Examining the impact of informal contract between delivery of package by agents and their customers on shipping

Abstract

Given the challenges that businesses have when it comes to adjusting to current circumstances and improving their door-to-door delivery processes, it has been observed that delivery agents are the primary cause of troubles. Ensuring reliable transportation of air-to-sea cargo on a global level continues to provide a significant and difficult obstacle. The absence of a formal contractual arrangement between worldwide air and sea freight intermediaries and their clients has resulted in the prompt settlement of various concerns, such as missing merchandise, shipment delays, and damaged goods. The current study used a quantitative research approach to examine three hypotheses by considering four variables: "Assurance," "Legal Risk," and "Informal Contract" as the independent variables, and "Delivery of package by agents" as the dependent variable. The results of the study demonstrate that all of the independent variables exerted a significant influence on the dependent variable. The study revealed that "assurance" and "perceived legal risk," exert a beneficial influence on the establishment of informal contracts between Malaysian international air and sea cargo-agents and their customers in the context of shipping. The variable of "assurance" has a notable influence on the “Delivery of package by agents". The findings also carry substantial significance for customers, as it offer valuable insights into the uncertainties and obstacles associated with the informal agreements between Malaysian international air and sea cargo agents and their customers pertaining to shipping.