Faculty of Economics
MIDTERM REPORT
LOGISTICS MANAGEMENT (222.MGT1143E.B10E)
Year 2023-2024
Lecture: Ph.D Pham Thi Trang (Ms)
Trang 2Introduce Cat Lai – Saigon Newport Company 2 I What is the function of the goods inspection area? 4 II During the trip, you visited a warehouse What kind of warehouse is that? Describe the process of receiving and loading goods into that warehouse by forklift.
III How many maritime routes can cargo ships from Cat Lai take? List down and describe those routes.
IV Which type of ship that Cat Lai Port approves berthing? Why does Cat Lai not allowships with a larger capacity to dock and maximize their cargo handling capacity?
Conclusion 20
Trang 31 We would like to extend our sincere thanks to Ho Chi Minh City University of Economics and Finance allowing us to work on this report, and Saigon Newport Corporation members enthusiastically communicated our knowledge and experienceduring the field trip This report could not have been completed successfully without the kind help and assistance from Ms Trang teaches Logistics Management We are so grateful for having the chance to meet these people.
First, thanks would be sent to my dedicated supervisor and teacher, Ms Trang Regarding academic support, she annotated our work meticulously, suggested necessary points, followed up on our progress constantly, and showed us howto write this report academically Notably, he continuously counseled us to make more determined endeavors, and her encouragement made it possible for us to achieve the goal.
Second, during fact-finding in the company, we learned a lot of knowledge and gathered more information needed to cater to our reports Even though it is just a tour, this is an excellent opportunity to approach the reality of business unit economics I would like to extend thanks to the directors, especially operation management.
Finally, our heartfelt thanks would go to Saigon Newport Corporation, Ms Trang, and teammates, who not only extended a great amount of assistance to me to finish this reportbut also gave relentlessly emotional support.
All the best, Group 8.
Trang 42 Introduce Cat Lai – Saigon Newport Company
Logo Cat Lai Port
Cat Lai Port - Saigon Newport Company is a specialized container port, newly planned and built in Cat Lai Ward - District 2 - Ho Chi Minh City Cat Lai is the largest container port in our country, with a land area of about 60 hectares, 20,000 m2 of warehouse space, a container yard area of 450,000 m2, 973 m of the wharf, and 12 shore cranes including ten gantry cranes of KE (Germany) Cat Lai Port has become a container port with the largest scale and most modern facilities in Vietnam.
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Trang 53 The Port is connected to National Highway 1, Inner Ring, Outer Ring, Ho Chi Minh City -Long Thanh - Dau Giay Expressway by Inter-provincial Highway 25 with a total load capacity of H30 Goods can be transported from TCCL Port to key economic regions of Binh Duong, Dong Nai, Long An, Ba Ria Vung Tau, and Mekong Delta provinces quickly and easily by the above expressways.
TCCL Port is operated by the Port Dispatch Center - Saigon Newport Corporation The port is equipped with 30 modern Panamax wharfves and a current container management system TOPX of RBS and TOPVN There are three ports built in the area of Port A, B, and C,in which there is a dedicated area for refrigerated containers with the temperature set to suit the goods of the customer and a separate wharf designed for barge handling, packing rice cargo Empty containers are managed by three depots located inside Cat Lai port The outer area has four direct link depots Currently, on average, Cat Lai Tan Cang can receive 81 flights a week.
Trang 64 Images collected from the trip:
Trang 75 The purpose of the cargo inspection area is to monitor and assess whether the products are suitable for transportation and customs clearance The primary purposes of this area are as follows:
- Verify the items' quality and assess their validity, safety, and reliability.
- We are examining documentation of purchases, such as paperwork, invoices, etc - Poor-quality items will be dealt with in accordance with the law Products that do not adhere to quality and safety standards will be handled in this manner Facilitate the efficient and secure conveyance of items.
When inspecting goods, there must go through 3 results: green channel, yellow channel,and red channel.
- Green channel: safe area, clean goods, no problems, customs clearance is allowed - Yellow channel: Check documents and items to be checked: wood (check whether
the origin is smuggled or not), certificate of origin, and issue C/O to enjoy tax incentives.
Trang 86 - Red channel: Checking documents combined with a physical inspection of goods.
This is a centralized inspection area (inspector or manual inspection house), where There are two types of examination: scanner (X-ray) and the naked eye.
- Items likely to enter the red channel are valuable goods (medical equipment), chemicals, raw materials (wheat flour because it is easy to hide prohibited goods inside), and specialized inspection (customs will load and unload them) 1 batch of anygoods leaving the country for inspection, even if they have been cleared) - All transportation costs from the yard to the inspection house are borne by the
enterprise Goods cannot be checked immediately due to the limited number of customs inspections, so enterprises have to pay additional storage costs - If the goods are alcohol, they must enter the red channel, check the goods, and
put the customs stamp on them (the enterprise pays the fee).
Trang 97 Describe the process of receiving and loading goods into that warehouse by forklift.
During the field trip at Tan Cang - Cat Lai port, students had a chance to visit CFS (Container Freight Station) CFS warehouse is a warehouse system used to collect and separate retail goods, also known as LCL (Less than container load) Here, goods will be split or gathered from many shippers in the same container Goods will be charged an operation fee called CFS fee for the public service department to assist in gathering, separating as well as preserving The General Department of Customs is the place to license the establishment of CFS warehouses.
Warehouses are often hired by logistics companies or companies, import and export companies, to store goods while waiting for customs clearance procedures to be completed or waiting for transportation to the final destination.
At Cat Lai port, there are two types of CFS warehouses: import CFS and export CFS The imported goods CFS has an area of 18,000 m2, a total capacity of 12,500 pallets, 64 shelves, and 26 import and export doors CFS warehouse for export goods: 1st floor, warehouse 05, with an area of 6,250 m2, total capacity is 3,500 pallets, 22 shelves, 19 import and export doors, five elevators with a capacity of 5 tons/ladder.
In addition, the warehouse system is fully equipped with modern equipment and machinery, such as forklifts, to ensure the fast, efficient, and timely storage and transportation of goods CFS warehouse allows the storage of a variety of goods, except for goods that violate Vietnamese law, such as counterfeit goods, banned goods, and dangerousgoods,
According to Clause 3, Article 61 of the 2014 Customs Law, items that are allowed to be stored in CFS include:
● Goods imported from consignee without customs clearance.
● Goods are brought into CFS for physical inspection after completing customs procedures or registering customs declarations.
Trang 10The main jobs in CFS include:
● Pack, sort, and redistribute queues for export.
● Transit goods are retail goods that need to be brought to CFS before packing to arrange, repack, re-export goods, and put in the same container with other export shipments frommany different suppliers to export to a third country.
● Separating imported shipments to wait for import procedures, CFS also provides the service of transferring ownership of goods during storage Advantages when sending goods to CFS: If a business has many odd shipments to sell to many customers in the same country when sending goods to a CFS warehouse, it helps businesses divide into many small shipments to sell to customers, saving costs Shipping costs and transit times are a lot.
● In other words, CFS helps importers jointly exploit a B/L for imported goods with the advantage of simplifying and convenient import legal procedures and saving development costs born
● Disadvantage: Enterprises are not allowed to arbitrarily exploit goods according to the regulations of customs officers CFS costs are incurred by the owner of the goods to pay for the warehouse CFS warehouses are usually located near ports and warehouses, so businesses There may be a cost to bring the goods to the CFS
Trang 119 (1) When the shipment arrives at the port, customs clearance will be carried out; the goods will be transported to the warehouse.
(2) The warehouse staff will receive notification of the arrival of the shipment, andthe warehouse staff will prepare for the receiving process.
(3) The shipment is inspected by warehouse personnel to ensure that it matches the order and is in good condition Any damage or deviation from the order is reported to the parties concerned.
(4) Before using a forklift to unload goods into the warehouse, employees must check the forklift to see if it is in normal operation to ensure the safety of employees and goods.
(5) After that, the forklift driver will move the truck to the loading door to proceed with unloading The shipment is unloaded from the container or truck by forklift Forklift operators carefully maneuver to remove items from containers or trucks and place them in designated areas for transport The forklift will lift the goods to a stable position, then move the goods to the predetermined position and place them on the floor.
(6) Warehouse staff are responsible for checking the quantity and quality of items against packing lists and purchase orders to ensure that everything is in order (7) Goods will be neatly arranged and stored in the warehouse in the designated area, waiting for the time to be shipped.
(8) When items are required to be transported, they are loaded onto trucks or containers by forklift Forklift operators carefully lift and move items to the loading area Just like that, the goods will be transported by the forklift in a timely manner without losing time.
Trang 1210 and describe those routes.
Along with the development of freight transport today, almost all transport routes by rail, river, road, or air cannot meet the maximum demand for international trade Therefore, the sea shipping method is the preferred and most chosen mode of transportation for many businesses because of many reasons and advantages, such as being able to transport large volumes of goods with a variety of goods, low cost, reduced environmental pollution as well as easy and quick procedures.
Inland sea transport routes in VN are currently being implemented by shipping lines throughout
1 Inland transportation routes:
Vietnam has been constantly building and perfecting domestic and international sea routes Our country is focusing on exploiting inland waterways such as:
North-South route: This is considered the largest inland sea route in our country,with a scale stretching from North to South as well as passing through all portsin the country.
Trang 1311 North Central Coast: Ports in the North to the Central region will be located along the route from North to Central- South Central route: Ports in the North to the Central region will be located along the route from Central to South Some other domestic routes such as HCMC - Can Tho, HCMC - Ba Ria Vung Tau, HCMC - Hanoi, HCMC - Nghe An, HCMC
Da Nang, in addition, To meeting the domestic transportation needs of businesses, our country also has many other routes.
2 International transport routes
Cat Lai is one of the top choices for freight and international trade However, the ships that can go from Cat Lai are the Inner Asia line It means that these ships can only go aroundthe Inner Continent However, we have two big markets, China and the US, now ships from Cat Lai play the role of consolidating goods to deep-water ports (Deep-water ports are ports with a depth greater than 14m) Vietnam has advantages in terms of coastline, so our country has deep-water ports stretching from North to South
From the deep-water ports of Cat Lai, there are shipping routes such as: a Route from Vietnam to Europe
Trang 1412 The characteristics of this route are affected by the weather and climate conditions of the two continents, Asia and Europe, and this is a long sea route, so the issue of maritime safety is always absolutely focused.
The specific routes on this route are as follows:
Vessels from Vietnam will depart from the East Sea and arrive in Singapore The purpose is to visit this stop to complete the necessary procedures and buy more materials The ship will then dock in the Malaysian archipelago to the Red Sea by passing through the Indian Ocean To reach the Mediterranean, ships must continue through the Suez Canal In addition, ships can enter the ports of Costanza, Vacna and Odessa by passing through the Istanbul Ttrait or going to the Nordic countries from the Strait of Gibraltar to the Atlantic Ocean.
On the other hand, ships can go through the Kiel Canal to reach the Baltic Sea to dock in the ports of Nordic countries such as Finland, Germany, Sweden, and Poland.
b Route from Viet Nam To America
Trang 1513 There are three routes from Vietnam to America:
Sea route passing through the Suez.
This route is about 11,600 nautical miles long On this route, the starting point of ships from Vietnam goes to the Singapore and Malacca straits and turns south of Sri Lanka from the Indian Ocean into the Red Sea to reach the Suez Canal Crossing the Suez Canal, ships will reach the Americas by crossing the Strait of Gibraltar after crossing the Mediterranean Sea.
From the above information, we can see that in order to reach the Americas by this route, ships that want to reach the Americas must pass through the east coast of the Pacific Ocean into the northern Indian Ocean to the Red Sea, the Mediterranean Sea and finally the Mediterranean Sea Atlantic The advantage of this route is that it is close to the shore, so it is faster and easier to respond to inadequate situations The Suez Canal is weather dependent, so there are speed advantages to the flow However, the weakness of this route is that the density of ships is high here, so the cost of passing the canal is also a notable factor In addition, rare cases may occur, but Evergreen's Ever Given ship is stuck here, leading to a traffic jam here In addition, there are strong winds and storms from June to September.
Sea route through Cape of Good Hope
The Cape of Good Hope route is longer than 12000 nautical miles, however, depending on the specific locations of the consignee With this sea route, the ship will cross the JakartaStrait to Indonesia, to the Cape of Good Hope (South Africa) by crossing the Indian Ocean and finally across the Atlantic Ocean to Central America, East America or the Caribbean Sea -calves and reverse glands
Unlike the Suez Canal, the route through the Cape of Good Hope has a low and sparse number of ships, resulting in relatively low costs in this area However, the disadvantage can be mentioned that the Cape of Good Hope is far from shore, leading to the ship going through a lack of fuel due to not being refueled in time and solving the problem also takes longer The weather here is considered to be quite bad, often with storms, tornadoes, big waves and high winds causing the port to obstruct the traffic of ships passing through this route.
Sea route passing through the Panama Canal