Freight forwarding business of UTi Pership Pvt. Ltd.: focused on only air export

Abstract

Internship is a partial requirement of post graduation. As a student of Master of business administration analyzing today’s business world is very crucial. It is necessary to go through all fields of knowledge, both theoretical and practical. After completing two years MBA program, I was sent out to have practical knowledge in business life as a part of my academic program. In this report I had tried to focus my both theoretical and practical knowledge regarding freight practices. My internship topic is ‘Freight Forwarding business of UTi Pership”. Freight Forwarder is a firm specializing in arranging storage and shipping of merchandise on behalf of its shippers. It usually provides a full range of services including: tracking inland transportation, preparation of shipping and export documents, warehousing, booking cargo space, negotiating freight charges, freight consolidation, cargo insurance, and filing of insurance claims. Freight forwarders usually ship under their own bills of lading or air waybills (called house bill of lading or house air waybill) and their agents or associates at the destination (overseas freight forwarders) provide document delivery, deconsolidation, and freight collection services. The International Federation of Freight Forwarders Associations (FIATA) shorthand description of the freight forwarder as the 'Architect of Transport' illustrates the commercial position of the forwarder relative to its client. Freight forwarding services negotiate the best possible price to move the product along the most economical route by working out various bids and choosing the one that best balances speed, cost and reliability. Freight forwarding service then undertakes the responsibility of arranging the transport from point of origin to destination. The history of Freight Forwarding is not too old. One of the earliest freight forwarders was Thomas Meadows and Company Limited of London, England, established in 1836. According to "Understanding the Freight Business," written and published by the executive staff of Thomas Meadows and Company in 1972, the advent of reliable rail transport and steamships created demand for the fledgling freight forwarding industry. Trade developed between Europe and North America, creating additional demand. The first international freight forwarders were innkeepers in London who held and re-forwarded the personal effects of their hotel guests. Forwarder responsibilities include advice on documentation and customs requirements in the country of destination. And the correspondent agent in overseas look after customers' goods and keep informed about matters that would affect movement of goods. In a single transaction, the forwarder may be acting as a carrier (principal) or as an agent for his customer or both.