Nigeria is one of the landlocked countries within West African Development Community (WADC) that faces challenges in accessing international markets for her import and export traffic. The provision of predictable, competitive and reliable transport services is suggested to be challenged due to physical deficiencies in the rail and road networks as well as inefficient border operations that contribute to very high transport costs.
Traditionally, a freight forwarder is an entity that acts as an intermediary between the actual shipper or importer and the carrier. In broad sense, a freight forwarder or forwarding agent, also called as a non-vessel operating common carrier (NVOCC), is an individual or a company that aids to arrange shipments for individuals or corporations to get cargoes or goods from the producer or manufacturer to a customer or customers, a market, or final point of distribution for end users. Forwarders contract with a carrier or often multiple carriers to move the goods. Freight forwarder is defined as an “architect of transport,” and the main roles provide efficient specialized transport solutions through integrating its fundamental roles such as; quotation/booking, consolidation, cargo warehousing, custom clearance, delivering and insurance for manufacturer firms in the execution of international transport (FIATA, 2014). Moreover, it is also an intermediary institution that act on behalf of importers, exporter, or another companies in order to make transport organization safe, efficient and cost-effective shipping (Ciltuk.org.uk, 2015). From this perspective, the main roles of freight forwarder is to arrange appropriate customized transport models by taking the advantage of the collaboration of the fundamental freight forwarding components in order to transport manufactured goods to its final destination under convenient circumstances. Murphy and Daley (1996) said that the most firms employ international trade specialists to assist with documentation requirements and other vagaries of cross-border commerce and booking spaces, the payment of freight charges, shipment consolidation, and the preparation of documentation for smoothly custom clearance by an expert international freight forwarder.
Comprehending economic role of a freight forwarder, it is vital to provide a brief foreword to the method of loading and unloading of goods internationally by multimodal carriage and then think an entirely diverse phase of the horse and carriage of goods globally. An understanding of multimodal transport is required that the freight forwarder uses this method of carriage in performing his duty. A multimodal or combined transport operator has to be evidently differentiated from the freight forwarder. A freight forwarder is basically not a carrier, but an auxiliary entity, a professional mediator between the cargo interest and the carrier, who organizes the carriage of goods from departure to destination, but does not undertake to carry himself and does not agree to take liability as a carrier.
Statement of the problem
Different countries have different expenses that have to be paid both at the embarking point and the destination. This causes some ships to remain at sea as they are unable to pay the service charges or the docking charges. These charges are different from port to port, and as there are no standards, it becomes a big problem. Based on this the researcher wants to investigate freight forwarding operations in an emerging economy.
Objective of the study
The objectives of the study are:
H0: there is no relationship between freight forwarding and Nigeria economy
H1: there is relationship between freight forwarding and Nigeria economy
H02: there is no cost of freight forwarding operations in Nigeria
H2: there is cost of freight forwarding operations in Nigeria
Significance of the study
The study will be very significant to students and ministry of transport. The study will give a clear insight on the freight forwarding operations in an emerging economy. The study will also serve as a reference to other researchers that will embark on the related topic
Scope and limitation of the study
The scope of the study covers analysis of freight forwarding operations in an emerging economy. The researcher encounters some constrain which limited the scope of the study;
1.7 DEFINITION OF TERMS