Midterm Reportlogistics Management - Mgt1143E.b10E.pdf

lOMoARcPSD|38133502 Ho Chi Minh City University of Economics and Finance Faculty of Economics MIDTERM REPORT LOGISTICS MANAGEMENT - MGT1143E.B10E Group: Lecturer: Pham Thi Trang % contribution Evaluation of No Full name Student ID Tasks to the overall task results result Nguyễn Ngô Nhật Linh 215142178 Question 20% Good Đoàn Minh Hiếu 215140538 Question 20% Good Nguyễn Thanh Diệu 215142985 Question 20% Good Võ Quốc Kha 215141519 Question 20% Good Good Phạm Tín Hùng 215140178 Question 20% Total: 100% TP Ho Chi Minh, June 2023 Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 Table of Contents INTRODUCTION .1 Chapter I An overview of the Cat Lai Port Chapter II Case study .4 What is the function of the goods inspection area? 1.1 Concept of the goods inspection area .4 1.2 Function of Cat Lai port goods inspection area of Cat Lai port 1.3 Some special characteristics of the goods inspection area of Cat Lai port .9 During your trip, you visited a warehouse What kind of warehouse is that? Describe the process of receiving and loading goods into that warehouse by forklift 10 2.1 General warehouse introduction and classification: 10 2.2 The idea, purpose, and features of the Container Freight Station warehouse:.11 2.3 The procedure of warehouse operation 12 How many maritime routes can cargo ships from Cat Lai take? List down and describe those routes 15 3.1 How many maritime routes can cargo ships from Cat Lai take? 15 3.2 List down and describe those routes 16 Which type of ship that Cat Lai port approves berthing? Why does Cat Lai not allow ships with a larger capacity to dock and maximize their cargo handling capacity? 19 4.1 Types of ship .19 4.2 Why does Cat Lai Port not allow ships with a larger capacity to dock and maximize their cargo handling capacity? 22 CONCLUSION .25 REFERENCES 26 Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 INTRODUCTION First of all, group would like to thank the University of Economics and Finance and their guide Pham Thi Trang for allowing them to visit Tan Cang - Cat Lai Company to observe and learn more useful knowledge from practice Secondly, I would like to thank Tan Cang - Cat Lai Company for accepting the invitation and enthusiastically supporting the students After a day touring Tan Cang - Cat Lai, group observed and learned many useful lessons from the guidance of the brothers and sisters in the port During the visit, the members of the port supported Group in particular and other students in general To observe the reality and know the function of the cargo inspection area, the import and export warehouse at the port, etc Besides, there is very interesting information about Tan Cang - Cat Lai revealed by the port's tour guide In addition, the group also better understand the routes that ships from Cat Lai can go to as well as the reasons for banning ships with too much effort from entering the port and the difference between Tan Cang - Cat Lai compared to other routes with other ports, etc All information presented by the group is from field observations and collected from carefully selected information in today's useful media Group hopes that the information presented by Group below will summarize the knowledge and lessons learned by Group after the field visit at Tan Cang - Cat Lai Company in the most practical way Best regards, Group Lecturer: Pham Thi Trang Page Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 Group [LOGISTICS MANAGEMENT] Chapter I An overview of the Cat Lai Port Figure 1: Cat Lai Port Cat Lai Port was constructed in stages from June 1996 to 2002, with an initial area of about 170,000 square meters, including two 150-meter berths, which can berth ships of more than 20,000 DWT Meanwhile, Cat Lai has teamed up with the city to build Intercity Route 25 from Hanoi Expressway to Cat Lai Ferry to attract customers The largest and most cutting-edge international container port in Vietnam, Tan Cang - Cat Lai Terminal (TCCL), is run by Operations Center - Saigon Newport Corporation The terminal is separated into three terminals, A, B, and C, each having its own receiving berth for four barges and a separate space for referring containers and rice cargo stuffing Three vacant container depots are located inside Cat Lai Terminal; four linked depots are located outside In 2005, after the completion of Thu Thiem Bridge, Sai Gon New Port transferred all container ship operations from Sin Cang Port to Cat Lai Port, which has since become the main port in the southern region At that time, the Cat Lai Port’s throughput reached million TEU and then increased to 2,6 million TEU in 2011 With the services of tugboats, pilots, warehousing, land transport, barge water transportation, customs clearance…In 2019, Tan Cang-Cat Lai Port achieved best: - Receiving the largest container ship of 4,5 thousand tons - The average ship clearance capacity is 71 containers/h, an increase of 11% compared to 2018 Lecturer: Pham Thi Trang Page Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 Group [LOGISTICS MANAGEMENT] - Delivery time for 01 container only takes 43.8 minutes/cont (10% less than it was in 2018) This evidence further highlights and confirms that TC-CL Port is an important gateway and the most dynamic seaport in the south  Contact address: - Head office: 1295A Nguyen Thi Dinh Street, Cat Lai Ward, District 2, HCMC - Phone number: (08) 3,742.3499 Fax: (08) 3,742.3500 VND - Email: catlaiport@catlaiportjsc.com Capital structure: is the cooperation between TNXP Public Utilities Company Limited and Saigon Newport Corporation  Business: - Maritime services (seaport operation) - Loading and unloading services at seaports (loading and unloading containers at cargo yards, barge berths)  Capacity: - Area 1,200,000 m2 - Land area: 1,050,000 m2 - Warehouse area: 30,000 m2 - Pier: 1,500 m/8 piers - Port capacity: 4.2 million TEUs/year - Receiving capacity: 40,000 DWT  Equipment: - RTG 3+1: 17 - RTG 6+1: 40 - Quayside Mobile Gantry Cranes (K.E): 20 - Fixed Quayside Cranes (Liebherr): - Reach Stacker 28-42T: 24 - Warehouse forklift: 34 - Tractor: 377 - Power socket: 1,100 Lecturer: Pham Thi Trang Page Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 Group [LOGISTICS MANAGEMENT] Chapter II Case study What is the function of the goods inspection area? Actual inspection of goods refers to the customs authority examining the products' actual state and assessing their conformance to the customs dossier To ensure that the type, origin, condition, amount, and value of the commodities comply with the Kyoto Convention's requirements, the Kyoto Convention defines "inspection of goods" as a physical inspection of the goods by the Customs Authorities with the data stated in the products Figure 2: Container vehicle inspection area in and out of the port 1.1 Concept of the goods inspection area  Concept of the area for goods inspection: - Inspection of goods: The definition of inspection is "the examination of the conformity of products and goods with the contract or announced applicable standards and relevant technical regulations by observation and evaluation of measurement and testing results, “as stated in” Product quality law" - Document review, visual quality and quantity inspection, packing, marking, and loading inspection are all typically included in the inspection scope The breadth of the inspection takes a more business-oriented approach than a technical one Shop inspection is occasionally done in conjunction with goods inspection Lecturer: Pham Thi Trang Page Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 Group [LOGISTICS MANAGEMENT] - An area dedicated to conducting inspections and examinations of items is referred to as a "goods inspection area" It is a regulated setting where officials conduct inspections to verify adherence to rules, quality standards, and safety criteria, such as customs officials, quality control inspectors, or security officers - The goods inspection area serves as a centralized location within a port, airport, or other transportation hubs where incoming and outgoing goods are subjected to scrutiny and verification The primary purpose of the goods inspection area is to assess the quality, quantity, authenticity, and compliance of the goods being transported  Key aspects of the concept of a goods inspection area include: - Physical Space: The goods inspection area typically consists of a designated physical space within the larger transportation facility - Controlled Environment: The goods inspection area is a controlled environment to ensure proper oversight and security during inspections - Inspection Procedures: The area for inspecting items adheres to specified practices and norms To evaluate the quality, compliance, and security of the items, these procedures may include visual inspections, physical examinations, sample testing, document verification, scanning technology, or other pertinent techniques - Compliance and Regulations: The product inspection area complies with all local, state, national, and international rules and regulations It guarantees that products adhere to stringent requirements, such as those set down in trade agreements, customs rules, and standards for the safety of products - Documentation and Record-Keeping: Inspections in the commodities inspection domain require meticulous record-keeping and documentation To provide transparency, traceability, and accountability, this includes maintaining inspection reports, certificates of compliance, test results, and other pertinent documentation - Collaboration and Coordination: Many different stakeholders work together and coordinate in the commodities inspection domain Importers, exporters, shipping brokers, regulatory bodies, customs officials, and other participants in the logistics chain are all included in this Smooth and effective inspections depend on effective communication and information sharing Lecturer: Pham Thi Trang Page Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 Group [LOGISTICS MANAGEMENT] 1.2 Function of Cat Lai port goods inspection area of Cat Lai port Figure 3: Cargo inspection process  Customs clearance procedures, including those for import and export declarations: - Green channel: Businesses that adhere to the requirements of the customs law are typically granted access to the green channel, which exempts them from detailed record examination and detailed product inspection - Yellow channel: The benefit of this system is that Customs only needs to review the records and not the specifics of the products - Businesses are excluded from conducting thorough physical inspections of a variety of things under the following circumstances: imported products, Tax exemptions apply to machinery and equipment used to construct fixed assets Foreign-made goods are exempt bonded warehouses, transshipment ports, products in transit, and free trade zones for shipping, unique goods - Red channel: The red channel is used by Customs to evaluate the accuracy of documentation and perform thorough inspections of the shipment's contents at several stages - There are levels of a reality check: + Level 1: Inspect the entire shipment + Level 2: Inspect 10% of the shipment in detail; if no violations are found, the inspection will cease; if violations are found, the inspection will continue until the number of violations is satisfied Lecturer: Pham Thi Trang Page Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 Group [LOGISTICS MANAGEMENT] + Level 3: Physical inspection of 5% of the shipment; inspection ends if no violations are found; otherwise, inspection continues until the full range of violations is determined  The products that are intended to pass through the Red Channel for clearance will be transported to the goods inspection area at Cat Lai Port for examination The legality and compliance of the entire package with the customs dossier will be assessed Two different kinds of goods inspection exist: - Scanner inspection: After completing the required steps, the import/export products are dragged to the scanner station to conduct the “there-channel inspection process” This is an automated software-based inspection method In this situation, cutting the sealing lead is not necessary for the cargo container The customs authorities will determine whether or not the shipment qualifies for customs clearance based on the outcomes of the scanner inspection Should any anomaly be discovered with the items  Manual inspection: To have the container of products subject to manual inspection, businesses must deliver it to the designated yard, according to Customs The customs office will then dispatch personnel to the location to inspect the goods and cut the lead Customs will decide whether to investigate the entire package or individual items depending on each particular item A random package will be chosen by Customs as the inspection shipment The customs authority is required to inspect the entire shipment if it is a sensitive shipment  Customs will rely on specialist inspection registration papers to carry out customs clearance operations for shipments that are on the list of commodities that are subject to state inspection Check the product’s provenance The rate of the customs duty  Businesses must describe and submit information on the quantity, kind, and origin of commodities as well as take images of the first shipment when temporarily importing or re-exporting items  The function of Cat Lai Port: - Quality Control: The inspection area is responsible for verifying the quality and condition of goods entering or leaving Cat Lai Port This involves checking the Lecturer: Pham Thi Trang Page Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 Group [LOGISTICS MANAGEMENT] specifications, standards, and compliance with regulations set by relevant authorities It ensures that the goods meet the required quality standards and are suitable for import/export - Quantity Verification: The inspection area also verifies the number of goods being transported through Cat Lai Port This is done by comparing the quantity stated in the shipping documents with the actual goods received or delivered It helps prevent discrepancies and ensures accurate record-keeping for importers, exporters, and customs authorities - Customs Compliance: The goods inspection area plays a crucial role in ensuring compliance with customs regulations and procedures It conducts inspections to verify that the goods being imported or exported comply with applicable customs laws, tariffs, and documentation requirements It helps prevent smuggling, tax evasion, and other customs-related offenses - Security Checks: The inspection area is responsible for conducting security checks on goods passing through Cat Lai Port It screens the goods to detect and prevent the transportation of prohibited items, hazardous materials, or contraband This helps maintain the safety and security of the port, its facilities, and the overall supply chain - Documentation and Record-Keeping: The inspection area maintains accurate documentation and records of the inspected goods This includes recording inspection results, issuing certificates of inspection or compliance, and updating relevant databases or systems These records serve as evidence of compliance and can be used for auditing, traceability, and dispute-resolution purposes Lecturer: Pham Thi Trang Page Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 Group [LOGISTICS MANAGEMENT] The direction of gathering the most trucks and containers is at gate 23 This is where the import warehouse enters We'll unpack and open the container A warehouse employee is seated at the box to inspect the items being carried out Before placing the goods in the warehouse, the employees will inspect their condition To handle the goods, a barcode will then be pasted The items will be placed where the client has requested earlier when the customer places how many boxes and shelves in the warehouse; otherwise, the unscrambles will fill the vacant space in a random order When a client needs to pick up the products, they will scan the barcode of that order, and the system will display all the information of the parcels of the shipment placed where, and take out all the goods for consumers Finally, they will scan the barcode and store the information in that box The export and import stores are located at gates 21 and 22, where personnel pick up items for customers Before delivering the goods to the customer, the warehouse personnel will verify the quality of the items one last time, compare them upon arriving and leaving, bill the items, and then load them into the customer's car 2.3.2 Rules in the storage facility The merchandise is set up in the warehouse the same way it is in the yard There is a storage cost outside the yard and a storage fee inside the warehouse The division of commodities into categories includes common, hazardous (solid and liquid), large, and overloaded items For instance, bulky, heavy objects that can't fit in a box, like cars, must be left on the shelves Containerized items are additionally inspected by customs Additionally, retail products are inspected by customs As an illustration, the warehouse for imported goods will examine the customs after unpacking, and place the items there, and then each shipper will be in charge of examining their orders and be independent of one another Door 22 is the gate for goods inspection, for instance, and customs may inspect any or all of the shipments there The way things are organized in the warehouse is also governed For instance, coffee with a certain moisture level combined with rice, which is highly hygroscopic but needs to be dry, will alter the quality of both Lecturer: Pham Thi Trang Page 13 Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 Group [LOGISTICS MANAGEMENT] Volatile items shouldn't be stored with explosive dangerous commodities The third story or higher should be the maximum height for liquid items 2.3.3 The warehouse's design Figure 4: CFS warehouse A double line technique is used to organize goods in warehouse No for tiny things that fit in boxes with a load capacity of roughly 300 kilos The technology will make it simpler to manage commodities in numerous retail contexts Some companies frequently utilize or rent bare warehouses so that goods can be loaded directly on top of each other without needing shelves However, different warehouse systems will exist depending on the goods For instance, Madia's warehouse of TV washing machines or Nestle's warehouse of raw supplies like sugar, milk powder, packaging, etc Materials and flavors that appeal to a lot of insects, like powder, milk, etc, have distinctive structures and modes of operation The warehouse layout must be covered with a silicone film to keep out insects and ensure that the first things go out first To reduce pollutants, make the warehouse safer, and prevent suffocation, electric forklifts are used inside the warehouse instead of diesel forklifts Additionally, there are typical fire protection tools here In summary, the CFS warehouse at Cat Lai Port aids in the effective and speedy transportation of goods thanks to the infrastructure's contemporary technology and good construction, which also ensures the safety of the cargo and meets client expectations properly satisfy consumer needs Additionally, this site offers a wide range of services, Lecturer: Pham Thi Trang Page 14 Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 Group [LOGISTICS MANAGEMENT] including information and the dismantling, unloading, preservation, inspection, consolidation, and leasing of large-area goods storage Customers' information is kept completely private, and staff members strictly monitor the procedure From there, it supports the nation's import and export operations while also assisting customers in cost-saving measures and port operations How many maritime routes can cargo ships from Cat Lai take? List down and describe those routes 3.1 How many maritime routes can cargo ships from Cat Lai take?  Cat Lai Port, located in District of Ho Chi Minh City, is presently the largest and most advanced international container port in Vietnam Ho Chi Minh City ranks among the top 25 global ports, commanding a significant market share in container import and export It accounts for over 90% of the southern region's trade and nearly 50% of the country's market share To cater to the needs of customers and mitigate delays at weighing stations and road interchanges, Cat Lai Port operates continuously, 24 hours a day, days a week  To avoid lengthy waiting times at the port, many businesses have opted for transshipment solutions, transferring goods between seaports or directly from factories using various modes of transportation This approach has proven effective and is not only convenient for businesses in the Mekong Delta but also for those in the region between Cai Mep port and Cat Lai port However, due to its current location and channel limitations, Cat Lai port can only accommodate feeder ships or cargo consolidators of medium size or smaller, with a capacity of fewer than 2,900 TEUs These ships primarily specialize in transporting goods along Asian routes such as Cambodia and Singapore However, the transshipment cost is higher at Cat Lai port due to its non-deep-water status  For goods exported or imported to other continents via large-tonnage ships, transshipment is required at major ports near Vietnam, such as those in China, Thailand, and Japan However, since 2007, Vietnam has developed its first deep-water port, Cai Mep - Thi Vai port, located approximately 80 km south of Ho Chi Minh City in Lecturer: Pham Thi Trang Page 15 Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 Group [LOGISTICS MANAGEMENT] Vung Tau With a depth of -14 meters in the harbor area and -16.8 meters in the channel, the port is capable of handling and transporting goods for Dong Nai and Binh Duong provinces It also provides services and can accommodate ships with a capacity of up to 18,000 TEUs, enabling long-distance ocean voyages to destinations like the US and EU, thanks to its deep-water capabilities  Cargo ships departing Cat Lai may travel along the following routes: - Domestic routes 10 - Southeast Asia regional routes - Asia routes - Europe routes - North American routes - Oceania routes 3.2 List down and describe those routes  Sai Gon Newport Company is a modern infrastructure port located in Southeast Asia Cargo ships departing from Cat Lai port in Vietnam have the flexibility to choose from multiple maritime routes based on their destination and the responsible shipping line Positioned strategically near the mouth of the Saigon River, Cat Lai port serves as a pivotal trade hub in South Vietnam, connecting to major ports in South and Southeast Asia, as well as Europe, America, and Africa The company also collaborates with ports in various Asian countries Furthermore, Cat Lai Port works in conjunction with partner companies to offer comprehensive services, utilizing barges and national highways to meet the transportation needs of domestic customers  Cat Lai Port boasts several notable maritime routes that link it with destinations worldwide Here are some key routes:  Cat Lai Port to other ports in Vietnam: - Ships departing Cat Lai port can head north to ports like Hai Phong, Quang Ninh, and Hai Phong, or south to Vung Tau and Phu Quoc Island Lecturer: Pham Thi Trang Page 16 Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 Group [LOGISTICS MANAGEMENT] - Examples of specific routes include Cat Lai to Tan Cang Nhon Trach ICD (Dong Nai) (8 km), Cat Lai to Hiep Phuoc Tan Cang (Nha Be) (23 km), Cat Lai to Tan Cang TCIT TCCT (Cai Mep Port - Ba Ria Vung Tau) (57 km), and Cat Lai to Tan Cang TCTT (Cai Mep Port - Ba Ria Vung Tau) (57 km) Other ports along these routes include My Thuy Port (3 km), Hiep Luc Port (2 km), Suoi Tien Port (17 km), Long Binh Port (33 km), Song Than Port (24 km), Nhon Trach Port (43 km), TCIT TCCT - TCIT (60 km), and Hiep Phuoc Port (22 km)  Cat Lai Port to major Northeast Asian Ports: - Cat Lai Port enjoys robust connectivity with major Northeast Asian ports in China, Japan, Korea, and Taiwan - Renowned shipping lines such as Maersk, Evergreen, and Hapag-Lloyd provide direct connections to ports like Shanghai, Ningbo, Taipei, Yokohama, Kobe, Busan, and others Transportation services from Cat Lai port to Asian countries are available in two modes: - Retail cargo transportation from Cat Lai (Less than Container Load – LCL) Figure Some domestic maritime routes from Cat Lai Port - Full container transportation from Cat Lai (Full Container Load – FCL) Lecturer: Pham Thi Trang Page 17 Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 Group [LOGISTICS MANAGEMENT] For example, goods transported from Cat Lai port to China include mobile phone components, machinery and equipment, iron and steel, household appliances, seafood, and fruits The route covers ports such as Shanghai, Shenzhen, Ningbo, Shantou, Qingdao, Guangzhou, and Tianjin Routes from Cat Lai Port to Japan encompass destinations like Kobe Port (8-12 days), Nagoya Port (7-9 days), Osaka Port (9-12 days), Tokyo Port (6-9 days), and Yokohama Port (7-11 days) Various goods exported from Cat Lai port to Japan include bamboo and rattan products, textile products, carpets, handicrafts, confectionery, cereal products, ceramic products, porcelain, glass, and more  Cat Lai Port to Southeast Asian destinations: - Cat Lai Port provides direct connectivity to several ports in Southeast Asia, such as Bangkok and Laem Chabang in Thailand, and Port Klang in Malaysia - Additionally, the port establishes connections with major ports in Indonesia, including Tanjung Priok and Surabaya - Routes from Cat Lai port extend to countries like Singapore, Indonesia, the Philippines, and Malaysia Goods exported from Cat Lai port to these destinations include textile raw materials, leather, shoes, clothes, fabrics, electronic components, food, fruit, paper products, furniture, handicrafts, wood products, electrical wires and cables, spare parts for vehicles, consumer goods, confectionery, cosmetics, and health products  Cat Lai Port to Europe: - Cat Lai Port offers international routes to European destinations through reputable shipping lines such as Maersk, MSC, and CMA CGM - Major ports in Europe that Cat Lai Port connects with include Rotterdam in the Netherlands, Hamburg in Germany, Felixstowe in the UK, and Le Havre in France  Cat Lai Port to the US and Canada: - The port maintains direct connections with ports in the United States and Canada, including Los Angeles, Long Beach, Oakland, and Vancouver  Cat Lai Port to Australia and New Zealand: - Shipping lines such as Maersk, APL, and ANL facilitate connections - Melbourne and Brisbane Lecturer: Pham Thi Trang Page 18 Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com)