A Case Study of Determinants Extra Charges for Container Shipments

The international shipping business is related to numerous controls or regulations of export and import shipments. It is costly and time consuming, and when the buyer or seller fails to comply with the regulations, it can result in penalties, delays and unexpected costs etc. For this case study, the researchers have selected a local forwarder that provides forwarding and clearance services. It was identified that this local forwarder currently has many extra costs to be paid including local and detention charges, which negatively impacts overall stability of profits. Two variables have been identified as factors of extra charges; loaded containers entering the port by exceeded closing time and late delivery of empty containers to the container yard. This study is a qualitative in nature and the secondary data collected was analyzed using self-administered observation. The findings of this study were covered by one selected case for each export and import shipment between July and December 2014. The data were analyzed using frequency analysis based on tables and graphs. The researcher recommends the local forwarder to impose 1% deposit payment per container for each shipments.