Case 5 Kuehne and Nagel in the Asia-Pacific

Kuehne and Nagel in the Asia-Pacific
Name
Professor
Date
Introduction
The freight forwarding idea evolved in Venice, Italy in the thirteenth century. A middleman was both a carrier and a forwarder agent that carried goods to the point of sale. Freight forwarding is similar in most parts of the world and the same across the board. The main activity in freight forwarding is moving goods across continental lands or oceans and the transportation of goods without owning the means of transportation. The principal role of freight forwarding is to serve as the intermediary between a consignor of goods and the customs authorities, transport carriers, and the various units involved in the procedure. FF companies could charge for their services and would also make money through the merging of separate cargoes of clients and exercising buying power over carrier companies.
Over the past two decades, the role of freight forwarding has changed in various ways. Initially, the FF played the role of the receiving agent in respect of goods where shipments needed clearance through the customs. The FF would pay upfront for the duty and receive compensations from the importer with accumulated interest payable. However, European act in 1993 created near trade-barrier-free marketing resulting in the loss of goods being transported across the European borders. Custom clearance would account for about 60% of the FF business before the act. A new approach to business and freight forwarding soon evolved to provide further compensation.
With the evolution of Freight forwarding, the competition started because of the rapid evolution and the increasing need for SCM logistics capabilities offered opportunities outside the traditional FF industry. Development of the IT innovations...