The need for the logistic company.
The need and significance of the logistic company can be easily
understood, when someone looks at the functions and the liabilities, entrusted to them by the companies.
The companies need representatives who will take care of their shipment, in the nation with good knowledge of the local conditions, such as market, national conditions and capability of handling all the necessary work for the company.
However, since the logistic broker's most important resources are training, experience, market knowledge, etc. That still
applies today in a world of increasing globalisation and modern means of communication.
The ability to call up data on a screen, does not completely eliminate or totally replace -the commercial initiative and creativity that the logistic broker offers to the companies.
The agent is required to exercise skill and knowledge, to the best of his ability, for the benefit of the companies. Agent
avoids errors, omissions, negligence and other risks or some mistakes, to save his client financially. The agent avoids any
act that may low down the reputation of his client, he always tries to defend and protect, his client’s interest.
The Agent has a duty to keep his client informed, of any development e.g. when securing shipment, any market possibilities, changes in the docks both infrastructure and super structure, changes in dock restrictions, any changes with regards to dock tariffs to create confidence between their relationship.
In logistic market, competition is very fierce, hence principals are heavily relying on the agent. The duty for delivering is most important that a logistic broker take cares of. Care should be taken when the carrier is signing contract for particular shipments or any other document. Agent act on behalf of the client. The very commonly document signed by the agent is customer or broker’s agreement. The Agent keenly understand the meaning and implication of what he is accepting, cost, risk and impact to be involved thereafter. It Is on this ground that the agent is required to have knowledge in commercial law. In this manner the agent ensuring that he is contracting on behalf of the client.
Accounting for the fund is all the important part of the agent. The Agent has the duty to account for the fund, advanced by the client. The liabilities and claim of the shipping agents are mainly evolves from his main duties. One of the most important tasks of the agent is to find and book carrier, for his client shipment. The agent in this respect he carefully books the carrier and quote the rate, under the terms and conditions of the client.
One of the greatest moments of which the agent exposes himself to a higher liability claim, is when he releases shipment to a consignee or receiver, when a container has to be delivered directly into consignee's possession, the agent needs to be careful. The agent has to ensure that original documents, which has been approved by his client, is in the hands of the agents before the cargo is being released to the consignee.
With all this duty that need to be followed, by logistic broker signifies that clients should focus on other part of his duties,
to lead the path to success and let logistic broker focuses on his part of job and decentralise duties, to make an organisation
work effectively and efficiently.
Agent word need to be replaced