1.1 Introduction
Freight forwarding is a critical component of international trade and logistics, serving as the intermediary between shippers and transportation services to ensure the efficient movement of goods across borders. According to Rodrigue (2020), freight forwarding involves organizing shipments for individuals or corporations to get goods from manufacturers to a market, customer, or final point of distribution. In modern port operations, automation plays an essential role in enhancing efficiency, reducing delays, and improving accuracy in cargo handling processes (Rodrigue, 2020).
Automation refers to the application of advanced technologies such as electronic documentation systems, cargo tracking platforms, and automated clearance procedures to streamline operations and minimize human intervention (Adeleke et al., 2021). The efficiency of freight forwarding is largely dependent on how well ports integrate digital systems to manage cargo clearance and documentation processes. In advanced maritime economies, automation is extensively used to achieve faster cargo turnaround, and ensure real-time tracking of consignments (Obi & Nwachukwu, 2022).
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitation of the study and Definition of terms.
1.2 Background of Study
Freight forwarding is a vital aspect of global trade and logistics, serving as the link between shippers and transportation services to facilitate the movement of goods from origin to destination. According to Rodrigue (2020), freight forwarding ensures that goods are transported efficiently by coordinating customs clearance, cargo handling, and delivery schedules. In today's competitive maritime industry, automation has become indispensable in improving operational efficiency, reducing costs, and enhancing transparency in port operations. Adeleke et al. (2021) asserted that automation in freight forwarding involves the use of digital platforms for documentation, real-time tracking, and automated clearance systems that minimize human involvement and errors.
Obi and Nwachukwu (2022) reported that most Nigerian ports still rely on manual processes for cargo clearance, documentation, and verification, which increases cargo dwell time and operational inefficiency. This lack of full automation creates bottlenecks that contribute to port congestion, delays in cargo delivery, and increased costs for stakeholders. Okoro (2023) stated that while some level of automation exists in Nigerian ports, it is often undermined by poor infrastructure, lack of technical expertise, and inconsistent policy implementation, resulting in suboptimal performance.
Eze and Nwosu (2021) affirmed that inadequate automation also creates opportunities for corruption due to excessive human intervention in clearance processes. The absence of a fully integrated system makes it difficult to track cargo efficiently, thereby increasing the risk of cargo loss and revenue leakages. On the other hand, Okechukwu and Ibrahim (2022) contend that the high cost of deploying automation technology and limited awareness among stakeholders are major barriers to modernization in Nigerian ports. This technological gap not only affects freight forwarding efficiency but also reduces Nigeria's competitiveness in international trade when compared to other countries with advanced port automation systems.
The Ports and Cargo Handling Services Ltd, a leading terminal operator in Nigeria, reflects these challenges as it grapples with inefficient documentation systems, delays in cargo handling, and fragmented communication among stakeholders. Eze & Nwosu (2021) stated that inadequate automation in Nigerian port operations leads to multiple inefficiencies including prolonged cargo dwell time, increased risk of errors, and susceptibility to corruption due to excessive human involvement (Eze & Nwosu, 2021). On the other hand, where automation is partially implemented, lack of technical expertise and inadequate infrastructure investment compromise its effectiveness. These challenges have resulted in recurring issues such as port congestion, shipment delays, and increased logistics costs, making Nigerian ports less competitive on a global scale (Okechukwu & Ibrahim, 2022). This study is set against the backdrop of these challenges and seeks to examine the influence of inadequate automation on freight forwarding efficiency in Nigerian port operations.
1.3 Statement of Problems
Investigation revealed that the efficiency of freight forwarding processes within Nigerian ports is heavily dependent on the adoption of automation technologies to streamline operations and reduce delays. However, inadequate automation is creating significant bottlenecks, resulting in inefficiencies that affect the entire logistics chain. Manual documentation and clearance processes are still dominant in many Nigerian port operations, causing unnecessary delays, increased turnaround times, and rising operational costs for stakeholders (Obi & Nwachukwu, 2022).
The reliance on manual systems also increases the likelihood of errors, data inconsistencies, and corruption due to excessive human intervention in critical processes. Automated systems are designed to minimize human-related errors, but the lack of proper technological integration in freight forwarding operations is leading to inaccurate documentation and shipment mismanagement (Adeleke et al., 2021).
On the other hand, where automation is partially implemented, inadequate training and poor system maintenance further hinder its effectiveness, creating a gap between potential efficiency and actual performance (Okoro, 2023).
Furthermore, many operators face financial and technical challenges in deploying modern digital solutions, making them dependent on outdated manual processes that slow down cargo clearance and increase the risk of port congestion (Okechukwu & Ibrahim, 2022). Additionally, lack of synergy among port stakeholders, such as terminal operators, customs, and freight forwarders, aggravates inefficiency as fragmented systems cannot ensure seamless information flow (Eze & Nwosu, 2021). It is against this backdrop that this study seeks to investigate the influence of inadequate automation on freight forwarding efficiency in Nigerian port operations, focusing on Ports and Cargo Handling Services Ltd.
1.4 Aim and Objectives of Study
The aim of this study is to investigate the influence of inadequate automation on freight forwarding efficiency in Nigerian port operations.
The specific objectives of this study are:
- To assess the current level of automation in freight forwarding processes at Ports and Cargo Handling Services Ltd.
- To examine the impact of inadequate automation on the efficiency of freight forwarding operations.
- To identify the operational challenges associated with limited automation in Nigerian port operations.
- To recommend strategies for enhancing freight forwarding efficiency through improved automation.
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