Recommendations to improve the freight forwarding services for FCL
cargoes at DuyenHai Road Transport Co., Ltd
Preface
I declare that this report is my own unaided work. It has not been
submitted before.
If violated, I am solely responsible for and bear the punishments of the Institution
and University.
Student Name and Signature
NguyễnNgọcQuangAnh
NguyễnNgọcQuangAnh
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Recommendations to improve the freight forwarding services for FCL
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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 …
NguyễnNgọcQuangAnh
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
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Recommendations to improve the freight forwarding services for FCL
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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
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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
Research scope
Research subject :Recommendations to improve the freight forwarding
services for FCL cargoes at company
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
unloading operations
+ Services of warehousing and storage of goods, including warehouse
operations and materials handling equipment warehouse
+ Transport agency services, including the activities of customs procedures
and planning cargo handling
+ Other supplementary services, including the activities of receiving,
storing and managing information related to transportation and storage of goods
throughout the logistics chain; reprocess goods customer returns , inventory,
goods overdue, outmoded and redistribute such goods; leasing and hire purchase
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
logistics services is high growth, finishing the forwarding service.
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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
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.
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-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.
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, ...
NguyễnNgọcQuangAnh
Abbreviation: TASA DUYENHAI
Stock code: TCO
Headquarters: 189 Dinh Vu route, HaiAn District, HaiPhong.
Phone / Fax: + 84-31-3978895
Email:
Website: www.tasaduyenhai.com
Charter capital: 140.300.000.000 VND
Bank: Joint Stock Commercial Bank for Investment and Development of
Vietnam (BIDV bank)
Account Number: VND 32310000006968
2.1.2 Personnel
Board of Directors
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. Vu ThiPhu
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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
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
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-Loading and unloading of goods;
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- 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
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General Meeting of
Shareholders
Board of Management
Supervisory Board
Board of Director
TASACO
Management
Centre
Logistics PhuTho
MinhThanh
Management
Centre
Fowarder
TASA TRADING
TASA
MinhThanh
Forwarder
TASA
PhuTho
nhThanh
TASTASA
TRANSPORT
ATASA
HaNoi
TRANSPORT
TASAFACO
two Deputy Directors.
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.
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Deputy General Manager - Financial Management
Responsible for the management and run tasks related to the financial sector
of the parent company and its subsidiaries. Manage, supervise and examine the
financial situation of the company members. Responsible directly to the General
Director and Board of Management regarding the financial data and controlling
the costs related to the financial sector of the company.
e. Accounting Department
Tracking the operational aspects of business and manage books honestly
and fully on the use of assets, capital and materials in the production process.
Financial reporting about the implementation of business plans of the Company.
f. Education levels of staff
Department
4
2
0
Export and Import Department
20
11
8
1
Custom procedures
Department
5
2
2
1
Source: Business Department
Table 1 :Education levels of staff
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2.2.1.2: Prepare documents required to import shipment
Prepare documents
required
Forwarder will check
the legitimacy
Register the electric
customs declaration
Waiting for ramification
Figure 3: The steps to prepare documents required to import shipment
TASA DuyenHai Company will request consignee necessary documents
to carry out procedure to import the shipment:
- Electric customs declaration
- Original Bill of Lading (B/L)
- Sale Contract
- Commercial Invoice
- Packing list
- Other related document