Freight Forwarding Transportation Systems: Methods And Alternatives Essay.

Commercial documentation
• International payments (excluding letters of credit & letters of credit)
• Export packaging and warehousing (Review course outline to identify page numbers for each chapter covered)
• Different types of commercial documentation (ex: commercial invoice, packing list, certificate of origin, etc)
• Export and import permits
• Know about the methods of payments (ex: open account, documentary collections, etc)
• Types of documentary credit (along with advantages, risks, etc)
• Parties involved in a letter of credit (in addition to terminology)
• Types of packaging used for various modes of transportation (air, road, rail and ocean)
• Stuffing the container
• Palletizing and unitizing cargo for shipments

Importance of Providing Freight Solutions to Customers

In the freight forwarding transportation systems, there are methods used and the alternative methods of transportation. Among these alternative methods, it is important for the forward freight company to be in a position to provide the freight solutions to customers according to their need requirements, choose the right alternative method that best meets the shipping deadlines (Popovych et al. 2016). More than that, there are arithmetic considerations that are most efficient to ship a cargo that the company must have at fingertips from the logistical departments.

As a logistics Director, it is important to realize the criticality of information and stay updated on the happenings on the international trade routes. The above situation calls for the department of logistics, the professional freight forwarder, to be in quick awareness of the domestic events that may hinder the transportation performances (Sedlá?ek, 2017). In the events of such information, the department is in a position to opt for carriers that have an interchange agreement with the country’s railways or other modes of transport. In the situation above, the logistics department would be in a position to opt for other agreement with Canada’s other railway, Canadian Pacific Railway, among others. In most cases, information concerning such situations is printed in the CIFFA newspapers or broadcasted.

Considering the closeness of the Toronto to Montreal, the best alternative as the logistics director is to truck the container from Toronto to Montreal, of course, at additional charges. I would first ensure I check with the carrier at the ocean in determining whether or not they are willing to do this (Metzger et al. 2015). If they refuse to truck the container from Toronto to Montreal, I would in a better position to use my own company’s drayage company to perform the tracking. In all these cases, it is important to note that additional costs are involved and would be reflected in the overall payments that will be discussed by the shipper to make them aware of the situation of the labor strike. During the discussion, it would be important to propose the methods of overcoming the unexpected problem or event as well as the additional charges that are involved.

The Letterhead for the company

Company: GCCAutomobile (Canada  Freight Forwarder)  1234, Mississauga Rd Mississauga,  A1C58D3		From:	.
Fax: (123) 456-7890
Phone: (123) 456-7890 Cell: (416) 123-4567
Email:gccautmobile.cmi.com

The company products: Automobile parts The Buyer name and Address

Name of the Company:	Poland Manufacturing Inc.           Polonaise Poste            Pl. Malachowskiego 5612-001         WARSZAWA,POLAND
Fax:	(123) 123-1111
Phone:	(123) 123-1111
Email:

A warehouse to Client Flowchart

Receipting client’s purchase order                                                           Receipting client’s shipment request                       

Staying Updated on International Trade Routes

100                                                                                     150

120                                421                                                                        

The trade routes

Calculations

Toronto + Oshawa + Ottawa + Quebec City + Montreal = Total trade routes

120+100+160+150=530km

Logistical questions and solutions

1. State basic knowledge should you have before quoting a customer?

One should know how to calculate the chargeable weights for air, ocean and land transportation. A firm understanding of Incoterms is a necessity as the responsible parties (buyer/seller) are clearly defined.

2. Highlight some of the factors that influence the price quoted?
3. Routing

• Value of the goods
• Packaging
• Volume
• Contracts
• Weight
• Dimensions
• Negotiating power with the carriers; and Credit

3. The freight forwarders set their rates based on tariffs obtained from carriers. What should a freight forwarder look at when quoting these tariff rates?

Under this context, it is important to be aware of the fact that temporary supply and demand issues can significantly influence the carrier's price quoted (e.g., peak season surcharges).

4. Based on the practices of the freight forwarding processes, why is it important to encourage the sharing of information throughout the different departments in freight forwarding company?

Sharing information is important to have a better understanding of the clients’ needs. You may only be providing the customer with one service, and this is an opportunity to gain more business.

5. Other than the normal charges included in the freight costs, what should be considered when quoting a customer?

There are two factors to consider in this case; credit terms (freight forwarders are not banks) and time (remember the amount of time spent faxing, e-mailing and on telephone calls all cost money).

6. In the process of presenting alternative routing to a client, what are some considerations one has to keep in mind? Some of the considerations to be made include the currency fluctuation, frequency of the carriers, hidden costs that are included by carriers; and the customer’s requirements (sometimes the time sensitivity of cargo outweighs the cost).
7. What is the basic importance of a freight forwarder?

The main importance of a freight forwarder is to realize the advantages of multi-freight rates from the carrier; or at the convenience of the freight forwarder when he is required to forward some smaller shipments to the same end.

8. For the logistics directorate, state some of the standard rules for “rounding off” freight volumes?

I.In places where sections of the centimeter are used, measures of 0.5 centimeters are not be used while those that appear above that measurement are used when rounding over to the next full number or measurement.

1. In the process of determining the volume using the cube measurements of the packages, the determination should be measured using six decimal places and rounded off when a single package is involved.
2. What are some of the areas in a freight forwarder that has high potential in increasing the revenues?

These areas include de-buffing, local cartage, freight charges (buying at wholesale and selling at retail), stuffing, packaging, marine insurance, warehousing, customs brokerage among others (Metzger et al. 2015).

10. In the process of avoiding the bidding struggle with clients, what are some of the things that the freight forwarders do?

The best way among others to avoid such situations is to remain focused on strategies. Try to sell the service aspect rather than to participate in eroding rate levels. Another way is to look for a better mix of cargo to maximize the load factor.

11. State some of the service revenue streams generated by a freight forwarder

The service revenue streams include document preparation; insurance; handling fees; consulting; and special requests by a customer, such as labeling, among others.

12. State the ability set that a true international freight forwarder apart from carriers and customs brokers should have?

It is critical for a true international freight forwarder can think of alternatives. Sometimes freight forwarders are considered planners of transportation.

13. Highlight on the most important action a forwarder can take in choosing the correct transportation alternative?

It is important that the international forwarder identify the true needs of the customer. This is achieved by asking the customer questions about their freight, past, present and future requirements and business demands.

14. What are some of the client needs must you identify, and take into account before deciding on transportation alternatives?
15. A reasonable cost of transportation

• Safety and security of the cargo
• Scheduled delivery of the cargo at the destination

15. State some of the basic elements to consider when working out a possible alternative?

The basic elements to consider in working out the possible alternatives include the sensitivity of time, restrictions in the government, the value of goods, the perishability of the goods, costs, the transportation mode as well as the cargo itself.

16. State some of the occurring situations that may force a freight forwarder to search for an alternative?

Alternative Methods of Transportation

Some of the unavoidable situations that may force a freight forwarder to look for alternatives include climate, natural disasters, port congestion, and hostile situations like war, revolutions and political instability, labor disputes like strikes, lockouts and work slowdown.

Typical commercial and transportation documents

1. Commercial Invoice

A commercial invoice is a legally binding document that links a supplier and a customer of specific goods and services, stating the amount involved in the contract due to the customer. In the determination of the customs duties, the commercial invoice is one of the documents used by the authorities.

Example of a commercial invoice

The seller		Invoice No: Date: Customer ref:
Customer:		Terms of Sale: Terms of payment:
Ship to:		The currency of Settlement: Mode of shipment:
Quantity	Product description	Unit of measurement	Price
Certification: This is to certify the export                        process and the description of good are true Signed: …………………… Title:………………………..

Packing list

This is a shipping document that details the goods contained in the shipments. The content of each package as well as the parties involved in the transportation system. It helps to inform all parties involved with shipping, including transport agencies, government authorities, and customers, about the contents of the package. Example is shown below:

The Shipper
Routes: Canada torronto| Montreal|  poland		Invoice No: Date: Customer ref:
Consignee:		Bill to:
INFRMATION ON SHIPMENT
Quantity	Product description	Unit of measurement	Price
Certification: This is to certify the export  process and the description of good are true Signed: …………………… Title:………………………..

3. Bill of Lading

Shipper: GCC Automobile  (Canada  Freight Forwarder 1234, Mississauga Rd Mississauga,  A1C58D3

Bill of Lading number

K 352318

Export References:

CONSIGNEE: (Non-Negotiable Unless Consigned to Order)

Forwarding Agent:

CIFFA Forwarder, Toronto, On., Canada

TO ORDER

Consignee’s Reference:

Notify Address (Carrier not responsible for failure to notify: see clause 20(1) hereof):

Place of Receipt:

Poland Manufacturing Inc.            Poste Polonaise            Direction générale            Pl. Malachowskiego 2           00-940 WARSZAWA           Poland

Toronto, Canada

Pre-Carriage by: CN Rail

Place of Receipt by Pre-Carrier: Toronto, Canada

Place of Delivery:

Ocean Vessel: Maersk Penang Voy. 123

Loading point: Montreal, Canada

Port  of  Discharge:     WARSZAWA           Poland

The delivery point by the carrier:

Container Nos., Seal Nos., Marks, and Nos.

Number and Kind of Packages; Description of Goods

Gross Weight (kg)

Measurement (cm)

Meau 999669-1                                1  40 ft container said to contain          5,216 kg        20.813 Seal #: 07543                                        15 pallets of filters freight collect Documentary credit no. DCNTBWZ09268 Shipped on board Maersk Penang V. 123 from loading port Montreal February 5/12 Shipped load, stow and count Above Particulars as declared by Shipper. Without responsibility or warranty as to correctness by carrier (see clause 11(1) and 11(2)

Total No. of Containers/Packages received by the Carrier: 1

Shipper’s declared value (see clause 7(1) and 7(2) hereof):

Movement CY/CY

Currency USD

Charge

Rate

Basis

WT/MEA/VAL

Payment

Amount

Place and Date of Issue: Toronto, Canada, February 6, 2018

Freight Payable at: Destination

A number of original Bs/l: 3

Total Freight Prepaid

Total Freight Collect

Total Freight

Signature by Carrier or Agent

Certificate of Origin

This is a document that details the country of origin of the goods in transit.  Depending on the requirement in each country, this document is normally issued by the chamber of commerce in the exporting country.

Example:

CERTIFICATE OF ORIGIN
The Shipper and Address:		Forwarding Agent:
Consignee name and Address:		Notify Party:
Exporting Carrier:		Country of Manufacturing: Date: Customer ref:
Total number of packages:		Date of Export:
INFRMATION ON SHIPMENT
Quantity	Product description	Unit of measurement	Price
Certification: This is to certify the export                        process and the description of good are true Signed: …………………… Title:………………………..

Export Permit

Permit Export

Consignor? Exporter Name………………………………………….. Address…………………………………….		Source……………………………………………………………………………………………………………………………
		Type of commodity………………………………………
		Special condition………………………………………………………………
Consignee Name…………………………………. Address……………………………..		Valid till……………………………………………………………….
		Exit Point……………………………………………………………..
Authorizing Agent Name………………… Address…………………		Date of Export…………………………………………………
		Flight No? Vessel No……………………………………………
Bill No		Quantity	value
Permit Place……………………….        Date……………….           Approved by…………………………………………………

Credit letter

Company: GCCAutomobile  (Canada  Freight Forwarder)      1234, Mississauga Rd Mississauga,  A1C58D3

Fax: (123) 456-7890

Phone: (123) 456-7890 Cell: (416) 123-4567

Email:gccautmobile.cmi.com

(Amount in words)---00/100 Canadian Dollars

                EXPIRY ………………

     At our counters in Ottawa, Ontario

This is at the request of and for the account of our customer (Applicant - Name and Address) the

“Customer,” we at this moment establishes in the Beneficiary’s favor our Irrevocable Standby Letter of

Credit number (L/C NO.) for a sum not exceeding ($..............................Cad.).

This Credit is given in support of the Customer’s agreement…………………………………………Exploration Licence No #........... (the “Licence”) and based on the Terms and Conditionst therein dated …...……equal in the amount to the sum of this Credit.

Hu, X. L., & Liu, D. (2015, November). Information Resource Integration of the Supply Chain to Promote Freight Forwarding Industry. In Robot, Vision and Signal Processing (RVSP), 2015 Third International Conference on (pp. 117-120). IEEE.

Lee, E. S., & Song, D. W. (2018). Knowledge management in freight forwarding as a logistics intermediator: model and effectiveness. Knowledge Management Research & Practice, 1-9.

Metzger, A., Leitner, P., Ivanovi?, D., Schmieders, E., Franklin, R., Carro, M., ... & Pohl, K. (2015). Comparing and combining predictive business process monitoring techniques. IEEE Transactions on Systems, Man, and Cybernetics: Systems, 45(2), 276-290.

Naumov, V. (2015). Evaluation of freight forwarder risk to transportation market entry. ????????-??????????? ?????? ????????? ??????????, (4 (3)), 28-31.

Naumov, V., & Omelchenko, T. (2017). Model of the Delivery Routes Forming Process as a Service Provided by Forwarding Companies. Procedia Engineering, 187, 167-172.

Ostroukh, A., Ivakhnenko, A., & Krupensky, N. (2014). A development of Process-Oriented System for Operational Control of Freight Forwarding Activity Journal of Applied Sciences (JAS), 14 (20), 2601-2607.

Popovych, P., Shyriaieva, S., & Selivanova, N. (2016). Analysis of the interaction of participants freight forwarding system. Journal of Sustainable Development of Transport and Logistics, 1(1), 16-22.

Sangka, K., Rahman, S., & Jie, F. (2015). The competencies of operations managers in Indonesian third-party logistics and freight forwarding firms. In ANZAM 2015: Managing for Peak Performance (pp. 1-26). Australian and New Zealand Academy of Management (ANZAM).

Sedlá?ek, M. (2017). Optimization of Processes in a Freight Forwarding Company Using a Simulation Model. In MATEC Web of Conferences (Vol. 134, p. 00050). EDP Sciences.

Wen, C. L., Wee, H. M., & Wu, S. (2015). Revisiting Lean Manufacturing Process with Vendor Managed Inventory System. In Proceedings of the 5th International Asia Conference on Industrial Engineering and Management Innovation (IEMI2014) (pp. 139-142). Atlantis Press, Paris.