By Abdul Muqueet
The term “Freight is Trade” is based on the undeniable fact that the goods produced/ manufactured need an effective and comprehensive plan for smooth and safe transfer to the ultimate end user to complete the transaction/trade process.
There are two main components of freight i.e. the clearance of goods/ consignment in terms of legitimate authorisation in consonance with national and international rules/regulations/business practices and arranging its transportation through various means ranging from land/sea routes to air consignments.
The freight activities i.e. clearing and forwarding involves numerous factors which can be external and internal. The external factors are generally uncontrollable but can be influenced include import/export permits, the scheduled movement of shipping/air lines, the sudden environmental/ climatic changes, the perceived blockades, natural calamities like floods/cyclones/earthquakes and war zones during transit/voyage etc.
While, the internal factors which are generally controllable include timely processing of legal authorisation, selection of mode of transportation based on time & cost, standard packaging of consignment as per international standard, selection of specific sea/ air lines of reputable reliance, in-land transportation, insurance cover, seamless communication with the ultimate consignee and its final delivery receipts to close the transaction.
In Pakistan’s clearing and forwarding sector, an efficient and strategic supply chain is crucial for maintaining smooth operations. Clearing and forwarding encompass the management of goods as they navigate through customs and reach their final destinations. This process relies heavily on various modes of transportation—road, air, sea, and rail freight—all of which are integral to the broader logistics framework.
A well-orchestrated supply chain empowers businesses to choose the most suitable mode of transportation based on factors such as speed, cost-efficiency, and the nature of the cargo. For example, sea freight is optimal for large-volume shipments, while air freight is favored for time-sensitive or
high-value goods. Meanwhile, road and rail transport serve as essential links, connecting ports to inland destinations, ensuring the uninterrupted flow of goods within the country.
Strategic supply chain planning enables businesses to minimize delays, reduce costs, and circumvent bottlenecks at critical points like ports, borders, and checkpoints. By leveraging advanced technologies such as real-time tracking systems and automated documentation, companies can enhance coordination among customs agents, freight forwarders, and transportation providers. This increased visibility allows businesses to respond swiftly to regulatory changes or policy shifts, thereby mitigating the risk of disruptions.
In addition, strategic planning enhances risk management by preparing businesses for unforeseen challenges, such as customs clearance delays or transport issues. A flexible supply chain allows companies to pivot quickly by utilizing alternative routes or transportation methods to avoid costly setbacks.
In essence, a robust and well-managed supply chain strengthens Pakistan’s logistics infrastructure, allowing for the faster and more efficient movement of goods across borders. This not only streamlines the clearing and forwarding process but also fuels trade and stimulates economic growth within the country. The writer is student of MS(Supply Chain Management) Bahria University Isalamabad Campus