Moreover, Vietnam''''s seaport area has a positionto connect Asian countries on international transport routes to other continents.After nearly 20 years of implementing seaport development
OVERVIEW OF KUEHNE NAGEL VIETNAM
General information
Kuehne & Nagel is a global transportation and logistics company founded by Kuehne and Friedrich Nagel in 1890 in Germany It operates through the following segments: Sea Freight, Airfreight, Overland, and Contract Logistics With over 82,000 employees at more than 1,300 locations in over 100 countries, Kuehne & Nagel is the largest sea freight forwarder globally and holds the number-two spot in air freight At present, Kuehne+Nagel is headquartered in Switzerland, with a presence all over the world
Picture 1: Logo of Kuehne+Nagel
In 1994, Kuehne & Nagel officially launched in Vietnam During more than 25 years in Vietnam, Kuehne+Nagel has built a team of leading local and international logistics experts with a deep understanding of the Vietnamese market and in-depth industry knowledge With more than 600 logistics professionals in 10 locations across Vietnam, Kuehne & Nagel has become the country's leading logistics company
+ Address: Floor 11, Vincom Center, No 72 Le Thanh Ton Street, Ben Nghe Ward, District 1, Ho Chi Minh City
+ Email: info.hochiminhcity@kuehne-nagel.com
+ Website: http://kuehne-nagel.com
Service
Over the last 130 years, Kuehne+Nagel has evolved from a traditional shipping company to a global logistics partner that offers highly specialized solutions for major industries worldwide Kuehne+Nagel is engaged in the provision of Sea Freight and Airfreight Forwarding, Contract Logistics, as well as Overland Businesses that focus on providing IT-based logistics solutions Moreover, the company provides logistics solutions and services related to supply chain 4PL, warehousing, retail, and distribution.
Achievements
During its operation, Kuehne+Nagel Vietnam has continuously developed and achieved many proud achievements.
2018 Wins in the category Transport & Logistics at Supply Chain Finance Awards
Award “Best Companies To Work For In
2022 Ranking 396th in The Fortune Global 500 list
Table 1: List of achievements of Kuehne+Negal
Existing Customers – Peek Kids
Peek Kids designs unique clothing for the little ones in comfort and style Peek Kids are passionate about building on the Peek Kids values they have stood for since our founding in 2006 At Peek Kids, they love creating fun clothes in comfortable shapes for kids to play in When designing each piece of clothing, they lead with their hearts, act seriously funny, mix in nostalgia for the magic that is childhood, and care for the world and everything that is part of it.
Picture 2: Logo of Peek Kids
Address: Mamiye Brothers, Inc 1385 Broadway, 18th floor in New York, N.Y. 10018
Requirements from Peek Kids
Peek Kids Company found a forwarder to move their shipment for both sea and air transportation from Binh Duong Province, Vietnam to Los Angeles, USA, underINCOTERM FOB (HCM ports) Their products are clothes for children The cargo's ready date is on Thursday weekly and estimated at 4.000kg, 18cbm/week/factory,40x50x70cm Therefore, our company - Kuehne+Nagel is offered to provide quotations for both means of transport, by sea and by air for Peek.
VIETNAM SITUATION
Overview of the infrastructure
Vietnam is located right next to the South China Sea - a particularly important trade chain on the world maritime map Vietnam also owns 3,260km of long coastline, many deep-water bays, close to international maritime routes Currently, the country has 49 seaports (in 166 ports) distributed throughout from Northside to Southside The Northern seaport area of Vietnam is connected with Northeast Asian countries such as China, Japan, Korea, and Hong Kong Moreover, Vietnam's seaport area has a position to connect Asian countries on international transport routes to other continents.
After nearly 20 years of implementing seaport development plans, Vietnam has formed a complete seaport system from North to South with 45 seaports, divided into 6 groups of ports Port infrastructure in some areas such as Cai Mep - Thi Vai, Lach Huyen is capable of receiving mother ships with a large tonnage of 100-200 thousand tons, contributing to turning Vietnamese seaports into an important link in the global supply chain (Vietnam Maritime Administration, 2020) Currently, Ho Chi Minh City owns many seaports, notably Cat Lai port, Vietnam International Container Terminal (VICT), and Saigon Premier Container Terminal (SPCT), etc.
Besides, traffic connection is also a "bottleneck" for seaport development Most of the roads connecting to ports in areas such as Hai Phong, Ba Ria - Vung Tau, and Ho Chi Minh City are not commensurate with the seaport's capacity Although the ports of Lach Huyen, and Cai Mep - Thi Vai are planned as gateway ports and international transshipment ports, there is no railway connection and weak waterway connection, leading to goods being traded mainly by road On foot, the roads leading to the port are often congested.
Currently, Vietnam owns 22 civil airports, including 12 international airports and 10 domestic airports Although they are civil airports, these airports all have a section dedicated to military flight operations for use in special cases Among international airports in Vietnam, there are 5 important airports: Noi Bai (Hanoi), Da Nang (Da
Nang), Tan Son Nhat (Ho Chi Minh City), Van Don (Quang Ninh) and Phu Quoc (Kien Giang).
Tan Son Nhat International Airport is located at Truong Sa Street, Ward 2, Tan Binh District, Ho Chi Minh City This is the largest international airport in Vietnam in terms of area, terminal capacity as well as the number of passengers and goods Tan Son Nhat airport meets 4E standard and is a level 1 civilian airport with the ability to receive aircraft such as B747, A350, A321, B787, B77 and other similar aircraft Every day, on average, there are about 700 flights taking off and landing at this airport, during peak times, the number of flights can be up to 900 flights/day.
In which, Noi Bai and Tan Son Nhat gateway airports are seriously overloaded. Although these two airports are currently being tried to optimize, the capacity of these two airports has exceeded the design.
Currently, the demand for warehousing is still on a strong upward trend despite the fluctuations of the economy The reason is that manufacturing enterprises are stepping up their operations, on the other hand, warehouse rent is also forecasted to grow at an average rate of about 1.5% to 4% per year.
According to a report of the Ministry of Industry and Trade, the warehouse system in Vietnam is unevenly distributed More than 70% of the warehouse area is distributed in the southern economic centers Moreover, the logistics market in the southern region is considered to be more vibrant thanks to the system of highways and more deeply connected seaports and ports.
Shortage of warehouses is mainly due to the fact that industrial land is currently still occupied with high rental rates because the current rental demand is still increasing strongly Accordingly, the land for lease in industrial zones is scarcer.
1.4 Main import/export products to/from Vietnam
Generally, in the first 7 months of 2022, the total export value reached US$217.34 billion, up 16.6%, equivalent to an increase of US$30.92 billion over the same period last year In which, there are many commodity groups that keep a good growth rate such as machinery, equipment, tools and spare parts; Cell phones and accessories…
Top Exports Export Value (the first 7 months of 2022)
Electronic goods/Computers US$31.7 billion
Top Imports Import Value (the first 7 months of 2022)
Electronic goods/Computers US$50.1 billion
Table 2: Top 5 main export/import products from/to Vietnam in the first 7 months of
2022 (Source: General Statistics Office) 1.5 Main Sea carriers operating in Vietnam
Vietnam currently has about 10 container shipping lines, Vietnam's container fleet is small in number and tonnage, so most of them only handle domestic routes and some have intra -Asia routes Therefore, the increased exploitation of new routes by shipping lines in Vietnam and Asian countries also creates competition with domestic shipping companies.
According to the Vietnam Maritime Administration, there are currently about 34 foreign container shipping lines operating in Vietnam, including all the largest shipping lines in the world such as Maersk, MSC, COSCO, Evergreen, OOCL, etc Meanwhile, Vietnam has 10 container shipping lines, operating mainly in the domestic market. Foreign shipping lines operating in Vietnam have representatives in Vietnam in the form of enterprises, with 100% foreign capital These representatives will act on behalf of the shipping line to carry out business activities in Vietnam and act as contract agents.
In the project of developing Vietnam's international shipping fleet, it is reported that in the past, when Vietnam's ports could not receive mother ships, Vietnam's goods to Europe and America would be transshipped to transshipment ports in China, Hong Kong, Singapore…
Routes to Europe and America are currently implemented at Lach Huyen port area and Cai Mep - Thi Vai port, with a transport frequency of 18 routes to America (Cai Mep
16 routes, Lach Huyen 2 routes), 2 route to Europe (Cai Mep) The container freight route to Europe and the US is mainly handled by 10 foreign shipping lines, namely MSC, Maersk, CMA - CGM, Hapag - Lloyd, ONE, OOCL, Evergreen, COSCO, HMM and Yang Ming These are all the largest shipping lines in the world.
According to experts, Vietnam has an attractive import and export goods market, attracting major shipping lines in the world Since then, a highly competitive market for providing container freight services has been formed among service providers. However, because of a prolonged economic recession with a slow recovery, many shipping lines faced difficulties in exploiting, even some large shipping lines had to go bankrupt Therefore, in recent years, many shipping lines have started to merge and merge to increase efficiency, typically alliances such as 2M (Maersk and MSC), Ocean (CMA - CGM, COSCO, Evergreen, and OOCL) and THE (Hapag - Lloyd, ONE, Yang Ming and HMM).
1.6 Main airlines operating in Vietnam
Market in Vietnam
Vietnam’s industrial production and exports showed signs of slowing down Financial, monetary and banking markets face increasing pressure due to tightening monetary policy and increasing interest rates to reduce inflation by many national banks, especially in economic partners It is important to put great pressure on the exchange rate, interest rate and foreign currency market So that the situation of labor reduction, reduction of working hours, and rotational layoffs reappears.
Besides, the USA is known as the largest exporter of Vietnam However, in the first quarter in 2022, imports from the USA year-on-year fell 7.8% to $3.4 billion Since, the area is geographically far away, leading to increasing the cost and time of transportation So, this issue affects declining imports to Vietnam from the USA. Instead, Vietnam is reducing shipments from the U.S and European Union in favor of more imports from China.
2.2 Factors affecting the sea-market
The conflict between Russia and Ukraine is the cause of increasing prices in the market for a number of fuels and raw materials for production and consumption such as gas - petroleum, wheat, aluminum, nickel, corn, etc Their production and export share are huge As a result, sea freight rates around the world have increased sharply Regarding transportation and circulation of goods, currently, some shipping lines have refused to accept orders to transport goods from Vietnam to Russia In addition, this war will affect Vietnam's economy and increase inflation, and delays in transportation will seriously affect goods trade Up to now, the price of gasoline has also dropped sharply after many recent adjustments, which are considered the main reasons for the sharp drop of sea freight rates, and the congestion at ports has also decreased much compared to the beginning of the year.
China has experienced the worst Covid-19 outbreak since implementing the "ZeroCovid" policy in early 2022, the continuous increase in infections caused the country to implement many blockade measures, including strict isolation The blockade of some big cities by China negatively affected the seafood export of Vietnam and many other types of goods in Vietnam because the sudden decrease in goods consumption limited trade activities between the two countries, thereby causing a decline in seafood consumption, and reducing the volume of goods through the port system of Vietnam. This is the reason why the volume of Vietnam’s exports to other countries have decreased, especially the US.
Currently, inflation and freight rates have stabilized and tended to decrease However, the volume of sea transactions is still not incredibly positive, the number of containers has decreased sharply, which makes container ships not as full of goods as before.
2.3 Factors affecting the air-market
At the beginning of 2022, the aviation industry is currently facing difficulties due to high gasoline prices This also puts upward pressure on costs for airlines operating air transport In addition, the price of kerosene fluctuates more frequently than other fuels, making air freight rates unstable.
But at the moment, the air transport market in Vietnam is considered dynamic and growing very fast Compared to other means of transportation, air freight has the advantage of speed and time when it is possible to deliver worldwide within 2-3 days. However, the price for that convenience is not low, and so only high-value, low- volume goods with special transportation needs seek this mode of transportation.
From the beginning of 2022 up to now, according to statistics of the General Statistics Office, the export turnover of goods from Vietnam to the US reached 185.94 billion USD, up 17.3% over the same period last year Vietnam reached $185.23 billion, up 15.5% The goods imported from the US to Vietnam are usually computers, electronic products and components; Cotton; Machinery, equipment and spare parts; Plastic materials This proves that the amount of goods imported and exported between Vietnam and the US is very large, especially by air since the US allows direct flights between this country and Vietnam.
In the current situation, when the relationship between Vietnam and the US is favorable, it is predicted that the import and export turnover of goods between Vietnam and the US will increase in the future As a result, air freight transportation from the
US to Vietnam will be more and more bustling in the future.
TCS(KGS) AT COST AT COST AT COST AT COST AT COST
When transporting goodsfrom Vietnam to the US the most, basic documents will include:
Picture 10: Bill of lading 4.1.2 Document for Air
Air Cargo Advance Screening (ACAS)
Picture 13: Shipper’s Letter of Instruction
Air Cargo Advance Screening (ACAS)
On June 12, 2018, the Air Cargo Advance Screening (ACAS) Program went into effect,demanding the submission of advanced air cargo information for shipments coming into the country from abroad The program criteria, which were previously a voluntary process in which many airlines across the world already took part, are now compulsory for airlines traveling to the United States The Department of Homeland Security (DHS) is raising the bar for aviation security all around the world, therefore this is an essential precaution.
As part of the ACAS program, participating airlines transmit to CBP a portion of the necessary pre-arrival air cargo data as soon as is practical and before the cargo is loaded onto aircraft flying to or through the United States.
1 Shipper Name - individual name or name of business
2 Shipper Address - a valid street address with city/province, country and postal code
3 Consignee Name - individual name or name of business
4 Consignee Address - a valid street address with city/province, country and postal code
5 Cargo Description - generic cargo descriptions should be avoided
6 Total Quantity - smallest external packing unit
7 Total Weight - total weight of cargo
8 Air Waybill Number (House & Master)
Consent To Search or Inspection
According to federal laws, any goods offered for air transportation may be searched or inspected Anyone or any organization that submits cargo for air transportation must agree to a search or inspection; otherwise, their cargo will be rejected To make sure that shippers are aware that all shipments are subject to screening, consent to screen authorization is necessary Shippers' shipments are still eligible for TSA screening even if they conduct their own cargo screening in accordance with the Certified Cargo Screening Program guidelines.
Picture 14a: Air Cargo Advance Screening (ACAS)
Picture 14b: Air Cargo Advance Screening (ACAS)
The customs authorities will check the shipment's details on the delivery order (i.e., delivery order) with the details stated by the shipping firm on the manifest when the consignee arrives to pick up the items When the corresponding information matches, the goods will be supplied, and vice versa.
It lists details of MB/L Number, MB/L date, HB/L number, HB/L date, shipper information, consignee information, port of loading, port of discharge, loading point, delivery point, information about goods (quantity, weight, type of package) and mode of transportation (CFS/CFS or CY/CY)
Picture 15: Ocean cargo manifest form
Picture 16a: Vietnam Customs Manifest Declaration Template
Picture 16b: Vietnam Customs Manifest Declaration Template
(AMS number consisting of 4 characters of SCAC code and 10 characters of HBL)
Orders shipped to the US must be declared to US Customs 48 hours before the cargo ship departs from the primary port to the US The exporting party is required to report this information while the cargo is still at the port of loading so that the US side knows if there are any upcoming shipments.
SOLUTION
Documents and Manifest
When transporting goodsfrom Vietnam to the US the most, basic documents will include:
Picture 10: Bill of lading 4.1.2 Document for Air
Air Cargo Advance Screening (ACAS)
Picture 13: Shipper’s Letter of Instruction
Air Cargo Advance Screening (ACAS)
On June 12, 2018, the Air Cargo Advance Screening (ACAS) Program went into effect,demanding the submission of advanced air cargo information for shipments coming into the country from abroad The program criteria, which were previously a voluntary process in which many airlines across the world already took part, are now compulsory for airlines traveling to the United States The Department of Homeland Security (DHS) is raising the bar for aviation security all around the world, therefore this is an essential precaution.
As part of the ACAS program, participating airlines transmit to CBP a portion of the necessary pre-arrival air cargo data as soon as is practical and before the cargo is loaded onto aircraft flying to or through the United States.
1 Shipper Name - individual name or name of business
2 Shipper Address - a valid street address with city/province, country and postal code
3 Consignee Name - individual name or name of business
4 Consignee Address - a valid street address with city/province, country and postal code
5 Cargo Description - generic cargo descriptions should be avoided
6 Total Quantity - smallest external packing unit
7 Total Weight - total weight of cargo
8 Air Waybill Number (House & Master)
Consent To Search or Inspection
According to federal laws, any goods offered for air transportation may be searched or inspected Anyone or any organization that submits cargo for air transportation must agree to a search or inspection; otherwise, their cargo will be rejected To make sure that shippers are aware that all shipments are subject to screening, consent to screen authorization is necessary Shippers' shipments are still eligible for TSA screening even if they conduct their own cargo screening in accordance with the Certified Cargo Screening Program guidelines.
Picture 14a: Air Cargo Advance Screening (ACAS)
Picture 14b: Air Cargo Advance Screening (ACAS)
The customs authorities will check the shipment's details on the delivery order (i.e., delivery order) with the details stated by the shipping firm on the manifest when the consignee arrives to pick up the items When the corresponding information matches, the goods will be supplied, and vice versa.
It lists details of MB/L Number, MB/L date, HB/L number, HB/L date, shipper information, consignee information, port of loading, port of discharge, loading point, delivery point, information about goods (quantity, weight, type of package) and mode of transportation (CFS/CFS or CY/CY)
Picture 15: Ocean cargo manifest form
Picture 16a: Vietnam Customs Manifest Declaration Template
Picture 16b: Vietnam Customs Manifest Declaration Template
(AMS number consisting of 4 characters of SCAC code and 10 characters of HBL)
Orders shipped to the US must be declared to US Customs 48 hours before the cargo ship departs from the primary port to the US The exporting party is required to report this information while the cargo is still at the port of loading so that the US side knows if there are any upcoming shipments.
Shipping lines, in general, will conduct out processes to declare AMS for Master Bill And the forwarders will declare for House Bill, which means our Kuehne Nagel will declare this shipment of Peek The operation will be accomplished fast at a cost of around $35 per order.
SCAC HBL (must register forwarder - get legal bill of lading to register - have 4 letters)
BL master number of the shipping line
The name of the ship that runs from the main port to the US
Steps to register AMS filings:
Select the manifest (AMS) menu and start a new transaction.
Enter all the requested details, such as the broker reference number, shipper reference number, client information, and bill, to the party.
Click on the open AMS button and start an AMS filing from scratch.
Start an AMS manifest tab and enter all of the requested details, including the container name, country of origin, port of unloading, etc.
Next, choose the bills of lading (BOL) tab and add the BOL Enter the BOL number, its status, foreign port of lading, the original city of origin, the gross weight, SCAC code (mandatory for NVOCC), etc.
Add the container information Choose NC for non-containerized freight.Finally, select the equipment inventory tab to enter empty containers, if any.Select save and mark the AMS filing as complete.
The information with red dot next to it is the information that must be filled in when declaring goods to the United States, such as the Bill number, Master bill number, and so on.
Declare shipper details and consignee and notify party
Declare the details of the shipment about the container, quantity, number of signs The shipment has 3 House Bills, and 1 Master Bill, which means we will declare the manifest for the House Bill 3 times because each House Bill number is different.
Picture 18: Showing results after declaration
When an AMS declaration is successful, the letters 1Y and 3Z will show.
Forwarder will declare the AMS of the House bill for each House bill issued to the client, the shipping company will declare the AMS of the Master bill, and the consignee will declare the ISF With the condition that these three matches, the status will update 1Y, 3Z, and this shipment will be permitted for entry into the United States.
If one of the three does not match, the shipment is in trouble and must be declared afresh; otherwise, US customs will hold it.
AMS will be declared 24 hours before ship departure (ETD) Usually, the forwarder will declare 3 days in advance so that if there is any change or error, there is still time to edit In case there is a problem that cannot be corrected in time, the late declaration will be fined $5000/shipment.
FMC is the independent federal agency responsible for regulating the U.S It assures the existence of a competitive, dependable, and global maritime transportation supply system that supports the American economy and protects the general public from unfair and dishonest acts.
Declare 48 hours before the ship departs from Vietnam to the US
Product type (ex: FCL/ LCL)
Location on the east or west coast of the United States (W/E)
Shipping mode (ex: CY/CY, CFS/CFS)
International shipping rates and service charges in that quote
This is a required step before sending products to the United States The declaration must be submitted to US Customs 48 hours before the ship's departure from the port of departure to transfer to the US The ISF declaration is often carried out at the same time as the AMS declaration and costs around $35.
To file the ISF, you need the following information:
Importer of record number / FTZ applicant identification number
Commodity Harmonized Tariff Schedule of the United States (HTSUS) number Plan to line up the train
There are two more compulsory declarations that must be made 24 hours before the ship lands in the United States: