Freight transport has been recognised for many years as an important activity within the physical distribution function. The choice of transportation mode can greatly affect the operational costs and customer service level of a firm which, in turn, could affect the performance of the said firm. Freight forwarding is considered as a supporting business for the country’s economic growth (TIFA, 2004). Thai freight forwarders have been helping Thai import-export firms for more than 30 years, since they act as trade facilitators such as in the handling of customs procedures, consolidation services for small scale exporters and importers, negotiating with shipping lines, or other transport service providers and finally coordinating with all related parties. Freight forwarders have to work closely with shippers and consignees as they have to adapt themselves and provide more value-added logistics activities in order to respond effectively with the ever changing need of customers’ logistics requirement. This has led freight forwarders to effectively become logistics service providers (LSPs), in particular with regards to international logistics services.
The purpose of this study was therefore to identify statistically significant factors that could affect the shipper’s decision making process when selecting LSPs. An understanding of the key decision factors could help Thai LSPs in providing the sort of information and services that is considered to be critically important to their customers.