Freight Forwarding Operations and Its Impact on Port Congestion a Case Study of Onne Port
CHAPTER ONE
Objective of the study
The objective of the study is to ascertain freight forwarding operations and its impact on port congestion. The specific objectives are;
- To find out whether excessive demand over supply of port services have effect on port congestion in Onne port, Portharcourt
- To find out whether inability of Onne port to meet up the technological trends in globalization is the causes of congestion
- To find out whether Policy inconsistency of governments is the cause of congestion in Onne port, Portharcourt
CHAPTER TWO
LITERATURE REVIEW
Introduction
Freight Forwarder is a company involved in the service of shipping goods or cargo. Various transportation modes are used in shipping, such as, land, sea, and air transportation. The activities carried out by freight forwarder are shipping, receiving goods, storage of goods, packing, weighing, labeling, and publishing the transport document. Currently, industrial companies mostly support the growth of companies in Indonesia. The more industrial companies that set up factory plant in Indonesia, the faster economic development and prosperity this country will achieve. The existence of the industrial companies is certainly connected with the activity of transport and logistics. Related developments and progress in the field of industry, then the Government gives some conveniences to the entrepreneur to be able to do a variety of activities that can support the effort they went through, one is the activities of export or import. Business activities always deal with transportation and logistics, export and import handling, factory warehousing and various other supporting activities. As for some of the services offered by the company such as a freight forwarder, customs clearance services handling good export as well as import, handling as a distribution center, provides warehousing, provides unloading and unpacking temporary positioning for cargo. Some services provided by the company facilitate the freight forwarder and support the business of the company and in the field of manufacturing, trading, retail company as well
Method
- Export According to Husni Hasan et.al (2012:64), export is the process of transporting goods or commodities from one country to another legally, generally conducted in the trading process. The export process in general is the action to remove the goods or commodities from the country to integrate it into other countries. An export process can be said to be an enterprise’s success in generating a yield of production, which produced such acclaimed quality and can compete with other products in the world. It is a competitive advantage for the company.
- Import “Imports are ingoing the goods from abroad into the customs territory of Indonesia in some required conditions” (Djauhari, 2007:1) “Imports are goods and services incorporating activities into the area of customs in accordance with the regulations and the applicable militate – an invitation.”
(Astuti and Sri, 2013:1) Of the few definitions concerning import expressed by the experts above, it can be stated that the import is economic activity by inflowing goods from outside the area into the territory
Freight Forwarding Business
According to Human Resources Logistic (2008) in (Baharudin, 2012), the management of transport services (freight forwarding) is intended to represent the interests of the owner of the goods to take care of all the activities necessary for the implementation of the delivery or acceptance of the goods, either by land, sea or air transportation. The activities include the receiving, storing, sorting, packing, marking, measuring, weighing, and maintaining the settlement document.
CHAPTER THREE
Research methodology
Research Design
The research design adopted in this research work is the survey research design which involves the usage of self-designed questionnaire in the collection of data. Under the survey research design, primary data of this study will be collected from Onne port in Portharcourt in Rivers state in order to determine freight forwarding operations and its impact on port congestion. The design was chosen because it enables the researcher to collect data without manipulation of any variables of interest in the study. The design also provides opportunity for equal chance of participation in the study for respondents.
Population of Study
The population of study is the census of all items or a subject that possess the characteristics or that have the knowledge of the phenomenon that is being studied (Asiaka, 1991). It also means the aggregate people from which the sample is to be drawn.
Population is sometimes referred to as the universe. The population of this research study will be Seventy-five (75) selected staffs in Onne port in Portharcourt in Rivers state
Sample Size and Sampling Techniques
The researcher made use of stratified sampling technique because all the members have the same probability of occurrence. The researcher narrowed down the samples to Onne port in Portharcourt in Rivers state in order to determine freight forwarding operations and its impact on port congestion. In this study, the researcher used the [TARO YAMANE FORMULA] to determine the sample size.
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION
This chapter is about the analysis and presentation of data collected from the field through questionnaire. The analysis of the data with particular question immediately followed by the presentation of findings.
As mentioned in chapter three, 63 questionnaires were administered and 50 were retrieved and necessary analysis was carried out on them.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain freight forwarding operations and its impact on port congestion. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of freight forwarding operations and its impact on port congestion.
Summary
This study was on freight forwarding operations and its impact on port congestion. Using Onne port as a case study. Three objectives were raised which included: To find out whether excessive demand over supply of port services have effect on port congestion in Onne port, Portharcourt, to find out whether inability of Onne port to meet up the technological trends in globalization is the causes of congestion and to find out whether Policy inconsistency of governments is the cause of congestion in Onne port, Portharcourt. The total population for the study is 75 selected staffs in Onne Port, Portharcourt. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. The data collected were presented in tables and analyzed using simple percentages and frequencies
Conclusion
It can be deduced from the foregoing analysis that the Onne Said facilities is one of the most congestion resistant ports in Nigeria, largely due to the operational dispensation of the ports and the solid strategies adopted by the ports in managing cargo storage systems. Reducing regulated cargo dwell time in ports and the time frame within which transactions are concluded in ports also provides effective control measures against common causes of port congestion. And as the causative factors for port congestion in each of these African ports are largely unique to the ports, each port should adopt the most effective solution mechanisms for tackling unique congestion inducing practices. Most of all the issue of increasing capacity, regulations and investment in basic infrastructure and modern equipment will go a long way in easing port congestion in African Ports. It could be deduced that cargo throughput and berth occupancy rate are significantly related which implies that they with other factors are indices of port congestion when the demand for ports services exceeds the supply. It may as well indicate that the other variables used are not significant factors affecting port congestion in Nigeria
Recommendation
- At port entry channels level, African ports should adopt good strategies to manage and maintain all port entry channels and its vicinity by deploying adequate and accurate programming of ships’ arrival, anchorage and departure from the ports to avoid queuing and bunching of ships waiting around, particularly in Nigeria.
- The widths of channels leading into ports should be expanded and continuously dredged to ease the entry and exit of ships calling at the ports, particularly in Onne ports.
- Daily average arrival and departure statistics of ship call in all the ports need to be maintained to enhance programming of ship arrival and departure in line with port capacity.
- Berth specialization should be upgraded to enhance operational efficiency of terminals and to optimize berth occupancy.
- Invest more on terminal cargo handling gears for the purpose of improving berth work efficiency and reduce turn-round time of vessels at port.
- Improve average speed in cargo transfer to reduce dwell time and enhance ports’ cargo throughput.
References
- African Development Bank. (2014). Cargo Dwell Time in African Ports. The African Development Bank.
- Chang, Q. G. (2009). Analysis of Marine Container Terminal Gate Congestion, Truck Waiting Cost and System Optimization. New Jersey Institute of Technology.
- Jannson, J. O., &b Shnearson, D. (2009). In Kevin C., Wayne K.. Port Economics. Taylor & Francis. London. Lisa, S. (2013). Port congestion in Nigeria. The Mail & Guardian, 14 June.
- Oyatoye, E. O., Adebiyi, S. O., Okoyee, J. C., & Amole, B. B. (2011). Application of Queueing theory to port congestion problem in Nigeria. European Journal of Business and Management, 3(8).
- Samson, E. (2014). Congestion and Port Development: Issues and Challenges. Leadership Newspaper, Nov 7. UNCTAD – Port Performance Indicators – TB/B/C.4/131/Supp.1/Rev 1. Retrieved from www.freshfruitportal.com
- World Bank. (2011). Cargo Dwell Time in Durban: Lessons for Sub- Saharan African Ports. The World Bank Group. World Bank. (2012). Why does cargo spend weeks in sub-Saharan African ports? The World Bank
- Cerdeiro, D. A., Komaromi, A., Liu, Y. and Saeed, M. 2020. “World Seaborne Trade in Real Time: A Proof of Concept for Building AIS-based Nowcasts from Scratch,” IMF Working Papers 20/57, International Monetary Fund.
- Hummels, D. L. and Schaur, G. 2013. “Time as a Trade Barrier,” American Economic Review, 103 (7): 2935-59.
- Agmoni, E. (2016). The Role of Kaizen in Creating Radical Performance Result in a Logistics Service Provider. Logforum, 12(3), 225–245. https://doi.org/10.17270/J.LOG.2016.3.4
- Bae, H. S. (2011). The relationships between environment, integration and performance in supply chain contexts. Asian Journal of Shipping and Logistics, 27(1), 61–90. https://doi.org/10.1016/S2092-5212(11)80003- 9