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Eastern Michigan University
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Ypsilanti, MI 48197
USA
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Web Master:
Rajesh Kumar Ineni

INTERNATIONAL LOGISTICS
Corporate Logistics Manager >>
International Shipping Specialist >>
Customs Broker >>
Customs Inspector>>

The term logistics refers to the science of moving, storing and distributing goods. As transportation firms have gradually broadened their offerings of sophisticated services, many of them have begun calling themselves logistics providers. They integrate the services otherwise available from individual insurance agents, customs brokers, forwarding agents and transportation carriers. These smaller firms tend to be more specialized, but may also offer a wide range of services through joint ventures with other firms.

In some cases, logistics operations do not differ significantly between international and domestic distribution. In other cases they are specifically focused on international markets. Private sector positions in this category include International Transportation Specialist, Corporate Logistics Manager, Customs Broker and Freight Forwarder. Government-employed Customs Inspectors also provide logistical functions.

Trends

One trend that has affected all International Logistics occupations is the advent of Just-in-Time (JIT) inventory systems. Computerized warehouse management systems and Electronic Data Interchange (EDI) between buyers and sellers, have created the need for complex supply chain management systems. These developments have placed much greater demands on logistics occupations, because the reliability of transportation services is more important than ever before. For example, a customs delay because of a seemingly minor paperwork error could delay a shipment of raw materials that could idle a whole shift in a manufacturing plant. ^ Top


Corporate Logistics Manager

The Corporate Logistics Manger is responsible for the overall management of the shipping of incoming raw materials and outgoing finished products. In some organizations this position is known as Traffic Manager. In many organizations, there is a substantial import/export component to this responsibility. Generally the international duties are more demanding than the domestic logistical requirements.

In the largest organizations the Corporate Logistics Manager and his or her staff contract directly with transportation providers. This means that they provide many of the services offered by logistics companies or freight forwarders on an in-house basis. For example, the Logistics Manager needs to decide on routing, packing methods, load limits and other physical elements of the shipping function. In smaller organizations, and even some large ones, the manager deals with a logistics company or freight forwarder. For example, one large manufacturing operation handles 100 trucks per day in and out. A logistics company handles shipments to smaller markets.

Qualifications

The requirements for Corporate Traffic Managers are similar to those of International Logistics Specialists, or freight forwarders. Individuals may enter the logistics industry after high school in entry level positions, but employers are increasingly looking for more advanced qualifications.

Skills

The corporate logistics manager needs an in-depth knowledge of all of the company’s transportation needs. He or she must manage warehouses serving both domestic and international shipments and must allocate resources on-the-fly. The manager is expected to be aware of routing methods for each type of cargo, but is less likely to require a broad range of carriers and routes than an international freight forwarder.

The logistics manager must have detailed knowledge of shipping requirements, including documentation, insurance and customs procedures as well as packaging and labelling. This also includes knowledge of loading systems and weight limits for various transportation modes. The logistics manager negotiates contracts with shipping companies and logistics providers, and therefore must have a good knowledge of freight rates in the company’s area of operation.

A good knowledge of the logistics industry in the areas where the company operates is essential. Many communities have Traffic Clubs, where logistics providers can network, exchange information and hear presentations from guest speakers.

Aptitudes

As with other careers in International Transportation, the position of Corporate Logistics Manager appeals to individuals who enjoy problem solving. The ability to deal effectively with a large number of details, even under pressure to meet shipping deadlines, is essential.

Good interpersonal relationships with corporate managers and staff are also necessary, since the logistics function provides services throughout the organization. ^ Top


International Shipping Specialist

International Shipping Specialists work for transportation companies and logistics providers. They arrange and coordinate international shipments and prepare all necessary documentation on behalf of exporters. Transportation companies may carry the goods on their own equipment, and negotiate arrangements with other carriers as necessary.

Logistics companies that act as freight forwarders usually negotiate long-distance shipping with a variety of carriers, with the choice depending on the nature of the cargo and the destination as well as time and cost constraints. They also consolidate small shipments from a number of clients into full truck or container loads to reduce costs.

International Shipping Specialists also arrange for packing and labelling in many cases, since there are varying requirements for different transportation modes. The specialist must also assess insurance and brokerage requirements, and some logistics companies have in-house brokers who may be called in for advice. He or she may advise the client regarding import requirements of the destination country by obtaining this information from World brokers or from reference manuals.

The most senior position in this career path is typically called Export Supervisor. This is the person on the exporting front line, with ultimate responsibility for correctly routing shipments and ensuring that all packing and documentation requirements are met. Other jobs in this career path include Shipping Clerks, Export Agents (sometimes specialized in road, air or ocean transportation) and Sales Representatives.

Trends

The sustained increase in the volume of world trade caused by falling trade barriers and the globalization of business has led to the creation of a much wider range of transportation options. Emerging technologies have created new transportation techniques such as advanced loading methods for bulk containers and multi-modal systems like truck-rail, rail-marine and truck-marine. The International Shipping Specialist is expected to know which combination is best for each shipment.


Qualifications

Individuals may enter the logistics industry after high school in entry level positions, but employers are increasingly looking for more advanced qualifications. Many community colleges offer programs in transportation and logistics.

Skills and Knowledge

The International Transportation Specialist is expected to have in-depth knowledge of every step of the exporting process. This includes routing methods for each type of cargo to meet the client’s needs concerning cost and delivery time. This work requires detailed familiarity with the terminology used for insurance, transportation and customs, as well as all of the related documentation requirements.

Knowledge of packaging and packing systems for each type of cargo and transportation mode is required, including international marking and labelling requirements. Transportation specialists should also have a detailed knowledge of insurance requirements and procedures for filing insurance claims for damage in transit.

Senior positions require the ability to ensure letter of credit compliance and to submit documentation to the client’s bank to ensure payment. Senior positions in logistics companies or freight forwarders also require the ability to negotiate the best possible rates and contract terms with transportation companies.
Aptitudes

Careers in International Transportation appeal to individuals who are resourceful and entrepreneurial and enjoy problem solving in an environment that is far from routine. The ability to learn quickly, use the available resources and seek out answers to questions is a strong requirement.

There is a large amount of responsibility, even at junior levels, because the choice of routing has a large impact on profitability. International Transportation Specialists must balance cost against service and they are responsible for the profitability of the file. Conversely, errors have serious cost consequences, which can make the job stressful.

There is a considerable amount of client contact at every level, which means that interpersonal skills are very important. Clients must understand what they have to do to meet the shipping and documentation requirements. Dealing with mistakes on the part of clients requires tact and diplomacy.

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Customs Broker

Customs Brokers facilitate the import and export of goods by preparing customs documentation and ensuring that shipments meet all applicable laws. They determine duties and taxes payable and process payments on behalf of their clients. They also keep track of duties, fees and taxes paid on the client’s behalf and sign documents under a power of attorney. They represent the client in meetings with customs officials and apply for duty refunds and tariff reclassifications. They may also coordinate transportation and storage of imported goods.

A Customs Broker can be an individual or a company. Each company providing these services must have at least one licensed individual on staff who supervises other employees providing customs brokerage services. Large logistics providers generally require that one manager be licensed at each of office, and most encourage other staff to qualify.

Because the majority of international trade is negotiated on a Free on Board (FOB) port of entry basis, most customs brokers deal mainly with imports. Moreover, many countries require that local brokers process all imports.

Some customs brokers work on the export side. Typically they are employed or contracted by logistics companies that provide export transportation services. Even though they rarely handle customs clearance in the destination country, they advise customers about the duty rates and customs requirements that apply. They also advise clients about the US export control regulations and send all necessary documentation to the importer’s broker.

Trends

The knowledge and skills required of Customs Brokers have been changing in recent years. Important changes include the implementation of the North American Free Trade Agreement (NAFTA)
Technological change has also radically changed the nature of the job. Customs documents in the United States are now filed electronically, and brokers in Canada and the United States exchange documents by computer. Also, the availability of electronic information systems has simplified the task of remaining current with the import regulations of the United States trading partners.

Qualifications

Individuals can became Customs Brokers by taking entry-level jobs after high school. Typically individuals start as a runner or clerk, and work their way through the hierarchy to import analyst, manager or customer service coordinator. During a period of on-the-job training and experience they complete a two-year correspondence course and then take the qualifying examination.

In recent years, logistics companies have increased their educational requirements. Many people now enter the industry following graduation from university with a Bachelor’s degree, often in business administration. But they still must learn about customs procedures on the job. Increasingly, companies are hiring graduates of community college programs in Law and Security, which include a Customs Officer option at some institutions.

Skills and Knowledge

Customs Brokers require detailed knowledge of customs regulations and the procedures for customs clearance. This includes knowledge of regulations governing duty remissions and draw-backs and the Goods and Services Tax.

Brokers who work with exporters need a general understanding of the scope of customs laws around the world, and the ability to operate data retrieval systems to obtain current requirements. They must know when and how to apply the US system of export controls. And they need knowledge of insurance and shipping practices to interface with professionals providing those services.

All types of Customs Broker need computer skills to access databases of customs information and to prepare and submit customs clearance documents .

Aptitudes

Customs Brokers, and the people on a career path to that position, must have excellent interpersonal skills and like working with people. The broker is the “quarterback” who manages the interface between the transportation company, the client and the governments of the importing and exporting countries, as well as any transshipment countries. The broker must be ready to deal with clients, truck drivers and officials who are angry or frustrated when border clearances are delayed. The border is the point at which governments become most directly involved in international trade transactions.

While there is much problem solving involved, the solutions are achieved through correcting errors, and not though innovation. For this reason, this occupation generally does not appeal to people who like to analyze problems and work out solutions. Customs laws are very rigid, and enforcement authorities have an unusual amount of discretionary power when compared with other law enforcement situations.

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Customs Inspector

Customs Inspectors enforce customs and immigration laws and regulations. They are employed by the US Customs, with offices in a variety of locations, including highway border towns, airports, seaports, and inland facilities. There are three major types of inspectors: Traveller Inspectors, Postal Inspectors and Commercial Inspectors. The latter two are concerned with imports of goods.

Postal inspectors check goods mailed into the United States to make sure they are admissible and that all duties and taxes have been paid.

Commercial inspectors are responsible for overseeing bulk goods brought in by freight trucks, trains, planes, ships or couriers. In this case, they board carriers arriving from World countries to determine the nature of their cargo. They make sure that their export documents and their important permits are in order. They also make sure that all taxes have been paid.

Regardless of the specialty involved, Customs Inspectors inform the importers and intermediaries about customs procedures and the details of customs-related legislation. They may specialize in certain areas of customs inspection, such as the appraisal and classification of goods, customs investigations, drug teams, policy development or administration.

Qualifications

Customs Inspectors are provided with specialized classroom and on-the-job training. The minimum entry requirements for the training program include a high school diploma, combined with at least two years in a related position, such as investigative work, providing information to the public, law enforcement or managing a business. Increasingly, new recruits are graduating from Community College in law enforcement and security.
Candidates are tested in both official languages, and if training is required it will be provided at government expense.

Skills and Aptitudes

This work appeals to people who enjoy meeting a variety of people and learning about other cultures. They should be naturally curious, notice details, and be good at recognizing people who appear nervous or act strangely. Candidates need a good memory to remember many complex regulations.

Customs Inspectors should be open to doing a variety of different types of work, and amenable to shift work, customs offices operate around the clock.

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