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MINISTRY OF TRANSPORTATION

MINISTRY OF EDUCATION & TRAINING

VIETNAM MARITIME UNIVERSITY

STUDENT NAME:NGUYEN CONG TUAN MINH

DISSERTATION
GLOBAL STUDIES AND MARITIME AFFAIRS

RECOMMENDATIONS TO IMPROVE THE FREIGHT
FORWARDING SERVICES FOR LCL CARGOES AT DONG TAI
LOGISTICS AND TRADING CO., LTD

HAI PHONG – 2015


MINISTRY OF TRANSPORTATION

MINISTRY OF EDUCATION & TRAINING

VIETNAM MARITIME UNIVERSITY

STUDENT NAME:NGUYEN CONG TUAN MINH
CLASS:

GMA02


experience the real working environment, creating confidence in the job search, as
well as future work, to help the students think critically and practically when
participate in the labor market. Besides, during the internship, the students will
probably have more relationships, there is a chance which can help you accumulate
more experience in the learning and it also helps a lot for your future work. Be
exposed to a professional working environment, the students will have the opportunity
to experience or to train skills, disciplines and attitude which is the basic background
when you go to work in the future.
Foreseeing the importance of training and high-quality workforce recruitment,
many companies have taken an advantage of cooperation with universities, organized
internship that helpgivingopportunities for students to get familiar to the real working
environment. Vietnam Maritime University has already applied this model every year.
Thanks to the help from the International School of Education, GMA students are
introduced to have internship in companies specializing in maritime, logistics and
warehousing. Therefore they can have the opportunity to apply the knowledge learned
in the university to the real work. This year I was introduced to Dong Tai logistics and
trading co.,ltd- a company specializing in the field of logistics. In this paper, I will
present somerecommendations to improve LCL cargoesfreight forwarding service at
Dong Tai global logistics and trading co., ltd.
I declare that this report is my own 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

Nguyen Cong Tuan Minh

Nguyen Cong Tuan Minh - GMA02

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Research object........................................................................................................... 2
Research scope ........................................................................................................... 2
Research method ........................................................................................................ 2
CHAPTER 1: LITERATURE REVIEW ................................................................ 3
1.1 Overview about freight forwarding services and freight forwarder........................ 3
1.1.1 Freight forwarding services ................................................................................ 3
1.1.2 Freight forwarder ............................................................................................... 3
1.1.3 The important of freight forwarders ................................................................... 4
1.1.4 Forwarder responsibilities and rights.................................................................. 5
1.1.5 Forwarder liability ............................................................................................. 6
1.2Freight forwarding process for LCL cargoes .......................................................... 7
1.2.1What is LCL cargoes? ......................................................................................... 7
1.2.2Consolidator ....................................................................................................... 8
1.2.3Necessary papers in freightforwarding for LCL cargoes ..................................... 8
1.2.4General process of freight forwarding services for LCL cargoes ......................... 9
1.3 Legal basis framework ........................................................................................ 11
1.4 Factors affecting freight forwarding services for LCL cargoes ............................ 12

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Recommendations to improve freight forwarding services for LCL cargoes at Dong Tai global
logistics and trading co., ltd

CHAPTER 2EVALUATIONS FOR FREIGHT FORWARDING SERVICES
FOR LCL CARGOES AT DONG TAI GLOBAL LOGISTICS AND TRADING
CO., LTD ................................................................................................................ 14
2.1 Introduction about Dong Tai global logistics and trading co., ltd ........................ 14

logistics and trading co., ltd

LIST OF ABBREVIATIONS
CFS

Container Freight Station

ICD

Inland Clearance Depot

LCL

Less than container loaded

FCL

Full container loaded

B/L

Bill of lading

D/O

Delivery order

VCCI Vietnam Chamber of Commerce and Industry of Vietnam
FIATA
Federation Internationale des Associations de Transitaires et Assimiles

FIGURE 4: Revenue and profit of Dong Tai global logistics and trading co., ltd from
2011 to 2015 ............................................................................................................. 24
FIGURE 5: Freight forwarding process for import LCL cargoes at Dong Tai global
logistics and trading co., ltd ...................................................................................... 26
FIGURE 6: Freight forwarding process for export LCL cargoes at Dong Tai global
logistics and trading co., ltd ...................................................................................... 30

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Recommendations to improve freight forwarding services for LCL cargoes at Dong Tai global
logistics and trading co., ltd

INTRODUCTION
The importance of research
In the process of global integration as well as trade liberations with foreign
countries in all around the world, Ocean Shipping industry has developed not only in
scale but also in quality. Therefore, freight forwarding industry has contributed a
vital role to theincrease in foreign trade by taking advantage of the efficiency
ofmode of transport. It creates essential conditions to make surethat import and
export goods may arrive their destinations on time and helps to deliver goods
appropriately from sellers to buyers. Although this industry is just founded
anddeveloping in Vietnam in a short period of time, it has gradually contributed to
the improvement of national wealthy by supporting import/export promotion and
giving assist to Vietnam’s shipping industry. Realizing the high demand of the
market, Dong Tai global logistics and trading Co., Ltd was founded and operated in
the field ofglobal logistics and transportation services.
Although Dong Tai global logistics and trading limited company offers

to analyze the strengths and weak points, the challenges and limitations of the
company with LCL cargoes freight forwarding services, and in the last part
suggestions and recommendations to solve will be proposed.
Research Scope
Research Subject: the ocean freight forwarding services for importing and
exporting LCL cargoes at Dong Tai global logistics and trading co., ltd
Research Scope: The ocean freight forwarding services for LCL cargoes at
Dong Tai global logistics and trading co., ltd from 2011 to 2014
Research Method
Analysis: The research’s data is collected by several ways.
 Interviewforwarder staffs of the company
 Compare statistics from the company’s annual results reports
 Observedaily works or some practical cases
By these ways, comments and evaluations about the freight forwarding services
for LCL cargoes of the company can be proposed

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Recommendations to improve freight forwarding services for LCL cargoes at Dong Tai global
logistics and trading co., ltd

CHAPTER 1: LITERATUAL REVIEW
1.1 Overview about freight forwarding services and freight forwarder
1.1.1 Freight forwarding services
According to the rules of the FIATA form of freight forwarding service, Freight
Forwarding Services means services of any kind relating to the carriage,
consolidation, storage, handling, packing or distribution of the cargoes as well as

Recommendations to improve freight forwarding services for LCL cargoes at Dong Tai global
logistics and trading co., ltd

And according to FIATA, "forwarder is the person who endeavored to goods
transported under trust contract and act for the benefit of the settler. The forwarder
also responsible for all the services related to forwarder contracts as storage,
warehousing, customs procedures, cargo check”.
Freight forwarding services are dedicated to making the shipping process a lot
easier and quicker for your company. A professional freight forwarder will act as an
intermediary between your company and the transport companies, handling
everything that is related to the shipping process.
The forwarder in some cases can be the shipper (when shippers conduct all
thefreight forwardingwork themselves) or ship owner (ship owners on behalf of
shippers perform freight forwarding services) or any other person have business
related to freight forwarding services.
Some services that forwarder staff often conduct
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Preparetransportation for the shipments

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Organize cargo transportation within the port

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Organize cargo handling

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Recommendations to improve freight forwarding services for LCL cargoes at Dong Tai global
logistics and trading co., ltd

A freight forwarder will usually be an agent more often than an active carrier. By
this way, a forwarder staff can be considered as third party logistics provider who
works to forward shipments. Freight forwarding positions participate in booking
and preparing space in warehouses, vehicles for shipments such as vessels, trucks...
and this shows the vital role of a forwarder in the relationshipwith their customers.
Nowadays, forwarders play an important role in commercial as well as
transportations. Freight forwarders not only conduct the customs clearance
procedures or contact with the shipping company, but also implement all services of
transportation.
1.1.4 Forwarder responsibilities and rights
The forwarders have toobey these following responsibilities and rights:
- Forwarders have the rights to get paycheck and other income.
Remuneration agreed by the parties and specified in the contract. Remuneration
levels can be determined by the absolute amount or proportion on commodity
prices. Remuneration levels agreed by the parties and depends on the content, the
complexity of the job freight forwarding customers entrust people do freight
forwarding services performed.
Beside remuneration, the logistics services customers can request payment of
reasonable expenses related to the performance of the service if this is agreed by the
parties in the contract.
- Fulfill all obligations under the contract; perform exactly everything in the
contract agreements
This is the most basic obligations of logistics services. The service implementation
must perform the work related to packaged goods, letters and symbols, delivery or
receipt of goods in accordance with the conditions agreed with customers. The
conditions may be recognized in signed contract between the customer service or
customer specific guidelines on the basis of the general provisions of the contract.

as, but not limited to, Carriers, warehousemen, stevedores, port authorities and other
freight forwarders, unless he has failed to exercise due diligence in selecting,
instructing or supervising such third parties.
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The Freight Forwarder’s liability as Carrier

The Freight Forwarder is subject to liability as principal not only when he
actually performs the carriage himself by his own means of transport (performing
Carrier), but also if, by issuing his own transport document or otherwise, he has
made an express or implied undertaking to assume Carrier liability (contracting
Carrier).
However, the Freight Forwarder shall not be deemed liable as Carrier if the
Customer has received a transport document issued by a person other than the
Freight Forwarder and does not within a reasonable time maintain that the Freight
Forwarder is nevertheless liable as Carrier.
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Recommendations to improve freight forwarding services for LCL cargoes at Dong Tai global
logistics and trading co., ltd

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The Freight Forwarder’s liability as principal for other services

With respect to services other than carriage of Goods such as, but not limited to,
storage, handling, packing, or distribution of the Goods, as well as ancillary services

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Recommendations to improve freight forwarding services for LCL cargoes at Dong Tai global
logistics and trading co., ltd

1.2.2 Consolidator
Consolidator means a firm or people which groups all the cargoes from
different shipperstogether into one shipment. When the shipment is fit for a
container, it will be arranged, packaged and loaded in to the container.
Consolidator’s job is to find customerswho want to export their LCL cargoes. At
destination port, the consolidator representatives will unload container, break bulk
the shipment intodifferent shipments of different shippers and send them to the
consignee correctly.
In fact, the destination of all LCL shipments in the container are not the
same. Many times, they are just the container transportationin the same route, then
theywill reloaded before moving on. The reloading process usually happen at hub
ports such as Singapore, Hong Kong… At these ports, LCL cargoeswill be sorted
and sent to their final destination
1.2.3 Necessary papers inforwarding LCL cargoes
 Bill of lading
A document issued by a carrier, or its agent, or forwarders, to the shipper as a
contract of carriage of goods. It is also a receipt for cargo accepted for
transportation, and must be presented for taking delivery at the destination.
A bill of lading contains a lot of information such as: consignor's and
consignee's name, names of the ports of departure and destination, name of the
vessel, dates of departure and arrival, itemized list of goods being transported with
number of packages and kind of packaging, marks and numbers on the packages,

goods, their weight, and collection charges (if any).
 Cargo manifest
A shipping document used by customs officer reviewing a particular transport
vehicle's intended trip that summarizes all bills of lading that have been issued by
the carrier or its representative for that particular shipment. For example, a cargo
manifest might be used for shipments made by sea, air or land, and will generally
show the shipment's cosigner and consignee, as well as listing product details such
as number, value, origin and destination.
 Packing list
Itemized list of articles usually included in each shipping package, giving the
quantity, description, and weight of the contents. Prepared by the shipper and sent
to the consignee for accurate tallying of the delivered goods. Also called bill of
parcels, packing slip, or unpacking note.
1.2.4 General process of freight forwarding services for LCL cargoes in theory
 Import cargoes

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Recommendations to improve freight forwarding services for LCL cargoes at Dong Tai global
logistics and trading co., ltd

Receive import- related
documents

Take D/O

Customs declaration

Export cargoes

Prepare documents

Customs declaration

Receive shipment

Load the shipments into
container

Deliver the shipment
onboard

Figure 2: Forwarding process for export LCL cargoes on theory

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First of all, documentary staffs will prepare documents related to the
shipments such as weight, amount, and name of the shipments…
From those documents, documentary staffs of the company will conduct
customs clearance procedures for the shipment.
After finished customs procedures, forwarder staffs will receive the
shipments from the customers and start loading them into the container
Then forwarder staff will ask port employees to load the container on board
after they are filled up.
1.3 Legal basis framework

Nguyen Cong Tuan Minh - GMA02


activities also have some influence from it. If weather conditions are good, then the
procedures will take place smoothly, minimizing risk and costs incurred in the
process of making goods and shipping goods.
However, if the weather conditions are adverse, it will delay transportation,
loading time and the quality of goods, especially for agricultural commodities,
powder, cargoes covered by carton box or package of dangerous goods such as
chemicals, paint… That would cause damage, reduce quality of cargoes and cause
the unnecessary costs.
 Freight rates
Facing an increasing competitive environment nowadays, freight rates are
considered as one of the most important competitive advantages of Logistics
Companies (the forwarding companies). In order to achieve the lowest freight rates,
the company must have a good relationship with the shipping companies to obtain
lower rates and also negotiate to increase the refund for each package or shipment.
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Recommendations to improve freight forwarding services for LCL cargoes at Dong Tai global
logistics and trading co., ltd

Since then, the contractor can take this to cover freight and charges collected from
the shipper.
 Agent system
Agent system is the key to create competitive position among companies.
The company that connect, collaborate with agents is stronger and widespread. It
can transport goods to remote geographical areas which are far from ports with
competitive rates.
 Human Resources

2.1.1 History and background
Dong Tai Global Logistics and Trading Co., LTD also referred as the Global Dong
Tai established on December 21, 2009 with
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Business Registration is No. 0201019508 in the Department of Planning and

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Investment of Hai Phong city,
The tax code is 0201019508

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Chartered capital of VND is 1.5 billion initially
General Director isMr. Do Viet Thanh

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Logo of company

Before 2009, the precursor Dong Tai Global was a representative office of
Dongsuero in Haiphong, at the same time set up offices in the city. Ho Chi Minh
City.
In 2009, Dong Tai Global company officially established, and became an
agent of Dongsuero.
In 2009, at established date, the head office of Dong Tai Global was at rooms
202-204, TASACO Building, Km104 + 200 Nguyen BinhKhiem Street, Hai An
District, Hai Phong City.


Dong Tai Logistics is the most preferred forwarder in Vietnam, with head
office located in Haiphong and branches in Hanoi, Ho Chi Minh. Dong Tai Global
has acquired an excellent reputation within the freight forwarding and warehousing
industry for the delivery of quality professional services.
Majority of Dong Tai Logistics success is a result of constant assessment and
response to customer needs. Our clients range in size from small, to national and
high profession multinational companies and we are confident of the future and
committed to provide the best value for money and quality service available to
them.
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Recommendations to improve freight forwarding services for LCL cargoes at Dong Tai global
logistics and trading co., ltd

2.1.2 Partners
Dong Tai Global Company formerly was a representative office of Dongsue
Shipping Co., LTD.
Dongsue Shipping Co., ltd ( DONGSUE ) was reorganized in the year of
1987 for the purpose to produce more advanced services of high quality as a
modernized transportation industry in Korea, taking it on the back the good
reputation the 'old DONGSUE' enjoyed in the beginning of liner market.
The main business areas of Dongsue Shipping Co., Ltd:
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International Freight Forwarders

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