lOMoARcPSD|11572185 BỘ GIÁO DỤC VÀ ĐÀO TẠO TR¯ỜNG ĐẠI HỌC HOA SEN KHOA LOGISTICS & TMQT o0o – MƠN HỌC LOGISTICS BÁO CÁO NHĨM GIỮA KỲ ĐỀ TÀI: TRANSPORTATION Gi¿ng viên : Ngun Ph°¡ng Liên Nhóm sinh viên thực hián : Nhóm Trần Thị Lệ Hằng - 2193349 Nguyễn Thanh Trường - 2198697 Ph¿m Thái BÁo Ngân - 2193478 Dương Hồng Ân - 2193734 Trần Thị Lan Mi - 2196968 TP Hồ Chí Minh, tháng 03 năm 2022 lOMoARcPSD|11572185 NHẬN XÉT CỦA GI¾NG VIÊN TP Hồ Chí Minh, Ngày … tháng… năm 2021 Người nh¿n xét lOMoARcPSD|11572185 STT HỌ VÀ TÊN Trần Thị Lệ Hằng Nguyễn Thanh Trường CÔNG VIàC IV IV & Word ĐÁNH GIÁ 100% 100% I Ph¿m Thái BÁo Ngân II 100% III Dương Hồng Ân V 100% Trần Thị Lan Mi VI & Powerpoint 100% lOMoARcPSD|11572185 NH¾N XÉT CỦA GIÀNG VIÊN INTRODUCE I Definition II Role of transportation for your selected firm III Model of Sea transportation that serve my firm The concept of sea transport General genes about sea transportation Special features of sea transportation The effect of sea transport on international trade Technical facilities of sea transport The development of seaports helps the logistics industry reduce costs, increase competitiveness and improve service quality IV Identify the regulation and law that your firm have to focus on making decision to install, invest and operate the new transportation means: including bill of lading, necessary document for global shipping 10 Sales contract : 11 Commercial Invoice : 12 Packing List : 13 Bill of lading : 15 Certificate of Origin (C/O) : 16 V Which strategy does your firm develop to handle the transportation for minimizing transportation cost and why It may include: Features of the mode of sea transport; Factors affect sea transportation: material, technique Method of chartering a ship to transport goods 18 lOMoARcPSD|11572185 INTRODUCE Transport is the lifeblood of the economy, development of transportation will promote other economic sectors to develop accordingly In the current era of globalization, transportation plays a very important role, especially sea transportation Transport links economies, shortens the geographical distance, in order to reduce costs, reduce product costs, promote trade development, benefit both producers and consumers In international trade, sea transportation plays a particularly important role, about 80% of import and export goods are transported by sea Wide micro-transportation, large carrying capacity and low transportation cost Therefore, the shipping industry becomes a very potential service business Vietnam has great advantages for developing sea transport such as geographical location with a long coastline and many large and small seaports In recent years, Vietnam's shipping industry has been constantly developing and reaching out, making significant contributions to the development of the country's economy Besides, Vietnam's shipping industry still has many problems that need to be solved For the shipping industry to develop smoothly, these are difficult problems for managers In recent years, especially since Vietnam implemented the open-door policy, Vietnam's shipping industry has been developing rapidly, the Vietnamese shipping market is gradually expanding at the general pace of the trend regional and global trade Vietnam's innovation, opening-door policy and integration with the international community have created conditions for the volume of Vietnam's import and export goods to increase at a rapid rate Regional globalization has become one of the major development trends of modern international relations This trend will continue to grow strongly in the future Countries, especially developing countries, are increasingly applying the open-door policy and liberalizing trade, investment and finance In that context, any country must make efforts to integrate into the common trend, adjust policies, gradually reduce tariff barriers and remove non-tariff barriers, making the exchange of goods and capital flows easier , labor, technology and techniques on a worldwide scale are increasingly open Vietnam cannot help but follow this trend In such conditions, the degree of internationalization of manufacturing and service industries is increasing, the competition between enterprises and countries in the economic field is lOMoARcPSD|11572185 becoming more and more fierce The country's opening to integrate with the region and the world along with a developed economy, increased import and export has created conditions for a series of large international shipping lines present in the Vietnamese market to compete with each other Vietnam's maritime industry is still weak Meanwhile, we have not had a comprehensive research project on the competitiveness of Vietnam's maritime industry in order to come up with possible solutions to meet the country's economic conditions ensure the competitiveness of Vietnam's maritime industry in new conditions lOMoARcPSD|11572185 I Definition Transport is an economic activity with a human purpose to change the position of goods and people themselves from one place to another by means of transport II Role of transportation for your selected firm • Transport plays a particularly important role in Logistics activities and this role will increase more and more, because transportation costs account for an increasing proportion of total logistics costs Therefore, transportation will have a direct impact on the business performance and competitiveness of the organization in the market • Transportation is so important, so managers are not only interested in their organization's transportation costs, but also in competitors' transportation costs, because this cost affects to the competitiveness of the two organizations • The following example will make it clear: Thailand and Vietnam both export rice For some types of rice, the quality and price of rice in the two countries are almost the same But Thailand has more favorable shipping conditions than Vietnam (conditions on ships, ports, location ) leading to lower shipping costs from Thailand than Vietnam III Model of Sea transportation that serve my firm The concept of sea transport Sea transportation is a transportation activity related to the use of marine transport infrastructure and means, that is, the use of land and water areas associated with sea routes connecting countries, territories, or areas within a country, and the use of ships, loading and unloading equipment, etc to serve the movement of passengers and goods on sea routes Sea transport was born quite early compared to other modes of transport For a long time, people have known to take advantage of the sea as a traffic route to exchange and trade between regions, territories and countries Up to now, sea transportation has become a modern transportation industry in the international transportation system Sea freight can serve to transport all types of goods in international trade Most of the shipping routes on lOMoARcPSD|11572185 the sea are natural traffic routes The carrying capacity of sea freight is very large In general, the carrying capacity of ocean freight vehicles (fleet) is not as limited as those of other modes of transport The role of shipping in international trade General genes about sea transportation Special features of sea transportation • Sea shipping can serve all kinds of goods in international trade • The shipping routes at sea are mostly natural traffic routes • The capacity of shipping specialists is very large In general, the main tool of sea transport (ships) is not limited like the tools of other modal transport tools • The highlight of ocean freight is the lower value However, sea transport has some weaknesses: • Ocean shipping depends a lot on natural conditions • Low speed of the sea sea and low speed up the speed of the sea ship is limited • From the specific economic and technical points mentioned above on sea transportation, we can draw general conclusions about the scope of application as follows: - Sea freight cooperation with specialized in-house international sales - Shipping in accordance with the sea for owners of large volumes, specialized owners over long distances but not ask for fast delivery time The effect of sea transport on international trade • Sea transportation is an integral element of international trade • Sea transport promotes the development of international trade • The development of sea transport contributes to changing the structure of goods and the structure of markets in international trade • Sea freight affects the balance of international payments Technical facilities of sea transport • Sea routes lOMoARcPSD|11572185 Routes connecting two or more ports together on which ships carry passengers or goods • Seaports It is a place of entry and exit of ships, a place to serve ships and goods on board, and an important traffic hub of a country with a sea •Transportation Means of sea transport are mainly seagoing ships, there are two types of seagoing ships: merchant ships and military ships Merchant ships are ships that are used for economic purposes in navigation Cargo ships are a type of merchant ship that makes up the highest percentage of the merchant fleet The development of seaports helps the logistics industry reduce costs, increase competitiveness and improve service quality • For the "Door to door" package logistics service, it requires the service provider (Logistics Service Provider) to organize the receipt of goods at the seller's premises and to collect the retail goods into many shipping units at the warehouses Before they are sent to the destination on different means of transport At the destination, the logistics service provider will not only perform the delivery and transportation stages, but also have to work such as: warehousing, packaging, labels, hire means of transport, customs procedures on behalf of the goods owner • Therefore, with a good seaport, it will help reduce costs for the whole process of organizing and implementing logistics services For example, if the seaport is built in a convenient location that can directly connect with sea, river, air transport, etc., it will help reduce transportation costs because it can be well combined with transportation multimodal loading The port's modern specialized equipment will help shorten the time of unloading, which means reducing storage and warehousing costs The ship owner will reduce the cost of mooring and handling goods • An online electronic data interchange (EDI) system will help reduce the cost of paperwork, helping logistics service providers to control and manage information anytime, lOMoARcPSD|11572185 anywhere Particularly with an open port, it will help reduce the costs of customs procedures, import and export taxes • All of the above factors will help the logistics service industry reduce costs, increase competitiveness and improve service quality IV Identify the regulation and law that your firm have to focus on making decision to install, invest and operate the new transportation means: including bill of lading, necessary document for global shipping Helps for the government's accession to EVFTA, Vinh Hiep company has more opportunities to develop overseas investment The factory is built on an area of 07ha, the project's operation period is 50 years from the date of receipt of the land lease decision; objectives of the project of coffee processing (green coffee products, instant coffee) and pepper processing (pepper products); project scale: + Production of green coffee: 70,000 tons/year; + Production of instant coffee - roasting: 2,000 tons/year; + Processing pepper seeds: 5,000 tons/year The total investment of the project is 210 billion VND (equivalent to 9.1 million USD), the project was implemented immediately after the decision was awarded and put into use after 12 months of construction and installation The project commits to use new technology and is not on the list of technologies restricted from transfer in accordance with the law on technology transfer However, to meet the requirements of this market, the development of farming processes and standards; Focusing on product quality, traceability, geographical indications, etc., is the goal that most of Gia Lai's coffee businesses aim to meet the standards of importers Due to the covid epidemic situation, the empty container has increased in price However, with the main export volume of coffee to the European market, Vinh Hiep Company always has to reserve empty containers in advance This leads to the need for lOMoARcPSD|11572185 additional investment in this new means of transport To give good effect and best shipping time Regulations and laws that Vinh Hiep company must pay attention Sales contract : A commercial contract is a written agreement (contract) between a buyer and a seller in two different countries on the purchase and sale of goods (foreign trade) The selling party is called an exporter and sells goods to the other party to collect money for the goods The buyer is called the importer, transfers money to the exporter and receives the goods In a commercial contract includes: • Commodity: description of the goods • Quality: product quality • Quantity: Quantity, weight of goods • Price: unit price, with commercial terms (eg FOB port of loading) • Shipment: term, delivery place • Payment: method, payment term lOMoARcPSD|11572185 Picture 1: Sales contract Commercial Invoice : A commercial invoice is a commercial document issued by a seller to a buyer in order to receive an amount that the buyer of goods or services is obligated to pay to the seller under specific terms and conditions The usual commercial unit issued by the manufacturer Normally, commercial invoices are issued original and copies Although often laws in different countries not limit the number of originals It is really necessary in the import process to declare the customs according to the buyer's request The commercial invoice includes: • Buyer/Importer: Includes basic information such as company name, address, email, phone number, fax, representative, depending on payment conditions will include the importer's bank account information • Seller/Exporter: Similar information buyers • Invoice Number: is a valid abbreviation specified by the exporting side Downloaded by út bé (beut22834@gmail.com) lOMoARcPSD|11572185 • Terms of Payment: Payment of money transfer T/T, Payment of L/C documents, L/C documents payment and payment by collection of documents D/A, D/P, • Amount: The total value of the invoice, usually written in both numbers and words, along with the face value of the payment currency • Price • Quantity • Currency Picture 2: Commercial Invoice Packing List : Packing List shows how the goods are packed That is, when you look at it, you understand how the shipment was packed This will help you calculate: ➢ How much space is needed for loading and unloading, eg tall 40' container; Downloaded by út bé (beut22834@gmail.com) lOMoARcPSD|11572185 ➢ Can be loaded and unloaded by workers, or must use specialized equipment such as forklifts, cranes ; ➢ How to arrange the means of transport on foot, for example, how many tons of vehicles are used, and what size of the box is appropriate; ➢ You will have to find a specific item (which pallet) when the goods have to be checked, during customs clearance The Packing List includes: • Invoice number & date (usually people don't use Packing List number) • Name, address of seller & buyer • Port of loading and unloading • Train name, trip number… • Cargo information: description, quantity, weight, number of packages, volume Picture 3: Packing List Downloaded by út bé (beut22834@gmail.com) lOMoARcPSD|11572185 Bill of lading : There are three common bill of lading files: inland, ocean, and air waybill Inland Bill of Lading An Inland bill of lading is often the first transportation document required for international shipping created for your export It can be prepared by the inland carrier or you may create it yourself It is a contract of carriage between the exporter and the shipper of the goods that states where the products are going; it also serves as your receipt the goods have been picked up In an international dispatch, the inland bill of lading Isn’t Typically consigned to the purchaser On the contrary, it is consigned to the carrier moving the merchandise internationally or, or even directly to the carrier, to a forwarder, warehouse or some other third party who will consign your merchandise to the carrier when ready Ocean Bill of Lading If your goods are shipping by ocean vessel, then you’ll need a sea bill of lading An ocean bill of lading can function as both a contract of carriage and a record of title for the freight There are two sorts: A straight bill of lading is consigned to a certain consignee and is not negotiable The lender holds onto the first bill of lading before the essentials of a documentary set or a letter of credit have been satisfied Goods sent on a plane require an air waybill Contrary to an ocean bill It is a contract of carriage between the shipper and the carrier Downloaded by út bé (beut22834@gmail.com) lOMoARcPSD|11572185 Picture : Bill of Lading Necessary document for global shipping: + Customs documents: Customs documents are documents that are included in shipments in order to comply with both the U.S export regulations and legal requirements for the destination country + transport documents : Transport documents are documents that provides shipping information that the shipping carrier need to transport an item + The most important document for shipping internationally: Commercial invoices, bill of ladings, and export packing lists are among the most important shipping documents for shipping internationally Certificate of Origin (C/O) : Certificate of origin is an important document in import and export It indicates the origin of the goods produced in which territory, or country Downloaded by út bé (beut22834@gmail.com) lOMoARcPSD|11572185 There are quite a few types of C/O, depending on the specific shipment (what kind of goods, going to/from which country ) you will determine which type of sample you need Currently popular are the following types: • C/O form A (Preferential C/O form for Vietnamese exports) • CO form B (Non-preferential C/O form for Vietnamese exports) • C/O form D (ASEAN countries) • C/O form E (ASEAN - China) Details of CO form E can be found here • C/O form EAV (Vietnam - Eurasian Economic Union) • C/O form AK (ASEAN - Korea), form KV (Vietnam - Korea) • C/O form AJ (ASEAN - Japan) • C/O form VJ (Vietnam - Japan) • C/O form AI (ASEAN - India) • C/O form AANZ (ASEAN - Australia - New Zealand) • C/O form VC (Vietnam - Chile) • C/O form S (Vietnam - Laos; Vietnam - Cambodia) Downloaded by út bé (beut22834@gmail.com) lOMoARcPSD|11572185 Picture 5: C/O Copyright © 2013-2022 Vinh Hiep Co., ltd All rights reverted https://vinhhiepgl.com/ © Export2gulf - 2020 All rights reserved https://www.export2gulf.com/requireddocuments-for-global-shipping/ V Which strategy does your firm develop to handle the transportation for minimizing transportation cost and why It may include: Features of the mode of sea transport; Factors affect sea transportation: material, technique Method of chartering a ship to transport goods Vinh Hiep Company located in Gia Lai province Gia Lai province - a land blessed by nature with fertile bazzan red soil, ideal conditions for growing coffee trees On average, each year the company supplies to the domestic market, exporting more than 30,000 tons of coffee The company exports goods to many countries such as Korea, USA, EU Nowadays, transportation cost are one of the costs that account for a large part of a business's expense categories Therefore, in order to reduce transportation cost, the Downloaded by út bé (beut22834@gmail.com) lOMoARcPSD|11572185 company plans to prioritize using sea transport to export goods Up to two thirds of the earth's area is the sea Therefore, sea transportation is one of the earliest modes of transport and plays a particularly important role in the commercial economy of human society According to UNCTAD (2018), 80% of total volume of international transactions is transported by sea, in some countries the volume can go up to 90% Coffee – company’s product is often exported in large quantities from tens of tons to thousands of tons, so that it will need a cheap method but still ensure that the delivery time is not too slow Shipping by sea can be seen as the best transportation strategy for business to help minimize costs and maximize profits It offers great flexibility and versatility, adapting to many types of cargos with reasonable price compared to air transport, road transport, etc To be more specifically, using sea transports brings many benefits as follows: Firstly, sea transport has cheap shipping fee Sending goods by sea is more saving money than the other modes According to statistics, sea freight is generally about 1/5 of railway freight, 1/10 of highway freight, and 1/30 of air freight (Ficlogistics, n.d.) Currently, most of the shipping routes on the sea are natural traffic routes, without cost of construction, repair and maintenance, so that sea transport doesn’t need to pay road tax as road transport Moreover, a container ship almost always departs loaded to its maximum capacity, which means that the cost is the minimum for each and every container We can ship goods with full container (FCL) or share the container with other shippers (LCL), to that we can divived the freight into small pieces Secondly, most of the container ship have a very large capacity Particularly with oversided, overweight or bulk cargo such as iron, steel, oil, etc Those cargo usually need to transport with more than thousands of tons, then sea is the most optimal Only vessel is capable of transporting large quantities on the same shipment at a reasonable cost Each cargo ship has capacity from 10,000 TEUs to 21,000 TEUs The largest ship can hold up to 24,000 TEUs (Asianausa, n.d.) In Vietnam, large ship have been welcomed such as the Margrethe Maersk ship with a capacity of more than 18,000 Downloaded by út bé (beut22834@gmail.com) lOMoARcPSD|11572185 TEUs or Cosco Shipping Aquarius 20,119 TEUs (Public Security News, 2021) (1 TEU = container 20’) Thirdly, nowadays container ships adapted to virtually any type of product To be more specificly, sea transport can convey a variety of goods, especially some goods that is not prefered to transport by other modes, vessel can well transported Lastly, shipping by sea is more environmentally friendly compared to shipping by air Flying goods have a very bad effect on the environment, when transported by plane, a lot of carbon dioxide is released into the atmosphere, causing global warming Beside the benefits, sea transport also have affect by many factors Destination: The important factors when it comes to determining the ocean freight (OCF) Exchange rate: Exchange rate changes affect shipping cost, for example, when the goods arrive, the exchange rate increases, causing consignee have to pay a higher fee to receive the goods Seansonal: During peak seasons such as Tet and Christmas, there is a tedency to face with port congestion, affecting the delivery time of goods OCF is also higher than usual Type of vessel: Each vessel will have a different quality and size.Vessel which have good conditions and securities will charge higher OCF Morever, the size of the vessel determines the amount of cargo to be transported Commodities: Depending on the good and quantity, OCF is also different For instance, in China, if shipping dangerous goods such as lighters, the OCF will be twice as high as general goods Competitiors: Sea transport not only competes fiercely among shipping lines but also competes with other modes Political: Political is impact a lot on sea transport For example conflicts between countries may affect sea transport, for example, parties in conflict will increase transport prices or embargo affecting the situation of sea transportation Oil price: Vessel run by oil so that price oil is also a factor Specifically, it can be seen that the current increase in oil prices due to the conflict between Russia and Ukraina impact a lot on sea transport Downloaded by út bé (beut22834@gmail.com) lOMoARcPSD|11572185 Weather: If the weather is having bad codition such as typhoon, strike, or jorce majeure, the vessel can not to leave the port as scheduled Charges and subcharges: Depend on the port and the route there are different charges and subcharges, affect on OCF of sea transport Method of chartering a ship to transport goods: Regarding shipping goods by sea, there are two main ways to chart a ship: liner chartering (liner) or voyage chartering (tramp) Liner is a cargo ship that runs regularly on a certain route, calling at specified ports according to a predetermined schedule In contrast, tramp is a ship that carries goods between ports at the request of the goods owner without following a fixed route Vessels that run free include commercial vessels in the form of voyage charter Objects of cargo use voyage charteing usually in large quantities Coffee is a general cargo and can be packed in a container, so that we don’t have to charter a vessel, we only need to book a space on the liner to transport In terms of booking space, we can book directly with Shipping line or through Forwarders Howerver, booking through Shipping line is less than booking through Forwarder because Shipping line only sell booking for large company which is transport cargo with large number and frequently times Thus, with Vinh Hiep Company, booking through the Forwarder is more beneficial Step 1: Find a Shipping line (SL)/Forwarder that has the shipping route we need Step 2: Send an email (Contact) to the SL/ Forwarders to ask them to provide schedule and quotations Step 3: Choose the suitable SL/Forwarder Step 4: Send booking to the selected SL/Fowarder in order to receive Booking Note Information may include: Shipper name, ETD, vessel name and voyage, destination port, destination Port, quantity, commodity, payment place, stuffing area Step 5: Receive Booking Confirmation from SL/Forwarder Step 6: Prepare cargos and documents to ship Downloaded by út bé (beut22834@gmail.com) lOMoARcPSD|11572185 Downloaded by út bé (beut22834@gmail.com) ... II Role of transportation for your selected firm III Model of Sea transportation that serve my firm The concept of sea transport General genes about sea transportation. .. your firm develop to handle the transportation for minimizing transportation cost and why It may include: Features of the mode of sea transport; Factors affect sea transportation: material, technique... development of transportation will promote other economic sectors to develop accordingly In the current era of globalization, transportation plays a very important role, especially sea transportation