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Factors Affecting the Choice of International Freight Forwarders for Korean Shippers  

Park, Byung-In (전남대학교 물류교통학전공)
Publication Information
Journal of Korea Port Economic Association / v.31, no.4, 2015 , pp. 209-225 More about this Journal
Abstract
A freight forwarder plays an important role in global trade and logistics by connecting worldwide nodes such as shippers, ports, and airports. Most freight forwarders in Korea are small and do not provide a sophisticated and professional service. This study aims to develop a strategy for Korean freight forwarders to the world-class 3PLs which they have to establish the strategy on how shippers select their freight forwarders. We conducted a higher-order factor analysis using the PLS-SEM techniques on the SmartPLS program to confirm the importance and significance of each factor, while considering relevant previous research. The findings suggested that shippers chose their freight forwarders for international logistics activities primarily by the reliability and forwarder service factors. Therefore, freight forwarders in Korea have to strengthen confidence and widen their service to shippers in order to become leading logistics companies.
Keywords
Freight Forwarder; PLS-SEM; SmartPLS; Higher-order Factor Analysis;
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