THE IMPACT OF CLEARING AND FORWARDING AGENTS ON OPERATIONAL PERFORMANCE OF PRIVATE ENTITIES

Abstract

The report aimed at finding out the impact of clearing and forwarding agents on operational performance in private entities with a case study of Ken Freight Uganda Limited. The study sought to achieve three objectives: to examine the role of clearing and forwarding agents, to examine the challenges faced by the clearing and forwarding agents and to examine the relationship between the role of clearing and forwarding agents and operational performance at Ken freight Uganda limited. To achieve these objectives, a mixed methods research approach was adopted. Data was collected through a close ended questionnaire and interviews with the different departments at Ken Freight Uganda Limited. The findings revealed that the clearing and forwarding agents play a crucial role to enhance operational performance such as managing the payment of duties, taxes and other fees, negotiating freight rates and ensuring documentation is correctly prepared and ensuring compliance with international trade laws. Despite their roles the findings also revealed that the agents face numerous challenges while carrying out their work such as navigating the maze of regulations and paperwork, struggling to compete against new entrants preparing many documents is time consuming and rate of change makes it hard for the agents to work. And lastly the findings also indicate that there is a strong relationship between the role of the agents and the operational performance at Ken Freight Uganda Limited such as the agents managing the documentation, arranging transportation, managing costs, enhancing supply chain by reducing and negotiating with carriers, scheduling shipments with these enhancing operational performance. The study recommends Ken freight Uganda Limited into investing in technology, staying up to date with different regulations across the world to monitor and comply with changing customs and regulations, ensuring effective communication with employees and invest in staff training to solve the challenges and be at a better competitive advantage than the other companies.