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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

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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Pham Thi Dung - GMA02

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
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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 ABBREVIATIONS

B/L

Bill of Lading

C/O

Certificate of Origin

CFS

Container Freight Station

CY

Container Yard

FCL

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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Recommendations to improve freight forwarding procedure for exporting FCL

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.

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Pham Thi Dung - GMA02

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
cargoes in Dong Tai Global Logistics and Trading Co., Ltd
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
forwarder, and do a similar service, which is service delivery.
 The scope of main activities of freight forwarders
A. Operating on behalf of the exporter - the shipper
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insurance

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Taking certificates and insurance policies

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Doing the work related to transportation of customs procedures, logistics,
loading, finance, cost, and currency exchange

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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

ii.

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Monitoring and supervising the ship schedules and is expected time to entry
ports

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Supervising the transport of goods

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Paying attention to ensure of the transport of goods from a place to another
place, mainly as: caring for the transport of oversize and overweight, the
transportation of live animals and ensure the safety of epidemic prevention

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Organizing transport of dangerous goods in accordance with the international
conventions on transport of dangerous goods

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Apart from the services mentioned above, the delivers can take on other
services that may arise during transport and import and export activities such
as inform their customers about consumer demand, competitive situation, the
situation changes in the policies of the Government on goods imported and
exported.

1.2 The rights and obligations of the forwarder

 The rights of the forwarder
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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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Forwarders are not responsible for acts and shortcomings of third parties,
such as the carrier, warehousing, port authorities, unless the freight
forwarders are not really carefully in selecting, guiding or monitoring of the
third party.

1.3 The relationship of freight forwarder and related parties
As mentioned above, the freight forwarder is a receiver shippers mandate to
care of the transportation of goods from one place to another place. However, the
process of transporting cargoes is controlled many authorities through several
stages. Therefore, the freight forwarder undertakes the tasks related to multiple
parties.
Forwarders not only work with the shipper and the consignee but also
transactions with third parties in the service process our customers.
a. The Government and the other department parties
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The Customs office for customs declarations

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Port Authority for carrying out procedures through the Port

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The central bank for exchange

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The inland transportation business in terms of schedule and save shipping
charges.
+ The warehouse to store goods
+ The insurance for goods
+ Organizating packed goods
+ Commercial banks to carry out documentary credit

The diagram below shows the relationship of the forwarding and related
parties.
The government and competent authorities

Port authority

Customs authority
Export-import control,
Exchange control,
Transportation, licesing

Consignor/consignee

Cargo insurance
people

Forwarder

Legal proceedings

The carrier and other agents
Ship owner
People supplying road, rail

nation may build its own law to adjust duties and responsibilities of the parties.
However, in case of having a conflict, international law would be applied to resolve
disputes.
1.5 Procedure of freight forwarding for exporting FCL cargoes
1.5.1 The role of freight forwarding of cargoes by sea
Sea transport is essential to the world’s economy as over 90% of the world’s
trade is carried by sea and it is, by far, the most cost-effective way to move a large
quantity of goods and raw materials around the world. Sea transportation plays an
important role in transaction of cargoes. Without shipping the export of goods on
the scale necessary for the modern world would not be possible. Seaborne trade
continues to expand, bringing benefits for consumers across the world through
competitive freight costs. Thanks to the growing efficiency of shipping as a mode of
transport and increased economic liberalization, the prospects for the industry's
further growth continue to be strong.
1.5.2 Definition of FCL
FCL stands for Full container load. FCL term is used in ocean freight services
describing full container shipping from one place to another place. Shipments
whose volume and weight are close the limits of a container or for which the
shipper requests that it be the only cargo in a container.
1.5.3 Process of freight forwarding for exporting FCL cargoes
Shipper or person who is entrusted by shipper send Booking request to
shipping line. Shipping line sends back shipper a booking confirmation. Shipper
bring the booking confirmation to shipping line to receive seal and take empty
containers out of container depot and deliver to their place for cargo packing.
Shipper invites representative of customs, check and monitors the process of
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* Inspection certification: Some purchasers and countries may require a
certificate of inspection attesting to the specifications of the goods shipped, usually
performed by a third party. Inspection certificates are often obtained from
independent testing organizations.
* Insurance certificate: If the seller provides insurance, the insurance
certificate states the type and amount of coverage. This instrument is negotiable
between the seller and the buyers.
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Recommendations to improve freight forwarding procedure for exporting FCL
cargoes in Dong Tai Global Logistics and Trading Co., Ltd
* Packing list: Considerably more detailed and informative than a standard
domestic packing list, an packing list itemizes the material in each individual
package and indicates the type of package: box, crate, drum, carton, and so on. It
shows the individual net, legal, tare, and gross weights and measurements for each
package. Package markings should be shown along with the shipper's and buyer's
references.
Documentation must be precise. Slight discrepancies or omissions may
prevent merchandise from being exported, result in exporting firms not getting paid,
or even result in the seizure of the exporter's goods by local or foreign government
customs. Collection documents are subject to precise time limits and may not be
honored by a bank if out of date. The documentation is routine for freight
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


Tel: (84) 313 979356/ 357/ 595/ 351 - Fax: (84) 313 979 494

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Director: Mr. Do Viet Thanh

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Tax ID: 0200438841

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Logo:

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Slogan: “One call, all services”

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Main activities: supplying air freight, sea freight, warehousing, inland
trucking, project cargoes, customs clearance, supervisor, packing/
lasing/loading service

 History and development
Dong Tai Global Logistics and Trading Co., Ltd is known as a member of
Dongsue Logistics Korea. The company is officially founded on December 21,
2009 has been operated in accordance with current regulations of the Government.
The director is Mr. Do Viet Thanh.


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Become a member of Vietnam Chamber of Commerce and Industry (VCCI)

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Become a member of International Federation of Freight Forwarders
Association (FIATA)

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Become a member of International Chamber of Commerce

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Become a member of Vietnam Logistics Association (VLA)

 Vision and orientation
Dong Tai Global Logistics and Trading Co., Ltd has oriented to provide the
comprehensive solutions about the logistics field during business processes of
customers. Besides that, the company can increase the competitiveness to ensuring
operational, saving cost and improving the quality of services.

ii.

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Become a diversified company in the logistics field, warehousing and
transportation meet all the needs of customers in a more professional manner

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
Departmen
t
Export
Manager

Import
Department

Accounting
Department

Import
Manager

Chief
Accountant

Sale
Departmen
t


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

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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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Implementing the decisions, policies, financial - accounting - tax - audit in
the company

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Resolving inquiries, customer complaints related to billing

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Recommendations to improve freight forwarding procedure for exporting FCL
cargoes in Dong Tai Global Logistics and Trading Co., Ltd
- 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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Report of sales, schedules and delivery schedules

 Sales department
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Implementing the business of import and export, transportation under the
current regulations of the government

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Negotiating commercial contracts

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company has to use more males to implement packing, monitoring and others.
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

University

34

75.6

College

6

13.3



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