ABSTRACT

Shippers are business firms that have their goods transported between origin and destination locations, thereby incurring transportation costs for the transportation services provided by transportation carriers. Both the carrier and the shipper are involved in the provision of freight transportation service. For the shipper, the containerization of ocean transportation cargo meant less pilferage, since containers are sealed at the origin and not opened until they arrive at their consignees. Business logistics management is the management of the integration of the business logistics activities of a firm, balancing production capacity against holding the finished product in inventory. Shipper demand for transportation service is a derived demand. Transportation is a means to an end and not an end in itself; that is, there is no demand for transportation by shippers unless there is a demand for the product that is being transported.