Dass Final Project 2

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    A STUDY ON IMPACT OF FREIGHT FORWARDERS OVER LINER

    IN CHENNAI

    THE PROJECT REPORT SUBMITTED TO

    AMET UNIVERSITY

    IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE

    OF

    MASTER OF BUSINESS ADMINISTRATION

    IN

    SHIPPING & LOGISTICS MANAGEMENT

    BY

    S.MARIA DOSS

    (MBA / 0376 /10)

    Under the guidance of

    MRS.M.FATHIMA, MCA, M.Phil, MBA, M.Phil.

    Assistant Professor, MANAGEMENT STUDIES

    AMET UNIVERSITY

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    AMET UNIVERSITY

    KANATHUR, CHENNAI-603112.

    DECLARATION CERTIFICATE

    This is to certify that the work presented in the dissertation entitled A STUDY ON

    IMPACT OF FREIGHT FORWARDERS OVER LINERS IN CHENNAI in partial

    fulfilment of the requirement for the award of Degree of Master of Business

    Administration, in Shipping and logistics Management from AMET University,

    Kanathur, Chennai is an authentic work carried out under my supervision.

    To the best of my knowledge, the content of this dissertation does not form a basis for the

    award of any previous degree to anyone else.

    (MRS.M.FATHIMA)

    Date: Project Guide

    Department of Management studies,

    AMET University,

    Kanathur 603112, Chennai.

    (MR. J.P.THIAGARAJAN) (MR. N. SRINIVASAN)

    Head of Department, Dean,

    Department of Management studies, Department of Management studies

    AMET University, AMET University,

    Kanathur 603112, Chennai. Kanathur 603112, Chennai.

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    CERTIFICATE OF APPROVAL

    The foregoing dissertation entitled, A STUDY ON IMPACT OF FREIGHT

    FORWARDERS OVER LINERS IN CHENNAI

    Is hereby approved as a creditable study of research topic and has been presented in a

    satisfactory manner to warrant its acceptance as prerequisite to the degree for which it was

    submitted.

    It is understood that by this approval, the undersigned do not necessarily endorse any

    conclusion drawn or opinion expressed therein, but approve the dissertation for the purpose

    for which it is submitted.

    (Internal Examiner) (External Examiner)

    Head of the Department

    Department of Management Studies

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    ACKNOWLEDGEMENT

    I would like to express my gratitude to our respected Chairman Dr.J.Ramachandran and our

    Vice ChancellorMr.S.Bhardwaj for their kind encouragement.

    I am immensely thankful to my respected guide Mrs.M.FATHIMA, Lecturer, Department of

    Management Studies, AMET University for his guidance support and encouragement

    rendered to me throughout the project. I also wish to address special thanks to

    Mr.N.Srinivasan, Dean, Management Studies, Mr.J.P.Thiagarajan , Head of Department of

    Management Studies and Mr.J.Rengamani, Associate professor, Department of

    Management Studies, for their support during the project.

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    EXECUTIVE SUMMARY

    This project says about an analysis of impact and expectation of freight

    forwarders over Liners. The services of the Liners offered to different freight forwarders are

    become very competitive. The research developed to understand the efficiency of Liners

    depend upon the services such as cargo tracking, price fixing and other related cargo

    movement activities.

    The busiest route for liners was on the North Atlantic with ships traveling between Europe

    and North America. It was on this route that the fastest, largest and most advanced liners

    travelled.

    Liner Shipping is a service industry that by general acknowledgement provides the lifeline of

    international trade. Suffice it to say that, due to the morphology of our planet, 90% of

    international trade takes place by sea. Technological developments in ship design and

    construction, and the ensuing economies of scale of larger ships, have also promoted trade

    particularly that of developing nations- by making economical the transportation of goods

    over long distances. This has expanded markets for raw materials and final products and has

    facilitated the industrialisation of many countries around the world.

    The method of data collection used by the researcher is

    1. Survey method

    2. Interview method

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    CHAPTER PARTICULARS PAGE.NO

    AKNOWLEDGEMENTS

    EXECUTIVE SUMMARY

    CHAPTER 1 INTRODUCTION

    1.1 OVERVIEW OF THE TOPIC

    1.2 INDUSTRY PROFILE

    1.3 SCOPE OF THE STUDY

    CHAPTER 2 RESEARCH METHODOLOGY

    2.1 RESEARCH OBJECTIVES

    2.2 RESEARCH DESIGN

    2.3 SOURCE AND TYPE OF DATA

    2.4 RESEARCH TOOL

    2.5 DATA ANALYSIS

    2.6 LIMITATION OF THE STUDY

    CHAPTER 3 REVIEW OF LITERATURE

    CHAPTER 4 TOPIC SPECIFIC CHAPTER

    BIBLIOGRAPHY

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    CHAPTER 1 :

    INTRODUCTION

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    1.1 OVERVIEW OF THE TOPIC

    Although the freight forwarders are not a shipping line or a MTO or a NVOCC, we will

    discuss their role as they are also an important role to play as far as liner shipping is

    concerned.

    The International Freight Forwarder is popularly known as the "International Transport

    Architect". Ocean Freight Forwarders must be licensed by the U.S.

    Federal Maritime Commission which refers to Forwarders as "Ocean Transport

    Intermediaries" or, "OTI". An important part of the licensing requirements is the requirement

    that the "OTI" post a General Surety Bond in the amount of $125,000 (Soon to be raised) to

    protect the public. In India, a law is being contemplated to regulate the freight forwarders as

    they are not regulated so far. In India, Customs house agents are regulated as their

    competence is checked. For any malfeasance or misdemeanor, they can lose their licence to

    operate. CHA, as they are called, have the ocean freight intermediaries in India for a long time

    now and they were now acting as freight forwarders. Most of them still to be professionalized

    in offering value added service to their clientele on par with what their counterparts in

    developed countries offer.

    The freight forwarding professional advises clients of the best rates, routings, and modes

    of transporting goods to or from any area in the world. Using the vast resources at their

    disposal, forwarders find the "right match" of services available so that products are moved

    by the most timely and cost-effective means. The large volume of freight handled by

    forwarders gives those advantages not always available to either individual shippers or

    integrated carriers. The professional forwarder is also aware of the ever-changing

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    regulations affecting cargo movements, such as foreign documentation requirements,

    hazardous materials rules, U.S. government regulations, special handling or packaging

    restrictions, and any applicable licensing provisions.

    "Customized" services to fit clients' operations needs are their specialty. Forwarders

    coordinate arrangements for storage, pick-and-pack operations, consolidations or full

    container movements as well as inland transportation to provide clients with true door-to-door

    service. Some of the services could be as under:

    Liner service is the backbone of international trade in manufactured goods. Liners,

    sailing on regular schedules along established ocean trade lanes, move vast quantities of

    consumer, industrial and military commodities ranging from video cameras to night-vision

    scopes perfume to paint, jeans to milling machines.

    International general cargo trade now exceeds 1.2 billion metric tons. The portion of

    this cargo that is containerised approaches 100 percent on routes between developed

    economies. Globally, the so-called penetration of containerisation is estimated to be about 55

    percent. As ports and transportation infrastructure improve in the developing world, and as

    inter modal transportation becomes more viable in these regions, general cargoes will

    increasingly move in ocean containers. Containerised general cargo trade is increasing by 8.6

    percent per year over the period since 1993, which far exceeds growth rates of other sectors in

    ocean shipping.'

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    1.2 INDUSTRY PROFILE

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

    intermediaries play an important role in helping shippers move cargo from one city, state,

    country or continent to another. Working with a variety of asset-based carriers across multiple

    modes land, air, sea or rail forwarders coordinate shipments to ensure goods are delivered

    on time and on budget.

    International freight forwarders typically arrange cargo movement to an international

    destination. International freight forwarders, 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 lading and other documents required by the

    carrier or country of export