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MINISTRY OF TRANSPORTATION

MINISTRY OF EDUCATION & TRAINING

VIETNAM MARITIME UNIVERSITY

STUDENT NAME: PHAM THI DUNG

DISSERTATION
GLOBAL STUDIES AND MARITIME AFFAIRS

RECOMMENDATIONS TO IMPROVE FREIGHT FORWARDING
PROCEDURE FOR EXPORTING FCL CARGOES IN DONG TAI
GLOBAL LOGISTICS AND TRADING CO., LTD

HAI PHONG – 2015


MINISTRY OF TRANSPORTATION

MINISTRY OF EDUCATION & TRAINING

VIETNAM MARITIME UNIVERSITY

STUDENT NAME: PHAM THI DUNG
CLASS: GMA 02

DISSERTATION
GLOBAL STUDIES AND MARITIME AFFAIRS

increasing in the world. As a result, Vietnam enterprises which have been operating in
this sector have more opportunities to develop and gain benefits. Being aware of this
high demand of market Dong Tai Global Logistics and Trading Co., Ltd was founded
and operated in the field of export and import service. The company would like to take
this opportunity to be seen as one of the most active forwarder in Vietnam. It is
diversified total logistics provider with mainstream activities in forwarding,
international ocean freight, air freight, warehousing & distribution, Logistics and
domestic transportation.
Recognizing the importance of freight forwarders services in trading imported
and exported goods combine with the learned knowledge in the internship time in the
company, I chosen to study the topic “Recommendations to improve freight
forwarding procedure for exporting FCL cargoes in Dong Tai Global Logistics and
Trading Co., Ltd”. From analyzing the strengths and weaknesses of the company,
some recommendations are proposed to improve freight forwarding procedures in the
company. The dissertation is structured as follows:
Chapter I: Literature review
Chapter II: Freight forwarding procedure for exporting FCL cargoes of Dong Tai
Global Logistics and Trading Co., Ltd
Chapter III: Recommendations to improve freight forwarding procedures for
exporting FCL cargoes in Dong Tai Global Logistics and Trading Co., Ltd
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

Pham Thi Dung

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LIST OF ABBREVIATIONS ..................................................................................... v
LIST OF TABLES .................................................................................................... vi
LIST OF FIGURES .................................................................................................. vii
INTRODUCTION ...................................................................................................... 1
1. Necessity .......................................................................................................... 1
2. Methodology ...................................................................................................... 1
3. Research scope ................................................................................................... 1
4. Research findings ............................................................................................... 2
CHAPTER 1: LITERATURE REVIEW .................................................................... 3
1.1 Definitions of freight forwarding services and freight forwarder...................... 3
1.1.1 Freight forwarding services ....................................................................... 3
1.1.2 Freight forwarders ..................................................................................... 3
1.2 The rights and obligations of the forwarder ..................................................... 5
1.3 The relationship of freight forwarder and related parties ................................... 6
1.4 Legal basis....................................................................................................... 7
1.4.1 Nation law ................................................................................................. 7
1.4.2 International law........................................................................................ 7
1.5 Procedure of freight forwarding for exporting FCL cargoes ............................. 8
1.5.1 The role of freight forwarding of cargoes by sea........................................ 8
1.5.2 Definition of FCL ....................................................................................... 8
1.5.3 Process of freight forwarding for exporting FCL cargoes ........................... 8
1.5.4 Documentaries in export ............................................................................. 8
CHAPTER 2: FREIGHT FORWARDING PROCEDURE FOR EXPORTING FCL
CARGOES IN DONG TAI GLOBAL LOGISTICS AND TRADING CO., LTD ..... 11
2.1 Introduction about company .......................................................................... 11
2.1.1

General information .............................................................................. 11

2.1.2 Organization ............................................................................................ 13

ANNEX.................................................................................................................... 35

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Recommendations to improve freight forwarding procedure for exporting FCL
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LIST OF ABBREVIATIONS

B/L

Bill of Lading

C/O

Certificate of Origin

CFS

Container Freight Station

CY

Container Yard



Recommendations to improve freight forwarding procedure for exporting FCL
cargoes in Dong Tai Global Logistics and Trading Co., Ltd

LIST OF TABLES

TABLE 2.1: The classification of employees by education level…………...……….15
TABLE 2.2 Business result in 2012-2014 and estimated in 2015…………………...20

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Recommendations to improve freight forwarding procedure for exporting FCL
cargoes in Dong Tai Global Logistics and Trading Co., Ltd

LIST OF FIGURES

FIGURE 1.1: The relationship between forwarder and related parties…………..……7
FIGURE 2.1: Organizational chart…………..….………...………………………….13
FIGURE 2.2: The classification of employees by gender………………………..…..16
FIGURE 2.3: The procedure of freight forwarding for exporting FCL cargoes……..21

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sported out such as the activities and attitude of staff.

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Participation: in order to understanding the freight forwarding procedure of
exported cargoes, I participated in the daily activities of the company.
Particularly, I had chances to go to shipping lines such as SITC, Nam Sung,
NYK, VICONSHIP; customs departments, for example, border-gate customs
sub-department; ports; depots and related institution as Phytosanytary subdepartment area I.

3. Research scope
Dong Tai Global Logistics and Trading Co., Ltd provides various services of
freight forwarding. However, the main scope of this dissertation is research on the
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Recommendations to improve freight forwarding procedure for exporting FCL
cargoes in Dong Tai Global Logistics and Trading Co., Ltd
freight forwarding procedure for exporting FCL cargoes in Dong Tai Global
Logistics and Trading Co., Ltd.
4. Research findings
The dissertation researches on the freight forwarding procedure for exporting
FCL cargoes at Dong Tai Global Logistics and Trading Co., Ltd. By the evaluation
of this procedure, figure out strengths as well as weaknesses existed in order to give
some recommendations to improve the freight forwarding procedure for exporting
FCL cargoes, contribute to the development of the company.

Freight Forwarding and Logistics services are “commercial activities whereby
traders organize the performance of one or many jobs including reception,
transportation, warehousing, yard storage of cargoes, completion of customs
procedures and other formalities and paperwork, provision of consultancy to
customers, services of packaging, marking, delivery of goods, or other services
related to goods according to agreements with customers in order to enjoy service
charges.”
1.1.2 Freight forwarders
According to FIATA, Freight Forwarder means the person concluding a
contract of Freight Forwarding Services with a Customer. According to Vietnam
Commercial Law (2005), people doing freight forwarding service as traders who
have certified business registration of freight forwarding service.
From the above definitions we can draw comments: The forwarding activities
under the contract signed with shippers entrusted, to protect the interests of
shippers. The delivery care about transport, but not exactly be the carriers. They can
use or hire transport and also have means of transportation, can participate
transportation, but for trustee shippers. Along with the organization of transport,
forwarding people also do many other things in scope mandated by shippers to take
the goods from one place to another under the terms already committed. Although
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Recommendations to improve freight forwarding procedure for exporting FCL
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in different countries, the name of the delivery people may be different, however we
all carry a common name in international transactions as international freight

Advising people to buy insurance or export under the entrusted of the export
insurance
Taking certificates and insurance policies
Doing the work related to transportation of customs procedures, logistics,
loading, finance, cost, and currency exchange
Monitoring the transport process through the relationship with the carrier and
promptly notify damage to the shipper

B, Operating on behalf of the importer - consignee
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Monitoring and supervising the ship schedules and is expected time to entry
ports
Supervising the transport of goods

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Receiving and checking the related documents
Arrange the customs formalities, to pay the fee
Organizations receiving cargoes
Understand custom produces to advise importers

C, Operations as the carrier
The forwarders may operate as a carrier, which means that they are responsible for
receipt, supervision and preservation of goods and responsible for delivering goods
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The forwarders have rights to claime wages and reasonable expenses arise
under the contract for the benefit of customers on prices and payment
methods for the two sides agreed.

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The forwarders have the right to retain or reclaim brokerage commissions.

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The forwarders has the right to hold the shipment and documents related to
the goods to ensure that the customer's debt until paid

 The obligations of the forwarder

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Forwarders will perform the tasks completely and accurately as required on
the agreements with their customers in a reasonable time.

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In case of not implementing follow the request of customers but perform the
tasks in the aim of customer interests, the forwarders do not incur any
liability as well as other costs.



The Customs office for customs declarations
Port Authority for carrying out procedures through the Port

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The central bank for exchange
Ministry of Health for health permits, phytosanitary
Consular officials to obtain a certificate of origin
Import Authority controls

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The transport license
b. The private party
+ The carrier or other agents, such as:

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Ship owner

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People supplying road, rail, air transportation
The inland transportation business in terms of schedule and save shipping
charges.
+ The warehouse to store goods
+ The insurance for goods
+ Organizating packed goods


Ship owner
People supplying road, rail
air transportation
Warehouseman
Organized packing
Bank
People are resposibility for
liability insurance

Figure 1.1: The relationship between forwarder and related parties
(Source: Collected by author)
1.4 Legal basis
1.4.1 Nation law
Forwarding business activities are regulated by some nation laws. The first is
Commercial Law 2005 (from article 233 to article 240) and Degree number 1402007 ND-CP, 09.05.2007. The second one is Common Law: Civil 2005, Investment
Law 2005, Competition Law 2004, Enterprise Law 2005 and other related laws.
There are also specialize laws which define clearly legal basis in each activity.
1.4.2 International law
The system of international law relating to transportation of goods by sea
concluding: Hague Rule 1924, Humburg Rule 1978 and Rotterdam 2010. Another
international regulation is Incoterms 2010 standard interpretation of trade terms of
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Recommendations to improve freight forwarding procedure for exporting FCL
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Exporters should seriously consider having the freight forwarder handle the
formidable number of documentary that export requires; freight forwarders are
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Recommendations to improve freight forwarding procedure for exporting FCL
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specialists in this process. The following documents are commonly used in
exporting; which of them are actually used in each case depends on the
requirements of both our government and the government of the importing country.
* Sale contract: A legal documentary that being signed and agreed officially
between buyer and seller and would become the legal arrangement for both parties
when cargoes are transported.
* Commercial invoice: Commercial invoice is a bill for goods from the buyer
to the seller. A commercial invoice should include basic information about the
transaction, including a description of the goods, the address of the shipper and
seller, and the delivery and payment terms. The buyer needs the invoice to prove
ownership and to arrange payment. Some governments use the commercial invoice
to assess customs duties.
* Bill of lading: A bill of lading is a required document to move a freight
shipment. It works as a receipt of freight services, a contract between a freight
carrier and shipper. The B/L is a legally binding document providing the driver and
the carrier all the details needed to process the freight shipment and invoice it
correctly.
* Certificate of origin: Certain nations require a signed statement as to the
origin of the export item. Such certificates are usually obtained through a

forwarders or customs brokers acting on the firm's behalf, but the exporter is
ultimately responsible for the accuracy of the documentation.
The number of documents the exporter must deal with varies depending on the
destination of the shipment. Because each country has different import regulations,
the exporter must be careful to provide proper documentation.

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Recommendations to improve freight forwarding procedure for exporting FCL
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CHAPTER 2: FREIGHT FORWARDING PROCEDURE FOR
EXPORTING FCL CARGOES IN DONG TAI GLOBAL
LOGISTICS AND TRADING CO., LTD
2.1 Introduction about company
2.1.1

General information

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Name of company: Dong Tai Global Logistics and Trading Co., Ltd
Operational headquarter: 104+200, Nguyen Binh Khiem, Hai An, Hai Phong
Tel: (84) 313 979356/ 357/ 595/ 351 - Fax: (84) 313 979 494


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Recommendations to improve freight forwarding procedure for exporting FCL
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vision correctness, the company has been extended to most of port and depot at Hai
Phong, international gateway of Vietnam, coordinate partners around the world.
From the first operation in 2009 with more than 29 employees, currently, the
company has about over 45 employees. The company expands not only in scale but
also in business operation. Therefore, the annual revenue has been rising. Although
there are many difficulties such as capital and competitors in the market, the
company still tries its best to overcome and supply the best service for customers.
Until now, the company has only operated over 6 years, this enterprise has
successfully demonstrated its business abilities and has met market needs. This
company has step by step to strengthened and reoriented services and business
strategies to suit the situation of country.
 Achievements
Some achievements Dong Tai Global Logistics and Trading Co., Ltd gained:
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Become a member of Vietnam Freight - Forwarders Association (VIFFAS)
Become a member of Vietnam Chamber of Commerce and Industry (VCCI)
Become a member of International Federation of Freight Forwarders
Association (FIATA)

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Completing the supply chain to provide customers the most effective
logistics solutions with competitive quality services on the market

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Meet the increasing needs of the business with reasonable cost

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Development professional staff and skilled qualified for logistics

2.1.2 Organization
Dong Tai Global Logistics and Trading Co., Ltd which has organization by
functions are presented as the figure 2.1 below.

Director

Export
Department

Export
Manager

Import
Department

Accounting
Department

Monitoring the financial position and business results of the company to
give measures to improve the efficiency of business operations of the
company

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Recommendations to improve freight forwarding procedure for exporting FCL
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The department is tasked to monitor, guide and supervise the implementation
of the work schedule, planning for the board of directors. Therefore, direct or will
understand the business situations of the company and create new strategies.
 Accounting department
Accounting Department is responsible for:
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Controlling expenses and operating cash flow of the company
Preparing financial reports for the board of directors and the board of the
company

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Participating in forecasting and budget planning for the company; Paying
salary for employees on each end of month

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Each employee is assigned to implement forwarding contracts (LCL, FCL),
implement customs procedures, goods inspection, delivery goods to customers.
 Logistics department

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Cooperating with other departments to implement the objectives, programs
and plans of the company

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Supporting and monitoring the implementation of professional activities
within the functions of the Logistics department
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Reporting operations results of Logistic department under the provisions and
requirements of the Directors

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The pie chart given shows the total number of employees in the company.
Currently, the total number of managers and staffs are 45 people, with 27 males, 18
females in different positions. As can be seen, male accounts for a larger proportion.
Because of characteristics of the field of logistics and transportation of cargoes, the
company has to use more males to implement packing, monitoring and others.
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Recommendations to improve freight forwarding procedure for exporting FCL
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Moreover, work requirements are physical strength, endurance and change
work shifts. In company, employees work in different positions and have
differences of education level. Table 2.1 below describes number of employee by
education level in the company.
Table 2.1: The classification of employees by education level
Classification

Quantity

Percent

Master of Business Administration

3

6.7

fifth. Employees who have college degrees account for 13.3 percent. Unskilled
worker and Master of Business Administration make up respectively 4.4% and
6.7%.
In 2015, new employees who applied to Dong Tai Global Logistics and
Trading Co., Ltd were recruited, whereas, the percentage of young employees
graduating from University and College, is increasing compare to every year. Most
of them may speak at least one foreign language (English). Staffs have highly
skilled, correspond to each position assigned tasks, adapt to work, to meet the
requirements of customers. Not only managers but also staffs are creativity and
enthusiasm at work that contribute to the success of the company now.In
organizational system, both managers and staffs try their best to complete duties
assigned. Managers with higher professional qualifications have been supporting
and training subordinates, especially new employees.
In recent year, the company has recruited students from university and college
with the aim of finding students to retain for the company to develop human
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