Challenges of Freight Forwarding Services: The Case of Selected Companies in Addis Ababa

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Date

2022-06

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Addis Ababa University

Abstract

In logistics, there are different parties who have different roles in galvanizing the process.Among these parties, the freight forwarding service is the one that does mainly the import and export clearing process of one country. While in these services there are challenges that decreasetheir performance like cracked roads, poor information technology, political instability, and market volatility, lack of understanding and knowledge of customs officers. Hence, the purpose of this study is to assess the challenges of freight forwarding services in the selected companies.The research was done on selected four freight forwarding companies in Addis Ababa. Challenges related to customs process, transportation and infrastructure, technology implementation and adaptability and government rules and regulations was taken to account to measure the challenges of freight forwarding service. Mixed research approach was used and descriptive research design was applied. Both primary and secondary data sources were used in the investigation. Questionnaire and interview was used to obtain the primary data. Journal articles, research papers, books and internet sites were used to gather secondary data. From total population of 280 who have directly or indirectly related to the clearance process from the four companies, 165 were taken as a sample size. These data were organized into SPSS (Statistical Packages for Social Studies) version 23 software for statistical analysis. The finding of the study indicates among four factors that are challenging for freight forwarding service, compared to the three other factors, customs process is the major factor that is, it is the main challenging area forfreight forwarders. Next to customs process transportation and infrastructure, government rules, and regulations, and technology adaptability and implementation take the part respectively. Key words: Customs process, Transportation and infrastructure, Technology implementation and adaptability and Government rules and regulations.

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