Aswin P Nair, Devikrishna S

TKM Institute of management

INTERNSHIP REPORT
EXXONIC SHIPPING PVT LTD

8/27/2025
 Introduction
In the modern world, where globalization drives economies and supply chains span across
continents, the smooth movement of goods is the foundation of international trade. Every
product we consume whether it is a smartphone from South Korea, coffee from Brazil, or
textiles from India has travelled through a complex network of ships, airplanes, trucks, and
trains. At the centre of this network is the freight forwarder, an invisible yet vital player who
ensures that goods move seamlessly from one corner of the globe to another.

Freight forwarding can be defined as the planning, coordination, and execution of the
movement of goods from a point of origin to a destination. Freight forwarders do not usually
own transportation assets like ships or aircraft but instead act as intermediaries between
shippers (exporters) and carriers (shipping lines, airlines, trucking companies, rail operators).
Their strength lies in their expertise, global contacts, and ability to simplify the highly
complicated world of international logistics for businesses.

Logistics

Logistics is the comprehensive process of managing the flow of goods, services, and related
information from their point of origin to their point of consumption. It is a critical component
of supply chain management that focuses on planning, implementing, and controlling the
efficient and effective movement and storage of products. This includes activities such as
transportation, warehousing, inventory management, packaging, and the seamless
coordination of information between all parties involved. In essence, logistics ensure that the
right product is delivered to the right customer, at the right time, in the right condition, and at
the right cost.

Freight Forwarding

Freight forwarding is a specialized branch of logistics that deals specifically with

international and domestic transportation arrangements. It focuses on the operational side of
logistics making sure goods are physically moved from origin to destination, while taking
care of compliance, documentation, and coordination with multiple parties.

Freight forwarding acts as a bridge between the shipper and the consignee, ensuring smoother
and easier trade.
Services of Freight Forwarding

Freight forwarders provide a wide array of services, each designed to make international
trade easier for businesses:

1. Transportation Planning & Booking – Freight forwarders analyse multiple carriers

(shipping lines, airlines, trucking companies) to select the most cost-effective and
efficient routes. They book cargo space and negotiate freight rates on behalf of the
shipper.

2. Customs Clearance – Each country has its own import/export laws. Freight
forwarders prepare customs documents like Bill of Entry, HS codes, Certificate of
Origin, etc., and liaise with customs authorities to ensure smooth clearance.

3. Warehousing & Storage – Forwarders often provide warehousing facilities for goods
in transit. For instance, cargo arriving early at a port may need to be stored before the
vessel’s sailing date.

4. Cargo Consolidation – Forwarders combine smaller shipments from multiple

shippers into one container (known as consolidation) to reduce costs.

5. Cargo Insurance – International transport carries risks of loss, theft, or damage.

Forwarders help arrange insurance to protect shippers.

6. Documentation Services – Proper paperwork is the lifeblood of freight forwarding.

Forwarders prepare and verify documents like Commercial Invoice, Packing List, Bill
of Lading, and Air Waybill.

7. Cargo Tracking & Pre-alerts – Modern freight forwarders provide real-time

tracking systems and send pre-alerts to consignees before cargo arrives.

8. Last minute Delivery – Some forwarders extend services up to final delivery at the
consignee’s premises.
Freight Forwarding Process – Export Side

1. Customer Enquiry

o Shipper approaches a freight forwarder with shipment details (cargo type,

weight, dimensions, origin, destination, incoterms).

o Example: An exporter in India wants to send machinery to Germany.

2. Finding Agents & Carrier Options

o Freight forwarder checks with overseas agents and shipping lines for
schedules, space availability, and costs.

3. Quotation

o Freight forwarder sends a detailed quotation including freight charges, local

charges, customs handling, and transit time.

4. Booking Confirmation

o Shipper approves quotation and confirms booking.

o Space is booked with shipping line/airline.

5. Export Haulage (Pickup)

o Trucking arranged to move cargo from shipper’s premises to forwarder’s

warehouse or port.

6. Export Customs Clearance

o Forwarder files shipping bill and other required export documents with
customs.

7. Origin Handling

o Cargo is consolidated (if LCL), packed, labelled, and a Bill of Lading /

Airway Bill draft prepared.

8. Main Carriage

o Cargo loaded on vessel/aircraft/train.

o Forwarder monitors schedule and sends pre-alert to destination agent.

Freight Forwarding Process – Import Side

1. Customer Enquiry

o Consignee (buyer) requests freight forwarder to arrange shipment from

overseas supplier.

2. Finding Overseas Agent

o Freight forwarder coordinates with foreign agents to collect shipment details

and costs.

3. Quotation

o Importer receives estimated costs for freight, destination handling, and

customs clearance.

4. Booking & Shipment Initiation

o Shipper at origin books cargo via their forwarder; documents (Invoice,

Packing List, Bill of Lading/AWB) shared with importer.

5. Main Carriage

o Cargo moves from origin port/airport to destination port/airport.

6. Import Customs Clearance

o At destination, freight forwarder files Bill of Entry with customs and pays
applicable duties/taxes.

7. Destination Handling

o Cargo is deconsolidated (if LCL) and moved to bonded warehouse if needed.

8. Import Haulage (Final Delivery)

o Forwarder arranges trucking/rail delivery to consignee’s warehouse.

Major Trade Lanes in Global Shipping

A trade lane refers to a specific route used for transporting goods between major regions or
countries. These routes are determined by trade volume, demand, and geopolitical factors.
Some major global trade lanes include:

 Asia to North America (Trans-Pacific Lane)

Common for electronics, textiles, and machinery from China, Japan, and South Korea
to the USA and Canada.

 Asia to Europe (Far East-Europe Lane)

Key for consumer goods shipped from Southeast Asia to European ports like
Rotterdam, Hamburg, and Antwerp.

 Europe to North America (Trans-Atlantic Lane)

Includes automotive parts, chemicals, and luxury goods transported between Western
Europe and the East Coast of North America.

 Middle East to Africa and South Asia

Common for petroleum products and manufactured goods from the UAE and Saudi
Arabia to India, Kenya, and other African nations.

Major Base Ports

 Jebel Ali Port, Dubai (UAE) – One of the busiest in the Middle East, essential for
Gulf trade.

 Port of Shanghai (China) – World’s largest port by container volume.

 Port of Rotterdam (Netherlands) – Largest in Europe and a gateway to inland Europe.

 Port of Singapore – Strategic global hub connecting Asia to the rest of the world.

 Nhava Sheva / Jawaharlal Nehru Port (India) – India’s largest container port.
Major Shipping Lines

Shipping lines operate vessels that carry cargo across oceans. These carriers manage
extensive networks of services and container fleets. Examples include:

 Maersk Line – Headquartered in Denmark, the largest container shipping company in

the world.

 MSC (Mediterranean Shipping Company) – A global carrier operating a wide fleet

of vessels and extensive routes.

 CMA CGM – French shipping group with strong presence in Asia-Europe and
transatlantic trade lanes.

 Hapag-Lloyd – German carrier with strong coverage of global lanes.

 ONE (Ocean Network Express) – Japanese carrier operating globally across major
trade lanes.

 Evergreen Marine – A Taiwan-based shipping line, one of the world’s largest,

known for its strong presence in Asia and trans-Pacific trade.

 COSCO Shipping Lines – A Chinese state-owned carrier, among the largest

globally, with a vast fleet and extensive international network.

 Yang Ming Marine Transport – Another Taiwan-based carrier, specializing in Asia-

Europe and trans-Pacific services.

 ZIM Integrated Shipping Services – An Israeli carrier with a flexible, asset-light

model and strong digital focus.

 UPS Supply Chain Solutions – An American logistics company offering integrated

freight forwarding and containerized shipping services, especially strong in air and
express cargo.
Major Airline Companies in Freight Forwarding

Air freight plays a vital role for high-value and time-sensitive goods. Leading airlines
involved in cargo logistics include:

 FedEx Express – The world’s largest cargo airline, based in the U.S., specializing in
express and freight forwarding services across the globe.

 UPS Airlines – U.S.-based cargo carrier, part of UPS’s global logistics network,
operating one of the largest fleets of freighters.

 DHL Aviation – The air cargo division of DHL, operating dedicated freighter aircraft
worldwide to support express and logistics services.

 Cargolux Airlines – Based in Luxembourg, one of the largest all-cargo airlines in

Europe, operating a fleet of Boeing 747 freighters.

 Atlas Air – U.S.-based cargo airline providing ACMI (Aircraft, Crew, Maintenance,
Insurance) leasing and charter services worldwide.

 Kalitta Air – American all-cargo carrier, specializing in charter cargo flights and
international freight operations.

 Polar Air Cargo – A U.S.-based freighter airline jointly owned by Atlas Air and
DHL, providing transpacific and intercontinental freight services.

 Airbridge Cargo Airlines – Russian cargo airline (part of Volga-Dnepr Group) with
a large fleet of Boeing 747 freighters.

 Western Global Airlines – U.S.-based all-cargo airline focusing on ACMI and

charter services with a flexible freighter fleet.

 ASL Airlines (Cargo Division) – Ireland-based carrier operating cargo services for
DHL, FedEx, and Amazon.
Types of Containers

A cornerstone of modern global trade is the standardized intermodal container. Their

uniform size and structure allow for seamless transfer between ships, trains, and trucks.

 Standard Dry Containers: The workhorse of the shipping industry. They come in two
primary lengths, 20-foot and 40-foot, and are used for a vast range of goods that do
not require climate control.

 Refrigerated Containers (Reefers): These containers are essentially mobile

refrigerators or freezers. They are equipped with a temperature control unit to
transport perishable goods like food, pharmaceuticals, and chemicals, ensuring they
remain in optimal condition throughout their journey.

 Open Top Containers: As the name suggests, these containers have an open roof,
allowing for the easy loading of tall cargo that would not fit through the standard
doors. They are ideal for machinery or large parts that must be loaded from above by
a crane.

 Flat Rack Containers: These containers have collapsible ends and no side walls,
making them perfect for transporting oversized or irregularly shaped cargo, such as
vehicles, heavy machinery, or construction materials.

 Tank Containers: Cylindrical tanks mounted inside a steel frame of standard

container dimensions. They are specifically designed for transporting bulk liquids,
gases, and hazardous chemicals safely and efficiently.

 High-Cube Containers: Like standard dry containers but one foot taller, offering
extra storage capacity. These are best suited for lightweight, bulky cargo such as
textiles, furniture, and consumer goods.

 Ventilated Containers: Designed with built-in ventilation openings that allow air
circulation to prevent moisture build-up. They are mainly used for agricultural
 products such as coffee, cocoa, and tobacco that need controlled airflow during
shipping.

Types of Transportation

1. Sea Freight

 Accounts for 90% of global trade by volume.

 Ideal for heavy, bulky, or large-volume cargo.

 Cost-effective but slower compared to air freight.

 Commonly used for commodities like coal, crude oil, automobiles, furniture, and
machinery.

 Major trade lanes: Asia–Europe, Trans-Pacific, and Trans-Atlantic routes.

2. Air Freight

 Fastest mode of transport.

 Used for high-value, perishable, or time-sensitive goods (e.g., medicines, electronics,

fashion).

 Expensive compared to sea but provides reliability and speed.

 Example: Apple ships iPhones from China to the U.S. mainly by air during launch
periods.

3. Land Freight

 Includes road freight (trucking) and rail freight.

 Road freight is flexible and best for short to medium distances.

 Rail is cost-efficient for long distances and bulk cargo (e.g., coal in India, oil in
Russia).

4. Multimodal Transport

 Combination of sea, air, road, and rail.

  Provides cost and speed balance.

Shipping in Freight Forwarding

Shipping refers to the process of moving goods via sea routes. Freight forwarders arrange
shipping by:

 Booking containers (FCL or LCL).

 Negotiating freight rates with shipping lines.

 Preparing shipping instructions and Bills of Lading.

 Monitoring vessel schedules and handling transshipments.

LCL (Less than Container Load)

LCL shipments involve consolidating cargo from multiple shippers into one container.

 Shipper’s Role: Provides accurate cargo dimensions, invoices, and packing. Benefits
from lower costs but must share space with other goods.

 Consignee’s Role: Accepts slightly longer delivery times since containers are
deconsolidated at destination.

 Agent’s Role: Manages consolidation, issues House Bill of Lading, and coordinates
distribution.

FCL (Full Container Load)

FCL shipments involve booking an entire container.

 Shipper’s Role: Enjoys exclusive use of container, reducing risk of damage.

 Consignee’s Role: Receives shipment faster, without mixing with other cargo.

 Agent’s Role: Books space with shipping line, issues Master Bill of Lading.

NVOCC (Non-Vessel Operating Common Carrier)

NVOCCs do not operate vessels but lease container space and sell it to shippers. They issue
their own Bills of Lading, giving them independence from shipping lines.

Airlines and Air Cargo

Air cargo provides unmatched speed. Forwarders negotiate with airlines for space and rates.

Airline Enquiries

 Shipper: Requests space availability, pricing, and special handling.

 Consignee: Tracks shipment status, customs procedures, and arrival time.

 Agent: Liaises between both, preparing Air Waybill and booking flights.

Couriers and Express Cargo

Courier services are vital for small, urgent shipments.

 DHL Express – Market leader in express logistics.

 FedEx – Known for overnight deliveries.

 UPS – Strong in North America and Europe.

 Aramex – Popular in Middle East and South Asia.

Rail in Freight Forwarding

Rail is an important link between ports and inland destinations.

 Advantages: Low cost, eco-friendly, suitable for bulk goods.

 Example: In India, CONCOR provides rail container services connecting major ports
like Nhava Sheva to inland depots like Delhi.

Importance of Customer Service

Customer service determines loyalty in freight forwarding.

 Real-time updates and tracking.

  Proactive communication during delays.

 Problem-solving for lost or damaged goods.

Basis of Pricing

Pricing is based on:

 Mode of transport (air/sea/road).

 Cargo weight and volume (chargeable weight).

 Distance and trade route.

 Surcharges like fuel, port charges, and seasonal demand.

Ways of Finding Customers

Freight forwarders attract clients through:

 Networking with exporters/importers.

 Digital presence (websites, LinkedIn).

 Trade fairs and exhibitions.

 Collaboration with industry bodies.

 Referrals and word of mouth.

Competition in Freight Forwarding

The industry is competitive due to:

 Numerous global and local players.

 Thin profit margins.

 Digital disruption (AI, blockchain, online booking platforms).

 Increasing demand for eco-friendly transport.

Freight Forwarding Documentation

During my internship at Exxonic Shipping Pvt. Ltd., I realized that documentation is the
backbone of logistics operations. Whether it is an import or export shipment, every process
depends on proper paperwork. Both the Dubai headquarters and the Ernakulam branch
strongly emphasize accuracy in documentation, as even a small mistake can lead to delays,
penalties, or cargo being held at customs.

Some of the key documents handled by Exxonic include:

 Commercial Invoice – Acts as the proof of sale between buyer and seller, containing
product and value details.

 Packing List – Provides details about the quantity, weight, and packaging of goods.

 Bill of Lading (B/L) – The most important document in shipping, serving as a receipt,
a contract of carriage, and in many cases, a document of title. Exxonic deals with
different types of Bills of Lading such as:

 House Bill of Lading (HBL): Issued by Exxonic (as a freight forwarder) to the
shipper.

 Master Bill of Lading (MBL): Issued by the shipping line to Exxonic.

 Straight B/L: Non-transferable, consigned to a specific party.

 Order B/L: Transferable by endorsement, often used when banks are involved.

 Seaway Bill: A non-negotiable bill, used for trusted shipments.

  Telex Release: Electronic release of cargo without presenting the original hard copy.

 Certificate of Origin (COO) – Certifies the country where goods are manufactured,
often required for customs and trade benefits.

 HS Code Classification – Identifies goods under the Harmonized System for customs
clearance and duty calculation.

 Customs-related Forms – Such as shipping bills, import declarations, and duty

payment forms.

Conclusion

Freight forwarding is the lifeblood of global trade, connecting businesses to international

markets. By providing services such as transportation, documentation, customs clearance, and
cargo consolidation, freight forwarders make global supply chains possible.

In today’s world, where competition, digitalization, and customer expectations are increasing,
freight forwarders must evolve by adopting technology, improving customer service, and
building strong marketing strategies. Whether through sea, air, road, or rail, freight
forwarding will continue to be the driving force that powers the movement of goods and
sustains globalization.