CHAPTER I

INTRODUCTION

Freight forwarding is one of the silent solution providers in international commerce. The
contribution of freight forwarding has been nearly invisible in the entire international
supply chain. It is the only party in international trade that could take the whole
responsibility of moving cargo from vendor to the consignee under its own
responsibility. Being a part of freight forwarding from 15 th October,2012 I was asked to
make a report on the basis of what I have Learnt from the training sessions as well as
from the job.

The solutions of freight forwarding have been the key in the export-

import trade of developed world. A developing country like Bangladesh is heavily

dependent on exports as well as imports. The rise of exports and imports has truly
boomed the freight forwarding industry in our country.
Freight forwarding is the activity that intermediates between buyer and seller. It is
basically doing the job of cooperating the parties like exporter, importer, shipping line
and the port authority. The drive to add value has made me not only to focus on the
existing condition of freight forwarding of this group but also to generate some newer
ideas and Freight forwarding is providing those services that are not being performed
by the shipping line any other parties involved in commerce. As the freight forwarding
industry does not own any physical structure or goods its contribution to the fostering
of international trade has always been ignored. My report would certainly try to create a
clear picture of freight forwarding activities.

OBJECTIVES OF THE REPORT

The report is done to focus on what is learnt from the Learning & Development Session
and the functions that I have to perform in my job and then identify. The hidden aim of
this report is also to image the limitations and obstacles sides of freight forwarding. I
have tried to find the ways to overcome the obstacles and provide some solutions to
the negative sides of freight forwarding.

Broad Objective
2

The broad objective of this report is to elucidate what I have learnt from the training
sessions and on the job at UCL Logistics as air freight management trainee. I have tried
to show what every corner of the job and what are the challenges that are to be faced
in air freight forwarding. Besides I personally feel that this report could help others

to make a qualitative research on freight forwarding.

Specific Objectives
Learning & understanding from the Learning & Development Session
Describing the works and responsibilities of my department at UCL Logistics
Focusing on different issues that are being raised during the job.
Strength and weaknesses of freight forwarding business
Strength and weakness of our company and group.
Examine customer satisfaction on pricing and service which I provide in my
workplace.
To increase the scope for more studies about freight forwarding business

The report is not only two focus on what I have learnt from the training sessions but
this report could be helpful to point out the problems of freight forwarding business.
This report might be helpful to gather knowledge about air freight forwarding from a
learners point of view.

Limitation of the Report

The time frame of six months is never enough to know all the activities freight
forwarding business. As a management trainee it is quite hard to know everything of
freight forwarding. As a highly dynamic track totally involved in international trade its
future operational scenario may not be predicted. . As the air freight is a vast area
comprising of customer service, sales and documentation six months time is never
enough to know the insights of it. As mass people have less idea and knowledge
regarding freight forwarding, there is always a chance of getting erroneous information
3

from the management. Omissions and error may be there due to lack of my prior
experience in preparing professional report like this

one, nevertheless, I have tried

utmost to avoid mistakes.

BACKGROUND OF THE COMPANY

Expo Group Bangladesh is one of the leading sea & air freight solution Providing
Company in Bangladesh. Since its inception in 1991, Expo Group has been serving the
freight forwarding industry with aggressive market coverage, sharp operational
practices and a vision to grow.
Expo Group started its operation in 1991 as Expolanka Bangladesh Limited. This
was the 1st overseas venture of Expolanka Freight, Colombo and since then have
been providing logistics and freight management solution for importers and exporters
worldwide with a great deal of satisfaction of its customers. Expo Group is also a party
in developing the nations infrastructure and boosting more opportunities. From 1 st
October 2012 Expolanka Bangladesh changed its name to Expo Group Bangladesh.
Expo Groups outstanding success and wide customer acceptance as a reliable service
provider of world class logistics support has fuelled the group to venture into other
overseas markets with a strong focus on the Indian Sub Continent, Africa and the
Middle East regions where our expertise and experience is widely recognized. Its sister
concerns are doing excellent job in gathering businesses and is contributing in US$20
billion export of readymade garments.
Combination of factors including high customer service standards, business ethics and a
committed workforce Expo Group marching towards getting top class customer
satisfaction.
Vision
To be the respected brand name in international Freight Forwarding and supply chain
management in Asia and Africa, through;

An endless pursuit of excellence in customer care

4

Bold investment in new technology

Deploying high caliber human resources in service of our customers

The vision statement of Expo Group isTo be globally renowned diversified business, leading in everything we do.
Mission
To be the trusted partner of local and foreign counterparts. Who seek a consistently
reliable, premium quality international freight forwarding service as well as a seamless
supply chain management service for their inbound and outbound cargo. The mission
statement of Expo Group isTo lead the way in creating value for all our stakeholder, through business practices.
Core Values:
Shariah
Excellence
Stakeholders Interest
Human Capital Innovation & Entrepreneurship

CHAPTER II
TRAINING SESSIONS

I joined Expo Group, Bangladesh on 15th October, 2012. We were eleven management
trainees in all. On the day of my very first day of my job we all got a warm welcome
from the Expo group. The management gave us a short idea of the potential in freight
forwarding business and what possibilities lay ahead of us. Brief descriptions of training
sessions of various departments have given us a bookish idea of freight forwarding
business. This report contains all about the training sessions and what I have learnt
from after engagement at UCL Logistics Limited.
6

From the training sessions we learnt about the following departments:

Human Resources

Finance & Accounts

IT

Audit

E-shipping Flask

Air Freight Export

Air Freight Import

Sea Freight Export and Import

Sea Freight Import

Sales

Airline Passenger Department

Human Resource Department:

The very first session of our training period was all about HR policies. The main focus of
the two sessions taken by the HR officials gave me an about the employee rights and
responsibilities. All the MTs have a rough idea about the organizations of Expo Group.
The Lessons learnt from the training sessions are given below:
The vision, mission, core values of Expo Group
7

 The business units of Expo Group

Rough idea about the activities of different sister concerns of Expo Group
Legal Rights
Human Rights
Civil Rights
The departments of Expo Group
Some idea about HR policies
Employees rights and responsibilities and rights
All about the compensation and benefits
Provided some hints of the challenges
Aware of misconducts

Freight Forwarders of Expo Group:

efl:
efl came into existence as Expolanka Bangladesh changes its wardrobe on
October 1st 2012. efl is already strongly positioned in India, Bangladesh, Pakistan,
Mauritius and Madagascar, whilst it's more recent ventures in the U.A.E, South Africa,
Kenya, Nepal, Vietnam and Tanzania are well on their way to become part its success
story.
efl has ventured into diverse fields of export and import operations, freight forwarding
& logistics, airline GSAs, Flight Operation, travel etc. It has got newer fields like
pharmaceuticals, healthcare and real estate business. Under the leadersip of some
highly talented businesspeople the mother company of Expo Group is marching towards
success.
8

SG Logistics:
With the worldwide acquisition of BAX Global Ltd. by Schenker AG, SG Logistics
(Pvt) Ltd. is now the new local business partner of the worlds leading logistic
powerhouse in this region with effect from July 1st, 2007.
With the merger of two logistic giants in the globe, SG Logistics (Pvt) Ltd. now can
offer new products and services to its customers with expanded capabilities and
services available from single source.
CFL:
Cross Freight Ltd started its operation in 2008 and since then have been providing
logistics and freight management solution in Bangladesh with a great deal of
satisfaction of our customers. CFL or Cross Freight Limited is an exclusive agent of
Australian origin Toll global forwarding. CFL has become a major freight forwarder of
Expo Group. It has got air, sea,sales and import department.

Finance Department:
The session about the finance department gave us ideas of how the smoothly
financial activities runs in Expo Group. The financial policies are being presented to
us. The main responsibility of this department is to report to the Top level and
Colombo office of Expo Group.

The lessons learnt from the finance department about Policy framework is given
below:

 Financial Reporting policy

Performance bonus policy
Budgetary Management Policy
Fixed asset policy

Budgetary Management has been presented to us. A brief idea of budgetary

management is

given below:

Formulation of budget & Policy guideline

Budgetary approval
Quality business review
Budgetary performance analysis
Clarifying in case of variance

Banking Management:
Analysis of all banking approval
Single point communication
Negotiating the matters related to Central Bank (Bangladesh Bank)

The finance department has to do these reports:

prepare reports on monthly basis
10

 Financial synopsis.

IT Department:
IT department is the beating heart of a modern business organization.Expo Groups IT
department is striving to ease the documentation and other functional activities of Expo
Group businesses.
To tie with the challenges of dynamic service trade like logistics the IT department is
serving Expo Group all the time. From the receiving of cargo to delivering it to the
destination the IT is taking part. Their invented E-shippingflask is the system of
documentation in freight forwarding. As a supporting unit in freight forwarding activities
IT department is trying to generate newer ideas to ease the delay of shipments. The
main lessons learnt of IT Department of Expo Group are given below:
Making the foundation of doing business
Supply Function management
Knowledge Management
Finance management of IT
All about outsourcing
The main focus of the IT department is to:
Integrate system
Saving time
Saving money
Bringing in industrys best processes

11

The IT Department is striving hard to improve the documentation process. The

involvement of this department is now in every aspects of Expo Group stretching from
getting a booking to delivering it to the place of discharge.

The stages of IT departments maturity is shown below.

12

Strategic
Opportunities &
Advancement
Productivit
y

Foundati
on of
doing
business

Capital
Managem
ent

Maturity of IT Department

AUDIT Department

13

Audit is an evaluation of a person, organization, system, process, enterprise, project or

product. The term most commonly refers to audits in accounting, internal auditing, and
government auditing. In the Expo group accounting, internal auditing and process audit
is done to ensure the disciplined economic activities. The audit department checks all
the freight income as well as the costs related to it. The areas where the Audit
department works are given below:
Agent Agreement
Related cost involved in shipment
invoice and other documents
Airline commission
Profit share with the agents
Exchange gain or loss
Interest income from investment
Profit or sale of fixed assets
Top down budgeting
Bottom up Budgeting

14

CHAPTER III
FREIGHT FORWARDING

Logistics

15

Logistics is the management of the flow of resources between the point of origin and in
order to meet some requirements, for example, of customers or corporations. The
resources managed in logistics can include physical items, such as food, materials,
equipment, liquids, and staff, as well as abstract items, such as time, information,
particles, and energy.

Freight Forwarding:
A freight forwarder is an intermediary who acts on behalf of exporters, importers and
other related parties organizing the safe, efficient and cost-effective transportation of
goods. The activity of freight forwarder is known as freight forwarding.

Sea/Ocean Freight Export:

Ocean freight is the shipment of goods by sea. Ocean freight is considered to be the
heart of any freight forwarding company. As Bangladesh exports through its sea port
facilities so the arena of ocean freight is vast. As the business is getting more global as
well as cost effective in nature, sea freight is booming. More and more countries are
establishing sea ports and the activity of sea freight is getting higher. Being the most
economic form of transportation, sea freight is the parameter to determine the business
volume of any freight forwarding company.

From the training sessions, on the job

training and visit to Chittagong Port we have learnt that the efl, CFL,SG Logistics and
UCL Logistics have got following facilities:
PRIVATE OFF DOCKS FACILITIES

Dedicated Private Off Docks

K&T Logistics, KDS & Esack Bro in CGP

Distance from port

1.5 km, 18 km & 2.5km

Expo CFS Space

4000, 6000 & 4000 Sq ft

Storage Capacity

Customs Availability

Round the clock

Cargo Receive

Round the Clock.

CFS area is fully covered with CCTV camera and also physical surveillance by the

500 cbm, 800 cbm & 500 cbm

professional security

16

5 Nos (each). Dedicated operations members under EXPO payroll being engaged
to look after the cargo stuffing & supervising.

We may even enjoy additional 2,000.00 SFT CFS (each) space from Common
bay as and when required.

We have average turn over of 20 Tues. per Day.

Sea freight relates to the containerization. Different sizes of containers available in

Bangladesh are given below:
Container size

CBM

20 ft

27

40 ft

57-60

40 ft High Cube

63-65

45 ft High Cube

75

Types of Container:

Dry Container

Dry High Cube

Reefer Container

Open top container

Flat Rack Container

Flat Forms Container

Types of Vessels:

BULK Ship

Oil Tanker
17

LNG Tanker

Container Ship

Role on/Role off

Reefer Ship

The terms related to ocean freight are given below:

CFS- Container freight station

FCL- Full container load

LCL- Less container load

GOH- Garments on hanger

TEU-Twenty feet equivalent unit

CLP-Container load plan

ETB- Estimated time of berthing

The ocean freight process flow is systematic. The Ocean freight export process is given
in the below flow chart:

18

Sea freight Export Process

Receive booking
We receive booking from supplier or we collect the monthly PO list or booking list from
the suppliers.
Follow up each PO with Supplier regarding cargo ready date:
Based on booking or the monthly or long time PO list we make contact with the
suppliers time to time and get the idea of cargo ready date. Cargo date gives us idea
when we can arrange to ship the goods

Inform Buyer/Customer on the cargo ready status:

When we able to know the cargo hand over date then we also inform that to the buyer
for his knowledge so that from destination end they can also make their plan

Receive Booking from supplier and sending the same to Buyer/Customer for
Approval with all the necessary details:

19

After receiving the booking from the shipper or supplier we send this booking to buyer
or customer for their approval. Without the approval of buyer we dont send or receive
any cargo.

Booking
An arrangement with a steamship company for the acceptance and carriage of freight
The merchant (person) by whom, in whose name or on whose behalf a contract of
carriage of goods has been concluded with a carriage or any party by whom, in whose
name or on whose behalf the goods are actually delivered to the carrier in the relation
to the contract of consignee. The related parties on this regard are the consignee and
carrier. The cut-off time and routing is also the main concern for every shipment

.
Inform the approval status to the shipper along with shipping order
As we receive the approval from buyer/agent we send the same to the supplier for
handover the cargo. Along with the approval we send the shipping order to the shipper.
Approval
It means Customer confirmation for further proceed based on customer desire vessel
schedule and equipment size. UCL sends complete booking details along with Vessel
plan for approval. In case of approval, may positive or negative response might come

Shipping Order
Shipper instruction to carrier for forwarding goods, usually triplicate copy of the bill of
lading. Previously Then C&F agent on behalf of shipper will go to Chittagong office to
bring shipping order for handing over cargo at warehouse. Before bringing shipping
order 2 things must have to show to Chittagong office

Goods are h/o by supplier as per booking and cargo h/o date or within
cutoff date to CFS:
The goods are being handed over to the CFS for stuffing on time.

20

Space Booking with Carriers and send stuffing approval to CFS

When CFS (Chittagong) receives the cargo then we give space booking to carrier which
buyer approved and along with that we send the stuffing approval mail to the CFS
Chittagong to load the cargo accordingly. We also give the equipment size and the
mode of the shipment.

Goods are loaded/Stuff as per the approved schedule

As soon CFS receive all the approved cargo in the CTG CFS along the approval mail
from us they load or stuff the cargo as per the approved schedule by maintaining all the
necessary procedure. After finishing the stuffing they provide us the CLP and carrier
provide us the carrier advice.

CLP:
Container load Plan. Lists of items loaded in a specific container and where appropriate
their sequence of loading

SHIPMENT ADVICE
The functions are following:

The container is loaded on the Feeder Vessel by the help of crane.

Then carrier provides shipment advice to UCL to tell shipment info.

UCL send the same to shipper for their necessary info

Vendor and customer receive shipping Advice within 24 hrs of cargo stuffing.

Carrier Advice
The advice we receive from carrier which indicated all the vessel details information .

Shipment Advice
A detail of cargo loading which includes all the information of goods and also the details
of vessel schedule

Prepare BL draft and original BL :

21

Bill of Lading (B/L)

A

document

that

establishes

the

terms

of

contract

between

shipper

and

transportation company that moves freight between specified ports for a specified
charge. It serves as a document of title, a contract of carriage, and a receipt of goods.

Sending PRE-ALERT to agent:

Once the shipments sailed from Chittagong port then we need to prepare debit note for
the particular shipment. We have to prepare this within 03 days of departure or sailing
date. When send this debit note to our destination agent along with scan copy of BL
draft and M/BL copy. This is called Pre-alert. Agent will know that the shipment is
coming so he/she will start his/her necessary activities. Some of the debit note journal
are explain below-

Collect
In sea export most of the shipment is accepted as collect basis and for this we prepare
a debit note and send to agent for collecting money from buyer.

Prepaid
Money is collected from local shipper and sends a credit note to agent.
Receiving cash/ Pay Order/ TT
Then money is received in the form of TT/ Pay Order/ cash.

Update MVSL confirmation within 48 Hours of Departure/On Board Date

Once cargo safely loaded into the MVSL then we need to inform this to our agent within
48 Hours of Departure/On Board Date. Any rollover or miss connection of MVSL we
have to inform the agent, shippers, buyer as soon as possible with the logical reason
behind this.

Mother Vessel Function

The feeder departs for transshipment point, i.e. where feeder hands over its container
to mother vessel, then mother start its duty and reach its Container to final destination.
22

Goods arrive at Destination and we get the POD from Agent

When goods arrive at destination then we have to collect the scan copy of POD or proof
of delivery from the agent within 03 days of cargo release. It explains that cargo has
been released as per law and shipper will receive the payments. Proof of delivery is
nothing but than bank endorsed H/BL copy.

The entire sea freight export is a process that has to be fully accurate in terms of
documentation.

Sea Freight Import:

The sea freight import has got less functions and documentation that that of export
division. Still it is a primary source of revenue for UCL and companies of EXPO Group.
As Bangladeshs economy is heavily relied on import trade UCL and other sister
concerns of Expo group have targeted the importers of this country. The entire process
of sea import is given below:

23

Agent
gain
business

Justify
the
rate

Provide BL
draft to show
to consignee

Informing
consignee of
CTG office

Making invoice
and release
the documents

Visit to Chittagong:
At the end of our training period we went for a visit to Chittagong. We visited the
Chittagong sea port, CFS Essack, CFS K&T and CFS Incontrade. From the visit to
Chittagong sea port we observed the following:
The berthing of feeder vessel
24

 the reefer containers

Car sheds
Loading of containers on Ships
From visiting the CFS Essack, K&T and Incontrade we have learnt the following:
The stuffing of goods
Checking of goods by custom officials
The documents related to the CFSs
The storing of goods before stuffing
Different types of container, container seal and number
Documents related to cargo
We had a session on sea import. The main documents of that session is given below:
Knowing of the Master Bill of lading
Import General Manifest
Surveying the cargo documents
Bill of Entry
Assessment notice
Delivery order
We are also taught of documentation process particularly the usage of E-shipping flask.
At the on the job training we came to know if different documents related to sea freight
export.

25

Air Freight Export:

Air freight is the transfer and shipment of goods via an air carrier,which may be charter
or commercial. Such shipments travel out of commercial and passenger aviation
gateways to anywhere panes can fly and land. Air freight is time sensitive service. It is
particularly needed because of time constraints. Urgent and sample shipments of our
ready-made garments are highly seen in air freight export. Existing in nearly 200
countries, air freight is expanding its wings with the development of global business. Air
cargo industry is having a mentionable share of 29% of all international trade.
The air freight service areas are given below:

Consolidation
Ex-work

Airport to airport

Airport to door

Charter flight

Break Bulk

Air-sea/Sea-Air

Transshipment

Warehousing

The air freight export service starts with a query from the agent or local shipper. If the
shipper or agent requirement matches with us then the air freight process starts. As we
receive the cargo it is then planned for destination. As the cargo departs from Dhaka
the transit time is counted. The cargo lands at the destination and is received by our
agent. The air freight export procedure thus ends as the cargo is discharged. The
related documents of Air freight export or import is given below:

26

HAWB- House Air-way Bill

MAWB- Master Air-way Bill

FSC- Fuel Surcharge

THC- Terminal Handling Charge

FOB- Free on Board

From our training sessions we have learnt about the weight slabs. The basis difference
between the air freight and sea freight is the calculation of charges where the air
freight calculates on per kilo gross rate and the sea freight calculates on volume.
Though exceptions are seen when an air shipment done on volume weight. The rates of
different types of goods vary. But the most important rate for any salesperson is the
rate of ready-made garments. As the salespersons view the related information for any
shipment is necessary:

Destination

Commodity

Quantity

Transit time

Rate

Ensuring Carrier space

If the salesperson can ensure the above listed criterions then he/she would be able to
make a successful sale.

Visiting Airport Cargo Village:

The visit to airport cargo village has given me the opportunity to view the airport
proceedings of air cargo transport. The air cargo village is the area where the followings
tasks are done:
27

 Storing the goods just before shipment

Scanning the goods
Taking the weight
Palletization
C&F agents conduct inspection
Preparing the MAWB
Examination of cargo by the airport authority

Air Freight Import:

Air freight import process is less than that of the air export. As we receive the pre-alert,
air freight import department its work. Informing the consignee, Making the debit
invoice and clearing the goods are the main tasks of airfreight import department. I am
also taking part inrate negotiation and issuing the D/O to the Chittagong office

On the Job Training:

We are also taught of documentation process particularly the usage of E-shipping flask.
At the on the job training we came to know if different documents related to sea freight
export. We learnt of shipper, agent, consignee, different parties and destination codes.
The costs included in the MAWB, type of shipment and email management were also
taught.

Incoterms 2010:
The seven rules defined by Incoterms 2010 for any mode of transportation are:
28

EXW- Ex Works

The seller makes the goods at premises. In this case the buyer pays all the costs from
transporting the goods from shippers premises to final destination.
FCA- Free Carrier

The seller pays for carriage to the named point of delivery.

CPT- Carriage paid to

The seller pays for carriage.

CIP- Carriage and Insurance Paid to

Seller pays for carriage and insurance to the named destination port.
DAT- Delivered at Terminal

Seller pays for carriage to the terminal, except for costs related to import clearance,
and assumes all risk up to the point that the goods are unloaded at the terminal.
DAP-Delivered at Place

Seller pays for carriage to the named place.

DDP- Delivered duty paid

Seller is responsible for delivering the goods to the named place in the country of the
buyer and pays all costs in bringing the goods to the destiuantion including duties and
taxes.
FAS- Free alongside ship

The seller must place the goods alongside ship at the named port. The seller must clear
the goods for export.
FOB- Free on Board

The seller must load themselves the goods on board the vessel nominated by the buyer.
Cost and risk are divided when the goods are actually on board of the vessel.
29

CFR- Cost and Freight

Seller must the costs and freight to bring the goods to the port of destination. However
risk is transferred to the buyer once the goods are loaded on the vessel.
CIF- Cost, Insurance and Freight

Exactly the same as CFR except that the seller must in addition procure and pay for the
insurance.

30

CHAPTER IV
ENGAGEMENT AT
UCL LOGISITCS LIMITED

After seven weeks of training period I joined UCL Logistics on 10 th December 2012. I
was assigned at the air freight and import department. I am now responsible to serve
the air freight departments documentation and follow-up. At the time of my joining I
31

had very limited and bookish knowledge about air freight. So this has been my practical
field of work for the first time in life. With a unit full of potentiality, my first job is to
learn the whole process of the air freight.

UCL Logistics-At a glance:

UCL Logisitcs was found on 1st September 2011 by the initiative of our leader Mr.
Mahbubul Anam. Since then it has been going on quite smoothly. Under the leadership
of Mr. Ashraf Faruqui UCL is providing complete logistics solution to its customers. UCL
Logistics is always striving to provide higher customer satisfaction afar then ither
freight forwarding companies.

Our vision:
To be the most preferred logistics brandensuring tailor made solutions
And complete visibility.

Our Mission:
Provide with customized and Integrated supply chain solutions
Implement Advanced State of the Art and user friendly IT infrastructure
Enhance local expertise and create global image
Ensure constant growth and profitability

Monogram of UCL Logistics Limited

32

We Offer:
UCL is a one-stop-shop for all our clients Logistics and Supply Chain Management
needs. We offer a complete service package that covers the entire circle of freight
services as a total logistics solution house. We offer services as below:
Air Charter
Palletization
Consolidation
Trucking services
PO Management
Customs brokerage
QC platform facility
Project cargo handling
Transshipment services
Sea/Air & Air/Sea service
GOH services by Sea & Air

33

 Specialized cargo handling

Bar Code scanning facilities
Air freight Export and Import
Multi modal transportation
Warehousing and distribution
Sea freight Export and Import
Door to-door delivery and pick up services

AIRLINERS:

Our Air Freight Department has:

34

Yearly BSA (Block Space Agreement) with all major Airlines

Biggest manpower strength in DAC Airport cargo Village

Holding own license to operate charter freighter out of DAC Airport

Guaranteed space arrangement with Airlines for AIR/SEA shpt

Own warehouse facility nearby DAC Airport cargo village

Our Strengths:
Economical:
Multimodal transport with goods reaching destination within the shortest possible time.
Speed:
Sea Air Service offers customers cost effective rates to all parts of the globe.
Efficiency:
We combine the best both Sea & Air Transport while at the same time ensuring simple
processes in all documentation.
Under the strict supervision of Ms. Mahaphuja Akther air freight department is running
pretty smoothly.

Why us?
Strong financial standing.
Office facilities / automation.
Proven business track record.
High degree of professionalism.
Manpower training budgets and facilities.
35

 Availability of quality human resources.

High recognition by Aviation Industry and Trade.

Organogram of UCL Logistics:

36

Mr. Mahbubul Anam

MD.UCL LOGISTICS

Mr. Manoj Sen Gupta

CEO, UCL LOGISTICS
Mr. Ashraf Faruqui,
AGM, Unit Head

Air freight &

Import

Mr. Nafiz
Shihab Uddin,
MT
MT

IT
IT
Support
Support

Ms.Mahaphuja
Ms.Mahaphuja
Akhter,
Akhter, Assistant
Assistant
Manager,
Manager,

Mr. Mahmud Hasan,

Executive

Sales

Sea
Freight

Ms. Thamina Huque

Deputy Manager

Accounts

Mr.Ashiqul Islam,
Senior Exective,

Mr.Rajesh Roy,
Executive

Air freight Department

Services of Air Freight Department:
37

Express Service: Fastest and costliest of all types of service, express service is very
rare scenario in air freight. It is the delivery of goods at the fastest possible time.
Regular/Slower Service: Normal air service with relatively more transit time. This
type of service is highly seen in the air freight service. The most popular of air freight
services our outmost target is to get cheaper rates for slower service.
Transshipment: Transshipment is not a type of service but a system when goods are
transported to uncommon destinations. At first the goods are being shipped to an
intermediate destination and then shipped to final destination through the same or
another forwarding agent.
Sea/Air Shipment: In this case the shipment is the shipment start from Sea transport
followed by air carrier to move the cargo to the final destination. This service uses with
the consideration of lead time and freight cost.

My Tasks:
I was assigned in the air freight and import department of UCL Logistics Limited. My
task was to participate on basic air freight operational tasks. From the very first day I
have been going through a learning process. As air freight is a fast and less formal
service than that of sea freight it is must that I learn about the whole process. My job
responsibility was not limited at doing the documentation but also keeping an eye on
every shipment through air. As the air freight is time sensitive service no doubt that it
would require a faster performer to carry the job successfully. Air freight requires faster
solutions for hazardous situations no doubt an air freight customer service provider has
to know the issues that are created on every shipments.

My areas of work at air freight export are given below:

Documentation on ESF
Proper follow-up of shipments
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 Being aware of shippers or agents requirements

Providing the rate to the agents and shippers
Communicating with the airport office
Updating the Sales department with the latest information and airline rates
Tracking the shipments
Ensuring fast ETD and ETA of shipments
Follow the rules and regulations of government, ports, legal authorities and other
stakeholders.
Providing the best possible rates to the agents for nominated shipments
Providing best possible rates to the salespeople to grab free hand cargo.

The Air Freight Process:

The air freight forwarding starts with a booking from the shipper. If the shipment is on
Collect mode of payment then we have to get the approval of the Agents. If the
shipment is prepaid then we have to inform the destination agent. After getting
approval, we negotiate with the rates. When both parties agree we plan with the best
possible carrier. The negotiation process is about the transit time, rate, timely flying of
the shipments. After receiving the goods we make plan with the help of airport office.
When the shipment is planned we send the pre-alert to agent and provide shipment to
shippers with flight details. As the goods are on the way we keep tracking of it. As the
cargo reaches destination the agent ensures its arrival. The goods are discharged as
the agent pays the freight charge and other necessary costs. We prepare ther debit
note to the agent when the shipment is collect. If it is prepaid then we take freight
charges from the shipper. As we obtain the MAWB from the carrier and send it to the
agent. After the goods are being discharged the air freight process nearly comes to an
end. As we get the NOC document we release the HAWB to the shipper.
The necessary documents related to air freight are named below:
39

HAWB- House Air-Way Bill

Dummy HAWB

MAWB- Master Air-Way Bill

Debit Invoice

Credit Note

Manifest

Documents obtained from the shipper:

GSP-Generalized System of Preferences

Country of Origin Copy

Commercial invoice

Packing List

The Air Freight Flow chart:

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IMPORT:
My engagement at UCL Logistics is also to ensure carrying the import department
smoothly. My involvement in the import department was on both air and sea modes of
shipment. The job responsibilities at the import (Air & Sea) department are given
below:

Sea Import:
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 Receiving of pre-alert from agents

Informing the consignee of arrival
Updating the MBL and HBL
Making invoices
Advising the Chittagong office as a apart of follow-up
Receiving the payment
Release the documents and cargo to the consignee

Air Import:
Rate negotiation at times
Receiving pre-alert from agent
Updating the MAWB and HAWB
Informing consignee of arrival
Making invoices
Advising the airport office if needed
Tracking the shipments
Release the documents and cargo to the consignee

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CHAPTER V
Findings AND
RECOMMENDATIONs

To provide best possible service a customer relationship officer must posses some
qualities. The SERVQUAL model dimensions developed by Zeithaml, Parasuraman and
Berry in the mid 80s are highly linked with a successful air freight department. The five
generic dimensions of SERVQUAL model could be linked with the air freight forwarding:

43

i.

Tangibles: The physical facilities, equipments and appearance. Air freight

forwarders require warehousing, transportation facilities, taking weight
and also palletization of the cargo. Air charter services, labeling and good
office environment will surely boost sales of ari freight.

ii.

Reliability: Providing the promised service will foster the shippers and
agents reliability.

iii.

Responsiveness: Promptness and willingness to provide solutions to the

customers requirements is a must in air freight. Deficit in providing
prompt and swift service could bring the downfall of organization. The air
freight department requires quick planning of shipment. Tracking and
providing solutions to critical cases has to be systematic. The decision
making of the air freight forwarding has to be fast, need to have pinpoint
accuracy in the documentation at times.

iv.

Assurance: Competence, courtesy and security must be present in air

freight forwarding. Ability to inspire trust and confidence has to be there
by making safe and timely shipments.

v.

Empathy: Our agents always want individualized attention. Any hints on

mail communication that shown less empathy could surely jeopardize our
relationship with the agents.

Success requires:
Hard work: Being a freight forwarder need to handle pressure and need to work for
longer hours.

44

Ability to handle pressure: Air freight forwarder must cope with the challenges and
being able to handle stressful situation.
Proper Follow-up: Keeping an eye on each and every movements of shipments. The
basic thing of freight forwarding is follow-up. Follow-up must be done with the shipper
as well with the agent as well.
Every mistake counts: An air freight forwarder has to be careful of the mistakes. Any
problem with the documentation or mail communication has to be taken into account.
Striving to learn: We hope to learn everyday. Anyone must not understand that he or
she has learnt everything within a very short time.
Cost-effective: Freight forwarders success lies on the minimization of costs as well as
timely shipments.
Being dynamic: We should cope with the dynamic systems of freight forwarding. As the
world is getting closer it is being widely seen that newer softwares and systems are
being introduced. Newer issues are raised as day passes. So to cope with the changing
world we should be little too careful.
Updating the superior: Daily developments must be informed to the superior. Any
exception cases or problematic files should be informed to the superior.
Good relationship relevant parties: Best possible way to satisfy agents or shippers is to
keep good relation with them. In air freight of UCL Logistics, normal relations with the
airport air operations team is a must.

Challenges:
Air shipment is the costliest of all the shipment modes. Faced with the challenge to
provide timely and prompt service it has also got the some other key areas to look at.
The challeneges of air freight forwarding in Bangladesh is given below:
45

 As there is economic downturn around the world the need for costly air shipment
is likely to reduce. Global demand for goods is lower than it has been in the past.
While the U.S. is showing signs of recovery, the EU continues to struggle. And it
seems that whatever demand there is for ready made garments, there doesnt
seem to be as much demand for emergency or just-in-time shipments.

Limitations:
The biggest drawback of this study is the time limitation. Within a period of six months
it is difficult to find the ins and outs of this service trade. Freight forwarding being an
uncommon track is also less known to the mass people. Internet searches produced
very limited results. As this has been a very dynamic track, keeping pace with the
change is also too hard. Even though I was engaged in most of the parts of the air
freight and Import process, still there are newer issues that are yet to come. Also the
training session has been helpful but still not enough to combat the crisis moments.
Being a part of the youngest level of employee, we are away from the key decisions.
Also as a part of customer service we need more time to understand the salespersons
obstacles. Time limitation is the primary drawback. Six months time is always too little
to know any business track.

Limitations of this report:

Freight forwarding has been a dynamic track. So there is no durability of a
system for too long.

Internet search results are very limited

Some of the issues of air freight like weight cut and weight benefit are hidden.
This issues are not available in internet searches or reports about freight
forwarding.

There has been very little study done on freight forwarding. So interested people
like me are always on the dark about insights of freight forwarding.
46

 The contribution of freight forwarders are not well recognized by the

entrepreneurs of the country. At least the business journals, reports, studies and
internet search results say that.

The most alarming matter is if the carriers stop weight cutting then the the air
freight forwarders profit would be very little. This issue could be a matter of
great concern in the near future. Recently Saudi Arabian Airlines have put a ban
on weight cutting. So knowing about this issue is also limited.

Sea freight being the biggest mode of freight forwarding. Being a part of air
freight and Import it is hard to image the total picture of freight forwarding as a
whole.

Some of the information about the Expo Group could be classified.Knowing the
insights of the units under this group is not possible.So lack of information is a
hindrance to know the insight of UCL Logistics or Expo Group.

Limitations of our System:

There are some limitations of UCL Logistics which need to be addressed. The problems
of our system are given below:

Making any sort of adjustments in the ESF has always been very complicated. If
there is any adjustment of our invoices then the bottom-line never shows the
adjusted amount. This makes difficult for us to pursue the shippers and agents to
explain the real bottom-line. I have seen difficulties regarding the adjustment of
invoices. ESF has not been that much updated to meet the shipper and agents
requirement.

If there is a queue at the warehouse then there could be a problem to receive

the cargo quickly.

UCL Logistics is lacking of keen direct relationship with the different airliners.
47

Learning

Eshipping-flask

has

been

very

time

consuming

and

prompt

documentation has been pretty difficult.

Shippers complain about the high rates at times. Though this issue needs more
verification.

The weight details sheet we get from our warehouse shows the weight of Expo
Groups forwarders. This is time consuming to prepare the planning sheet.

UCL Logistics has to pay some portion of its earnings to efl. This reduces our
earnings. If we get independent space at our warehouse then our operations
might have been very faster.

We have not targeted exporters other than ready-made garments. So dealing

with the Ready-made garments exporters would simply limit our market.

The Tongi warehouse needs to be increased so we could go for more storage

capability.

There should be workshop on sea-air shipments.

From various studies I have learnt that, the airliners oppose the forwarders and
try to eliminate them (THE FREIGHT FORWARDER AND THE DEVELOPMENT OF
AIR FREIGHT, John C. Emery*). To avoid this situation we could build trust and
go for discussion.

Shippers sometimes want us to do those things that are out of our rules. This
creates problems on shipments.

SOP of many agents are different from each other. This makes our work slow.
Had there been a some similarity of SOPs of different agents then some works
could have been easy like sending pre-alert and other e-mail communications.

Recommendations:
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Generating newer ideas is not an easy task to do. But still I have found some areas
where our company could make some improvements. Though UCL Logistics is being
operated under the same system :
Some of the agents are profitable but we have to provide the same service to
all. The contracts with the less profitable agents must be evaluated.
We could grab shippers who are dissatisfied with the sister concerns of UCL
Logistics.
Could analyze the ready made garments industry and suggest the shippers of
easing system of forwarding.
The customer service department must go on for a visit to airline offices
frequently.
The customer service of air freight should visit the tongi warehouse on regular
basis.
The top level should analyze the service of tongi warehouse. Timely and
accurate information from our warehouse is a must.
We should maintain good relations with the airliners and suggest them to
make an easy tracking system. Particularly Saudi Arabian Airlines must
normalize its tracking system and some other carriers like Biman Bangladesh,
Turkish Airlines etc should provide its flight schedule before taking off from
Dhaka.
We expect to learn more about the technical side of airline cargo systems,
palletization and reasons for offloading cargo.
Introduce a much easier Eshipping-flask.
The creation and adjustments of invoices should be easier to create. Also the
bottomline needs to show the adjusted receivable or payable amount. This is
highly important to get the payments from shippers and agents.
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 If an invoice is created it is automatically into ACCPAC system. So there is

very little scope left to correct that invoice. I would suggest them to give
some time before an invoice is entered into the ACCPAC systems.
We must attend more transport and communication related business shows.
Our Group as a whole could go for purchasing or lease a ship for sea freight
forwarding.
To provide service in the weekends and holidays air freight customer service
officials must be given portable computer.
If there is a queue at the warehouse then we could give a token to ensure the
customer service that goods have reached the warehouse.
With a risk of reducing garments commodity being shipped on air due to
global economic downturn we could target other commodities like leather,food
products etc.
Ask the government to reduce the charges of air cargo shipment. This would
reduce the rates of carriers.
Biman Bangladesh Airlines has got the lowest rates available among all the
airliners. If the corruption and inefficiency is minimized and more aircrafts
being added then we air freight forwarders will benefit. Expo Group must
think what it can do on this issue.
UCL Logistics should have own staffs at the warehouse and airport operations
office to handle shipments. Thought it would increase costs but would foster a
separate identity for UCL Logistics.
We could switch towards providing vendor management as apart of value
added service.
Shipments of expensive commodity shipments we could go for cargo
insurance.
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 Export of medicine is expanding. All that is necessary should be done to grab

this market.
If we hire a freighter that should always match with the demand of the peak
season. Any mismatch of timing could cause huge amount of losses to the
Expo Group.
In case of transshipment, the transshipment office must not do weight-cut by
its own choice. Transshipment office should be careful of it to avoid difficulties
at the destination.
Top level management should try to reduce air freight rates of various
airlines.
For prepaid shipments some shippers our procedures must be discussed with
the shippers. To reduce any gap and build trust our department should
arrange vendor conference.
Top level management should try to keep similarity in the agent SOPs. This
will certainly speed up our e-mail documentation.
Every newcomer should be aware of sending pre-alerts to the agent as well as
other communications with the agents. I would suggest that the senior
employees should share their mistakes with the newcomer so that we could
be careful.
The customer service employees should sit with the shippers and keep strong
relationship. This will not only boost the sales but also bridge gap with our
sales department and vendors.
May go for vendor management. Though this could be very ambitious but
could be done.
All the air freight members must create groups and share their ideas and
perception among them.

51

 The opinion and suggestions of employees of UCL Logistics must be taken into
account on several issues like the agents, airport office services, performance
of warehouse, carriers and other stakeholders.

Conclusion:
In the last six months I have attended the training session and participated in total
export operation of air freight department. I made an endeavor to complete this report
with keen attention and concentration on various aspects of UCL Logistics Ltd. . I have
been able to learn about the general activities of UCL Logistics Ltd. The policy of Expo
Group has been good but still there are some areas to improve. By the hardwork of its
employees, UCL Logistics has been translating those policies into successful shipments
one after another. This report could explore newer scope for studies on freight
forwarding business in Bangladesh. This report could be helpful to now the insights and
understanding the freight forwarding business from a newcomers point of view. Though
this report lacks enough information so could contain mistakes. Still the hope for a
smooth take-off in air cargo forwarding by me is not a daydream.
Even in the midst of global economic downturn I could see that blue skies have checked
in with loads of hope and the future is knocking with tonnes of fortune for air freight
forwarding. Our work as cargo forwarder hardly hits the headlines, as the plane men
who own firms and fly them always own the glory. Looking forward towards a bright
future of UCL Logistics. Taking off in air cargo forwarding literally indicates to explore
the newer edges of air freight.

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