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ANALYZING FACTORS AFFECTING SHIPPERS FREIGHT FORWARDER SELECTION WITH REGARD TO SEA FREIGHT EXPORT IN SRI LANKA

ANALYZING FACTORS AFFECTING SHIPPERS FREIGHT FORWARDER SELECTION WITH REGARD TO SEA FREIGHT EXPORT IN SRI LANKA

By Inshiraza Fawmey

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Date: 2022
Supervisor: Bandujeewa Samaranayake

Abstract

Due to globalization, the number of enterprises operating internationally is always growing, as are the organizations capable of dealing with the complexity inherent in international trade. Because freight forwarders are the primary logistical intermediaries in international trade, choosing a freight forwarder is an important factor in a company’s worldwide success. As of now, the success of the exporter’s business is greatly dependent on cost efficiency, consistent service, and response. As a result, selecting the most advantageous freight forwarder has become critical for exporters in order to handle complicated export regulation processes such as making a booking with the carrier, reserving space, negotiating better rates, equipment reservations, fumigation, obtaining certificates, clearing, and border crossing regulations. As a result, the goal of this study was to identify and prioritize the key factors that influenced exporters’ decisions when selecting a freight forwarder for their sea freight export shipment in the Sri Lankan context. Using the stratified sample technique, the Sri Lankan export industry was divided into 26 export categories depending on commodities. The questionnaire was based on five primary criteria that were derived from previous research papers and articles, and the comparison was done within the independent and dependent variables. A stratified random sampling technique was used to disseminate a questionnaire to 240 respondents from the 2429 registered companies, and an email questionnaire survey was undertaken to collect quantitative data. Data were analyzed using the SPSS application to validate hypotheses and rank factors in order of importance. The freight rate was discovered to be the most important factor in the freight forwarder selection process for Sri Lankan exporters. it was followed by customer service, operational efficiency and financial background and reputation respectively. The least important factor was reliability. It was recommended that exporters operating business in Sri Lanka seek out more effective freight forwarders. Shippers should improve their current freight forwarder evaluation and selection process, as well as update and adjust the selection criteria based on the company’s requirements and standards. Freight forwarders must offer reasonable freight rates as well as excellent customer care in order to keep existing customers and attract new exporters.

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