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MINISTRY OF TRANSPORTATION

MINISTRY OF EDUCATION & TRAINING

VIETNAM MARITIME UNIVERSITY

STUDENT NAME: NGUYEN LE HOANG

DISSERTATION
GLOBAL STUDIES AND MARITIME AFFAIRS

RECOMMENDATIONS TO IMPROVE THE FREIGHT
FORWARDING SERVICES FOR LCL CARGOES AT DUYEN
HAI ROAD TRANSPORT CO., LTD

HAI PHONG – 2015


MINISTRY OF TRANSPORTATION

MINISTRY OF EDUCATION & TRAINING

VIETNAM MARITIME UNIVERSITY

STUDENT NAME: NGUYEN LE HOANG
CLASS: GMA 02

DISSERTATION
GLOBAL STUDIES AND MARITIME AFFAIRS

operations to create a competitive advantage for them. Foreseeing the importance of
training and high-quality workforce recruitment in the foreign trade sector, many
companies have taken the initiative to contact cooperation with universities, help
creating conditions for students practice and working in the real environment
combined with the knowledge about foreign trade techniques they were taught at
school.
Vietnam Maritime University is one of these universities which already applied this
model successfully. Thanks to the help from the International School of Education
(ISE), ISE students has been given chances to practice in import and export business,
logistics and transportation companies to be able to apply the knowledge learned into
real business. During the practice times, I had a chance to practice at Duyen Hai Road
Transport Co., LTD (TASA TRANSPORT), one Member Company of DUYEN HAI
MULTIMODAL TRANSPORT JSC (TASA DUYEN HAI). Duyen Hai Road
Transport Co., LTD is a company which specialized in road transportation, freight
forwarding process, import and export through Haiphong port and the other ports in
surrounding area. In this time, I was allow to know not only about freight forwarding
services, how does it operate but also know many things in real life that I never know
before. Now, I would like to present my dissertation about recommendations to
improve the LCL freight forwarding services at Duyen Hai Road Transport Co., LTD.
I also want to give my thanks to the general director and all the staff of Duyen Hai
Road Transport Co., LTD who allowed me to practice at the company
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
Nguyen Le Hoang

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List of table ............................................................................................................... vi
INTRODUCTION ................................................................................................... 1
1. The importance of the topic .................................................................................... 1
2. Research structure................................................................................................... 1
3. Research Object ...................................................................................................... 1
4. Research Scope ....................................................................................................... 1
5. Research Method .................................................................................................... 2
CHAPTER 1: LITERATURE REVIEW ................................................................ 3
1.1 Definition of freight forwarding services ............................................................. 3
1.2 Freight forwarder .................................................................................................. 3
1.3 Forwarder responsibility and rights ....................................................................... 4
1.4 Forwarder liability ................................................................................................ 5
1.5 LCL freight forwarding process ............................................................................ 6
1.5.1 The definition of LCL cargo .............................................................................. 6
1.5.2 Consolidator ...................................................................................................... 6
1.5.3 General LCL forwarding process ....................................................................... 6
1.6 Legal basis framework ........................................................................................ 11
CHAPTER 2: THE SITUATION OF LCL FREIGHT FORWARDING
SERVICES AT DUYEN HAI ROAD TRANSPORT CO., LTD.......................... 12
2.1 Introduction about company ............................................................................... 12
2.1.1 Introduction about Duyen Hai Multimodal Transport JSC (TASA Duyen Hai) 12
2.1.2 History ............................................................................................................. 13
2.1.3 Functions ......................................................................................................... 13
2.1.4 Organization .................................................................................................... 14
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Less than container load

CFS

Container Freight Station

D/O

Delivery Order

B/L

Bill of Lading

C/O

Certificate of origin

EIR

Equipment Interchange Receipt

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RECOMMENDATIONS TO IMPROVE THE FREIGHT FORWARDING SERVICES FOR LCL

trading, increase the efficiency of foreign trading.
Understand the importance of freight forwarding services; I would like to choose
the topic: “Recommendations to improve LCL freight forwarding services at Duyen
Hai Road Transport Co., ltd” to write in this dissertation.
Research Structures
1. Introduction
2. Chapter 1: Methodology
3. Chapter 2: The situation of LCL forwarding services at Duyen Hai Road
Transport Co., LTD
4. Chapter 3: Evaluation and recommendations
5. Conclusions
Research Object
Besides learning about Duyen Hai Road Transport Co., ltd, the research object of
this dissertation is to clarify the cargo forwarding activities, the reality or current
status of LCL cargoes activities at Duyen Hai Road Transport Co., ltd. From these
activities to point out the advantages and disadvantages, the difficulties, strength
and limitations of the company with LCL cargoes activities, and in the last part
solutions and recommendations to solve will be proposed.
Research Scope-subject
Research Subject: the freight forwarding services for importing and exporting
LCL cargoes at Duyen Hai Road Transport Co., ltd
Research Scope: The reality and current status of operative LCL cargoes
activities at Duyen Hai Road Transport Co., ltd
Research Method
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procedures, internal documents... With such a wide function, so there are plenty
definition of forwarding services
According to the rules form of the FIATA about the freight forwarding service,
"Freight forwarding service is defined as any kind of services related to
transportation, consolidation, warehousing , loading, packing or distribution of
goods as well as consulting services related to the above services, including customs
issues, finance, insurance, billing, collecting documents related”.
In another ways, freight forwarding services can be understood as the sequence of
activities to transport the good from the consignor to the consignee safely with
responsibilities and obligations of freight forwarders. This workflow has been
implemented through many stakeholders such as customs, port authorities, shipping
line
Freight forwarding services was first mentioned in Vietnam Commercial Law 1997.
In the article 163 of Vietnam Commercial Law 1997, freight forwarding services is
defines as a commercial activity. Which the forwarders receive cargoes, organize
the types of transportations, warehousing, finish all the documents and related
services, packaging, loading and unloading… from the consignors to the
consignees.
-Freight forwarding services activities is done based on three main elements:
cargoes, facilities and human resources
-In addition to the procedures work as brokers, save freight, forwarders also carry
other services, such as consolidation, split line, loading and unloading…
-Freight forwarding services is seasonal activities so that they depend on domestic
export and import
1.2 Forwarders
People who conduct the freight forwarding services called as the forwarders or
freight forwarders, forwarding agents. According 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”.

Custom clearance services
Paying the costs (Insurance, THC, inventory cost…)
Consolidating, packing
Checking the document related to cargo transportation

1.3 Forwarder responsibilities and rights
No matter which positions of a forwarder (forwarding agent or under entrustment
contract), the forwarder must obey these responsibilities and rights:
- Forwarders have the rights to get wages and other reasonable 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 your obligations under the contract; perform exactly everything in the
contract agreements

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RECOMMENDATIONS TO IMPROVE THE FREIGHT FORWARDING SERVICES FOR LCL
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declaration must be responsible before the customs authorities regarding
compliance with customs regulations on the right to declare the quantities and
values commodity name to avoid losses to the government. If you violate these
rules may consignor will be fined but the fine was not reclaim from the customer.
Liability for third parties
Forwarders vulnerable third-party companies such as loading and unloading, port
authorities.... As the related goods during transportation, complain about:
+ Loss of material assets of third parties and the consequences of such loss.
+ The third party injury or illness and the consequences of that.
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RECOMMENDATIONS TO IMPROVE THE FREIGHT FORWARDING SERVICES FOR LCL
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When the forwarder is related by entrustment contracts
The forwarders often act as entrustment contracts when collecting the LCL cargoes.
Besides the same liability like the forwarding agent, the forwarders must response
for the loss of people's assets and the third party that the forwarder caused.
1.5 LCL freight forwarding process
1.5.1 The definition of LCL cargo
LCL means Less Container Load
If a shipper does not have enough cargoes to accommodate in a fully loaded
container, they can arrange with a consolidator to book his cargo. This type of
shipment is called LCL shipment. The said consolidator arranges a full container
(FCL) with a main shipping carrier, and consoles the shipments of other shippers.


Letter of credit
Insurance of cargoes
Cargo list
Shipping order
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Consolidation

After providing these documents, the forwarder will collect all the cargoes and
begin consolidating. Times and place arranged in the contracts. The consignors or
forwarders will transport the cargoes to the CFS or ICD pointed.
Shippers or the Consignor shall contact shipping firms by mail or phone (depending
on shipping firms) to request for the shell.
After finishing contact, shippers go to the shipping firms with a referral from the
company, and then shipping firms will provide the EIR (equipment interchange
report).
Choose the sell. The decision often made by the shipping firm’s appoint, if there is
no appoint, the forwarder must choose the container which suitable for goods about
the temperature, humidity…
Let the driver of the company go to the container yard and take it back for
packaging goods.
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Customs procedures

The consignors invite the custom officer to check the consolidation process. Then,
the cargo will be lead seal. Prepare clearance document and send to the custom
authorities.
The forwarder sends those documents to the custom authorities for allowance.

o Deliver the shipment of containers to the importer warehouse and return the
empty container. Then the buyer go to CFS to take the cargoes
•Receive and check the documents for importers
The company will receive the original documents from the bank (before the
ship arrives) include:
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Commercial invoice
Bill of lading (B/L)
Packing list
Certificate of origin

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Certificate of weight and quality v
Phytosanitary certificate
Certificate of fumigation for wood product

After receive the documents, the staff of the company will check the
information about the date, seal, serial number… to see they are suitable or not.
•Exchange B/L and take D/O at the shipping agents
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RECOMMENDATIONS TO IMPROVE THE FREIGHT FORWARDING SERVICES FOR LCL
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the container, the forwarding staffs have to bring the letter of recommendation,
D/O, provide the tax code and pay in advantage the deposit of borrowing container
(it is from 2 million to 4 million VND per 20feet container). After paying, the staffs
will receive the borrowing container note that proves he has paid the deposit of
borrowing container.
•Finish the custom procedures for the goods

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RECOMMENDATIONS TO IMPROVE THE FREIGHT FORWARDING SERVICES FOR LCL
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In order to make customs clearance for shipments, the forwarding staffs have
to conduct the electronic customs declaration by software named ECUS K4. The
company fills all the information, all the section in the declaration. After completing
the declarations, the company transmits them to the regional customs branch and
waits for the response from Customs. When you receive a response from Customs,
depending on the result of line selectivity, the company will continue the next steps.
•Transport good from warehouse or port
After completing the above steps, the forwarder goes to the warehouse or
port to change the order. In order to finish, they must bring:
+ D/O of the shipping line: 1 original
+ The borrowing container note if the shipments are FCL (Full container
load)
The forwarding staffs submit the documents to the staffs in the port office

shipping line. After that he can receive the deposit which he had paid to borrow the
container.
1.6 Legal basis framework
The forwarding services (include both export and import) must be based on legal
basis, such as the international legal (The convention on bill of lading, freight, the
convention of the international trading contracts…), Vietnamese Law of trading,
forwarding… in order to ensure the rights of all exporters and importers.
International Laws
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Conventions Vienna (1980) about international trading

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Conventions Brussels unified the type Bill of Lading

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Conventions of United Nations about sea transportation (1978)

National Laws

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Maritime Law 1990

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- Charter capital: 140.300.000.000 VND
-Bank: Joint Stock Commercial Bank for Investment and Development of Vietnam
(BIDV bank)
- Account Number: VND 3231000000696
-Logo

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2.1.2 History
In 1995, Transport enterprise was founded - one of the top enterprises officially
operating since 1995. This is the precursor of the Company
In 1997, Duyen Hai Transport Co., LTD - TASACO (Member companies at
present) was founded, specializing in transport and storage
In 1999, company was authorized to establish customs clearance location on 10
Sep., 1999. Its functions are about managing Customs declaration for all
commodities exported and imported via Haiphong area.
In 2007, company deployed the project of ICD establishment at Thuy Van Industrial
Zone, Phu Tho. Thuy Van ICD was recognized as the location of Customs
Clearance for Inland port
In march 2008, 4 company members include Duyen Hai Transportation Ltd, Duyen
Hai Highway Transport Co., LTD, Duyen Hai Production & Trading Co., LTD,
Duyen Hai Phu Tho Transport Co., LTD were consolidated into Duyen Hai

- 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
-Sales of real estate, land use rights of the owner, the owner or lessee uses
(including office rental, factory)
2.1.4 Organization
The highest position in the company is for the annual general meeting of
shareholders:. It is an annual meeting of shareholders to provide shareholder
information about activities and issues related to the decisions and the work of
company. The General Meeting of Shareholders in higher positions than Board of
Management because they appoint the director of the Board of Directors.
Board of Directors: Decision strategies and medium-term development plans and
annual business plans of the company Appointment, dismissal, demotion, contract,
terminate the contract for the director or general director and other key management
company Charter provisions. Decision structure and rules of internal management
companies, decided to establish a subsidiary, branch or representative office and the
capital contribution, purchase of shares of another enterprise. The chairman of the
Board of Directors is Mr.Le The Cuong
2.1.5 Member Companies
Since the foundation, Duyen Hai multimodal transport JSC has developed and
expanded quickly. Till now the company has 7 member companies and 1 fowarder

Tel: 031.3614017

Fax: 031.3979158

Email: [email protected]
Manager: Mr. Le Khanh Toan
Chief accountant: Bui Thi Thi (Ms)
4, Duyen Hai Phu Tho Transport Co., LTD (TASA PHUTHO)
Add: Thuy Van Industrial Zone - Viet Tri - Phu Thọ
Tel: 0210.395232

Fax: 0210.3857344

Email: [email protected]
Manager: Bui Thi Phuong Lan (Ms)
5, Duyen Hai Hanoi Multimodal Transport Co., LTD (TASA HANOI)
Add: Room 212 N3A, Le Van Luong St., Trung Hoa Urban zone- Nhan Chinh,
Thanh Xuan Dist., Ha Noi
Tel: 043.556.1814

Fax: 043.556

Email: [email protected]
Director: Ms. Nguyen Minh An
6, Duyen Hai Fashion - Cosmetics Company Limited (TASA FACO)
Add: No. 189 Dinh Vu road, Dong Hai 2 ward, Hai An district, Hai Phong
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Member of the Board: Ms. Hoang Thi Ngoc Lan
Member of the Board: Ms. Vu Thi Phu
Member of the Board: Ms. Dao Kim Phuong
Member of the Board: Mr. Hoang Anh Dung
Member of the Board: Mr. Dang Tiep
Member of the Board: Ms. Nguyen Thi Hong Mai
Directorate: consist of member: General Manager and Deputy General Managers
General Manager: Mr. Le Quang Huy
Deputy General Manager of Finance-Interior division: Ms. Hoang Thi Ngoc Lan manages and control activities of finance and interior
Chief Accountant: Ms. Nguyen Thu Thuy

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RECOMMENDATIONS TO IMPROVE THE FREIGHT FORWARDING SERVICES FOR LCL
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2.1.7 Introduction about the Duyen Hai Road Transport Co., ltd.
In nearly two months, I was allowed to practice Duyen Hai Road Transport Co.,
LTD (TASA TRANSPORT), a member company of Duyen Hai Multimodal
Transport JSC. The company is located at 189 Dinh Vu route, Hai An District, Hai
Phong city.
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