Improving the process of exporting full container load (fcl) cargoes by sea at global transport and logistics co ,ltd – danang office

DUY TAN UNIVERSITY FACULTY OF ECONOMICS - FINANCE  GRADUATION PROJECT Major: Logistics and Supply chain management IMPROVING THE PROCESS OF EXPORTING FULL CONTAINER LOAD (FCL) CARGOES BY SEA AT GLOBAL TRANSPORT AND LOGISTICS CO.,LTD – DANANG OFFICE Supervisor Student ID Class : : : : Danang, April 2023 Dr Joan Serafica Gorospe Do Thi Dieu Ban 25204716769 K25HP - QLC1 DECLARATION I hereby declare that this thesis was carried out by myself under the guidance and supervision of Dr Joan Serafica Gorospe; and that the work contained and the results in it are true by author and have not violated research ethics The data and figures presented in this thesis are for analysis, comments, and evaluations from various resources by my own work and have been duly acknowledged in the reference part In addition, other comments, reviews and data used by other authors, and organizations have been acknowledged, and explicitly cited Da Nang City, April 9th, 2023 Student (Signature and full name) Do Thi Dieu Ban ACKNOWLEDGEMENT I would like to express my sincere thanks and deep gratitude to the teachers of Duy Tan University, especially the teachers of the Faculty of Economics and Finance At the same time, I would also like to thank Dr Joan Serafica Gorospe, who directly guided me to complete the internship report I would also like to thank the Board of Directors of the company, the brothers and sisters at the Global Transport and Logistics Co., Ltd - Da Nang office for their enthusiastic help during the internship Thanks to the help of teachers, leaders, and brothers and sisters in the company, I have gained a deeper understanding of professional knowledge in the field of Logistics and supply chain management that I am currently working on study That motivates me to strive harder to be more confident in my professional work before I leave school After two months of internship, although the time is not too long, but this is a great opportunity for me to directly experience, practical work and cultivate more knowledge in the field I feel more confident about the job I choose in the future The internship process only lasted for two months, in the process of practical experience there are still many limitations, so the process of taking and analyzing will inevitably make mistakes I look forward to receiving comments from teachers in the school and the brothers and sisters in the company so that I can improve my knowledge in the future Sincerely thanks! Da Nang City, April 9th,2023 Student (signature and full name) Do Thi Dieu Ban TABLE OF CONTENTS LIST OF ABBREVIATIONS i LIST OF TABLES .ii LIST OF DIAGRAMS .iii LIST OF FIGURES iv PREFACE 1 Reason for choosing the topic Research Objectives Research object and Scope Research methodology .3 Organization of chapters CHAPTER 1: LITERATURE REVIEW AND THEORETICAL BACKGROUND 1.1 Forwarding service and forwarders .5 1.1.1 Concept of forwarding service 1.1.2 Concept of forwarders 1.1.3 Characteristics and roles of forwarding services and forwarders 1.2 Full container load (FCL) shipping by sea .8 1.2.1 Concepts of FCL 1.2.2 Benefits of sea container shipping 1.2.3 Player of FCL shipping by sea 1.2.4 Documents used in FCL shipping by sea 1.2.5 Classification of FCL shipping by sea 10 1.2.6 Legal basis related to FCL shipping by sea 11 1.3 The process of exporting FCL cargoes by sea 12 CHAPTER 2: GLOBAL TRANSPORT AND LOGISTICS CO., LTD – DA NANG OFFICE AND ITS PROBLEMS .19 2.1 Global Transport and Logistics Co., Ltd – Da Nang Office .19 2.1.1 About Glotrans 19 2.1.2 Formation and development of Glotrans 19 2.1.3 Vision, Mission and Value of Glotrans .20 2.1.4 Branch system 21 2.1.5 Field of activity 22 2.1.6 Business organizational structure .23 2.1.7 Functions and duties of departments 23 2.1.8 About the company's human resources .25 2.1.9 Company's performance from 2020-2022 26 2.1.10 Company’s performance by structure .27 2.1.11 Comments on company’s performance 28 2.2 The process of exporting FCL cargoes by sea at Glotrans 30 2.2.1 Relationship diagram between the parties 30 2.2.2 Steps in the process of exporting FCL cargoes by sea 32 2.3 Evaluation of the process of exporting FCL cargoes by sea .42 2.4 The problem facing of Glotrans 44 2.4.1 Slow sending quotations to customers 44 2.4.2 Young human resources 45 2.4.3 Incomplete facilities 45 2.4.4 Marketing 45 CHAPTER 3: PROPOSED SOLUTIONS TO IMPROVE THE PROCESS OF EXPORTING FCL CARGOES BY SEA AT GLOTRANS 46 3.1 Orientation and goal to improve the process of exporting FCL cargoes at GloTrans 46 3.2 Proposed solutions to improve the process of exporting FCL cargoes at GloTrans 46 3.2.1 Building the price system table 46 3.2.2 Improve management and professional skills of the staff 47 3.2.3 Complete equipment and facilities of the company 47 3.2.4 Increase investment in promotional marketing 48 3.3 Recommendations 48 3.3.1 For the State .48 3.3.2 For Vietnam Logistics Business Association (VLA) 50 CONCLUTION 51 REFERENCES 52 LIST OF ABBREVIATIONS No Abbreviations Explain B/L Bill of Lading C/O Certificate of Origin Cont Containers CSV Customer Service CIF Cost Insurance Freight DP Document Processing DDU Delivered Duty Unpaid ETA Estimate Time Arival ETD Estimate Time Destination 10 FCL Full Container Load 11 HS code 12 HBL House Bill of Lading 13 MBL Master Bill of Lading 14 MSDS Material Safety Data Sheet 15 L/C Letter of Credit 16 POL Port of Loading 17 POD Port of Discharge 18 Kgs Kilograms 19 SI Shipping Instruction 20 SF Seal Fee 21 THC 22 OF 23 VGM Harmonizied System Codes Terminal Handling Charge Ocean Freight Verified Gross Mass i LIST OF TABLES Table 1.1 Samples of certificates of origin 10 Table 2.2 Branches of Global Transport and Logistics Co., Ltd 21 Table 2.3 Human resources of the branch of Da Nang Global Transport and Logistics Co., Ltd in 2022 25 Table 2.4 Report on operation of Branch of Global Transport and Logistics Co., Ltd Da Nang from 2020 to 2022 26 Table 2.5 Report on business performance by structure of Branch of Global Transport and Logistics Co., Ltd - Da Nang from 2020 to 2022 .27 Table 2.6 SWOT analysis of Glotrans - Da Nang company .28 Table 2.7 Shipment Information Sheet on Booking Confirmation .35 Table 2.8 Information sheet of the shipment on the bill of lading 37 Table 2.9 Evaluation of advantages and disadvantages of the steps in the process of exporting full container cargoes of Glotrans company .42 ii LIST OF DIAGRAMS Diagram 1.1 The process of exporting full container load cargoes by sea 13 Diagram 2.2 Business organization structure of Branch of Global Transport and Logistics Co., Ltd – Da Nang 23 Diagram 2.3 Diagram of the relationship between the parties involved in the export of full container cargoes by sea .31 Diagram 2.4 Quotation process for customers 45 iii LIST OF FIGURES Figure 2.1 Logo of Global Transport and Logistics Co., Ltd .19 Figure 2.2 Shipment information registration screen on Eport 40 Figure 2.3 “Shipment details” screen on Eport 40 iv PREFACE Reason for choosing the topic In the context of the current globalization trend, Vietnam is a country that has been working harder and harder to integrate into the development stream of the global economy Along with that spirit, Vietnam is constantly expanding its international relations, in which our country has actively joined many economic organizations in the region and in the world Participation in the signing of trade liberalization agreements (FTAs) such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) or the Free Trade Agreement between Vietnam and the European Union (EU) – The EVFTA has opened up many new opportunities to help Vietnam improve its competitive position as well as integrate into the world economy Thereby, it can be affirmed that foreign trade plays an extremely important and inseparable role in the process of socio-economic development Vietnam is a country with an extremely favorable geographical position In terms of terrain and shape of the country's territory, Vietnam has important geo-political resources First of all, Vietnam is located in an important strategic position, which is located on an important traffic route, maritime and trade routes, which are classified as the busiest in Asia, a land of great potential and one of the most dynamically developing regions of the globe With a coastline of more than three thousand kilometers, our country has great potential in developing shipping by sea and other services related to the sea This is also a great opportunity and at the same time a big challenge for the shipping industry, which is still young and less experienced than international competitors However, regarding freight forwarding methods, sea freight forwarding is one of the most popular and strongly developed methods in Vietnam This is a great opportunity for the logistics market in particular and the Vietnamese economy in general Besides, every economy has two sides by its own nature As there are more opportunities, there are also more problems and pressures from the marketplace Although it is evident that more businesses are contributing to the growth of the logistics sector, the majority of them continue to operate on a small scale and are under significant pressure from their inherently superior foreign competitors who have strong