Abstract
The objective of this study is to identify the most influential factors that affect choice of ocean container carrier by freight forwarders. It identifies the most influential factors considered by them when selecting ocean container carriers by analysing data collected from a survey of 105 freight forwarding organisations in Ghana. Exploratory factor analysis is used to identify the underlying factors which influence the selection of carrier. The findings of the study indicate that service quality, document accuracy, freight rates, environmental issues, schedule reliability and quick handling are the most influential factors that guide freight forwarders when purchasing liner shipping service. This study provides a better understanding of these influential factors from the perspective of the freight forwarders themselves. The findings are important to ocean container carriers since they can enable liner shipping companies to channel resources appropriately in response to factors which are identified as determining freight forwarder carrier selection. Key word: Freight forwarders, ocean container carriers, carrier selection factors.
Highlights
Factors that affect the choice of ocean carriers are widely discussed in the literature (Brooks, 1983, 1990, 1995; Kannan et al, 2011; Lu, 2007)
The findings of the study indicate that service quality, document accuracy, freight rates, environmental issue s, schedule reliability and quick handling are the most influential factors that guide freight forwarders when purcha sing liner shipping service
This study provide s a better understanding of the se influential factors from the perspective of the freight forwarders them selves
Summary
Factors that affect the choice of ocean carriers are widely discussed in the literature (Brooks, 1983, 1990, 1995; Kannan et al, 2011; Lu, 2007). Shippers are considered t he main decision makers for choice of carrier. In reality, it is the freight forwarders who are the true decision mak ers, because they are responsible for booking large blocks of containers space from ocean container carriers and for selling off container space in smaller quantities to shippers (Fransoo and Lee, 2013). Ocean c ontainer carriers are exploring this issue so as to identify all factors that influence their customers when purchasing their shipping services. Ocean container carriers are facing increasing challenges in recent times due to globalisation and t he acceleration in ship technology as well as larger ship sizes and new demands from transport service buyers
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