outline exportation from vietnam to los angeles usa

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, under IN

VIETNAM GENERALCONEEDERATION OF LABOUR

TON DUC THANG UNIVERSITY

FACULTY OF BUSINESS ADMINISTRATION

DAI HOC TON BUC THANG

OUTLINE

EXPORTATION FROM VIETNAM TO

LOS ANGELES, USA

Mentor:

Student:

Miss Vuong Thi Tram

I Tran Tuong Minh

2 Luong Tieu Vy

3 Nguyen Yen Vv

4 Ho Trong Nam

3 Huynh Thanh Thao

6 Le Thi Kim Yen

7 Nguyen Ngoc Thao

8 Nguyen Dang Khoa

9 Ngo Thanh Nhu

10 Dam Dinh Hoang

HO CHI MINH CITY, DECEMBER 2022

LIST OF TABLES

720HO545 720H1636 720H1637 720H1563 720H1605 720H0670 720H1606 720H0522 720HI581 720H1539

Table 1: List of achievements of Kuehne+Negal

Table 2: Top 5 main export/import products from/to Vietnam in the first 7 months of

2022 (Source: General Statistics Office)

Table 3: FCL Sea - quotation of Kuehne+Negal in December

Table 4: FCL Air - quotation of Kuehne+Negal in December

Table 5: Sea local charge

Table 6: Air local charge

Logo of Peek Kids

Sailing schedule of HPL

Sailing schedule of ONE

Sailing schedule of CMA

Flight schedule of Korean Airline

Flight schedule of China Airline

Air cargo manifest

Homepage of Air manifest system

Filling information page of Air manifest system Result page of Air manifest system

Table of Contents

CHAPTER I: OVERVIEW OF KUEHNE NAGEL VIETNAM 5

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1 Suggest 00D 15

2 FCL Quotation and shipping schedule - c1 221222112 2221211511125 eryk2 16 2.1 FCL Quotation and sailing schedule of Sea Way 0 ccccccccceccceectseeeteeens 16 2.2 FCL Quotation and flight schedule oÊ Air way 2 c2 nhe 18

3 Local charØe c1 2111211112112 1111111511151 1101 11 5111811101111 nen che 20

4 Documents and ManIIf€Sf - G222 2211253151 1111151111 11112 1111110111011 82118811 rrkg 21

AL Documents ae 21

REFERENCED 42

CHAPTER I: OVERVIEW OF KUEHNE NAGEL VIETNAM

1 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

KUEHNE+NAGEL

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

+ Phone: 028 3828 2200

Email: info.hochiminhcity@kuehne-nagel.com

+ Website: http://kuehne-nagel.com

2 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

2018 Wins in the category Transport & Logistics

at Supply Chain Finance Awards

Table 1: List of achievements of Kuehne+Negal

4 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 1s 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

Mail: customerservice@peekkids.com

Website: https://peekkids.com/

5 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, under INCOTERM 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

CHAPTER I: VIETNAM SITUATION

1 Overview of the infrastructure

1.1 Sea Ports

Vietnam is located nght 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 turing 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

1.2 Airports

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 | 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

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 Imports Import Value (the first 7 months of 2022)

Electronic goods/Computers US$50.1 billion

Machinery Phones US$26.6 billion US$12.0 billion

lable 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

There are currently 4 airlines operating in Vietnam including Vietnam Airlines, Vietjet Air, Jetstar Pacific and Bamboo Airways These airlines operate up to 49 domestic routes to major airports in Hanoi, Da Nang, Nha Trang, Saigon, Da Lat and many international routes to countries in Europe and Asia, Australia, the Americas, and Africa According to Nikkei Asia, in 2022, Vietnam's air freight traffic is expected to reach more than 1.52 million tons, up 17% compared to last year, higher than the average growth rate in Vietnam in the last 30 years (15%/year) This comes amid growing demand for domestic and foreign freight as Vietnam cements its place in global supply chains for everything from electronics to textiles Vietnam currently does not have a cargo airline Many domestic airlines have shown their ambition to dominate the potential market in the hands of these foreign airlines

Vietnam Airlines is the first and only Vietnamese airline licensed to the US by the US Department of Transportation Vietnam Airlines is allowed to transport commercial, passengers and goods or parcels from Vietnam to the US

2 Market in Vietnam

2.1 General actual situation

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 "Zero Covid" policy in early 2022, the continuous increase in infections caused the country to

1mplement many blockade measures, 1ncluding strict 1solation 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

CHAPTER HI: SOLUTION

1 Suggest a solution

As we know, Peek business is placing orders from three factories in Binh Duong Province and moving their shipment from Viet Nam to Los Angeles under FOB term with a total forecast quality is about 4000kgs as well as 18cbm every week in each factory Their commodities are clothes for children and the cargo date will be on Thursday weekly After counting all the quality of goods above from three factories, we choose container 20’DC for this shipment to provide services for Peek business to help Peek utilize the container load ability

Our solution is we will choose LCL/FCL services respectively, particularly consolidation service First, the collection of LCL goods from 3 factories will be packed in one container by a consolidator FCL’s local charge will be charged by the shipping line to the consolidator and such costs are calculated separately by the consignor from the consignor in every three factories Because of using Incoterm FOB, the Local Charges under LCL will be paid by 3 factories in Binh Duong and trucking will be arranged by themselves

The goods will be delivered to CFS And then goods are packed and transferred to CY When delivered to CY — Finished in FCL goods

At this time Peek will just only pay for the FCL price (Ocean Freight) from HCM port

to Los Angeles By this way, our forwarding company can meet the demand for utilizing the cost for Peek business

In some urgent situations, Peek business will use airway instead of seaway to save time So, by this way, the best solution for Peek to utilize the costs when they want to use Airway, we suggest Peek will do consolidation as well like in the seaway We will combine 3 HAWB into | MAWB In addition, transporting by air also has a number of advantages such as:

The biggest advantage of air transport is its high speed The aircraft has the highest speed in the means of transport today The average passenger or cargo plane has an average speed of about 800-1000km/h Very high compared to other

popular modes such as sea ships (12-25 knots/h), trains (only about 60-80km/h in Vietnam), or trucks (60-80km/h Air transport is safer than road, rail and sea Unobstructed by topographical surfaces such as roads or waterways Therefore, it

is possible to connect almost all countries in the world

Fast, on-time service, thanks to very fast flight speeds and the nature of goods that are often high value or perishable

Minimizing loss caused by tampering, breakage, or theft

Lower shipping insurance due to less risk than other methods

Low storage fees due to goods characteristics and quick processing speed

2 FCL Quotation and shipping schedule

2.1 FCL Quotation and sailing schedule of Sea way

2.1.1 Quotation

Unit: USD

ymt | 13! DEC Sun Fri’ | vỤT |LAX/LGB | 1000 | 1450 | 1450 | 20-24 days

HPL DEC Bồi Sun Fri! | vUT |LAX/LGB | 900 |1320 | 1320 | 20-24 days

Table 3: FCL Sea - quotation of Kuehne+ Negal in December

Service Lane Origin Pickup

EÌ 20221244 er * © 2023-0108

Service Lane Origin Pickup DIRECT ps3 © Cut ott œ œ Display Detail ~

33 DAY'S) @ Vessel’ Voyage Cerra

oo _ -3 Destination ONE COMMITMENT 057E @

1 TRANSSHIPMENT(S) ps3 © curott cy cy Display Detail v

Picture 4: Sailing schedule of ONE

EARLIEST ARRIVAL

| oncunpenes won f CMACGM LAPEROUSE "2, Service Columbus JAX I9DAYS Get a quote =

Ì' AuBlaitsfBiorBi ameme f% CMACGM MAGELLAN “), & Service Columbus JAX 19 DAYS est

Picture 5: Sailing schedule of CMA

LAX KE 425 425 425 4.25 NIL NIL

LAX KE via NIL NIL 405 4.05 NIL NIL

HNL LAX PR 5.00 3.60 3.30 3.20 NIL NIL

LAX CI 5.20 5.00 3.85 3.75 NIL NIL

LAX NH 330 3.30 3.30 3.30 0.80 NIL

lable 4: FCL Air - quotation of Kuehne+Negal in December

Air Freight (AF) was calculated by the following formula:

Volume weight (V.W) = length* weight*height/6000=1 8cbm* 166.7= 3000.6KGS Because Gross weight higher than Volume weight (GW>VW, GW= 4000)

So Chargeable Weight (CW)=4000KS

> AF=CW* Rate= 4000kg*Rate

'Tracking

Destination LAX

15 Dec 2022 20-15 LAX

16 Dec 2022 08:30

16 Bee 2022 08.30

16 Dec 2022 08:30 LAx

16 Dec 2022 13:40

Q Products Services Tools English #3o| Vietnam~ e-AWB

Details ¥ Details v

Details ~

Details ¥ Details ¥

Details ~ Details ¥

Details ~ Operations

Picture 6: Flight schedule of Korean Airline

Departure Time: 1SDEC 11:00

Arrival Time: 15DEC 12:25

Transport Time: 16:25:00

Flight Number Board

> C10006 TPE

Departure Time: 15DEC 11:00

Arrival Time: 1SDEC 14:40

T.H.C (Terminal Handling Charge): Costs of handling the container at the port premises

EBS (An emergency bunker surcharge): Is an extra fee the shipping company adds to counter fuel price variations

CFS (Container Freight Station fee):is the expenses collected for import and export activities of goods at CFS warehouses

LSS (Low Sulfur surcharge): The purpose of the LSS fee is to compensate for using low sulfur fuel

CIC (Container Imbalance Charge): A fee that the carrier charges the shipper to cover the expenses associated with moving a significant quantity of empty containers from one location to another

AMS (Automated Manifest System): Developed by U.S Customs to gather shipment details, such as the cargo, the details, the departure and arrival times, and the release information between ship carriers

B/L fee: An expense for issuing a Bill of Lading

The Kuehne Nagel service fee for LCL shipments to the USA is listed below

SD /M

M /M

M

Table 6: Air local charge

4 Documents and Manifest

4.1 Documents

4.1.1 Documents for Sea

When transporting goods from Vietnam to the US, the most basic documents will include:

Invoice

Packing List

Bill of lading

1385 Broadway, Ith floor New York, N.Y 10018

From: HO CHI MINH, VIET NAM

Fe 29.Nov.22

‘ountry of Origin: Viet Nam

LUNT rmx] AMOUNT(USD)

“ E DESCRIPTION | Description (hem

to® suø OF GOODS Coltecton) ss Ramer FOR HO CHI MINE PORT

(usp)

363M 100s | Garmvenestids | Eegww Cabeetdsn LUE FINISH 40 pes 14019 6,007.60

TOTAL 40 pcs 140.19 6.007 60

Picture 8: Invoice

NuNa Trading and Service Production Co., Ltd

247/25/4 Ha Huy Giap, Thanh Loc Wand, District 12, Ho Chỉ Minh City

TEL: (028) 3620 9415 FAX: (028) 3620 9420

PACKING LIST

NO: MHP2 Date = 17-0622 CUSTOMER: Peck Kids

ADDRESS 1385 Broadway, Ith Moor New York, N.Y 10018

From HO CHI MINH, VIET NAM TO: LOS ANGELES, USA End; 22-Oct-22

Eta: 29-Nov-22 Country of Origin: Viet Nam

im QUANTITY = 3 CUBE Description WEIGHT] WEIGHT

PO NO|SKU # (hem Color/Finish

Category/ltem type] Collseuon)

Qry | Uni] CIN] KGS KGS M3

63M | 91005 Garmews kets Biogen Collection | BLUE FOSSH # | px | 40 | s00 | s0 Bas

TOTAL 40 ps | 40 4000.00 4088.00 13.14

Picture 9: Packing list