Abstract
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
Chapter one
Introduction
1.1Background of the study
An efficient logistics sector is an integral part of a sustainable growth strategy for any country. Reducing costs and improving the quality of logistics services allows for more efficient and timely movement of goods which integrates domestic markets and improves access to foreign markets. Better logistics performance is shown to be strongly associated with trade growth, export diversification, and economic growth (Arvis et al., 2010; Behar et al., 2013). The logistics of any supply chain – be it domestic, regional, or global encompasses freight transportation, warehousing, border clearance, payment systems, and other functions outsourced by producers and traders to specialized providers.
Freight forwarders are some of the key specialized providers in the logistics network. A freight forwarder is an individual or firm that organizes shipments for other individuals or firms, in order to get the goods from the producer to a market (whether to a direct customer or to a distribution point). The freight forwarder need not move the goods itself, but arranges shipping by contracting with a carrier to move the goods (by ship, airplane, truck, railroad, or a combination of these) and arranges storage. Freight forwarders that handle international shipments also assist with preparation and processing of customs and other documentation needed to cross international borders and deal with the relevant government agencies. Freight forwarders’ familiarity with the particularities of logistics and administrative hindrances in a given setting means that their views offer important contextual information for understanding international trade frictions
Port Congestion is a scenario associated with delays, queuing and extra time of voyage and dwell time of ships and cargo at the port, which always have unpleasant consequences on Logistics and supply chain. These issues often escalate into extra costs, loss of trade and disruption of trade and transport agreements. In an attempt to pick out the consequences of port congestion on Logistics and supply chain operations in some African ports, this study examined the common port congestion scenarios, their dimensions and the various factors that cause port congestion in the ports of Onne, Lagos, Durban, Mombasa and the catchment ports of the Suez canal in Egypt. The notable indicators include cargo dwell time, operational dwell time, storage dwell time and transactional dwell time defined as the transaction time between the importers / port services and the customs (World Bank, 2011).
Transporting goods by sea remains the most common way to trade globally, but in Africa cargo spends an abnormally long time in ports before it is moved inland, presenting a serious obstacle to the successful integration of sub-Saharan economies in worldwide trade networks. The port of Onna, Portharcourt, however, has managed to buck the trend. World Bank (2012) analyzed performances from six countries and found the average cargo waiting time to be 20 days. It concluded that more than half of the time needed to transport cargo from ports to hinterland cities in landlocked countries in sub-Saharan Africa is wasted because of the time cargoes spend in ports. The African Development Bank (2014) defines dwell time as the time cargoes remain in a terminal’s in-transit storage areas while awaiting shipment for export or onward transportation by road or rail to the hinterland as import. Dwell time is one indicator of a port’s efficiency because the higher the dwell time, the lower the efficiency and the longer dwell times results to inefficiencies relating to port congestion which can have an adverse effect on economic growth. Based on this background the researcher wants to investigate freight forwarding operations and its impact on port congestion. A case study of Onne Port in Portharcourt
Statement of the problem
Port congestion is a problem that affects efficiency levels of freight forwarding operations, performance and productivity of sea ports. Several factors have been identified by most works to be causative to port congestion. These include: Excessive demand over supply of port services, Policy inconsistency of governments, Poor and obsolete port infrastructure, Inability of some ports to meet up the technological trends in globalization and manpower problems. Hence, this work tends to proffer some statistical solutions to these problems in an attempt to bridge the gaps.
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
Research Questions
The following research questions are formulated;
- Is excessive demand over supply of port services have effect on port congestion in Onne port, Portharcourt?
- Is inability of Onne port to meet up the technological trends in globalization is the causes of congestion?
- Is Policy inconsistency of governments is the cause of congestion in Onne port, Portharcourt?
Research Hypotheses
The following research hypotheses are formulated;
H0: Excessive demands over supply of port services have no effect on port congestion in Onne port, Portharcourt
H1: Excessive demands over supply of port services have effect on port congestion in Onne port, Portharcourt
H0: Inability of Onne port to meet up the technological trends in globalization is not the causes of congestion
H2: Inability of Onne port to meet up the technological trends in globalization is the causes of congestion
H0: Policy inconsistency of governments is not the cause of congestion in Onne port, Portharcourt
H3: Policy inconsistency of governments is the cause of congestion in Onne port, Portharcourt
Significance of the study
The study will be very significant to students, ministry of transportation in Nigeria and the Onne port in Portharcourt. The study will give a clear insight on the freight forwarding operations and its impact on port congestion. The study will educate public on the reason there are congestions in ports and the solution to it especially in Onne port. The study will also serve as a reference to other researcher that will embark on the related topic
Scope of the study
The scope of the study covers freight forwarding operations and its impact on port congestion. The study will be limited to Onne port in Portharcourt, Rivers state
Limitation of the study
Limitations/constraints are inevitable in carrying out a research work of this nature. However, in the course of this research, the following constraints were encountered thus:
- Non-availability of enough resources (finance): A work of this nature is very tasking financially, money had to be spent at various stages of the research such resources which may aid proper carrying out of the study were not adequately available.
- Time factor: The time used in carrying out the research work is relatively not enough to bring the best information out of it. However, I hope that the little that is contained in this study will go a long way in solving many greater problems.
Definition of terms
Freight forwarding operation: Freight forwarders play a key role in moving goods across international borders. They arrange transport, oversee customs clearance on behalf of their clients, and more generally troubleshoot issues that arise while goods are in transit.
Port congestion: Port congestion means that ships arrive at the port and cannot load or unload, as the terminal is already full
This material content is developed to serve as a GUIDE for students to conduct academic research
FREIGHT FORWARDING OPERATIONS AND ITS IMPACT ON PORT CONGESTION A CASE STUDY OF ONNE PORT
A1Project Hub Support Team Are Always (24/7) Online To Help You With Your Project
Chat Us on WhatsApp » 09063590000
DO YOU NEED CLARIFICATION? CALL OUR HELP DESK:
09063590000 (Country Code: +234)
YOU CAN REACH OUR SUPPORT TEAM VIA MAIL: [email protected]
09063590000 (Country Code: +234)
