Wednesday, April 15, 2009
Introduction
“Logistics is all about mastermind the science of movement.” The goal of logistics is to achieve a targeted level of customer service at the lowest possible total cost that aims to service the demand created by marketing efforts.
Logistics is one of the oldest and also the newest activities of business management. It involves combining diverse functions and service providers who may be culturally and objectively different.
Logistics is about moving materials, information and funds from one business to another business or consumer. It is an important part of the business economic system and is a major global economic activity. In fact 10-15 per cent of product costs are logistics related. Worldwide, logistics constitutes about $2 trillion a year. For any country, the logistics cost is estimated between 9 and 20 per cent of its GDP.
Globally, transportation sector accounts for around 3 to 5 percent of GDP. Almost 65% of the world trade is done through ocean. this is the same case of India also. The demand for transportation industry is directly proportional to the growth of the economy, mobility of population and other related factors.
Though traditionally, transportation involves physical movement of goods, however, in the new era, it is largely influenced by information and communication technologies with the focus being on knowledge of customer needs and value added services in order to provide maximum benefits to user.
Generally the forwarding function can be divided into the following areas.
1. Documentation
2. Planning and Costing Routes
3. Booking and Coordinating Freight
4. Arranging Ancillary Services (Eg: Warehouse, Packing)
5. Consolidation
6. Paying chares due to Carriers, Ports, Customs etc
7. Customs Requirements
8. Advice
9. Information that helps to prepare Quotations
STATEMENT OF THE PROBLEM
International trade plays a significant role in the economy of our country. Foreign markets now tempt business firms that never much warned about sales beyond their nation’s border. The Logistics industry as such is heavily competitive in nature with all players trying various strategies to gain a hold of the market
The rapidly expanding transport facilities and technological development in transport has grown in a boom stage in the trade and commerce. Shipping agency can have a huge import on the trade of individual countries. The logistics completely developed in a country have a great say on its economic development. This topic is relevant in the context of trade.
The present study has been titled as “A LOGISTICS HIGH PERFORMANCE OF SHIPPING AGENCIES”. Since Logistics service is the important in world wide business. Hence this topic has been chosen.
OBJECTIVES OF THE STUDY
The main objective of the study is to analyze the High Performance of Shipping Agency. The other objectives are:]
1.To study the functioning of Shipping Agency.
2.To study the responsibilities of Customs House Agents.
3.To study about documentation procedure in detail
4.To offer findings and suggestions to improve the High Performance of Shipping Agency.
LIMITATION OF THE STUDY
The study is confined only to a particular Shipping Agency and hence the conclusion must be drawn with due care, when the attempt is made to generalize the result. The results have also been drawn based on the information gathered. Time constraint is another problem faced by the researcher. Data has been collected within permitted time limit.
Logistics is one of the oldest and also the newest activities of business management. It involves combining diverse functions and service providers who may be culturally and objectively different.
Logistics is about moving materials, information and funds from one business to another business or consumer. It is an important part of the business economic system and is a major global economic activity. In fact 10-15 per cent of product costs are logistics related. Worldwide, logistics constitutes about $2 trillion a year. For any country, the logistics cost is estimated between 9 and 20 per cent of its GDP.
Globally, transportation sector accounts for around 3 to 5 percent of GDP. Almost 65% of the world trade is done through ocean. this is the same case of India also. The demand for transportation industry is directly proportional to the growth of the economy, mobility of population and other related factors.
Though traditionally, transportation involves physical movement of goods, however, in the new era, it is largely influenced by information and communication technologies with the focus being on knowledge of customer needs and value added services in order to provide maximum benefits to user.
Generally the forwarding function can be divided into the following areas.
1. Documentation
2. Planning and Costing Routes
3. Booking and Coordinating Freight
4. Arranging Ancillary Services (Eg: Warehouse, Packing)
5. Consolidation
6. Paying chares due to Carriers, Ports, Customs etc
7. Customs Requirements
8. Advice
9. Information that helps to prepare Quotations
STATEMENT OF THE PROBLEM
International trade plays a significant role in the economy of our country. Foreign markets now tempt business firms that never much warned about sales beyond their nation’s border. The Logistics industry as such is heavily competitive in nature with all players trying various strategies to gain a hold of the market
The rapidly expanding transport facilities and technological development in transport has grown in a boom stage in the trade and commerce. Shipping agency can have a huge import on the trade of individual countries. The logistics completely developed in a country have a great say on its economic development. This topic is relevant in the context of trade.
The present study has been titled as “A LOGISTICS HIGH PERFORMANCE OF SHIPPING AGENCIES”. Since Logistics service is the important in world wide business. Hence this topic has been chosen.
OBJECTIVES OF THE STUDY
The main objective of the study is to analyze the High Performance of Shipping Agency. The other objectives are:]
1.To study the functioning of Shipping Agency.
2.To study the responsibilities of Customs House Agents.
3.To study about documentation procedure in detail
4.To offer findings and suggestions to improve the High Performance of Shipping Agency.
LIMITATION OF THE STUDY
The study is confined only to a particular Shipping Agency and hence the conclusion must be drawn with due care, when the attempt is made to generalize the result. The results have also been drawn based on the information gathered. Time constraint is another problem faced by the researcher. Data has been collected within permitted time limit.
Review of Literature
Reviews
Sebastian (2002) has conducted a study on “Problems of 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.
Parthiban (2000) has conducted a study on, “Logistics High Performance”. This project represents all the logistics firms. He concluded that comparatively all the logistics firms were doing their job in good and faithful way. He suggests that the logistics firms and agents should accompany with the customers of the concern.
Joseph (2001) has conducted a study on, “Influence of Logistics Firms in International Trade”. He says that every trade is possible only with the help of logistics advisories because those people are very experienced and professionally trained in logistics activity. He concluded that all the logistics firms should facilitate as much as possible to the exporter and importer.
Sabareeswaran (2007) conducted a study on, “Working of Freight Forwarders”. In that he explained the nature, duties and functions of the freight forwarders. They are also called as Mr.5 % because the freight forwarders usually getting the commission only 5 % on the shipment of cargo. Finally he concluded the freight forwarders contribution to logistics business is quite a vital role. Now the modern business cannot function comfortably without the assistance form the freight forwarders.
Eswari (2002) conducted a study on, “Role of Clearing & Forwarding Agents in Business”. She explained the nature and role of the Clearing and Forwarding Agents in detail and the Documentation process is perfectly done by them. She concluded topic by providing the Quality Services to the International Traders.
Manikandan (2003) conducted a study on, “service rendered by Maersk Logistics India Pvt Ltd”. In that study he explained Maersk Logistics company is the worldwide service provider and they also having the own containers and vessels for the international trading activities. He concluded that customers were satisfied with the services provided by the Maersk Logistics Company. But they should provide the essential assistance to the exporter and importer.
Sebastian (2002) has conducted a study on “Problems of 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.
Parthiban (2000) has conducted a study on, “Logistics High Performance”. This project represents all the logistics firms. He concluded that comparatively all the logistics firms were doing their job in good and faithful way. He suggests that the logistics firms and agents should accompany with the customers of the concern.
Joseph (2001) has conducted a study on, “Influence of Logistics Firms in International Trade”. He says that every trade is possible only with the help of logistics advisories because those people are very experienced and professionally trained in logistics activity. He concluded that all the logistics firms should facilitate as much as possible to the exporter and importer.
Sabareeswaran (2007) conducted a study on, “Working of Freight Forwarders”. In that he explained the nature, duties and functions of the freight forwarders. They are also called as Mr.5 % because the freight forwarders usually getting the commission only 5 % on the shipment of cargo. Finally he concluded the freight forwarders contribution to logistics business is quite a vital role. Now the modern business cannot function comfortably without the assistance form the freight forwarders.
Eswari (2002) conducted a study on, “Role of Clearing & Forwarding Agents in Business”. She explained the nature and role of the Clearing and Forwarding Agents in detail and the Documentation process is perfectly done by them. She concluded topic by providing the Quality Services to the International Traders.
Manikandan (2003) conducted a study on, “service rendered by Maersk Logistics India Pvt Ltd”. In that study he explained Maersk Logistics company is the worldwide service provider and they also having the own containers and vessels for the international trading activities. He concluded that customers were satisfied with the services provided by the Maersk Logistics Company. But they should provide the essential assistance to the exporter and importer.
Abbreviations and Concepts Used
CFS - Container Freight Station
LCL - Less than Container Load
FCL - Full Container Load
DGFT - Director General of Foreign Trade
NVOCC - Non-Vessel operating Common carrier
DWT - Dead Weight
MT - Metric Tones
TEU’S - Twenty Equal ant Units
CHA - Customs House Agent
EPC - Export Promotion Council
MPS - Maritime Propositioning Shipment
FCR - Forwarder's Certificate of Receipt
COUNTER PARTY
Counter party is usually the entity with whom one negotiates on a given agreement, and the term can refer to either party or both, depending on context. All trade activities require some sort of counter party.
LCL - Less than Container Load
FCL - Full Container Load
DGFT - Director General of Foreign Trade
NVOCC - Non-Vessel operating Common carrier
DWT - Dead Weight
MT - Metric Tones
TEU’S - Twenty Equal ant Units
CHA - Customs House Agent
EPC - Export Promotion Council
MPS - Maritime Propositioning Shipment
FCR - Forwarder's Certificate of Receipt
COUNTER PARTY
Counter party is usually the entity with whom one negotiates on a given agreement, and the term can refer to either party or both, depending on context. All trade activities require some sort of counter party.
Specialized
Area of concentration
Company focuses on the following
Documentation in concurrence with the prevailing EXIM Policy & Export Promotion Schemes for Sea Cargo
Facilitation of container stuffing at approved Container Freight Station
LCL/FCL sea cargo movement in association with multiple steamer agents at the option of the client Pre/post shipment lassoing with customs / DGFT authorities for availing of export-import incentives declared by the government.
Responds practically to each clients individual requirements at every stage of
the service to overcome the exporter or importer stress.
Customs Clearance and Freight Forwarding
Soft handling of Cargo by experienced work force under direct supervision.
Local transportation and also delivery to the hands of exporter or importer.
Company focuses on the following
Documentation in concurrence with the prevailing EXIM Policy & Export Promotion Schemes for Sea Cargo
Facilitation of container stuffing at approved Container Freight Station
LCL/FCL sea cargo movement in association with multiple steamer agents at the option of the client Pre/post shipment lassoing with customs / DGFT authorities for availing of export-import incentives declared by the government.
Responds practically to each clients individual requirements at every stage of
the service to overcome the exporter or importer stress.
Customs Clearance and Freight Forwarding
Soft handling of Cargo by experienced work force under direct supervision.
Local transportation and also delivery to the hands of exporter or importer.
Services of Shipping Agency
Shipping Agency is primarily identified as logistics associated service provider involved in rendering services related to export – import. Shipping Agency provides various logistics services, which are of importance and backbone of export and import.
The activities are,
1. Feeder Division
2. Liner Division
3. Warehousing
4. Container Freight Station
5. Freight Forwarding
6. Clearing and Forwarding
7. Documentation
The activities are,
1. Feeder Division
2. Liner Division
3. Warehousing
4. Container Freight Station
5. Freight Forwarding
6. Clearing and Forwarding
7. Documentation
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