCHOOL OF MANAGEMENT STUDIES

SATHYABAMA
INSTITUTE OF SCIENCE AND TECHNOLOGY
(DEEMED TO BE UNIVERSITY)
Accredited with Grade “A” by NAAC I 12B Status by UGC I Approved by AICTE
JEPPIAAR NAGAR, RAJIV GANDHI SALAI, CHENNAI - 600 119

MAY 2023
 SCHOOL OF MANAGEMENT STUDIES

BONAFIDE CERTIFICATE

This is to certify that this Project Report is the Bonafide work of

SANCHANA A A 40410266 who carried out the project entitled “A STUDY

ON PROBLEMS FACED BY FREIGHT FORWARDERS WITH REFERENCE TO

HYUNDAI GLOVIS”

under my supervision from January 2023 to March 2023.

DR. VELUMONI MBA, M.Phil., Ph.D., J. HARISH KUMAR HOD

Internal Guide External Guide

Dr. BHUVANESWARI .G, MBA., Ph.D.

Dean – School of Management Studies

Submitted for Viva voce Examination held on 06.05.2023

Internal Examiner External Examiner

 DECLARATION

I SANCHANA. A. A (40410266) hereby declare that the Project Report

entitled “A STUDY ON PROBLEMS FACED BY
FREIGHT FORWARDERS WITH
REFERENCE TO HYUNDAI GLOVIS” done by me under the guidance of
DR. VELUMONI is submitted in partial fulfilment of the requirements for
the award of Master of Business Administration degree.

DATE: 06.05.2023

PLACE: CHENNAI SANCHANA A A

 ACKNOWLEDGEMENT

I am pleased to acknowledge my sincere thanks to Board of

Management of SATHYABAMA for their kind encouragement in doing
this project and for completing it successfully. I am grateful to them.

I convey my sincere thanks to Dr. G. Bhuvaneswari, MBA., Ph.D., Dean –

School of Management Studies and Dr. A. Palani, M.Com., M.Phil., MBA.,
Ph.D., Head
- School of Management Studies for providing me necessary support and
details at the right time during the progressive reviews.

I would like to express my sincere and deep sense of gratitude to my

Project Guide DR.VELUMONI MBA, M.Phil., Ph.D., for her valuable
guidance, suggestions and constant encouragement paved way for the
successful completion of my project work.

I wish to express my thanks to all Teaching and Non-teaching staff

members of the School of Management Studies who were helpful in many
ways for the completion of the project.

SANCHANA A A
 TABLE OF CONTENTS

CHAPTER NO TITLE PAGE NO

ABSTRACT I

LIST OF TABLES Ii

LIST OF CHARTS iii

INTRODUCTION 1

1.1 Introduction About The Topic 1

1.2 Industry Profile 1

1.3 Company Profile 3

1.4 Need For The Study 5

1 1.5 Objectives Of The Study 6

1.6 Scope Of The Study 6

1.7 Limitations Of The Study 6

REVIEW OF LITERATURE 7

2 2.1 Review of Literature 7

RESEARCH METHODOLOGY 11

3.1 Research Design 11

3.2 Source Data 12

3 3.3 Structure of Questionnaire 12

3.4 Sample design 12

3.5 Analytical tools 12

 DATA ANALYSIS AND INTERPRETATION 14

4.1 Percentage Analysis 14

4.2 T-test 26

4 4.3 Anova 27

FINDINGS, SUGGESTIONS AND CONCLUSION 29

5.1 Findings of the Study 29

5 5.2 Suggestions 29

5.3 Conclusion 30

REFERENCES 31

ANNEXURE I – QUESTIONNAIRE 34

ANNEXURE II – RESEARCH ARTICLE 38

 ABSTRACT

The term Logistics Management or supply chain management is that part of

Supply Chain Management that plans, implements, and controls the efficient,
effective, forward, and reverse flow and storage of goods, services, and
related information between the point of origin and the point of consumption
in order to meet customer's requirements.

A freight forwarder is a person or company that organizes shipments for

individuals or corporations to get large orders from the manufacturer or
producer to market or final point of distribution. Forwarders will contract with
a carrier to facilitate the movement of goods. A forwarder is not typically a
carrier, but is an expert in supply chain management. In other words, a freight
forwarder is a "travel agent," for the cargo industry, or a third-party (non-
asset-based) logistics provider. A forwarder will contract with asset-based
carriers to move cargo ranging from raw agricultural products to
manufactured goods.

The primary objective of this project is to conduct ‘A study on problems faced

by freight forwarders in Hyundai Glovis’. It is important to analyse the
problems faced by freight forwarders from the carriers as well as companies
and individual customers.

 Population size : > 300

 Sample Size : 121
 Sampling Technique : Convenience Sampling
 Statistical Tools : T-test, One way ANOVA
 Graphical Tools : Bar Charts, Pie Charts

By studying and comparing the various problems faced by the freight

forwarders. It is easy identify the solutions to avoid the problems and make
sure the smooth flow of business. This will help Hyundai Glovis to establish a

i
reasonable share in the market place.

ii
 LIST OF TABLES

TABLE NO PARTICULARS PAGE NO

4.1.1 Age Of The Respondents 14

4.1.2 Gender Of The Respondents 15

4.1.3 Rank the problems faced from carriers during 16

freight forwarding

4.1.4 Educational Qualification of the respondents 19

4.1.5 Income of the respondents 20

4.1.6 Operational area of the respondents 21

4.1.7 Exporting goods’ frequency 22

4.1.8 Preferred mode of transport 23

4.1.9 Opinion about freight rates 24

4.1.10 Suggestions to reduce the problems faced by 25

the freight forwarders

iii
 LIST OF CHARTS

TABLE NO. TITLE PAGE NO

4.1.1 Age wise classification of the respondents 14

4.1.2 Gender wise classification of the respondent 15

4.1.3 Rank the problems faced from carriers during freight 18

forwarding
4.1.4 Educational Qualification of the respondents 19

4.1.5 Income of the respondents 20

4.1.6 Operational Area of the respondents 21

4.1.7 Exporting Goods’ frequency 22

4.1.8 Preferred mode Of Transport 23

4.1.9 Respondents opinion About Freight Rates 24

4.1.10 Suggestions to reduce the problems faced by the 25

freight forwarders

iii
 CHAPTER 1 – INTRODUCTION

1.1 INTRODUCTION

The word of logistics originates from the ancient Greek logos, which means
“ratio, word, calculation, reason, speech, and oration”. Logistics as a concept
is considered to evolve from the military's need to supply them as they moved
from their base to a forward position. In ancient Greek, Roman and Byzantine
empires, there were military officers with the title ‘Logistics’ who were
responsible for financial and supply distribution matters.

A freight forwarder or forwarding agent is a person or company that organizes

shipments for individuals or corporations to get large orders from the
manufacturer or producer to market or final point of distribution. Forwarders
will contract with a carrier to facilitate the movement of goods. A forwarder is
not typically a carrier, but is an expert in supply chain management. In other
words, a freight forwarder is a "travel agent," for the cargo industry, or a third-
party (non-asset-based) logistics provider. A forwarder will contract with
asset-based carriers to move cargo ranging from raw agricultural products to
manufactured goods. Freight can be booked on a variety of carrier types,
including ships, airplanes, trucks, and railroads. It's not unusual for a shipment
to move along its route on multiple carrier types.

The term logistics seems all pervasive. It appears on the sides of trucks, ships
and aircraft, forming part of the name of many business enterprises, in
classified job advertisements as well as newspaper articles and on television
news broadcasts.

1.2 INDUSTRY PROFILE

Logistics is a process of planning, implementing and controlling efficient and

cost- effective flow of materials and information from point of origin to point of
consumption. Hence, Logistics is nothing but the process of strategically
1
managing the movement and storage of materials, parts, and finished
inventory from suppliers, between enterprise facilities and customers.

2
A freight forwarder, forwarder, or forwarding agent is a person or company
that organizes shipments for individuals or other companies and may also act
as a carrier. A forwarder is often not active as a carrier and acts only as an
agent, in other words

As a third-party logistics provider, they have the expertise that allows them to
prepare and process the documentation and 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 landing and other
documents required by the carrier or country of export, import, or
transhipment. Much of this information is now processed in a paperless
environment.

Logistics Management is that part of the supply chain which plans,

implements and controls the efficient, effective forward and reverse flow and
storage of goods, services and related information between the point of origin
and the point of consumption in order to meet customers' requirements.

International freight forwarders handle both direct and consolidated

shipments. A direct shipment is sent on its own without being co-loaded with
other goods. This could be an entire container, truckload or airfreight
shipment. Consolidated shipments are those where goods from two or more
parties are shipped together, adding weight and security to the shipment, and
usually lowering the cost of freight.

An international freight forwarder is an agent for the exporter in moving cargo

to an overseas destination. These agents are familiar with the import rules
and regulations of foreign countries, the export regulations of the U.S.
government, the methods of shipping, and the documents related to foreign
trade. Export freight forwarders are licensed by the International Air Transport
Association (IATA) to handle air freight and the Federal Maritime Commission
to handle ocean freight.

3
Freight forwarders assist exporters in preparing price quotations by advising
on freight costs, port charges, consular fees, costs of special documentation,
insurance costs, and their handling fees. They recommend the packing
methods that will protect the

4
merchandise during transit or can arrange to have the merchandise packed at
the port or containerized. If the exporter prefers, freight forwarders can
reserve the necessary space on a vessel, aircraft, train, or truck. The cost for
their services is a legitimate export cost that should be included in the price
charged to the customer.

Once the order is ready for shipment, freight forwarders should be reviewing
all documents to ensure that everything is in order. This is of particular
importance with letter of credit payment terms. They may also prepare the bill
of lading and any special required documentation. After shipment, they can
route the documents to the seller, the buyer, or to a paying bank. Freight
forwarders can also make arrangements with customs brokers overseas to
ensure that the goods comply with customs export documentation
regulations. A customs broker is an individual or company that is licensed to
transact customs business on behalf of others. Customs business is limited to
those activities involving transactions related to the entry and admissibility of
merchandise.

1.3 COMPANY PROFILE

Hyundai Glovis is your one stop shop - solution and your cargo to be delivered
in a timely manner. Logistic Companies have successfully revolutionized the
freight services in India. The company’s team of experienced logistics experts
will give updates during the product movement process. The company will
complete the long paper-work, follow up with the crew to find out the present
position of the item and then going through the tedious system of the
respective port after reaching the destination.
The freight option allows to select from the list of services, namely door to
door services, Air freight, import & export services, documentation handling &
processing, insurance, local air freight, cartage and delivery. Client may even
check out the customized ship freight services and transfer the good to any
5
major international ports around the world. Contact us as we are reliable and
with years of experience ensures safe delivery of the products within time.

6
Company believes that business is not measured purely in financial terms. It
also believe that the way they go about achieving their success is as
important as success itself.
The Logistics division has strategically located facilities in all capital city ports
and provides road and rail container transport, customs and quarantine
services, container parks, intermodal terminals, warehousing and international
freight forwarding.
Detailed information on these services, facility locations and contacts are
contained under the divisional tabs above.

Fig 1.1 Transportation

7
Fig 1.2 Storage and Warehousing

1.4 NEED FOR THE STUDY:

A freight forwarder is a person or company that organizes shipments for

individuals or corporations to get large orders from the manufacturer or
producer to market or final point of distribution. It helps to analyse the
problems faced by freight forwarders from the carriers as well as companies
and individual customers. It helps to understand the satisfaction level of the
custom clearance.

Logistics play a vital role in international business. A freight forwarder

can help to improve the delivery of products and increase customer service.
Hyundai Glovis faces problems in documentation, transport, custom
clearance, freight forwarder and this affect the exports and integral part of
global supply chain so to overcome all these problem study is conducted.

8
1.5 OBJECTIVE OF THE STUDY

1.5.1 Primary Objective:

To study the problems faced by freight forwarders with special
reference to Hyundai Glovis in Chennai.

1.5.2 Secondary Objective:

1) To analyse the problems faced by freight forwarders.
2) To find out the satisfaction level of the respondents in freight forwarding.
4) To suggest solutions to reduce the problems faced by the freight forwarders.

1.6 SCOPE OF THE STUDY

A forwarder is often not active as a carrier and acts only as an agent, in other
words as a third-party logistics provider, they have the expertise that allows
them to prepare and process the documentation and perform related
activities pertaining to international shipments.
It helps the company to identify the bottleneck/s within the freight-forwarders.
It helps the company to identify the better way for the Freight Forwarders to
accomplish their tasks. This study focus on understanding the problems of the
freight forwarders.

1.7 LIMITATIONS OF THE STUDY

 Opinion of employees may be biased at time.

 Respondents would have hidden some facts due to the fear of management.
 The study is based on the data collected from respondents and a journal
hence the reliability of the data is not probed into. Utmost care has to
be taken while extending the results to the other areas.

9
 CHAPTER 2- REVIEW OF LITERATURE

Benjamin Ertel and Mike Jones (2007) A study on “Performance Based Logistics
Perspective”. The objective of the study is about the critical concepts for
successful PBL incorporation and common PBL misconceptions in logistics. It
also describes keys to successful PBL implementation Viz. Alignment of
supplier incentives with requirements, competitive advantage and
empowerment of support provider. It gives the PBL value proposition as
improved integration and gives the necessary steps for implementation of
performance based logistics.

Sebastian (2008) A Study on “Problems of Logistics Industry “. The objective of the

study about the problem that faced logistics industry. He concluded that
India’s logistics industry is low in their planning and current professionals in
the industry should sharpen their skills on a broad base of key elements of
transportation and logistics. Finally he said that, there should be very
balanced between solid knowledge and real world application.

M. Dhanabakyam and K. Parimala (2006) A study on “Role of Freight Forwarders and

Customs House Agents In Logistics-A Perceptual Study. The study concerned
with the freight forwarding is a vital part of logistics in international trade
activity. The objective of the study was to identify the study appraise the role
played by Freight Forwarders in logistics was conducted. Thus the study
showcased that, as the world has become a global village, the service
providers like Freight. Forwarders should be prepared to face the challenges
of tomorrow, by extending their network in every corner of the world and
providing more accuracy in their commitments.

Davis, Beth R (2006), a study on” Logistics service driven loyalty: an exploratory
study”. The Journal shows that supply chain relationships can be a stable
source of competitive advantage to firms in the supply chain because of their
ability to create barriers to existing competition and conclude that improving
10
logistics customer service is an ongoing focus for firms. Suppliers are trying to
become more proactive with their customers and anticipate customer
expectations.

11
Mohitayalamanchi (2009), a study on “Logistics and Customer Value”, the
objective of the study is about the customer value that companies have
created through logistics management, in their quest for new ways to
establish a competitive edge. A number of new tools and approaches have
emerged as proactive elements of the logistics response to the task of
creative value for the customer viz. emphasis on logistical customer service,
management of the supply chain, the development of strategic alliances. It
gives an explanation of various steps taken by different firms for identifying
and implementing quality improvement processes in the logistics areas.

Berrada A. Chakir & Ciro Aida (2009), a study on “Bottlenecks in the Freight
Forwarding sector in West-coast Africa”. The objective of the study about a
to identify the bottleneck/s within the freight-forwarding industry in west coast
Africa. The Study revealed that the series of interesting findings First, the
activity of a Freight Forwarder depends on a series of factors that do not
depend on the Freight Forwarder per se. And second, Freight Forwarders in
order to accomplish their tasks have access to services that are shared by all
providers, and that are beyond their control. To conclude the study identifies
infrastructure as a major bottleneck in the Freight Forwarding sector.

Scott and Brook, (1991) The chain linking each element of the manufacturing
and supply process from raw materials to the end user, encompassing several
organizational boundaries. In their research they highlight the significance of
coordination among constituent members.

Lu and Din Woodie (2002) empirically explores the international network

development of regional forwarders. Collaboration between competing
forwarders may create favourable condition and network sharing for each
other.

Sachan and Datta (2005); Storey et al. (2006) provided excellent review on supply

12
chain management literature. These papers define the concept, principals,
nature, and development of SCM and indicate that there is an intense
research being conducted

13
around the world in this field they critically assessed developments in the
theory and practice of supply management.

Lun et al. 2009 examine liner shipping from network perspective with an aim to
develop a descriptive framework for operation and development of liner
shipping networks. The framework supports liner shipping companies and
their partners for cost and service improvement in renovating their networks.

Brooks 1985 reveals the service quality attributes of liner shipping industry
such as transit time, directness of sailings, carrier’s reputation for reliability,
frequency of sailing and next ship leaving.

Lu and Din Woodie 2002 empirically explores the international network

development of regional forwarders. Collaboration between competing
forwarders may create favourable condition and network sharing for each
other.

Lai and Cheng 2004 empirically study the freight forwarding industry in terms
of demographic profiles, capabilities of providing different type of logistics
services, service performance and the perceived prospects in Hong Kong.
They explain many forwarders have high capability to provide freight
forwarding and traditional logistics service, but they seem to lack the ability to
provide other value-added service.

Liang et al. 2006 pointed out four critical service items for an ocean freight
forwarder. The four service items include operations convenience and
response ability, integrated service, transportation ability, and price.

Lu 2007 identifies seven capability dimensions for liner shipping including

purchasing, operation, human resource management, customer service,
information integration, pricing, and financial management. Results show four

14
factors are significant differ between shipping companies and agency: marine
equipment, information equipment, operation, and information integration.
Stated the downturn of Hong Kong freight

15
forwarding industry owing to the growing competition and challenge from the
neighbouring ports of Yantian and Shekou in China, which operated in a much
cheaper way. He suggested a tactical knowledge-based scheduling system
implemented in a local freight forwarder for supporting the scheduling process
of a shipping plan.

Tongzon 2009 empirically studied on port choice issue from the freight
forwarders’ perspective in Southeast Asia. Efficiency is found to be the most
significant factor followed by shipping frequency, adequate infrastructure and
location.

Lun et al. 2009 examine liner shipping from network perspective with an aim to
develop a descriptive framework for operation and development of liner
shipping networks. The framework supports liner shipping companies and
their partners for cost and service improvement in renovating their networks.

Shang 2009 empirically studied the organizational learning capabilities in third-

party logistics providers in Taiwan. The results indicate the positive
relationship between integration capability organizational learning capability
and service performance.

Lu and Yang 2010 empirically evaluated the crucial logistics service capabilities
and firm performance of international distribution centre operators in Taiwan.
Three key capabilities are innovation capability, customer response capability
and flexible operation capability.

Bock 2010 proposed a real-time-oriented control approach for freight

forwarders to expand load consolidation, reduce empty vehicle trips, and handle
dynamic disturbances.

Feo et al. 2011 explored the preference analysis of Spanish freight forwarders

16
modal choice between short sea shipping and door-to-door road transport in
terms of value of time, value of reliability and value of frequency in freight
transport.

17
 CHAPTER 3 – RESEARCH METHODOLOGY

METHODOLOGY:

Research methodology is mainly needed for the purpose of framing the

research process and the designs and tools that are to be used for the project
purpose. Research methodology helps to find the impact of inventory
management on profitability.
Research methodology is a system way that solves the research problem it
may be understood as a science of study how research is done it is, they
study the various steps that are generally adopted by researcher in studying
the research problem along with the logic behind in it. It is a necessary for the
researcher to know not only the research methods or techniques, but also the
methodology.
Researchers not only need to know how to develop certain tests, how to apply
particular research techniques, but the researcher also need to understand
the assumption underlying various techniques and researcher has to know the
criteria by which researcher can decide that certain techniques and
procedures will applicable to certain problems and others or not.
It is necessary for the researcher to design this methodology for his problem
as the same way dimensions at research methods do constitute a part of the
research methodology. The scope of the research methodology is wider than
those research methods. The research methodology concerns research
problem or study.

3.1 RESEARCH DESIGN:

The type of research design undertaken is Descriptive Research. Descriptive

research includes surveys and fact-findings enquiries of different kinds. The
major purpose of descriptive research is description of state of affairs, as it
exists at present.

 Descriptive research design is a hypothesis-based method that defines

18
the primary subject matter of the research and tries to analyse it using
different assumptions and techniques. This type of research design uses
data collection techniques like natural

19
observation, case studies and surveys to derive results. Descriptive data is used
to collect basic information about variables in a dataset and to find
relationship between variables.

 Qualitative data includes respondents’ opinion and ideas. It is also

applied in order to describe current conditions or to investigate relationships.

3.2. SOURCES OF DATA:

Data collection method is the main sources through which the data is collected:

Primary data:
The Primary data was collected through a structured questionnaire from
the employees of Freight forwarder - Hyundai Glovis in Chennai

Secondary data:
Secondary data was collected from magazines, journals, books and websites.

3.3 STRUCTURE OF QUESTIONNAIRE:

Questionnaire was divided into two sections. First part was designed to know the
general information about respondents and the second part contains some
questions to know about the relationship between inventory management and
profitability and some more questions were added to find out the problems
faced by the freight forwarders.

3.4 SAMPLE DESIGN:

Sample Design is method of selecting the samples. The convenient

method of sampling was applied to select the sample respondents. A sample
of 100 employees of Hyundai Glovis in Chennai is taken for this study.

3.5 TOOLS FOR ANALYSIS:

The Data collected was analyzed using Frequency analysis, T- test and Anova.

20
3.5.1. T- Test:
The Independent Samples T- Test is a statistical tool that compares
means for two groups of cases.

3.5.2. ANOVA:
One way ANOVA is a statistical tool that can be used to compare whether two
samples means are significantly different or not

3.5.3. PERCENTAGES:
Percentages refer to a special kind of ratio. Percentages are used in making
comparison between two or more series of data. Percentages are used to
describe relationships, it is expressed as.

Percentage = (no of employees/total no of employees)*100

3.5.4. CHARTS:

Charts are graphic displays of data for easy understanding of relative

positions that is not always possible with descriptive words or numbers. Types
of charts commonly used in business data presentation are: Bar and pie.

3.5.5. BAR CHARTS:

The bar chart is commonly used for presentation of qualitative data. The
data can be continuous or discrete data, which are plotted against discrete
data intervals. The vertical bar diagram, also called bar chart where the length
or height of bars represent the numerical value of the event or measurement.
Width or gap between the bars is of no significance to the bar chart data, but

21
they are uniform in a diagram.

22
CHAPTER 4 - DATA INTERPRETATION AND STATISTICAL ANALYSIS

4.1 PERCENTAGE ANALYSIS

Table 4.1.1: Table indicating Age of the respondents

PARTICULARS NO OF PERCENTAGE
RESPONDENTS
20-30 8 7%
30-40 18 15%
40-50 40 33%
Above 51 55 45%
TOTAL 121 100

INTERPRETATION:
 According to the above data, 45% of the respondents are above the
age of 51 years.
 33% of the respondents are between the ages of 41- 50.
 15% of the respondents are between the age of 31- 40 years and
 7% are between the ages of 20- 30.

CHART – 4.1.1: Chart indicating age wise classification of respondent

50%
45%
45%
40%
35% 33%

30%
25%
20%
15%
15%
10% 7%
5%
0%
20 - 30 31 - 40 41 - 50 51 Above

23
Table 4.1.2: Table indicating gender of respondents

PARTICULARS NO OF PERCENTAGE
RESPONDENTS

MALE 93 77

FEMALE 28 23

TOTAL 121 100

INTERPRETATION:
From the above table it can be interpreted that 77% of the respondents are male.

Chart 4.1.2: Chart indicating Gender of the respondents

90%

80%

70%

60%

50%

40% 77%
30%

20%
23.00%
10%

0%
male female

24
Table 4.1.3: Table indicating Rank the problems faced from carriers during freight
forwarding

Variables 1 % 2 % 3 % 4 % 5 %

Delivery delay 37 31% 42 35% 21 17% 18 15% 17 14%

Damaging 47 39% 27 22% 24 20% 11 9% 12 10%

of packages
Frequent rise 21 17% 30 25% 29 24% 13 11% 18 15%
in forwarding
cost
Lack of 4 3% 9 7% 25 21% 33 27% 42 35%
proper
communication
Bulk- 12 10% 13 11% 22 18% 46 38% 32 26%

Order Priority

INTERPRETATION:

 From the above table it could be interpreted that 31% of the

respondents have ranked delivery delay 1 as the main problems faced
from carriers during freight forwarding.
 35% of the respondents have ranked delivery delay 2 as the problems
faced from carriers during freight forwarding.
 17% of the respondents have ranked delivery delay 3 as the problems
faced from carriers during freight forwarding.
 15% of the respondents have ranked delivery delay 4 as the problems
faced from carriers during freight forwarding.
 14% of the respondents have ranked delivery delay 5 as the problems
faced from carriers during freight forwarding.

25
 39% of the respondents have ranked damaging of packages 1 as the
main problems faced from carriers during freight forwarding.

26
 22% of the respondents have ranked damaging of packages 2 as the
problems faced from carriers during freight forwarding.
 20% of the respondents have ranked damaging of packages 3 as the
problems faced from carriers during freight forwarding.
 9% of the respondents have ranked damaging of packages 4 as the
problems faced from carriers during freight forwarding.
 10% of the respondents have ranked damaging of packages 5 as the
problems faced from carriers during freight forwarding.
 17% of the respondents have ranked frequent rise in forwarding cost 1
as the main problems faced from carriers during freight forwarding.
 25% of the respondents have ranked frequent rise in forwarding cost
2 as the problems faced from carriers during freight forwarding.
 24% of the respondents have ranked frequent rise in forwarding cost
3 as the problems faced from carriers during freight forwarding.
 11% of the respondents have ranked frequent rise in forwarding cost
4 as the problems faced from carriers during freight forwarding.
 15% of the respondents have ranked frequent rise in forwarding cost
5 as the problems faced from carriers during freight forwarding.
 3% of the respondents have ranked lack of proper communication 1 as
the main problems faced from carriers during freight forwarding.
 7% of the respondents have ranked lack of proper communication 2
as the problems faced from carriers during freight forwarding.
 21% of the respondents have ranked lack of proper communication
3 as the problems faced from carriers during freight forwarding.
 27% of the respondents have ranked lack of proper communication
4 as the problems faced from carriers during freight forwarding.
 35% of the respondents have ranked lack of proper communication
5 as the problems faced from carriers during freight forwarding.
 10% of the respondents have ranked bulk- order priority 1 as the main
problems faced from carriers during freight forwarding.

27
  11% of the respondents have ranked bulk- order priority 2 as the
problems faced from carriers during freight forwarding.
 18% of the respondents have ranked bulk- order priority 3 as the
problems faced from carriers during freight forwarding.
 38% of the respondents have ranked bulk- order priority 4 as the
problems faced from carriers during freight forwarding.
 26% of the respondents have ranked bulk- order priority 5 as the
problems faced from carriers during freight forwarding.

Chart 4.1.3: Chart indicating Rank the problems faced from carriers during freight
forwarding

45%
39% 38%
40%
35%
35% 31%
30% 35% 26%
25% 25%
20% 17% 17% 18%
22% 27%
15% 15% 21% 11%
20% 24%
10% , 15% 7%
14% 9% 3%
5% 10% 10%
0% 11%
Delivery delay Damaging of Frequent rise in Lack of proper Bulk- Order Priority
packages forwarding cost communication

1 2 3 4 5

28
Table 4.1.4: Table indicating Educational Qualification of the respondents

PARTICULARS NO OF PERCENTAGE
RESPONDENTS

Graduate 34 28

Post graduate 23 19

ITI 45 37

Diploma 19 16

TOTAL 121 100

INTERPRETATION:
 According to the above data, 37% of the respondents are Post
graduate respondents.
 28% of the respondents are Diploma graduate respondents.
 19% of the respondents are ITI graduates and
 16% of the respondents are UG graduates.

Chart 4.1.4: Chart indicating Educational Qualification of the respondents

40% 37%
35%
28%
30%

25%
19%
20% 16%
15%

10%

5%

0%
Diploma ITI PG UG

29
Table 4.1.5: Table indicating Income of the respondents

PARTICULARS NO OF PERCENTAGE
RESPONDENTS

10,000- 20,000 18 15%

21,000 - 30,000 23 19%

31,000 - 40,000 46 38%

41,000 - 50,000 22 18%

above 50,000 12 10%

TOTAL 121 100

INTERPRETATION:
 According to the above data, 38% of the respondents fall under the
category of 31,000- 40,000.
 19% of the respondents fall under the range of 20,000- 31,000.
 18% of the respondents fall under the category of 41,000- 50,000.
 15% of the respondents fall under the category 10,000- 20,000 and
 10% of the respondents fall above the 50,000 category.

Chart 4.1.5: Chart indicating Income of the respondents

38%
40%
35%
30%
25%
19% 18%
20% 15%
15% 10%
10%
5%
0%
1 2 3 4 5

30
Table 4.1.6: Table indicating Operational area of the respondents

PARTICULARS NO OF PERCENTAGE
RESPONDENTS

Chennai 69 57%

Coimbatore 18 15%

Tuticorin 7 6%

Madurai 14 11%

Cochin 13 11%

TOTAL 121 100

INTERPRETATION:

 According to the above data, 57% of the respondents have

Chennai as their operational area.
 15% of the respondents have Coimbatore as their operational area.
 11% of the respondents have Madurai as their operational area.
 11% of the respondents have Cochin as their operational area and
 7% of the respondents have Tuticorin as their operational area.

Chart 4.1.6: Chart indicating Operational area of the respondents

60.00% 57.00%

50.00%
40.00%
30.00%
20.00% 15%
11% 11%
10.00% 6%

0.00%
1 2 3 4 5

31
Table 4.1.7: Table indicating Exporting goods’ frequency

PARTICULARS NO OF PERCENTAGE
RESPONDENTS

Biweekly 11 9%

Daily 38 31%

Fortnight 31 26%

Weekly 41 34%

TOTAL 121 100

INTERPRETATION:

 From the above table it can be interpreted that 34% of the

respondents are exporting goods on a weekly basis.
 31% of the respondents are exporting goods daily.
 26% of the respondents are exporting goods on every fortnight and
 9% of the respondents export goods biweekly.

Chart 4.1.7: Chart indicating Exporting goods’ frequency

40%
34%
35% 31%
30% 26%
25%
20%
15%
9%
10%
5%
0%
1 2 3 4

32
Table 4.1.8: Table indicating preferred mode of transport

PARTICULARS NO OF PERCENTAGE
RESPONDENTS

Shipways 54 45%

Airways 26 21%

Railways 8 7%

Roadways 33 27%

TOTAL 121 100

INTERPRETATION:

 From the above table it can be interpreted that 45% of the

respondents prefer shipways.
 27% of the respondents are prefer roadways.
 21% of the respondents prefer airways and
 7% prefer railways as their mode of transport.

Chart 4.1.8: Chart indicating preferred mode of transport

50% 45%

40%

30% 27%
21%
20%

10% 7%

0%
1 2 3 4

33
Table 4.1.9: Table indicating Opinion about freight rates

PARTICULARS NO OF PERCENTAGE
RESPONDENTS

Highly satisfied 25 21%

Satisfied 35 29%

Neutral 14 12%

Dissatisfied 27 22%

Highly 20 16%
dissatisfied
TOTAL 121 100

INTERPRETATION:

 From the above table it can be interpreted that 29% of the

respondents are satisfied with the freight rates.
 22% of the respondents are dissatisfied.
 21% of the respondents are highly satisfied.
 16% of the respondents are highly dissatisfied and
 12% stays neutral on the freight rates.

Chart 4.1.9: Chart indicating Opinion about freight rates

35%
29%
30%
25% 21% 22%
20% 16%
15% 12%
10%
5%
0%
1 2 3 4 5

34
 Table 4.1.10: Table indicating Suggestions to reduce the problems faced by the
freight forwarders.

PARTICULARS NO OF RESPONDENTS PERCENTAGE

Define roles and responsibilities 15 12%

Analyse and predict the order 22 18%

quantity
Perfect shipping schedules 41 34%

Quick loading 27 22%

Regular evaluation of performance 16 13%

TOTAL 121 100

INTERPRETATION:

 From the above table it can be interpreted that 12% of the respondents
have asked to define the roles and responsibilities.
 18% of the respondents have asked to Analyse and predict the order quantity.
 34% of the respondents have asked to perfect shipping schedules.
 22% of the respondents have asked for quick loading.
 13% of the respondents have asked to make regular evaluation of performance.

Chart 4.1.10: Chart indicating Suggestions to reduce the problems faced by the
freight forwarders.

34%
18% 22%
12% 13%

Define roles and Analyse and predict Perfect shipping Quick loading Regular evaluation
responsibilities the order quantity schedules of performance

35
T TEST

HYPOTHESIS

H0: There is no significant difference in the problem faced by the freight

forwarding between men and women respondents.

H1: There is a significant difference in the problem faced by the freight

forwarding between men and women respondents.

Group Statistics
Gender N Mean Std. Deviation Std. Error
Mean
avgh Male 67 2.7672 .91955 .11234
Female 54 3.1074 1.11911 .15229

Independent Samples Effect Sizes

95% Confidence Interval
Standardizera Point Estimate Lower Upper
avgh Cohen's d 1.01329 -.336 -.696 .026
Hedges' correction 1.01974 -.334 -.692 .026
Glass's delta 1.11911 -.304 -.666 .060

INTERPRETATION:

Since P value is 0.129 which is greater than 0.05 at we accept the null
hypothesis (H0) and reject the alternate hypothesis (H1). Hence there is no
significant difference in the problem faced by the freight forwarding between
men and women respondents.
36
ANOVA

H0: There is no significant difference among the different income groups.

H1: There is a significant difference among the different educational qualifications

groups.

Descriptive
avgh
95% Confidence Interval
for Mean
N Mean Std. Std. Error Lower Bound Upper Bound Minimum Maximum
Deviation
10000-20000 18 2.1000 .67301 .15863 1.7653 2.4347 1.20 3.00
21000-30000 23 2.6348 1.06626 .22233 2.1737 3.0959 1.20 3.80
31000-40000 46 3.2261 1.06884 .15759 2.9087 3.5435 1.60 5.00
41000-50000 22 3.0909 .76277 .16262 2.7527 3.4291 1.60 4.00
Above 51000 12 3.2000 .92638 .26742 2.6114 3.7886 1.60 4.20
Total 121 2.9190 1.02326 .09302 2.7348 3.1032 1.20 5.00

ANOVA
avgh
Sum of Squares df Mean Square F Sig.
Between Groups 19.867 5 4.967 5.447 .000
Within Groups 105.779 116 .912
Total 125.646 121

Post Hoc Tests

Homogeneous Subsets
avgh
Duncana,b
Subset for alpha = 0.05
Income N 1 2
10000-20000 18 2.1000
21000-30000 23 2.6348 2.6348
31000-40000 46 3.2261
41000-50000 22 3.0909
Above 51000 12 3.2000
Sig. .079 .075

37
INTERPRETATION:

The result in the above table shows that there is no significant difference
among the different income groups in the problems faced by the freight
forwarders at F= 5.447 and P= 0.000 which is less than 0.05 reject H0 and
accept H1. there is a significant difference among the income groups, in
particular people who belong to the groups 10,000- 20,000 fall in subset
group1 and the rest of the income groups fall in subset group2.

38
 CHAPTER 5 - FINDINGS, SUGGESTIONS AND CONCLUSION

5.1 FINDINGS
 45% of the respondents are above 50 years of age.
 77% of the respondents are male.
 37% of the respondents have completed PG.
 48% of the respondents fall under the income level of 31000 – 40000.
 57% of the respondents have operational area in Chennai.
 34% of the respondents export goods weekly.
 45% of the respondents opted shipways as their preferred mode of transport.
 29% of the respondents are highly satisfied with the freight rates.
 There is no significant difference in the problem faced by the freight
forwarding between men and women respondents.
 There is a significant difference among the different educational qualifications
groups.

5.2 SUGGESTIONS

 Freight rates should be effectively modified in order to get more business.

From the study it is clearly verified most of the customers are not satisfied
with the freight rates. So the organization should take necessary steps.

 The Hyundai Glovis can update their documentation process with fully computerised.

 Shipway is one of the effective ways of transport, but from the study it is
clear that there is a problem in shipping. The company should take right steps
to make the transport very effective.

 Organization can give full assure for the theft and damage of the products. It
will increase the image of the company.

 Can give 24/7 customer care service to their customers.

39
 5.3 CONCLUSION
By studying and comparing the various problems faced by the freight forwarders.
It is easy identify the solutions to avoid the problems and make sure the
smooth flow of business. This will help the company to establish a reasonable
share in the market place.

Thus the study showcased that, as the world has become a global village, the
service providers like Freight. Forwarders should be prepared to face the
challenges of tomorrow, by extending their network in every corner of the
world and providing more accuracy in their commitments.

A number of new tools and approaches have emerged as proactive elements of

the logistics response to the task of creative value for the customer viz.
emphasis on logistical customer service, management of the supply chain, the
development of strategic alliances

The activity of a Freight Forwarder depends on a series of factors that do not

depend on the Freight Forwarder per se. And second, Freight Forwarders in
order to accomplish their tasks have access to services that are shared by all
providers, and that are beyond their control. To conclude the study identifies
infrastructure as a major bottleneck in the Freight Forwarding sector.

40
 REFERENCE

 Jain Khushpat .S - Export Import Procedure and Documentations,

Mumbai, Himalaya Publishing House, Third Editions 2006.
 PramodRao – Logistics Management Concept and Cases, Hyderabad,
The Icfai University, First Edition 2007.
 RaghuramAnd N. Rangaraj – Logistics and Supply Chain Management,
Mac Millan India Limited, 2001 Delhi.
 Martin christo-pher – Logistics And Supply Chain Management, , New Delhi.
 Cr.Kothari – Research Methodology, International (P) Ltd New Edition
1998, Second Edition 2004, New Delhi.
 KrishnaveniMuthaih – Logistics Management Mumbai, Himalaya
Publishing House, 1999.
 Sebastian,” Problems of Logistics Industry”, Journal of business logistics,
Apr15, 2002

 Davis, Beth R,” Logistics service driven loyalty: an exploratory study”,

Journal of business logistics, 2006.

 "Project logistics: freight forwarders' challenges and solutions" by

Ahmed M. Al- Shekaili, Fahad Al-Mughairy, and Abdulla Al-Saidi,
published in the International Journal of Logistics Research and
Applications.

 "Project cargo management: challenges and opportunities for freight

forwarders" by Seyed Mohammad Seyedhosseini and David C. Wyld,
published in the Journal of Transportation Management.

 "Challenges in project cargo logistics: a freight forwarder's perspective"

by A. K. Gupta and S. S. Arora, published in the International Journal of
Shipping and Transport Logistics.

41
 "Project logistics: an empirical study of freight forwarders' perspectives"
by Jukka Hallikas, Kaisa Henttonen, and Katri Kauppila, published in the
International Journal of Physical Distribution and Logistics Management.

 "Logistics project management: a practical guide for logistics and supply

chain professionals" by Alan Rushton, Phil Croucher, and Peter Baker,
published by Kogan Page.

 "Logistics Engineering and Management: Creating Value-Adding

Networks" by Benjamin S. Blanchard and Wolter J. Fabrycky, published
by Prentice Hall.

 "Project management in logistics: the development of a guideline for

practical use" by Andreas G. Scherer and Alexander Meier, published in
the International Journal of Production Research.

 "The role of project management in logistics service providers" by

Claudia Steinke and Holger Schiele, published in the Journal of Business
Logistics.

 "Warehouse Management: A Complete Guide to Improving Efficiency

and Minimizing Costs in the Modern Warehouse" by Gwynne Richards,
published by Kogan Page.

 "Warehouse Management System Implementation: Guide and

Template" by Scott Hamilton, published by CreateSpace Independent
Publishing Platform.

 "Warehouse Management Handbook" by James A. Tompkins, Dale

Harmelink, and Tony Reese, published by Tompkins Press.

 "Optimization of warehouse management systems: A data-driven

approach" by J. David Porter, published in the International Journal of
Production Economics.

 "Shipping and Logistics Management" by Yuen Ha Ho, published by Routledge.

42
 "Transportation and Logistics: Opportunities and Challenges" by David
B. Grant and Chee Yew Wong, published by Kogan Page.

43
 "Handbook of Ocean Container Transport Logistics: Making Global
Supply Chains Effective" by Chung-Yee Lee and T. C. Edwin Cheng,
published by Springer.

 "Transportation and Logistics: A Global Supply Chain Perspective" by

John J. Coyle, Robert A. Novack, Brian Gibson, and Edward J. Bardi,
published by Cengage Learning.

 "The Law of Shipbuilding Contracts" by Simon Curtis, published by

Informa Law from Routledge.

 "The Shipping Man: A Novel" by Matthew McCleery, published by St.

Martin's Press.

 "Maritime Economics" by Martin Stopford, published by Routledge.

 "The International Law of the Shipmaster" by Michael Sturley, published

by Cambridge University Press.

 "Ship Registration: Law and Practice" by Malcolm Clarke, published by

Informa Law from Routledge.

 "Customs Modernization Handbook" by Luc De Wulf and Jose B. Sokol,

published by The World Bank.

 "Customs Clearance Handbook" by Dave Higginson, published by Kogan Page.

 "Customs Law and Administration" by WCO, published by World

Customs Organization.

 "Customs Broker Exam Study Guide & How to Start Your Own CHB
Business: Thru Apr. 2019 Exam Ed" by Jon K. Jordan, published by GHJ
Group LLC.

44
 ANNEXURE I - QUESTIONNAIRE
DEMOGRAPHIC:

1. Age: a) 20-30 b) 30-40 c) 40-50 d) above 50

2. Gender a) Male b) Female

3. Educational Qualification: a) Graduate b) Post Graduate c) ITI d) Diploma

4. Designation:

5. Income: a) 10,000-20,000 b) 20,000-30,000 c) 30,000-40,000 d) 40,000-50,000 e)

above 50,000

QUESTIONS:

6. Mention the operation area of your asset-based carriers?

1. Chennai
2. Coimbatore
3. Tuticorin
4. Madurai
5. Cochin

7. How frequently you are exporting the goods?

1. Daily
2. Biweekly
3. Weekly
4. Fortnight

8. What is the most preferred mode of transport by your customers?

a) Shipways

b) Airways

c) Railways

d) Roadways

45
9. What is your opinion about freight rates?

a) Highly Satisfied
b) Satisfied
c) Neutral
d) Dissatisfied
e) Highly Dissatisfied

10. Rank the problems faced from carriers during freight forwarding?

S.No Variables Rank

1 Delivery delay
2 Damaging of packages
3 Frequent rise in forwarding cost
4 Lack of proper communication
5 Bulk- Order Priority

11. Rank the problems faced from companies or individual customers

during freight forwarding?

S.No Variables Rank

1 Delay in receiving the goods
2 Damaged packages
3 Competitive pricing of forwarding cost
4 Lack of proper communication
5 Payment delays

12. Carriers should take responsibility for the theft & damage of the goods?

1-Strongly Disagree 2-Disagree 3-Neutral 4-Agree 5-

Strongly Agree

46
13. Rate the satisfaction factors in the following port,

Chennai port Tuticorin Cochin

Very satisfactory
Satisfactory
Neutral
Dissatisfactory
Very
dissatisfactory

14. Have you face any problem with shipping?

a. Yes
b. No
If yes please mention it

15. What is your opinion about the promptness of service given by Hyundai
Glovis to its customers?

1. Excellent
2. Good
3. Neutral
4. Dissatisfactory
5. Highly dissatisfactory

16. How far you can assure safety of goods in freight forwarding?

1. Excellent
2. Good
3. Neutral
4. Dissatisfactory
5. Highly dissatisfactory

17. Are you satisfied with the terms and conditions for freight forwarding?

1. Highly Satisfied
2. Satisfied
3. Neutral
4. Dissatisfied

47
 5. Highly dissatisfied

18. Rate the satisfaction level of the transshipments?

a) Highly Satisfied

b) Satisfied

c) Neutral

d) Dissatisfied

e) Highly dissatisfied

19. Are you satisfied with the customs clearance for your goods?
a) Highly satisfied
b) Satisfied
c) Neutral
d) Dissatisfied
20. Any suggestions to reduce the problems faced by the freight forwarders?
a. Analyse and predict the order quantity

b. Define roles and responsibilities

c. Perfect shipping schedules

d. Quick loading

e. Regular evaluation of performance

48
 ANNEXURE-II RESEARCH ARTICLE

A STUDY ON PROBLEMS FACED BY FREIGHT FORWARDERS WITH

REFERENCE TO HYUNDAI GLOVIS

DR. VELUMONI MBA, M.Phil., Ph.D., ¹ & SANCHANA A A²

1
Assistant Professor, School of Management Studies, Satyabama Institute of Science and
Technology, Chennai, Tamil Nadu, India
2
MBA Student, School of Management Studies, Sathyabama Institute of Science and
Technology, Chennai, Tamil Nadu, India

ABSTRACT:
The term Logistics Management or supply chain management is that part of Supply Chain Management that plans,
implements, and controls the efficient, effective, forward, and reverse flow and storage of goods, services, and related
information between the point of origin and the point of consumption in order to meet customer's requirements.

 Population size : > 300

 Sample Size : 121
 Sampling Technique : Convenience Sampling
 Statistical Tools : T-test, One way ANOVA
 Graphical Tools : Bar Charts, Pie Charts

INTRODUCTION:
Logistics as a concept is considered to evolve from the military's need to supply them as they moved from their base
to a forward position. A forwarder is not typically a carrier, but is an expert in supply chain management. In other
words, a freight forwarder is a "travel agent," for the cargo industry, or a third-party (non-asset-based) logistics
provider. A forwarder will contract with asset-based carriers to move cargo ranging from raw agricultural products to
manufactured goods. Freight can be booked on a variety of carrier types, including ships, airplanes, trucks, and
railroads.

INDUSTRY PROFILE:
Logistics Management is that part of the supply chain which plans, implements and controls the efficient, effective
forward and reverse flow and storage of goods, services and related information between the point of origin and the
point of consumption in order to meet customers' requirements. Logistics is nothing but the process of strategically
managing the movement and storage of materials, parts, and finished inventory from suppliers, between enterprise
facilities and customers.

COMPANY PROFILE:
Hyundai Glovis is your one stop shop - solution and your cargo to be delivered in a timely manner. Logistic Companies
have successfully revolutionized the freight services in India. The company’s team of experienced logistics experts
will give updates during the product movement process. The company will complete the long paper-work, follow up
with the crew to find out the present position of the item and then going through the tedious system of the respective
port after reaching the destination. The Logistics division has strategically located facilities in all capital city ports and
provides road and rail container transport, customs and quarantine services, container parks, intermodal terminals,
warehousing and international freight forwarding.

49
NEED FOR STUDY:

A freight forwarder is a person or company that organizes shipments for individuals or corporations to get large orders
from the manufacturer or producer to market or final point of distribution. It helps to analyse the problems faced by
freight forwarders from the carriers as well as companies and individual customers. It helps to understand the
satisfaction level of the custom clearance.

OBJECTIVES OF STUDY:
PRIMARY OBJECTIVES
 To study the problems faced by freight forwarders with special reference to Hyundai Glovis in Chennai.

SECONDARY OBJECTIVES:
 To analyse the problems faced by freight forwarders.
 To find out the satisfaction level of the respondents in freight forwarding.
 To suggest solutions to reduce the problems faced by the freight forwarders.

SCOPE OF THE STUDY

A forwarder is often not active as a carrier and acts only as an agent, in other words as a third-party logistics provider,
they have the expertise that allows them to prepare and process the documentation and perform related activities
pertaining to international shipments.

REVIEW OF LITERATURE
Benjamin Ertel and Mike Jones (2007) A study on “Performance Based Logistics Perspective”. The objective of
the study is about the critical concepts for successful PBL incorporation and common PBL misconceptions in logistics.
It also describes keys to successful PBL implementation Viz. Alignment of supplier incentives with requirements,
competitive advantage and empowerment of support provider. It gives the PBL value proposition as improved
integration and gives the necessary steps for implementation of performance based logistics. Sebastian (2008) A
Study on “Problems of Logistics Industry “. The objective of the study about the problem that faced logistics industry.
He concluded that India’s logistics industry is low in their planning and current professionals in the industry should
sharpen their skills on a broad base of key elements of transportation and logistics. Finally he said that, there should
be very balanced between solid knowledge and real world application. M. Dhanabakyam and K. Parimala (2006)
A study on “Role of Freight Forwarders and Customs House Agents In Logistics-A Perceptual Study. The study
concerned with the freight forwarding is a vital part of logistics in international trade activity. The objective of the
study was to identify the study appraise the role played by Freight Forwarders in logistics was conducted. Thus the
study showcased that, as the world has become a global village, the service providers like Freight. Forwarders should
be prepared to face the challenges of tomorrow, by extending their network in every corner of the world and providing
more accuracy in their commitments.Davis, Beth R (2006), a study on” Logistics service driven loyalty: an
exploratory study”. The Journal shows that supply chain relationships can be a stable source of competitive advantage
to firms in the supply chain because of their ability to create barriers to existing competition and conclude that
improving logistics customer service is an ongoing focus for firms. Suppliers are trying to become more proactive
with their customers and anticipate customer expectations.

50
RESEARCH METHODOLOGY:
Research methodology is a system way that solves the research problem it may be understood as a science of study
how research is done it is, they study the various steps that are generally adopted by researcher in studying the research
problem along with the logic behind in it. It is a necessary for the researcher to know not only the research methods
or techniques, but also the methodology.

RESEARCH DESIGN:
DESCRIPTIVE RESEARCH DESIGN:
Descriptive research includes surveys and fact-findings enquiries of different kinds.
SOURCES OF DATA:
 Primary Data – Questionnaire was given to 121 respondents
 Secondary Data – Websites and online journals, Published reports & Review of literature frompublished
articles.

TOOLS FOR ANALYSIS:

 T- TEST
 ANOVA
 Percentage analysis.

PERCENTAGE ANALYSIS:

Table 4.1.3: Rank the problems faced from carriers during freight forwarding

Variables 1 % 2 % 3 % 4 % 5 %

Delivery delay 37 31% 42 35% 21 17% 18 15% 17 14%

Damaging of 47 39% 27 22% 24 20% 11 9% 12 10%

packages

Frequent rise in 21 17% 30 25% 29 24% 13 11% 18 15%

forwarding cost

Lack of proper 4 3% 9 7% 25 21% 33 27% 42 35%

communication

Bulk- Order 12 10% 13 11% 22 18% 46 38% 32 26%

Priority

INTERPRETATION:
 From the above table it could be interpreted that 31% of the respondents have ranked delivery delay 1 as the
main problems faced from carriers during freight forwarding.
 35% of the respondents have ranked delivery delay 2 as the problems faced from carriers during freight
forwarding.

51
 17% of the respondents have ranked delivery delay 3 as the problems faced from carriers during freight
forwarding.
 15% of the respondents have ranked delivery delay 4 as the problems faced from carriers during freight
forwarding.
 14% of the respondents have ranked delivery delay 5 as the problems faced from carriers during freight
forwarding.
 39% of the respondents have ranked damaging of packages 1 as the main problems faced from carriers during
freight forwarding.
 22% of the respondents have ranked damaging of packages 2 as the problems faced from carriers during
freight forwarding.
 20% of the respondents have ranked damaging of packages 3 as the problems faced from carriers during
freight forwarding.
 9% of the respondents have ranked damaging of packages 4 as the problems faced from carriers during freight
forwarding.
 10% of the respondents have ranked damaging of packages 5 as the problems faced from carriers during
freight forwarding.
 17% of the respondents have ranked frequent rise in forwarding cost 1 as the main problems faced from
carriers during freight forwarding.
 25% of the respondents have ranked frequent rise in forwarding cost 2 as the problems faced from carriers
during freight forwarding.
 24% of the respondents have ranked frequent rise in forwarding cost 3 as the problems faced from carriers
during freight forwarding.
 11% of the respondents have ranked frequent rise in forwarding cost 4 as the problems faced from carriers
during freight forwarding.
 15% of the respondents have ranked frequent rise in forwarding cost 5 as the problems faced from carriers
during freight forwarding.
 3% of the respondents have ranked lack of proper communication 1 as the main problems faced from carriers
during freight forwarding.
 7% of the respondents have ranked lack of proper communication 2 as the problems faced from carriers
during freight forwarding.
 21% of the respondents have ranked lack of proper communication 3 as the problems faced from carriers
during freight forwarding.
 27% of the respondents have ranked lack of proper communication 4 as the problems faced from carriers
during freight forwarding.
 35% of the respondents have ranked lack of proper communication 5 as the problems faced from carriers
during freight forwarding.
 10% of the respondents have ranked bulk- order priority 1 as the main problems faced from carriers during
freight forwarding.
 11% of the respondents have ranked bulk- order priority 2 as the problems faced from carriers during freight
forwarding.
 18% of the respondents have ranked bulk- order priority 3 as the problems faced from carriers during freight
forwarding.
 38% of the respondents have ranked bulk- order priority 4 as the problems faced from carriers during freight
forwarding.
 26% of the respondents have ranked bulk- order priority 5 as the problems faced from carriers during freight
forwarding.

52
Chart 4.1.3: Rank the problems faced from carriers during freight forwarding

45%
39% 38%
40% 35%
35% 31%
30% 35% 26%
25% 25%
20% 17% 17% 18%
22% 27%
15% 15% 21% 11%
20% 24%
10% , 15% 7%
14% 9% 3%
5% 10% 10%
0% 11%
Delivery delay Damaging of Frequent rise in Lack of proper Bulk- Order Priority
packages forwarding cost communication

1 2 3 4 5

Table 4.1.9: Opinion about freight rates

PARTICULARS NOOF PERCENTAGE

RESPONDENTS

Highly satisfied 25 21%

Satisfied 35 29%

Neutral 14 12%

Dissatisfied 27 22%

Highly dissatisfied 20 16%

TOTAL 121 100

INTERPRETATION:

 From the above table it can be interpreted that 29% of the respondents are satisfied with the freight
rates.
 22% of the respondents are dissatisfied.
 21% of the respondents are highly satisfied.
 16% of the respondents are highly dissatisfied and
 12% stays neutral on the freight rates.

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 Chart 4.1.9: Opinion about freight rates

35%
29%
30%
25% 21% 22%
20% 16%
15% 12%
10%
5%
0%
1 2 3 4 5

STATISTICAL ANALYSIS:
T- TEST HYPOTHESIS:
 H0: There is no significant difference in the problem faced by the freight forwarding between men and women
respondents.

 H1: There is a significant difference in the problem faced by the freight forwarding between men and women
respondents.

Group Statistics
Gender Mean Std. Deviation Std. Error Mean
avgh Male 2.7672 .91955 .11234
Female 3.1074 1.11911 .15229

INTERPRETATION:
Since P value is 0.129 which is greater than 0.05 at we accept the null hypothesis (H0) and reject the alternate
hypothesis (H1). Hence there is no significant difference in the problem faced by the freight forwarding between men
and women respondents.

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ANOVA HYPOTHESIS:
 H0: There is no significant difference among the different income groups.

 H1: There is a significant difference among the different educational qualifications groups.

ANOVA
avgh
Sum of Squares df Mean Square F Sig.
Between Groups 19.867 5 4.967 5.447 .000
Within Groups 105.779 116 .912
Total 125.646 121

Post Hoc Tests

Homogeneous Subsets

avgh
Duncana,b
Subset for alpha = 0.05
Income N 1 2
10000-20000 18 2.1000
21000-30000 23 2.6348 2.6348
31000-40000 46 3.2261
41000-50000 22 3.0909
Above 51000 12 3.2000
Sig. .079 .075
Means for groups in homogeneous subsets are displayed.

a. Uses Harmonic Mean Sample Size = 20.035.

b. The group sizes are unequal. The harmonic mean of the group sizes is used. Type I error levels are not
guaranteed.

INTERPRETATION:
The result in the above table shows that there is no significant difference among the different income groups in the
problems faced by the freight forwarders at F= 5.447 and P= 0.000 which is less than 0.05 reject H0 and accept H.
there is a significant difference among the income groups, in particular people who belong to the groups 10,000-
20,000 fall in subset group1 and the rest of the income groups fall in subset group2.

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FINDINGS, SUGGESTIONS AND CONCLUSION

FINDINGS:
 45% of the respondents are above 50 years of age.
 77% of the respondents are male.
 37% of the respondents have completed PG.
 48% of the respondents fall under the income level of 31000 – 40000.
 57% of the respondents have operational area in Chennai.
 34% of the respondents export goods weekly.
 45% of the respondents opted shipways as their preferred mode of transport.
 29% of the respondents are highly satisfied with the freight rates.
 There is no significant difference in the problem faced by the freight forwarding between men and women
respondents.
 There is a significant difference among the different educational qualifications groups.

SUGGESTIONS & RECOMMENDATIONS

 From the above table it can be interpreted that 12% of the respondents have asked to define the roles and
responsibilities.
 18% of the respondents have asked to Analyse and predict the order quantity.34% of the respondents have
asked to perfect shipping schedules.
 22% of the respondents have asked for quick loading13% of the respondents have asked to make regular
evaluation of performance.
 Freight rates should be effectively modified in order to get more business.
 From the study it is clearly verified most of the customers are not satisfied with the freight rates.
 So the organization should take necessary steps.
 The Hyundai Glovis can update their documentation process with fully computerised.

LIMITATIONS OF STUDY
 Opinion of employees may be biased at time.
 Respondents would have hidden some facts due to the fear of management.
 The study is based on the data collected from respondents and a journal hence the reliability of the data is not
probed into. Utmost care has to be taken while extending the results to the other areas.

CONCLUSION:
By studying and comparing the various problems faced by the freight forwarders. It is easy identify the solutions to
avoid the problems and make sure the smooth flow of business. This will help the company to establish a reasonable
share in the market place. The activity of a Freight Forwarder depends on a series of factors that do not depend on the
Freight Forwarder per se. And second, Freight Forwarders in order to accomplish their tasks have access to services
that are shared by all providers, and that are beyond their control. To conclude the study identifies infrastructure as a
major bottleneck in the Freight Forwarding sector

REFERENCES
 Jain Khushpat .S - Export Import Procedure And Documentations, Mumbai, Himalaya Publishing House,
Third Editions 2006.
 PramodRao – Logistics Management Concept And Cases, Hyderabad, The Icfai University, First Edition
2007.

56
 RaghuramAnd N. Rangaraj – Logistics And Supply Chain Management, Mac Millan India Limited, 2001
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 Martin christo-pher – Logistics And Supply Chain Management, , New Delhi.
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Delhi.
 KrishnaveniMuthaih – Logistics Management Mumbai, Himalaya Publishing House, 1999.
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