MGMT 5007 - Third Party Logistics and

Distribution Centre Management

Assignment- Intermediaries services

Professor: Gary Kell

Submitted by: Manjit Singh

Student id: 4246195

Session: 52A
Intermediaries services:
The advantages in having a streamlined logistical network from manufacturer to end
customer is important for all members of the supply chain. International trade has become
increasingly important for the economic prosperity of countries, including Canada. Reliance
on trade can put a strain on a nations transportation network infrastructure. The Port of
Vancouver, for example, has been a focal point of discussion related to these issues in
Canada.

Custom Broker
There has been a gradual evolution in the role for custom brokers. Outlines the duties that
custom brokers provide its customer:

Obtaining the release of imports,

Payment of applicable duty fees ,
Obtaining, preparing the necessary documents and information,
Maintaining records ,
Responding to any concerns after payment

Where brokers simply arrange import and export documentations relating to Customs
clearance, freight forwarders additionally arrange services for transportation and delivery of
goods.

Example: 1149893 Ontario Inc. o/A USAV custom brokers, Royal custom brokers, DBA delta
Customs brokers.etc.

Freight Forwarder
The basic duties of a freight forwarder are:

Negotiating and arranging the best method of transport for product to get to the target
market.
Coordinating the movement of goods to their destination.
Preparing the necessary paperwork.
Providing advice on packing, labelling and marking of goods.

These firms can either act as an agent or as a transportation intermediary. As agents,

forwarders simply arrange the services for a fee that includes an additional charge to the
amount paid out on behalf of their clients. When acting as a transportation intermediary, the
forwarder purchases cargo space on specific routes for a fixed price, which is resold to
shippers.

Example: CONSOLAIR INC., TRANSLOGISTICS SA, LAST MINUTE SHIPPERS INC.,

EXCEL TRANSPORTATION.
A freight broker
Is an individual or company that serves as a liaison between another individual or company
that needs shipping services and an authorized motor carrier. Though a freight broker plays an
important role in the movement of cargo, the broker doesn't function as a shipper or a carrier.
Instead, a freight broker works to determine the needs of a shipper and connects that shipper
with a carrier willing to transport the items at an acceptable price.

Freight brokers use their knowledge of the shipping industry and technological resources to
help shippers and carriers accomplish their goals. Many companies find the services provided
by freight brokers indispensable. In fact, some companies hire brokers to coordinate all of
their shipping needs.

EXAMPLE: B2BFREIGHTWAY, CAVALIER.

Shippers association.
"Non-profit membership cooperatives which make domestic or international arrangements
for the movement of members cargo. They are a means by which the small and medium
sized shipper, and even the large shipper, can obtain economies of scale without the mark-ups
charged by other transportation intermediaries who perform consolidation services in order to
obtain volume discounts."

Shippers associations allow multiple shippers to pool their volumes in order to increase
shipment volumes. With a larger shipment volume, the shippers association can negotiate
volume discounts or service contracts with ocean carriers on behalf of
its members. Shippers associations, unlike non-vessel-operating common carriers
(NVOCC's), which are regulated under the new shipping act, are able to maintain
confidentiality in their contracts.

EXAMPLE: CRSA (CANADIAN RETAIL SHIPPERS ASSOCIATION), WESTERN

CANADIAN SHIPPERS ASSOCIATION.