Case Study:
Mikkel Jakobsen works as an export coordinator with Shipco Transport, a subsidiary of Scan-Group, a major European transportation company. Shipco Transport has offices all over the world, including 12 branches in North America. Shipco has an extensive network of independent agents in most areas of the world. Shipco’s core business is Less than a Container Load (LCL) ocean freight, but also offers Full Container Load (FCL) ocean freight services, as well as airfreight. Mikkel and four other coworkers constitute the company’s FCL Chicago branch export team. As a Non-Vessel Operating Common Carrier (NVOCC), Shipco Transport operates similarly to shipping companies such as Maersk Sealand, Mediterranean Shipping Company, and others, with one key difference: Shipco has no vessels of its own. Instead, Shipco relies on favorable contracts with over 40 carriers, enabling them to offer competitive rates on routings to destinations around the world. Most of Shipco’s customers are freight forwarders, but the company also deals directly with exporting companies, and on occasion private individuals. Because of its Midwest location, a significant number of containers come through Chicago on a daily basis and are railed to ports around the country. In 2006, Mikkel earned a BA degree in international management and economics from a small liberal arts college in the Midwest. He is a citizen of Denmark, and currently works in the United States on a J-1 work visa, sponsored by Shipco Transport. How did he get his first job after graduating? Mikkel explains, “In the spring of 2006, I contacted 15 different companies operating in the United States that had a connection to Denmark. I was offered a position in Shipco Transport’s Chicago branch.” Mikkel’s day begins at 8:30 A.M., and usually ends at 5:30 P.M., depending on the workload. Most customers are located in the Midwest, but overnight, he receives e-mails from overseas that he processes in the morning hours. Mikkel says, “In general, my job consists of quoting out shipping costs to customers, placing bookings with steamship lines, preparing export documentation, and dealing with problems that arise during the container’s journey from shipper to consignee.” “A customer contacts me with a rate request on a certain routing,” Mikkel continues. “He may wish to ship one 20-foot container with auto parts from Indianola, to the port of Ningbo, China. Based on our carrier contracts, I work up a quote including drayage from Indianola, Iowa, to the appropriate rail hub, rail transportation from hub to port, and ocean freight from U.S port to port of discharge Ningbo. Several things must be considered including what carrier is cheapest on the routing, differences in transit times, if the commodity is covered in the contract, and what profit level is appropriate. If the customer accepts the quote, the booking is placed with the steamship line, and a dispatch is sent to the chosen trucking company. Certain situations need additional attention. If the commodity is hazardous, the hazardous declaration must be approved by the steamship line. Also, certain goods, such as automobiles, must be cleared by customs before leaving the United States to avoid U.S. customs demanding the return of the container for inspection, at the expense of the party at fault. “Although quoting and setting up bookings takes up a lot of my work day, the majority is spent addressing various problems and issues that arise. Problems such as carriers running out of equipment at their depots, loadings taking longer than expected, or rail delays are common and dealt with regularly. More serious issues are derailments, problems securing payment, and container abandonment. As an example, disposing of scrap materials in the United States can be expensive, and in the past, some have overcome the problem by loading it in a container and sending it to places like India as a collect shipment with a nonexistent consignee. This can become an extremely costly situation as demurrage (storage charges), unloading, and disposal charges may apply. “In ocean freight, we work with ETDs (Estimated Time of Departure) and ETAs (Estimated Time of Arrival), because vessels crossing oceans tend to deviate from their schedule. Although this is a fact, customers sometimes have a difficult time understanding the concept. In the world of shipping, vessels running late, expected early, or even on time can be a problem. If so, I am contacted by my customer who either needs an explanation or appropriate action taken. As a middleman, I will contact the specific carrier with the same request. Most of the time the problem is that the container hasn’t reached its destination according to the ETA. “Interestingly, sometimes a shipper is interested in a delay, and wants the container held up on its journey. This could be because more time is needed to secure payment, or it could represent an attempt to avoid a holiday in the destination country.” How did Mikkel’s college studies prepare him for the job? “Incoterms, letter of credit, SED (Shippers Export Declaration), and B/L (bill of lading) are just some of the industry jargon used on a daily basis. Working with customers, familiarity is expected. The documentation part of export shipping is important, and demands attention to detail. As an NVOCC, Shipco produces both a House B/L and a Line B/L that holds information on the shipper and the consignee, and on the products shipped. Most of our containers are released on an express release basis, but some require the use of original bills of lading. In these instances, the original B/L must be presented before a container is released. Although I do not get directly involved in the intricacies of L/C (letter of credit) shipments, special attention must be given to the accuracy of B/L information because small deviations can be troublesome. When doing business internationally it is essential to recognize the differences in how business is conducted around the world. South America and Russia in particular are destinations where we rely heavily on our overseas offices and agents and their knowledge of local customs and regulations.” Summing up, Mikkel says, “I enjoy operating on an international level on a daily basis, while doing my part to alleviate the current American trade deficit. Working in the transportation industry, I am sometimes surprised by how many different and obscure items are exported around the world. Although the process may seem overwhelming, with the help of a shipping specialist such as Shipco, any company anywhere can view the entire world as a potential market.”
Q1. What knowledge and skills are required to be successful as an export coordinator?
Q2. What do you think is the best part of Mikkel’s job? The worst part?
Q3. If you were in Mikkel’s position, what would your next career move be?
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.