Freight Forwarders
Freight Forwarders
Freight Forwarders
Year 2013-2016
Under the supervision of:
(Mr.J.RENGAMANI)
DECLARATION CERTIFICATE
Date:
CERTIFICATE OF APPROVAL
Date:
Place:
Signature of Guide
Kanathur,
Chennai
India.
Internal
external examiner
examiner
ACKNOWLEDGEMENT
My profound gratitude to Almighty God for the opportunity, knowledge, strength
and gift of life, he gave me throughout the completion of my course. Also, I will
like to express my deep humility to my adorable parents, Mr. ODUNELA
OLUSEGUN and MRS. ADEBOLA ODUNELA who made me realize that,
education is the better safeguard of liberty than a standing army and a
progressive discovery of our ignorance. My colossal thanks to the management of
AMET University. A special thanks to the director of the Department of
Management Studies, Amet Business School, Dr. S. Ramachandran Who has
been a constant source of academic guardian and motivation to me.
Words cannot express my prodigious gratitude to my project supervisor, Dr
Rengamani Jag for his immeasurable support, guidance and encouragement
which she gave me during the course of this study, as well as my appreciation also
goes to the entire faculties of Amet Business school for their shared experience and
knowledge impacted in me which has foster this study in a vast manner. My
dearest thanks to (Mr Prem Kumar) Emmanuel, Joba, Gabriel, Bukky, Madhu,
Ishwarya and Alvin, who has been a pillar of educational support throughout my
entire studies. To mention but a few, my vast thanks to my family and friends
Shoun, Dhirel, Akib, Neharika, Nayif, Sonu, Basit, Soji, Hmanchi, and Seyi,
for being there as brothers and sisters, and to all other people who have contributed
in one way or the other to make this study a success, I say a big thank you.
TABLE OF CONTENTS
CHAPTER
CONTENTS
INTRODUCTION
RESEARCH METHODOLOGY
LITERATURE REVIEW
BIBLIOGRAPHY
PAGE
CHAPTER 1
INTRODUCTION
variety of asset-based carriers across multiple modes land, air, and rail or by sea
in order to coordinate shipments and ensure goods are delivered on time.
International freight forwarders, have the expertise that allows them to prepare and
process the documentation and perform related activities related to international
shipments. Typical information reviewed by a freight forwarder is the commercial
invoice, shipper's exportdeclaration, bill of lading and other documents required by
the carrier or country of export, import, or transshipment. As an agent working
with asset- based operator like ship-owner, freight forwarders offers a groupage
service by using assigned shipping line and infrastructure as he buys from liner
services providers, at a box rate and offers his own tariffs for the services render .
CHAPTER 2
RESEARCH METHODOLOGY
The researcher says Indias freight transport concludes the country will reach
average annual freight traffic growth of 10.2% in the 2009-2011 periods.
RESEARCH METHODOLOGY
RESEARCH OBJECTIVES
PRIMARY DATA
Primary research data consists in research to collect original data. It is often
undertaken after the researcher has gained some insight into the issue by collecting
secondary data. This can be through numerous forms, including questionnaires,
direct observation and telephone interviews amongst others.
SECONDARY DATA
These are datas which have already been available and analyzed by someone and
pass through the statistical process which might be published data or not from
various publications of the central, state or local government, international bodies,
reports ,magazine e.t.c. It is often undertaken after the researcher has gained some
insight into the issue by collecting secondary datas.
RESEARCH TOOL
QUESTIONNAIRE:
A questionnaire is a research instrument consisting of a series of questions and
other prompts for the purpose of gathering information from respondents. Although
they are often designed for statistical analysis of the responses, this is not always
the case. The questionnaire was invented by Sir Francis Galton.
Questionnaires have advantages over some other types of surveys in that they are
cheap, do not require as much effort from the questioner as verbal or telephone
surveys, and often have standardized answers that make it simple to compile data.
Questionnaires are also sharply limited by the fact that respondents must be able to
read the questions and respond to them.
QUESTIONNAIRE CONSTRUCTION
A questionnaire is a series of questions asked to individuals to obtain statistically
useful information about a given topic. When properly constructed and responsibly
DATA ANALYSIS
The process of evaluating data using analytical and logical reasoning to examine
each component of the data provided. This form of analysis is just one of the many
steps that must be completed when conducting a research experiment. Data from
various sources is gathered, reviewed, and then analyzed to form some sort of
finding or conclusion. There are a variety of specific data analysis method, some of
which include data mining, text analytics, business intelligence, and data
visualizations.
TABULATION
One of the simplest and most revealing devices for summarizing data and
presenting them in a meaningful fashion is the statistical table. A table is statistical
data in columns and rows. The purpose of a table is to simplify the presentation
and facilitate comparison.
CHARTS
One of the most convincing and appealing ways in which statistical results may be
presented is through charts. They give a birds eye view of the entire data and
therefore the information presented is easily understood.
conclusions that show cause and effect, because that is beyond the bounds of the
statistics employed.
Time constraint
High Cost
Reliability of data
Only major competitors were considered for the study
The identification of researcher was not revealed to the respondents to avoid
biased answer.
Lack of time for the respondents due to their tight schedule
CHAPTER 3
This chapter ascertains definitely the legal functions of freight forwarders and its
potential roles not as a NVOCC but in its classical role as a forwarding agent in
MTO (multi-modal transport operation which involve the process of operating a
door-to-door /warehouse-to-warehouse service for the shipper, involving two or
more forms of transportation with the merchandise being conveyed in the same
unitized form for the entire transit, which may also be describe as inter-modalism.
The major functions of freight forwarders include but not limited to the
following:
TRANSHIPMENT
This is an essential feature of modern container operation in which container ships,
usually serve a few so called hub-ports due to high cost of operation. The carriage
from such ports to regional ports is for most of the time sub-contracted by shipping
lines to local operators of feeder vessels
where at the hub ports, the containers are being transshipped from the mother
vessel to feeder vessels or vice versa.
improvement in modern technology, such as container vessel like post-panamax,
cargo handling facilities at port terminal, RORO ships, and development of
standardized container s, which permit the integrated use of various modes of
transportation, are frequently transfer to other means of transportation (trucks,
train, airplane) for inland carriage. Where cargoes passes in transit through a
country, the freight forwarders co-ordinates the movement of cargo from one
means of convey to another.
This involves:
1. Booking space on transshipment vessel
2. Discharging
3. Sorting
4. Loading
5. And distribution of the cargo to the consignee
As a transshipment agent, freight forwarders act as agent for the shipper/consignee
within the multimodal transport and might act as contracting carrier.
TRANSPORT ARRANGEMENT
After decision on which route and means of transportation by the consignee, the
freight forwarder makes the necessary booking and dispatches the goods as an
agent acting on-behalf of his customer by establishing and arranging contract of
carriage and establishes direct contractual relationships between his customer-the
shipper- and the carrier. With the payment of freight charges, insurance, packing,
customs duties then charges his customer a fee, usually a percentage of the total
expenses.
Instead of passing of passing on the freight that the freight the freight forwarder
will pay to the performing carrier, he can also act as principal contractor arranging
the whole carriage in his own name, as he will charge the shippers a straight
freight charge. He arranges to pay lower freight rates to the carrier and obtains his
profit from the rate difference.
The original function of the forwarder was to arrange for the carriage of his
customers' goods by contracting with various carriers. His responsibilities included
advice on all documentation and customs requirements in the country of
destination. His correspondent agent overseas looked after his customers' and kept
him informed about matters that would affect movement of goods.
In modern times the forwarder still carries out those same responsibilities for his
client. He still operates either as a domestic US carrier, or otherwise with a
corresponding agent overseas or with his own company branch-office. In a single
transaction, it can happen that the forwarder may be acting as a carrier (principal)
or as an agent for his customer or both
International Freight Forwarders, NVOCCs and customs brokers, often charge a
fee for transferring documents to another transportation company at destination.
This fee is a part of the ocean freight charges, being paid by the importer at the port
of discharge in the International Commercial Terms (INCOTERMS).This fee is
separate from documentation fees charged by steamship carriers and NVOCCs as
part of the freight charges on a bill of lading and is separate from other fees for
document preparation or for release of cargo. Some companies may call this an
admin fee, doc fee, doc transfer or other name but it exists in some form in most
destinations around the world and is well known to most importers and exporters.
Steamship carriers do not have this fee.
Due to the inherent flexibility of non-asset-based freight forwarders, they are able
to perform almost any transportation logistics function, ranging from storage to
groups of trading partners, and logistics is the key to holding them together.
Logistics is defined as the process of planning, implementing, and controlling the
efficient flow and storage of goods and their related information. As global
logistics become more demanding, and as the savings available through supply
chain efficiency become more attractive, the outsourcing of procurement,
distribution, and return logistics has become a common practice.
Increased competition to be the first one in the market with the latest model has put
greater pressure on the supply chain. There are numerous factors that companies
take into consideration when outsourcing and planning their supply chain
activities. First, if a firm independently manages its own logistics, it has to divert
attention from its core competencies and strengths. However, if the firm outsources
some functions, such as warehousing, inventory management, or distribution, it is
better equipped to focus on other tasks. It also benefits from having its goods
handled, stored, and delivered personally.
Movement of goods from the supplier to the buyer, transportation is the most
fundamental and important component of logistics. When an order is placed, the
transaction is not complete till the goods are physically moved to the customers
place which involves various modes of transportation.
Freight forwarders choose the mode of transportation depending on the
infrastructure of transportation in the country or region, cost is the most important
necessary.
Give other specialized services when needed.
CHAPTER 4
As shipping Bill is the legal document, required to be filed mandatory for the
exportation of goods from one destination to another by an exporter, so is Bill of
entry are meant to be well filed by an importer of cargoes involving in goods
importation into a country.
Under exportation of cargoes, once the goods arrive at its place of destination with
the preparation of invoice and packing list based on purchased order or letter of
credit (LC), which is a written commitment to pay, by a buyer's or importer's bank
(called the issuing bank) to the seller's or exporter's bank (called the accepting
bank, negotiating bank, or paying bank). LC is a formal trade instruments and are
used usually where the seller is unwilling to extend credit to the buyer. In effect, a
letter of credit substitutes the creditworthiness of a bank for the creditworthiness of
the buyer. Thus, the international banking system acts as an intermediary between
far flung exporters and importers. However, the banking system does not take on
any responsibility for the quality of goods, genuineness of documents, or any other
provision in the contract of sale. Since the unambiguity of the terminology used in
writing a letter of credit is of vital importance, the International Chamber Of
Commerce (ICC) has suggested specific terms (called Incoterms) that are now
almost universally accepted and used. Unlike a bill of exchange, a letter of credit is
EXPORT FLOW
EXPORTS
NOMINATION
CONTACT SHIPPER
RECEIVED REQUEST
TO ALLOT
FURNISH PLOT
PERMISSION
Once after releasing shipping bills dully signed by customs authorities, custom
house agents delivers the respective shipping bill to freight forwarder agent and to
carrier in order to move the cargo to its destination. Exchange copy of shipping
bills is submitted with bank along with other shipping documents. The authorized
dealer of the exporter sends the of said exchange control copy of shipping bills to
reserve bank of India. RBI requires exchange control copy for regulating inward
and outward remittance of foreign exchange.
While exporter copy of shipping bill is retain by exporter for their future reference.
Manual shipping bill are filed at a customs location where in no facility to file
electronically to complete necessary export customs clearance procedures and
formalities, such shipping bill are filed in six copies. Original and duplicate for
customs, triplicate and EP copy for exporter and the next two copies for carrier to
load goods at port of loading.
IMPORTS FLOW
IMPORTS
SUBMIT DOCUMENTS TO
SHIPPING LINE
RUMMAGING
Rummaging is carried out only when the authorities required to be examining and
not for all shipment. After the arrival of cargo at a custom location, the necessary
information is filled with custom station, which is known as import general
manifest (IGM). IGM is filled in a specified format legally to be followed by
respective customs department. It can be amended later with necessary formalities
and procedures. However, the omission of deletion in filling IGM willfully comes
under smuggling activities and thereby the customs preventives officials may
taken necessary steps to cross check whether all goods arrived are said customs
location have been declared in IGM. Such customs officers are authorized to board
the vessel or aircraft to take necessary suitable declaration, crew property list in
order to confirm no items have been left out to declare in IGM. This thorough
IMPORTANT DOCUMENTS:
Correct documentation is vital for all movement of cargo by Freight Forwarders
especially when moving cargo internationally. Here are some tips on the relevant
types of documentation that will be required. It is worth knowing that exporters
should consider allowing the freight forwarder tohandle the not inconsiderable
amount of documentation that exporting necessitates. This is simply because
freight forwarders are specialists in these processes.
Each of these is necessary for any particular transaction will depend on the
requirements of the government of the country that the freight is being imported
into. Air freight shipments are handled by air waybills, which can never be made in
negotiable form.
For your information, the following documents are commonly used in exporting.
A Bill of Lading is a contract made between the owner of the goods and the
freight carrier. For carrier vessels, there are two types of this form. These are a
straight bill of lading which is non-negotiable. Then there is a negotiable shipper's
order bill of lading. The shipper's order bill of lading is one that can be bought,
sold, or traded while the goods or cargo are in transit. The customer generally
requires an original as proof of ownership in order to take possession of the cargo.
freight carrier and all other foreign parties involved that the cargo item can only be
exported to certain destinations.
A Warehouse Receipt and a dock receipt are used in order to transfer
accountability when the export cargo or goods item is moved by the domestic
carrier to the port of embarkation and then left for export with the shipping line
to very precise time limits and run the risk of not be honored by a bank should the
time limit have expired. Most cargo documentation is routine for both freight
forwarders and customs brokers. However, the exporter has the privilege of
beingultimately responsible for the correctness and accuracy of its documents.
CHAPTER 5
The problem of supply and demand is the driving force of human history, and it is
directly related to transport: if we cannot produce the food or goods we want to
consume or use, they must be transported to us. In the age of trade between farms
and villages, this transport was relatively simple, if slow, and performed with
animals and wagons or only with manpower. However, as people began exploring
other trading opportunities, cross-country and cross-continental travel began to
spread. With exploration and the birth of global maritime trade came the growth of
merchant shipping and long-distance transport by sea. The Industrial Revolution of
the eighteenth and nineteenth centuries applied steam power to transport,
ultimately facilitating even faster movement of goods.
Today, the products we consume travel long distances along global supply chains
to reach us. Production, inventory control, transport, distribution, specialized
handling and management are all part of these supply chains. As supply chains
become more geographically intricate, their success depends more and more on the
expertise of competent transport intermediaries (freight forwarders, or freight
logistics providers).
Where did these transport intermediaries come from? Levying customs duties by
government agencies has been a basic part of trade throughout history. With the
collection of customs duties came demand for middlemen and agents who would
move goods on behalf of the shipper or consignee. Customs brokers and agents
who acted on behalf of shippers to arrange freight transport and buy space on ships
evolved into freight forwarders. The role of the freight forwarder has further
expanded, and they have long-abandoned the perception of being mere agents for
the transport industry. Todays freight logistics providers (FLPs) are responsible for
an entire array of services in the supply chain. This paper examines the changing
role of freight forwarders, the importance of their services to the functioning of
global supply chains, and some of the tools they can use to add value to these
supply chains.
As freight forwarder is especially interested in the time demands of your shipment
and providing visibility and control for every mode of transportation, due to their
change in their role, they engaged in the following:
Booking and Reservations: A centralized booking portal provides visibility into
rates, contracts, and shipment details from global locations to enable more
informed decision making and contract development. Carriers can distribute
Product, routing, capacity and rate information to forwarders 24/7 in real time,
while forwarders can access carrier information and make electronic bookings over
the Web or from within their own in-house system.
Activations
and
Messaging:
The
Descartes
GLN
enables
electronic
communications between forwarders and their trading partners around the globe,
including carriers (90+ air, 30+ ocean, and 1,600+ ground carriers) and regulatory
agencies, such as the Federal Maritime Commission and US Customs and Border
Protection.
without cooperation from their customers. The final steps to a quote entail sales
terms and customs clearance of the freight at the destination port. Sometimes a
shipper will ask the forwarder to provide true door-to-door service, providing
clearance and eventual delivery directly to the consignee something any
established forwarder would be able to provide with a network of foreign agents.
Quite often, the customer or consignee will wish to arrange the clearance and
recovery of the freight themselves. This is logical, since the consignee exists
locally and, if working with imports often, should have his own customs brokerage
contacts. When this is the case, the forwarder looks to the customer to dictate the
method and routing of transportation. Sales terms ensue from Incoterms, which
define the roles of the buyer and seller in the arrangement of transportation, as well
as clarify when the transfer of ownership of the merchandise takes place. Your
forwarder can help you determine the INCOTERM that best suits your situation.
Once the forwarder has the information described above, he will begin to map out
your shipment. He will take many factors into consideration, including but not
limited to:
Can those carriers perform the transportation within the desired time frame?
Do you have specific routing and/or carrier preferences?
Are there any financial issues (e.g., insurance, letters of credit, special payment
arrangements, etc.)?
Are there additional requirements or noteworthy issues in terms of licensing,
handling, or service?
CHAPTER 6
SERVICES OFFER BY FREIGHT
FORWARDERS
the freight forwarder may suggest packaging that is lighter than normal to keep
shipping costs to a minimum.
Freight forwarders will assist their customers in providing the correct labeling
they require for their items. The correct label will be required to show the precise
items in the shipping container, any hazardous items, country of origin, correct
weight in pounds and kilograms, port of entry details, and any details that are
required in the language of the destination country.
Documentation is important for the shipment of an item overseas. There are a
number of documents that the freight forwarder needs to prepare for the shipment
that requires specialist knowledge.
Companies looking to export items can use freight forwarders to not only save time
and effort but to ensure that the goods arrive at the customers site on time and
without incident. A freight forwarder can provide the exporter with all the
necessary documentation as well as liaise with the transportation companies
required to get the items to the customer. Services render by freight forwarders
includes but not limited to the following:
International freight quotations
Warehousing
Containerization and consolidation of freight
Booking of international and inland freight movements
Export packing
Providing schedules of carriers
Transshipments
Marina and air insurance
Pre-shipment inspections
Supervision of freight movements (loading of good onto carriers)
Applying for export licenses
Export and import documentation
Computerized tracking of international freight movement
Oversea documentation and foreign government requirements
Overseas logistics strategies such as free trade zones and warehousing.
A typical day for a freight forwarder would primarily consist of talking with clients
and warehouse around the world. Taking this information and passing it along to
the appropriate party whether that is a SSL (Steamship Line), United States
Customs or the customer themselves. Along with making sure that the freight the
client is importing or exporting gains entry into the country a freight forwarder
must (most of the time) arrange for said freight to be picked up and delivered to the
final consignee's place of business. This requires contacting trucking companies,
rail lines and even sometimes exporting the goods to a different country for final
delivery. A lot of this is now done over the Internet and phone. A typical freight
forwarder will spend most of the day at a desk in front of a computer.
A freight forwarding service generally provides one or more estimates to the client
along with advisement, when necessary. Considerations that effect price will range
from origin and destination to special requirements, such as refrigeration or, for
example, transport of potentially hazardous materials. Assuming the client accepts
the forwarder's bid, the freight is ready for shipping. The freight forwarding service
then undertakes the responsibility of arranging the transport from point of origin to
destination.
One of the many advantages of using freight forwarding is that it handles ancillary
services that are part of the international shipping business. Insurance and customs
documentation and clearance are some examples. As a consolidator, a freight
forwarding service might also provide Non-Vessel Operation Common Carrier
(NVOCC) documentation, or bills of lading. Warehousing, risk assessment and
management, and methods of international payment are also commonly provided
to the client by the freight forwarding service.
A good freight forwarding service can save the client untold time and potential
headaches while providing reliable transportation of products at competitive rates.
A freight forwarding service is an asset to almost any company dealing in
international transportation of goods, and is especially helpful when in-house
resources are not versed in international shipping procedures.
CHAPTER 7
RIGHT AND RELIABILITIES
As a person who professionally, against remuneration, on his own name but on the
account of a Customer or in the name of a Customer, covenants to forward or
receive goods, to organize a part or whole process of translocation of goods, as
well as to render the other services related with attendance and translocation of the
Goods. In relation to these activities performed by the Freight Forwarder, the
general rules regulating a special kind of activity or other mandatory rules will
apply, provided that the Freight Forwarder declares that the aforementioned rules,
agreed upon by the third parties, with whom the Freight Forwarder has entered into
agreement in order to perform an accepted forwarding order, are mandatory. The
Freight Forwarder can perform the carriage himself. In such case he has the rights
and obligations of a Carrier at the same time.
He may also undertake to perform other functions connected with the main
contract such as warehousing (including storage in transit) group age or
consolidation, packing, documentation, weighing and measurement of cargo
container leasing, insurance, foreign exchange transaction etc. In case he is
required to be licensed or approved by the Government or other Public Authorities
for the performance of any of his functions, the term Freight Forwarder would
mean only such licensed or approval persons. As an agent acting on behalf of his
PERFORMANCE OF CONTRACT
(1) He performs carriage by his own means of transportation and issues his own
transport documents. He acts as sea carrier or multimodal transport operator
issuing his own bill of lading or FIATA bill of loading called the Negotiable FIATA
Multimodal Transport Bill of Loading;
(2) He performs a carriage by means of transportation owned by the third party, but
issues his own transport document (contracting carrier).
(3) The forwarder shall perform his duty with due diligence and shall take care of
the goods entrusted to him as a man of ordinary prudence thereby protecting the
interest of his customers. In the event of the Forwarder agent takes the care of the
goods entrusted to him as a man of ordinary prudence he shall not be held
responsible for any loss or damages that may be suffered by the goods entrusted to
him.
(4) A customer shall give the Forwarder such instructions as are necessary for the
performance of the contract and the latter shall abide by these instructions in a
manner suited to the requirements of the customer. If however, the Forwarder is
satisfied, at any stage, that a departure from those instructions is justified in the
interest of the customer, he shall be at liberty to act accordingly. The Forwarder is
not in a position to guarantee a firm date in regard to the arrival of the goods at
destination. In the absence of any specific instructions issued by the customer, the
Forwarder is free to exercise his discretion in the choice of sub-contractors, modes
of transport and transportation, routes. Provide further that in the absence of any
specific instructions in writing the
Forwarder shall be at liberty to exercise his own judgment for the delivery of the
goods and for transport of the goods as a man of ordinary prudence.
(5) Customer shall advance such sums as may be required by the Forwarders for
meeting disbursements on account of the customer.
(6) The Forwarder is not responsible for effecting cargo insurance but may arrange
such insurance if so instructed by the Customer. In such cases, cargo insurance will
be arranged by the Forwarder on account of the customer. On such terms and
conditions as may be acceptable to the insurers.
(b) The Forwarder shall not be liable to the customer for consequential loss or loss
market ever cause.
(c) The Forwarder shall not be liable for acts or omissions for third parties such as
re forwarders, carrier etc. provided he has shown due diligence in the choice of
such third parties. If it can be proved that he has not done so, his liability shall not
exceed that of any third party held liable, and whom he had contracted with.
(d) The liability of the Forwarder for loss or damage to goods will be fixed on the
basis of the market value of the goods at the time of acceptance by the freight
forwarder and will not, under any circumstances, exceed that market value or a
sum at the rate of Rs.14/- per kilo of the gross weight of the goods lost or damaged,
whichever is less subject to a maximum of Rs. 15,000/- for each occurrence of
loss.
(e) The Forwarder may arrange/provide Road Transport for customer and in such
event the Forwarder shall not be held responsible as a carrier or assume the
liability of a carrier.
(f) In the event of the liability of the Forwarder being sought to be varied, the
variation shall only be affected by a written document signed by the Forwarder, in
the absence of such a document the liability of the Forwarder shall be governed as
provided herein.
Right to lien detention:(a) Constituents shall pay the bills presented by the Forwarder within 15 days of
their presentation, failing which penal interest at 3% above Banks lending rate of
interest shall become due and payable.
(b) The Forwarder has a right to lien and a right of detention over the goods or
other securities and effects lying within his power of disposal in respect of any
amount whether already due for payments or not which the Forwarder is entitled to
receive in respect of services to the customer. In exercise of the lien under this
clause, the Forwarder shall be entitled to dispose of the goods, either by public or
private sales upon which lien is exercised, to recover his dues, provided that he
gives a written notice of at least 7 days to the customer of his intention to do so.
The Forwarder is entitled to recover the entire balance amount from the customer
after recovery of the dues by the safe of the goods under this clause and the right
exercised by Forwarder under this clause shall not be deemed to have been waiver
of his right to take further legal steps to recover the dues.
Time Limit
Claims against the Forwarder shall be time barred within a period of one year
commencing from the day of delivery of the goods to the consignee named in the
contract or, if no delivery has taken place from the date of the conclusion of the
Forwarding contract.
Jurisdiction
Unless expressly agreed to the contrary, claim against the Forwarder shall be
decided at the principal place of his business. All juridical relations between the
Forwarder, the customer or authorized persons shall together with the application
of these conditions, be regulated by Indian law.
Arbitration
Any dispute between the Forwarder and the customer arising in connection with
performance of the contract shall be settled in accordance with the provisions of
the Indian Arbitration Act at the principal place of business of the Forwarder, each
party appointing an arbitrator and the two arbitrators, in the event of disagreement
appointing an umpire whose decision shall be final and binding upon both parties
provided the arbitrators to be appointed under this clause shall be appointed only
from the panel of arbitrators duly approved by FFFAI.
In case the Forwarder has to undertake warehousing of the goods conditions
applicable will be as laid Down in the document finalized by FFFAI with Indian
Banks.
CHAPTER 8
FINDINGS AND CONCLUSIONS
FINDINGS
This researcher emphasis on functions, obligations and duties of a freight
forwarders and realize that freight forwarders play a prominent role in the modern
logistics industry. The idea, innovation as well as expertise that they bring so far,
has facilitate the efficient transportation of goods across the world with drasticall
development in different modes of transportation . While freight forwarders
perform different and many tasks for the shippers, sub-carriers, consignor and
consignee either as agents or as principal, one must not overlook the legal capacity
in which freight forwarders act.
Awareness of the different between a freight forwarders role as agent and as a
principal becomes particularly important mostly when the issue of payment goes
awry .Not only does this role define the legal relationship between the parties, but
it may also establish the various liabilities and defenses available for the parties.
Awareness of this, shippers, sub-carriers and freight forwarders may appropriately
arrange their affairs whether by adjusting freight charges or obtaining additional
insurance cargo coverage to ensure that they are protected in the event if that a
transaction is not performed as contemplated. The characteristics of the fright
forwarders as agent or principal becomes important in situations where shippers
has paid the sub-carriers freight charges to the freight forwarders and the
forwarder, fail to remit payment to the sub-carrier buy miss- appropriating the
funds through bankrupt. In this, it reveal that the sub-carrier will look to the
shipper for payment and the resolution of this dilemma is contingent upon the
capacity that the freight forwarder is acting on. In other words, the sub-carrier may
look to the shipper for payment of its freight if it has a contractual relationship with
the shipper, that is where the fright forwarder is acting as agent for the shipper.
Then it is contractual responsibilities for the payment of the sub-carriers freight
since the sub-carrier is not in a
freight forwarders now establish a credit relationship with the shipper or the subcarrier to avoid complications associated in delays of payment or the conversion of
currency.
CONCLUSIONS:
This is the step where the researcher concludes about the research project
where he describes the nature of how the project is done and who are the targets in
his research and what is the optimum result that he obtained from doing this
research project. The research here says about the satisfaction level of the
customers and how the freight forwarders meted out their expectations, the
researcher discover that the service offered by the freight forwarders are at the very
best level to the customers. Similarly the freight rates offered and the value added
services rendered are also in a good level, but the customers are expecting a
valuable solutions provided by the freight forwarders. The customers are having a
good relationship with the freight forwarders for more than 5 to 15 years and this
makes them comfortable to move smoothly with the freight forwarders. This
project is done through various surveys like mail, interview and observation
methods. The researcher hereby concludes that the satisfaction levels of the
customers are at a high level and the expectations are clearly meted out by the
freight forwarders in an effective and a precise manner.
BIBLIOGRAPHY
RESEARCH METHODOLOGY: A Guide for Researchers in Management and
Social Sciences by bill Taylor, gautam sinha, taposh ghoshal, prentice-hall of India
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Readers with a particular interest in the use of regression analysis under Title
VII may wish to consult the following references: Campbell, Regression Analysis
in Title VII CasesMinimum Standards