Topic SOLUTIONS IN LOGISTICS SITUATION (DAMAGE, SALE CONTRACT, INSURANCE CONTRACT SECTOR)

VIETNAM GENERAL CONFEDERATION OF LABOUR TON DUC THANG UNIVERSITY DEPARTMENT OF BUSINESS ADMINISTRATION PRESENTATION REPORT FIATA – MODULE THEMATIC Topic: SOLUTIONS IN LOGISTICS SITUATION (DAMAGE, SALE CONTRACT, INSURANCE CONTRACT SECTOR) Lecturers: Le Thanh Trung Mentor: Nguyen Huynh Dai Nghiep Group: Group Shift: Tuesday, Thursday Ho Chi Minh City, 3rd March 2021 Order ID ACKNOWLEDGEMENT First of all, with the deepest and most sincerely feelings, we ask for expressing our gratitude to all the individuals and organizations that have facilitated and helped our group throughout the learning and research process of this topic During the time from the beginning of researching the topic to the presentation, the team has received a lot of attention and helps from the homeroom teacher and Mr Nguyen Huynh Dai Nghiep, thanks to their guidance, the research topic of my group could be better With the deepest gratitude, our team would like to send to Ms Pham Thi Ngan Head of International Business - Ton Duc Thang University for giving us the opportunity to study and interact with FIATA syllabus Presentation reporting is done for about two months The initial step into the implementation of the group still has many difficulties, so we cannot avoid the shortcomings, we are looking forward to receiving valuable comments from our teachers so that our knowledge in this field will be completed At the same time, we also have additional conditions to raise their awareness We sincerely thank you! Ho Chi Minh City, 3rd March 2021 Implementation’s student – Group TEACHER COMMENT …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… Ho Chi Minh City, 3rd March 2021 Implementation’s student – Group CONTENTS CHAPTER 1: INTRODUCTION 1.1 Company information 1.1.1 Introduction 1.1.2 Detail Information CHAPTER 2: PROBLEMS ANALYSIS AND DISCUSSION 2.1 Problem statement 2.1.1 CIF term 2020 and some notes 2.1.2 Liability of the different parties 11 2.2 Classified insurance 13 CHAPTER 3: SOLUTION PROPOSAL AND EVALUATION 19 3.1 Liability insurance 19 3.2 Responsibility of the carrier 23 3.3 Measure to minimize the risk of sea transportation 26 3.5.1 Scope of practice 28 3.5.2 Procedures for participating in insurance 29 CHAPTER 4: BACKUP PLAN 32 4.1 First plan 32 4.2 Second plan 34 4.3 Third plan 35 4.4 Fourth plan 36 CONCLUSION 37 LISTS OF PICTURES Picture Logo of PTSC’s Company Picture Mr Phan Thanh Tung - Chairman of the Board of Director of PTSC Picture Company building motto of PTSC Picture Liability transfer responsibility at CIF Incoterm 2020 Picture Responsibility between Seller and Buyer at CIF term in 2020 11 Picture Basic Principles of Marine Insurance 16 Picture Marine Insurance 16 Picture Illustrating imagine about Insurance 19 Picture Marine accident 20 Picture 10 Container flipping incident at sea 22 Picture 11 Road Transport accident 23 Picture 12 Insurance companies 31 Picture 13 Logo of “Cargo of Signal” 34 Picture 14 Two company using GPS system 35 Picture 15 Moisture – proof hanging bags in container 35 Picture 16 Daily Schedule 36 LISTS OF PROCESS Process Participating in insurance 29 Process Dealing with insurance 30 Process Process to take a good container 33 LIST OF TABLES Table Risks are covered under condition A, B, C 17 CHAPTER 1: INTRODUCTION 1.1 Company information 1.1.1 Introduction Petro Vietnam Technical Services Joint Stock Corporation (PTSC) is a member unit of Vietnam National Oil and Gas Group with multi-disciplinary functions and mainly provides technical services to the industry oil and gas industry at home and abroad Picture Logo of PTSC’s Company PTSC’s total asset value in 2011 was 23.546 billion VND PTSC’s revenue in 2011 was 24.312 billion VND PTSC provides various types of technical services to the oil and gas industry, but these high-end small equipment Vietnam cannot make, so they have to import a large amount to meet the production needs of large projects 1.1.2 Detail Information PTSC's main industry is to provide technical services to the oil and gas industry In addition, there are many types of strategic services with spearhead nature that have been developed and professionalized to reach the international level such as: o Specialized ship services o Port base service, o Design service, o Manufacture and installation of oil and gas projects o Operation o Maintenance and repair services for oil and gas projects o Exploration services for underground works by ROV o Geological exploration services o …… From May 28, 2018, Mr Phan Thanh Tung, a member of the Board of Directors, holds the position of Chairman of the Board of Directors of PTSC Picture Mr Phan Thanh Tung - Chairman of the Board of Director of PTSC The company's motto is that PTSC always commits to put the interests of customers first and strives constantly to improve service quality, continues to develop to ensure the provision of oil and gas services meeting quality standards International with the motto: Solidarity Creative dynamism Unanimity Speeding up development Drastic innovation Picture Company building motto of PTSC CHAPTER 2: PROBLEMS ANALYSIS AND DISCUSSION 2.1 Problem statement The company - PTSC (https://www.ptsc.com.vn) has been planning lots of cargo about equipment is valid for 530,000,000 USD will be sent many times from Germany and we signed the contract with the supplier by CIF price at Cat Lai port After coming Cat Lai port, the equipment will be transported by truck to Dong Nai province for our project To make sure the process goes well, we need to deal with many cases: o What will we request the seller in buying insurance? o What will we to ensure the safety of the equipment from Cat Lai port to Dong Nai province? o What will we when the equipment's cargo was broken after came to Dong Nai? 2.1.1 CIF term 2020 and some notes Picture Liability transfer responsibility at CIF Incoterm 2020 Let's learn about the CIF incoterm so that we can fully understand the terms, rights and obligations of stakeholders and innovation in incoterm 2020 about CIF terms CIF is a specified term for sea transport CIF is generally used for agricultural commodities or chemicals 10 o If the vessel encounters prolonged periods of precipitation during the loading period, request check tests to ensure that the MC of the cargo is still less than its TML o Prior to completion of loading, ensure that the cargo is reasonably trimmed (as per dry bulk cargo good practice) o On completion of loading, ensure that the hatch covers are closed and secured as required o Develop a safe shipping route to avoid dangerous seas o Improve expertise for the team in charge of operating and controlling freight trains o Carrying goods according to the load capacity of the ship 3.4 Measure to minimize risk of inland transportation o Be realistic about the service level you need Expectations are critical here o Make use of a well-known transport management software system o Map out shipping criteria with your carriers o Put measurable KPI's in place for carriers o Strategic shipment consolidation o Online monitoring of transportation routes to warehouses o Use of GPS tracking technology attached to goods o Buy insurance for domestic goods 3.5 Process dealing with insurer 3.5.1 Scope of practice o From the time the cargo begins to be transported on the insured itinerary, and ends when the goods are unloaded from the last means of transport according to the insured itinerary 30 o Goods transported within the territory of Vietnam and around the world o Risks occur during transportation by road, waterway, air, railway and registered post o Risks occur during temporary storage during transit journeys anywhere in the world o Extended coverage for cargo while on the go, storage, or associated risk o Risks insured depends on the terms of insurance 3.5.2 Procedures for participating in insurance Directly send Com plete insurance claim information on the form or em ail or cargo insurance fax to insurance claim from com pany Process Participating in insurance 3.5.3 Complaint and compensation when risks are occurring: In the event of a risk, loss or loss to the insured goods, the insured person (the insurer) should promptly notify insurance company via the hotline/ phone number indicated on the paper Insurance certification for assistance and guidance on the next steps in collecting complete claims and claims records At the same time, right after detecting loss or loss to goods, the insurer should note: 31 Immediately claim against the carrier, the port authority or the trustee of any lost parcel Unless there is a letter of appeal, in no event will a complete receipt of the goods in question be issued When delivering a against them Process Dealing with insurance 32 Some recommendation about insurance company: AIG, PG insurance, Bao Viet insurance, PVI insurance, etc Picture 12 Insurance companies 33 CHAPTER 4: BACKUP PLAN 4.1 First plan Choose a good quality container to minimize the risk of damage to the cargoes o Criteria for the container: the container is not distorted, the floor is not scratched, the container is not punctured and the door of the container must be stimulated, the floor of the container must be clean, not foul and free from oil and dirt o How to get a good container: work and negotiate with the sales of the train freight, through the sales to get the booking, to be given priority to choose a good container Get in touch with sales through the carrier's website, or you can send mail directly to the shipping company asking them to give them a good container for their booking o If we cannot contact sales or cannot by 1, we can contact the staff at depot Depot is the place where the container is stored, the staff here are the most knowledgeable We can negotiate and ask them to help find a quality container o After selecting the container, invite the standard engineer to recheck and give an evaluation opinion o You can refer to some ways to check the basic container here: https://kimhaiseals.vn/kiem-tra-container-chuan-ctpat/ How to take to choose a good container? 34 Step 1: Based on paint The new the paint storage container has, the better the quality, the less likely i t is to be repainted Step 2: Container shape Take a close look at the shape of the container, if there is too much distortion, it is best not to choose A good warehouse container is a square container, a little squishy Step 3: Check the container for leaks? In order not to lose money, you should carefully check if the container is pun ctured? Containers must meet standards of watertight, light-tightness to buy Step 4: Observe the door Try opening and closing the door a few times to see if it is smooth or not Im agine if you buy a container and the door is difficult to open and close, how's it going Step 5: Check the longitudinal carriage Check carefully the bottom bottom for vermin or not? Because through that we can know whether the undercarriage is still good or not.The ground floor of the container is very important because it supports the entire floor of your cargo or cargo Step 6: Refer to multiple units You should consult and consider the prices of many suppliers of containers, a t least units, the better it is if you can inspect the container directly Step 7: Ask an expert for advice If you not have a deep understanding of the container, you can consult an expert Process Process to take a good container 35 4.2 Second plan Using “Cargo signal” system to manage cargoes while transporting Cargo signal flatform is designed which is based on the deep understanding of international logistics and demand for protecting high-value, temperature-sensitive cargoes when transporting of the customers This system helps customers manage the process of cargoes 24/7 include monitoring light, temperature, motion, tilt and shock, location that provide information in real time through using of a sensor-based tracking device, and visibility of the shipment through web or mobile applications And data summaries post-shipment is even available with Quality and Security & Quality products The Security & Quality product also offers proactive notifications in case of route deviation MTM Robotics is one of the customers of “cargo signal” Due to using this device, not help company only to minimize the risk when transporting, but also saving the cost of insurance by dealing with the insurance company and showing some methods which used to monitor cargoes Picture 13 Logo of “Cargo of Signal” 36 Besides, we can choose some companies using GPS system which has functions such as: warning when container is opened or seal is destroyed, location of cargoes and receiving the information having unusual problems We can choose DB Schenker and DHL Logistics service where uses GPS system to follow the process of cargoes Moreover, DHL Logistics also uses the shipping aid tools such as: early ship, EDI and XML, GPS EDI and XML allow customer to follow the cargoes over the world fast and easily due to constant updating information about time, price, etc Moreover, DHL Express application also allows to monitor and control the process cargoes 4.3 Third plan Recommend to seller some ways to reduce risk by package cargoes: o Using moisture-proof hanging bags in container to prevent cargoes against moisture Picture 14 Two company using GPS system Picture 15 Moisture – proof hanging bags in container o To avoid the effects of shock, vibration and compression: should use the inner packing made by plastic materials such as foam or air-bubble paper Also, outside the package should cover by PVC film 4.4 Fourth plan Because the value of these equipment is high so we choose the direct vessels routine to reduce the time of transit Hence, we can reduce risk of cargoes when transporting 37 Picture 16 Daily Schedule Along with the process of global and regional economic integration, the outstanding development of the logistics sector, businesses operating in this field s s r market, which has also affirmed its position in the freight sector in this report, we briefly summarized the process involves insurance, transporting goods and setting out bad situations that may occur during transportation so that problems can be solved promptly and efficiently Finally, we hope that we will always satisfy customers, upgrade services and thrive businesses in the future 38 CONCLUSION Sea transport often faces many risks of loss of goods due to natural disasters, unpredictable accidents such as: stranded, collision, sinking, fire, explosion, theft, piracy, storm, cyclone, wave god beyond human control Import and export goods are transported mainly by sea in large archipelagos such as the UK, Singapore, Japan, and Hong Kong so they are forced to participate in import and export cargo insurance There are many ways to overcome risks but, in some cases, buying insurance is the best backup plan Along with the process of global and regional economic integration, the outstanding development of the logistics sector, businesses operating in this field should survive and develop, they should provide good services, make fun customer satisfaction and constantly strive to improve processes Since its inception up to now, our company has found its own position in the market, which has also affirmed its position in the freight sector in this report, we briefly summarized the process involves insurance, transporting goods and setting out bad situations that may occur during transportation so that problems can be solved promptly and efficiently Finally, we hope that we will always satisfy customers, upgrade services and thrive businesses in the future 39 SOURCE According to PTSC http://pos.ptsc.com.vn/index.php? Module=Content&Action=view&id=39 According to FESVN Điều kiện CIF Incoterms 2020 - FESVN LOGISTICS According to melodylogistics Những thay đổi Incoterm 2020 (melodylogistics.com) According to tcllogistics https://www.tlclogistics.lt/en/cargoinsurance-on-the-basis-of-institute-cargo-clauses-icc-a-b-c-conditions/ According to Cultofsea https://cultofsea.com/maritimelaw/marine-insurance-purpose-principle-general-average/ According to paisabazaar https://www.paisabazaar.com/commercial-insurance/marine-insurance/ https://www.paisabazaar.com/commercial-insurance/marine-insurance/ According to baoquanhanghoa http://baoquanhanghoa.com/timhieu-ve-do-am-ben-trong-container-hang-hoa.html According to htlvietnam https://htlvietnam.com.vn/an-tam-vanchuyen-hang-hoa-voi-he-thong-track-trace-sieu-hien-dai According to FESNVN Logistics Điều kiện CIF Incoterms 2020 - FESVN LOGISTICS 10 According to MACQ ĐIỀU KIỆN CIF INCOTERMS 2020 - MacQ 40 11 According to weblogistics https://weblogistics.vn/threads/quyen-bao-hiem-trong-dieu-kien-cif.2038/ 12 According to baohiempvi https://baohiempvi.info/sanpham/78/bao-hiem-hang-hoa-noi-dia.html 13 According to tlclogistics https://www.tlclogistics.lt/en/cargoinsurance-on-the-basis-of-institute-cargo-clauses-icc-a-b-c-conditions/ 14 According to cultofsea https://cultofsea.com/maritime-law/marineinsurance-purpose-principle-general-average/ 15 According to vinalinklogistics.com Những nội dung bảo hiểm hàng hoá xuất nhập vận chuyển đường biển | Công Ty Cổ Phần Logistics Vinalink 16 According to options.vn Trách nhiệm miễn trách nhiệm người vận chuyển (options.vn) 17 According to Wordpress GIAO NHẬN HÀNG HÓA XNK CHUYÊN CHỞ BẰNG ĐƯỜNG BIỂN – LOGISTICS- HANAH (wordpress.com) 18 According to daiwalawfirm http://daiwalawfirm.com/trach-nhiem-cua-nguoi-van-chuyen-trong-hopdong-van-chuyen-hang-hoa-bang-duong-bien.html 19 According to thuvienphapluat https://m.thuvienphapluat.vn/van-ban/thuong-mai/cong-uoc-chuyen-chohang-hoa-bang-duong-bien-1978-68745.aspx 41 42 43 ... Operations of insurance company Insurance certificate & insurance policy: after confirming the information, PVI insurance company will issue insurance certificates and insurance contracts and... Cat Lai The risk point for domestic transport in VN is not covered by insurance so that people will purchase Inland Marine Insurance to limit the losses Inland Marine Insurance Insurance when the... insured depends on the terms of insurance 3.5.2 Procedures for participating in insurance Directly send Com plete insurance claim information on the form or em ail or cargo insurance fax to insurance