Recommendations to improve the freight forwarding services for FLC cargoes duyen hai road transport co ,LTD

So I would like to choose the topic :” Recommendations to improve the freight forwarding services for FCL cargoes at DuyenHai Multimodal Transport JSC” Research structures 1.Introductio

Acknowledgement

Firstly I would like to express my sincere gratitude to my advisor Prof Tran Hai Viet for the continuous support of my dissertation study and related research , for his patience , motivation , and immense knowledge His guidance helped me in all the time of research and writing of this thesis I could not have imagined having a better advisor and mentor for my study …

Table of Content

Preface 1

Acknowledgement 2

Table of Content 3

List of figure 5

List of table 5

Introduction 6

Chap I: Literature Review 7

1.1 The concept of delivery service and freight forwarder 7

1.1.1 Freight forwarder service 7

1.1.2 Freight forwarder 7

1.2 Forwarding activities are part of Logistics operations 8

1.3 Business conditions Logistics Service 11

1.4 The service scope of forwarders 11

1.4.1 Representation for exporters 11

1.4.2 Representation of the Importer 12

1.4.3 Other services 12

1.5 Powers and duties of forwarders 12

1.6 The liability of the forwarders 13

1.6.1 When forwarders are the agent of goods owner 13

1.6.2 When forwarders are carriers 13

1.7 The relationship of the forwarders with stakeholders 14

Chap II : The current status of the freight forwarding process of FCL cargoes at Duyen Hai Road Transport Co.,Ltd 16

2.1 Introdcution of the company 16

2.1.1 General information 16

2.1.2 Personnel 16

2.1.3 The process of formation and development 17

2.1.4 Functions 18

a Functions of TASA DuyenHai 18

2.1.5 The company's organizational structure 20

2.2 The process of import and export FCL goods 24

2.2.1 The process of import FCL goods 24

2.2.2 The process of export FCL goods 31

2.3 Related Documents 36

Chap III : Recommendations to improve the freight forwarding services for FCL cargoes at company 39

3.1 Assessments about service 39

3.1.1 Strengths 39

3.1.2 Weakness 40

3.2 Recommendation 40

3.2.1 Minimize the costs 40

3.2.2 Training and skill improvement for employees 41

3.2.3 Improving the quality of customer service 41

CONCLUSION 43

List of figure

Figure 1: Organizational structure………21 Figure 2: The overall process of import FCL goods……….24 Figure 3: The steps to prepare documents required to import shipment 25 Figure 4: The steps to take Delivery Order from shipping line………….26 Figure 5: The steps to make customs clearance for shipment………28 Figure 6: The steps to receive shipment at port and transport to importer.30 Figure 7: The overall process of export FCL goods………31 Figure 8:The steps to take D/O and rent empty container……… 32 Figure 9: The steps to make customs clearance for shipment……… 33

List of table

Table 1 :Education levels of staff………23

Introduction The important of the topic

Freight forwarding services is so important now in VietNam when in the context of globalization in all part of the world , economic integration between countries with each other is increasing strongly So I would like to choose the topic :” Recommendations to improve the freight forwarding services for FCL cargoes at DuyenHai Multimodal Transport JSC”

Research structures

1.Introduction

2.Chapter I : Literature review

3.Chapter II : The current status of the freight forwarding process of FCL cargoes at DuyenHai Multimodal Transport JSC

4.Chapter III : Recommendations to improve the freight forwarding

services for FCL cargoes at company

5.Conclusions

Research Object

This research is not only about learning in TASA DuyenHai but also

clarifying the cargo forwarding activities In the last part is the recommendation

to solve will be proposed

Chap I: Literature Review 1.1 The concept of delivery service and freight forwarder

1.1.1Freight forwarder service

Freight forwarder are operations in the circulation and distribution , an important factor linking production with consumption ,two major aspects of the process of social reproduction

Freight forwarder perform functions bring products from the place of production to point of consumption, complete the second side of the circulation and distribution of the material distribution, when the first is commercial procedures have formed

Delivery and receipt linked and parallel with the process of transportation Through the delivery of the transport operation was conducted: collecting goods, transportation, handling, storage, transport, packaging, procedures, vouchers

So there are many definitions of forwarders

According to the form rules of the Federation of International Forwarders Association (FIATA) about the delivery service, "delivery service is defined as any kind of services related to transportation, collecting goods, warehousing , loading, packing or distribution of goods as well as consulting services related to the above services, including customs issues, finance, insurance, billing, collecting vouchers related merchandise "

So basically, freight forwarding is a combination of tasks related to the process of transport to make the movement of goods from the shipper

(consignor) to your destination (consignee)

1.1.2 Freight forwarder

People usually understand person who business delivery service or forwarders businesses are forwarders According FIATA, "freight forwarder is person who handle to goods transported under trust contracts and act for the benefit of the settlor The forwarders also undertake all the work related to

forwarders contracts as storage, intermediate storage, customs procedures, cargo check "

The forwarders may be the goods owner (when goods owner themselves undertakes work theirs freight forwarding), shipowner (as shipowners on behalf

of goods owner perform forwarding services), the loading and unloading company or warehouse, professional freight forwarder or any other person who has business delivery services registered Freight forwarder with professional qualifications such as:

- Combine multiple modes of transportation together

- Knowing fully utilized capacity, payload of transport tools thanks to the service of delivery

- Knowing combination of transport - forwarders - export and good contacts with organizations involved in the process of transporting goods such as customs, shipping agents, insurance, ports

- The forwarders also facilitate for import and export business activities efficiently thanks to their delivery service Thus, importers can use the warehouse of the forwarders, thereby reducing the cost of storage Besides, it reduces the cost such as administrative, simple organizational structure , conditional to focuses on import and export business

Although in different countries, the name of the freight forwarder may be different, but all have a common name in international transactions as

"international freight forwarder" , and do a similar service, which is delivery service

Currently, Vietnam forwarders undertake other tasks related to packaging, cargo distribution, multi-modal transport Consistent international general trend

of calling them is the logistics service providers so Vietnam has issued 2005 Trade Law which stipulates the responsibilities of the parties in the logistics services activities

1.2 Forwarding activities are part of Logistics operations

The term logistics longstanding worldwide, firstly in the military sector, it covers the problems of movements of military pay, force layout, design and layout of warehouses, control of weapons, Star most appropriate for the situation to target enemy victory In the manufacturing business, Logistics refers

to minimizing costs, from the procurement of raw materials to the elaboration and implementation of production planning and delivery The objective of logistics in manufacturing business is minimizing the costs incurred, while still achieving the business goals outlined In Vietnam, economic development more slowly than other countries, especially compared to European and American countries So the concept of Logistics is quite new and we have just implemented the part of the Logistics

According to Trade Act 2005, Article 233 stipulates: "The logistics are commercial activities whereby traders organize one or more work including reception, transportation, storage, warehousing, customs procedures and other paperwork, customer consulting, packaging, marking, delivery or other services related to the goods as agreed with the customer for remuneration "

To be more specific, the Government issued Decree No 140/2007 / ND-CP dated 05/09/2007 providing details about sorting logistics services Accordingly, the logistics services under the provisions of Article 233 of the Commercial Law are classified as follows:

- The main logistics services, including:

+ Loading and unloading services, including container loading and

of container

- Logistics services relating to transportation, including:

+ Maritime transport services

+ Inland waterways transport services

+ Air transport services

+ Rail transport services

+ Road transport services

+ Pipeline transport services

- The other related logistics services, including:

+ Inspection and technical analysis services

+ Postal Services

+ Wholesale trade services

+ Retail trade services, including operational management of storage,

collection, aggregation, classification of goods, distribution and delivery

+The other support transport services

Currently, along with the development of production and circulation and the movement of goods is becoming more rich and more complex This sets new requirements for forwarding service Now, the person who business forwarding service joined with manufacturers and trade intermediaries undertake such

additional phases: collecting goods and loading, assembly, packaging,

warehousing service provider goods, cargo storage, information processing Thus, freight forwarding activities have gradually become operational

organization to manage the entire physical distribution chain and is part of the chain "supply - demand" The freight forwarders become providers of logistics services

So, we can say that delivery service is a part of logistics services and

1.3 Business conditions Logistics Service

As noted above, delivery service is a part of logistics services and logistics services is the high development and perfection of forwarding service, so Vietnam has issued the Commercial Law 2005 and Decree 140/2007 / ND-CP which specifies trading conditions Specifically for traders with logistics services mainly as follows:

- As enterprises have registered legitimate business under Vietnam law

- There are adequate facilities, equipment, tools ensuring safety standards, technical and staff to meet the requirements

- Foreign traders trading logistics services in addition to meeting the conditions specified in paragraph 2 shall also comply with the following specific conditions: Business case cargo-handling services, only established a joint venture company in which the capital contribution ratio of the foreign investor does not exceed 50%

1.4 The service scope of forwarders

1.4.1 Representation for exporters

The forwarders with the specific agreement will help their customers (exporters) all of the following:

-Transport route selection

-Order / rental locations to packing as required by the carrier

-Delivery of goods and grant relevant documents

-Look at the conditions of the letter of credit (L / C) and other documents of government legislation related to water transport of exporters goods, importing countries, including the countries transport (transit) line goods, as well as prepare the necessary documents

-Packing of goods

-Advice to exporters on the importance of cargo insurance

-Preparing goods warehouse storage, weighing the goods

-Transport of goods at the port, perform the procedure on fees in customs supervision area, port authorities, and deliver the goods to the carrier

-Get B / L from the carrier, then delivered to the exporters

-Subscribe to the transport of goods to the port of destination by contacting the carrier or its agent overseas forwarders

-Notes for loss, damage to goods

-Help the exporters in the complaint for damages, loss or damage of goods

1.4.2 Representation of the Importer

-Subscribe to the transport of goods in cases where the importer is responsible for shipping costs

-Receive and examine all documents relating to the transport of goods -Receiving goods from the carrier

-Preparation of documents and pay the fee for customs supervision, as well

as other related fees

-Preparing transport warehouse

-Deliver the goods to the importer

-Help importer in the complaint for damages or loss of goods

1.4.3 Other services

In addition to the above services, the forwarders also provide other services

as requested by the customer as consolidation service, advising customers on new markets, competitive situation, the export strategy, the consistent delivery conditions

1.5 Powers and duties of forwarders

-Be entitled to remuneration and other reasonable income

-Fully implement their obligations under the contract

- The process of implementation of the contract, if there is good reason for the benefit of the customer, can be done with client's instructions but must immediately inform the client

-After signing the contract, if the circumstances occur that can lead to failure to perform the whole or part of the customer's instructions, they must immediately inform customers know to ask for further instructions

-In case the contract is not agreed on a specific period fulfill the obligations

to customers, forwarders must perform their duties in a reasonable period

1.6 The liability of the forwarders

1.6.1 When forwarders are the agent of goods owner

Depending on the function of the forwarders, the forwarders should fully implement their obligations under the contract signed and shall be responsible for:

-Delivery but wrong instruction

-Shortcomings in the purchase insurance for the goods despite instructions -Shortcomings in the customs procedures

-Transporting commodities to the wrong place

-Delivery for non-recipients

-Delivery without the collecting money from the consignee

-Re-export not follow the necessary procedures or non-refundable tax

1.6.2 When forwarders are carriers

As a carrier, freight forwarder acts as an independent contractor, responsible for providing the services that customers demand He shall be responsible for the acts and faults of the carrier, the freight forwarder that he hired others to perform transportation contracts as if the acts and omissions of his

The forwarders acts as the carrier not only in case he himself transported commodities by means of its own transport (perfoming Carrier)but also in his case, by issuing their transport documents or another ,commit responsibility of the carrier.When the forwarders provide services relating to transport, packaging, storage, or distribution declared classified, the forwarders will be responsible

as the carrier if the forwarders perform services and people by means of his or forwarders person has committed explicitly or implied is their responsibility as a carrier

When acting as the carrier, the business conditions are often not applied standards which apply international conventions or the rules by the International Chamber of Commerce issued.However, the forwarders is not responsible for any loss or damage of goods arising from the following circumstances:

-Due to the fault of the customer

-Customers packed and marked mismatch

-Because of the nature of goods

-Due to war, strikes

-Due to force majeure circumstances

Also freight forwarder not responsible for loss of profits as customers are entitled, for delays or forwarders to the wrong address and not his fault

1.7 The relationship of the forwarders with stakeholders

Freight forwarder is a recipient of goods owner mandate to take care of the transportation of goods from one place to another, but in the process of cargo going through a lot of stages, subject to inspection and control by lots authorities Therefore, the forwarders must also undertake work related to a lot of parties First is the relationship with the customer, be it the consignor or consignee

of many different economic sectors, bringing many different nationalities This relationship is controlled by a trust contract forwarders Relations with the Government and the authorities representing the government such as the Ministry

of Trade, Customs, Inspection, Agency for foreign exchange management, quarantine, health,

The relationship with the carrier and the carrier's agent: there may be shipowners, brokers, or any other transportation business, the relationship is governed by a contract to provide services

Additionally, the forwarders also has business relationships with banks, insurers

Chap II : The current status of the freight forwarding process

of FCL cargoes at DuyenHaiRoad Transport Co.,Ltd

2.1 Introdcution of the company

Abbreviation: TASA DUYENHAI

Stock code: TCO

Headquarters: 189 Dinh Vu route, HaiAn District, HaiPhong

Chairman: Mr Bui Chi Hung

Member of the Board: Mr Le Thai Cuong

Member of the Board: Ms Hoang Thi Ngoc Lan

Member of the Board: Ms Dao Kim Phuong

Member of the Board: Mr Hoang Anh Dung

Member of the Board: Mr Le Hoai Nam

Directorate: consist of 3 member: General Manager and 2 Deputy General Managers

General Manager: Mr Hoang Anh Dung

Deputy General Manager of Storage Division: Mr Le Thai Cuong - manage and control business activities at the storage

Deputy General Manager of Finance-Interior division: Ms Hoang Thi Ngoc Lan - manage and control activities of finance and interior

Chief Accountant: Ms Nguyen Thu Thuy

2.1.3 The process of formation and development

- In 1997: Establishment of Coastal Transport Co., Ltd operates in the field

of transportation and warehousing

- In 2003: The Ministry of Finance decided to recognize social venues in

Thuy Van, Vietnamese prime city, PhuTho province of Coastal Transport Ltd - HaiPhong is a customs procedure outside the gate, subject to the control, inspection, supervision and management of the Customs Department in Hanoi Was GDC recognition decisions warehouse in Dong Hai, Hai district, HaiPhong

is located adjacent to kilometer 200 Highway 5 of Coastal Transport Co., Ltd is

an export commodity inspection outside the gate

- In 2004: General Department of Customs decided to recognize additional checkpoints for goods exported outside the gate of Coastal Transport Co., Ltd is

a checkpoint imported goods outside gate

In 2007: The Ministry of Finance decision making in social recognition sites Thuy Van, Vietnam Tri City, PhuTho province of Coastal Transport Ltd - Location HaiPhong customs procedures at inland ports PhuTho province

- In 2008: Establish an additional member companies in Hanoi Transport Company Limited Multimodal Coast Hanoi with initial charter capital is 500,000,000 Currently the company's charter capital is 2.52 billion

- On 09/2011: Be GDC decision Establishing checkpoints and commodity focused collection retail locations domestically (CFS) by Minh Thanh Container Co., Ltd is owner in MLS 189 Dinh Vu, Hai 2 East Ward, HaiAn district, HaiPhong area of 21.000m2

- On 01/2011: completed the acquisition of ownership of Container Minh Thanh Company Limited with 75.83% ownership percentage Established more affiliates Fashion Company Limited Coastal Cosmetics with a charter capital of VND 999 million and increased capital to 128.7 billion dong

- In 2012: On 08 May 02, 2012: Stock Exchange of Ho Chi Minh City listing decision to share Transport Corporation multimodal Coastal listed on the

Ho Chi Minh City Stock Exchange

- On 27 May 02 2012: Shares Corporation multi-modal transportation Coast official trading on the Ho Chi Minh City Stock Exchange with stock code TCO

- In 2013: To the Board of Management of HaiPhong Economic Zone Investment Certificate for the Project "Warehousing and Logistics Services" in

MP Dinh Vu industrial zone, HaiAn district, HaiPhong Land area use is expected to 20,000 square meters with a total investment estimated at 62 billion dong

- In 2014: Department of Natural Resources and Environment of HaiPhong city certificate of land use rights with an area of 23,500 square meters at 189 route Dinh Vu, Hai 2 East Ward, Hai An district, Hai Chamber, the land lease term is 50 years for manufacturing Co., Ltd and Coastal trade

2.1.4 Functions

a Functions of TASA DuyenHai

- Road transportation, such as: cargo transportation by truck, container

- Warehousing and storage facilities

- Repairing machinery and equipment, such as: repair and maintenance service of machinery and equipment (not including maritime vessels, aircraft or vehicles and other transport equipment)

- Other support services related to transportation, such as: Clearance Services; Multimodal transport (excluding air transport business and general aviation business); Logistics services; Shipping agency services

- Trading in real estate (including office rental, factory)

- Coastal and Ocean transportation

- Freight railroad

- Rental of machinery, equipment and other tangible items, rental of machinery, equipment and cargo handling, container

- Rental of motor vehicles

b Introduction about DuyenHai Road Transport Co., LTD (TASA TRANSPORT)

Address: No 189 route Dinh Vu, HaiAn District, HaiPhong City

c Major business activities of TASA TRANSPORT

- Transport of goods by road (cars, containers);

- Warehousing and storage of goods;

-Loading and unloading of goods;

- Wholesale of automobiles and other motor vehicles;

- Repair of machinery and equipment;

- Maintenance and repair of automobiles and other motor vehicles;

- Rental of motor vehicles;

- Rental of machinery, equipment and cargo handling, container leasing

2.1.5 The company's organizational structure

Logistics Service Center Central Office

Warehouse Management

Centre

Fowarder

MinhThanh Management Centre

PhuTho Management Centre

TASACO Management Centre

Logistics PhuTho Logistics HaNoi

Logistics HaiPhong Security Team

TASAFACO

TAS TASA TRANSPORT

A HaNoi

TASA PhuTho

TASA MinhThanh

Forwarder

nhThanh

TASA TRADING

TASACO DuyenHai Board of Director

TASA TRANSPORT

General Meeting of Shareholders

Figure 1: Organizational structure

a General Meeting of Shareholders is the highest authority of the Company,

has the right to decide all activities of the company and can elect and dismiss the

Board of Management and the Supervisory Board

b Board of Management is the highest governing organization of the

Company is responsible for:

- Report to the General Meeting of Shareholders about business situation, profits, dividends, financial settlement reports, method development and production business operations plan of the Company

- Decide organizational structure, operational regulations of the Company

- Appoint, dismiss and supervise the activities of the Board of Directors

- Propose amendments and supplements to the Charter of the Company

- Decided to convene the General Meeting of Shareholders

- Company Board of Management currently has 05 members, including the Chairman, and four members

General Director has responsible for all business operations of the

Company prior law

Deputy Director – Management of Warehouse

Assisting the General Director in the direction and implementation of production plans, warehouse operators and decide other issues related to production and business activities of company warehouse Perform signing of economic contracts warehouse