In general parlance, the Logistics and Shipping Agencies are deemed as only moving cargoes from the point of origins to destinations via sea and air routes.
But of late the blue economy (cargoes haulage via sea) has assumed greater significance and widened the scope of diversified functions in the overall Supply Chain Management cycle.
Traditionally, the logistics and shipping agencies were restricted to the role of offering containerized freight rates and arranging cargoes haulage to the ports by fulfilling customs formalities and documentation. Their role culminated once the cargoes have reached the final ports of delivery.
Most of these companies also provide customs clearance services for inbound shipments by paying necessary import duties and taxes.
In the case of outbound shipments, the services are extended to the offering of freight rates and putting the containerized cargoes aboard the vessels through customs clearance by paying respective duties and taxes.
Given today’s competitive business environment, most of the logistics services providers are also acting as Trade Promoters and offering their services in identifying the supply sources of the commodities required by their clientele, assessing quality specifications, price negotiations, designing shipping schedules and executing workflows at each step.
The advantages of this one-window operations cycle is that the element of competition in Freight Charges, Haulage and Customs Clearance is wiped out to a greater extent under the packaged deal.
Besides, there is a big gap in Pakistan for different commodities both for import and export across Gulf and CIS Countries, which can be fulfilled through consolidated platforms.
Zahid Yusuf
Author is a Supply Chain Professional. For comments, he can be reached at:
zahid.yusuf2@gmail.com
