19 Figure 2-3: Total cost of multimodal transport of shipment in route 1 .... 25 Figure 2-6 Total cost of multimodal transport of shipment in route 2 .... + Can Tho - Vi Thanh route know
Describe transport infrastructure of a given province/city for available modes of transport)
Overview about Can Tho
Can Tho is a central city in MeKong River Delta Vietnam It is one of five central cities in Vietnam On 24 June 2009, Can Tho city was officially recognized as urban center of grade 1 by the Prime Minister, belonging to key economic region in MeKong River Delta and was forth key economic region in Vietnam
1.1.1 GEOGRAPHY AND DEMOGRAPHIC AND ECONOMY
The city is adjacent to An Giang province to the north, with Dong Thap and Vinh Long province to the east, with Kien Giang province to the west, and with Hau Giang province to the south It is on the trade axis between the Long Xuyen quadrangle, Ca Mau peninsula, Dong Thap Muoi and Ho Chi Minh City Can Tho is located on the southern bank of the Hau River, a part of the Mekong River flowing through 6 countries, especially the middle and lower parts flowing through Laos, Thailand and Cambodia
Figure 1-1: The flow of Mekong Delta
According to the census in 2019, the population in Can Tho was about 1,235,171 people with a population density of 860 persons/km 2 Among them, there are around 860,557 urban and 374,614 rural people Natural population growth rate increases by 8.2%
In 2012, Can Tho's economy flourished with an exceptional growth rate of 10.3%, surpassing other central cities Industry production value surged by 7.5%, while the total sales of goods and services revenue saw an impressive 18.5% increase Social development investment capital also witnessed a rise of 4.97% year-over-year Furthermore, budget revenue reached 5,092 billion VND, contributing to Can Tho's economic success.
The Delta has four major modes of transportation which are road, inland waterway, marine and air facilities The infrastructure for road transport is basically in place, however it still needs many improvements The inland waterway and sea modes are not optimally used yet since river and sea routes have not received adequate investment and a number of seaports have deposit of silt The delta has four airports, including two international facilities, which can meet the demand for air transport until 2030
Earnings from exports and services reached $966.85 million, fulfilling 54 per cent of the yearly target and marking an increase of 16.37 per cent over the same period in 2017 Of this, the export revenue of goods was
$773.48 million,up by 20.73 per cent year-on-year
Can Tho’s key export products included seafood ($238 million), rice ($141.2 million), farm produce and processed food (nearly $70 million), leather ($42.5 million), fertilisers ($12.2 million) and pharmaceuticals and veterinary drugs ($11.9 million).
Transport infrastructure and modes of transport in Can Tho
The main supplier of electricity is from the national grid with a 220KV line, and supplying electricity to the city through a 110KV line and 6 substations In addition to the above supply, the city is allowed by the Prime Minister to build the O Mon Power Center project with a total capacity of 4 plants with a capacity of 2,700MW
Can Tho City boasts a robust postal and telecommunications system The central post office and four district post offices facilitate global communication The postal sector comprises one state-owned enterprise and 24 private entities, operating through 35 post offices, 48 commune cultural post offices, and 216 postal agents Additionally, Can Tho's water supply system includes two existing plants with a combined capacity of 70,000 m³/day, with plans to expand capacity to 200,000 m³/day.
The whole city has 2,762.84 km of roads, of which 123,715 km are national highways, 183.85 km of provincial roads, 332.87 km of district roads, 153.33 km of urban roads, 1,969,074 km of hamlets and communes, Town The waterway network in the area has a total length of 1,157 km, of which about 619 km are capable of transporting vehicles with a tonnage of 30 tons or more The river routes managed by the district include 40 routes with a total length of 405.05 km, ensuring the operation of vehicles with a tonnage of 15-60 tons
The entire road network is well - developed, however the quality is inadequate Can tho has extremely competitive truck services, however they are inexpensive by international standards and the quality of service is poor Because to a lack of maintenance systems, effective organizations and working methods, and financial resources, many roads are in bad shape Low design requirements make it difficult for current huge trucks and buses to operate Many roads are only visible on the map due to a lack of tertiary roads Only a provisional decree describing the establishment of VRA exists, with no road act or corresponding regulations Inadequate road safety transportation policies result in astronomical road accident costs Can Tho has also not sufficiently developed infrastructure management to meet the demand for road traffic
In recent years, Can Tho has got many funds to invest in road transport as it is located at the center of Mekong Delta and it has bridged some nearby provinces For example, a $95.5 million upgrade has been proposed for the 70km plus HCMC Can Tho National Highway 1A section The project will focus particularly on fixing downgraded sections of the highway that run through HCMC, Long An, Tien Giang, Vinh Long and Can Tho
It will also upgrade a 25 km section alongside the highway In the Mekong Delta province of Tien Giang, it will widen six bridges which are narrower than the street’s width, thus causing traffic jams
There are 06 national highways passing through Can Tho including: National Highway 1, National Highway
91, National Highway 80, National Highway 91B, South Song Hau route (91C) and Can Tho - Vi Thanh route (61C), conveniently connecting Can Tho with Ho Chi Minh City and other provinces in the region
+ National Highway 1A starts (km 0) at Huu Nghi border gate on the border between Vietnam and China in Lang Son province, and ends at Nam Can town located in the territory in Ca Mau province with a total length of 2360 km It passes through the center of half of Vietnam's provinces and cities, connecting 4 major cities: Hanoi, Da Nang, Ho Chi Minh City and Can Tho Highway 1A along Can Tho is 11 km long, and it passes through Can Tho bridge, connecting Can Tho and Vinh Long
+ Highway 91 (142 km) starts in Can Tho, running through Long Xuyen,Chau Doc and ending at Tinh Bien border gate in An Giang Highway 91 goes along the southern bank of Hau River from Can Tho to Chau Doc, then continues along the Cambodian border and it connects with National Highway 2 of Cambodia in the territory of Ta Keo province, about 110 km from Phnom Penh
+ Highway 91B (17,793 km) is the road connecting Cai Cui port in Tan Phu ward, Cai Rang district to National highway 91 in Phuoc Thoi ward, O Mon district in the territory of Can Tho city It runs through Cai Rang, Ninh Kieu, Binh Thuy and O Mon districts, intersecting with the road leading to Can Tho bridge
+ Highway 80(215km) starts point is My Thuan Bridge - Vinh Long city, running through the territory of the provinces: Vinh Long, Dong Thap, An Giang, Can Tho, Kien Giang and the ending point is Ha Tien border gate in Kien Giang
+ South Song Hau route (known as 91C, 147 km) starts at the intersection with National Highway 91B in Ninh Kieu District (Can Tho) and ends at the intersection with National Highway 1A in Bac Lieu City The route goes through Cai Rang and Ninh Kieu districts (Can Tho); Chau Thanh district (Hau Giang); Ke Sach, Long Phu, Tran De districts, Vinh Chau town (Soc Trang) and Bac Lieu city (Bac Lieu)
+ Can Tho - Vi Thanh route (known as 61C, 47km), has the starting point at the intersection between National Highway 1A and the road to Can Tho Bridge, the end point intersecting with National Highway 61 and passes through Cai Rang district, Phong Dien district (Can Tho city), Chau Thanh A district, Vi Thuy district and Vi Thanh city (Hau Giang province)
The City Expressway connecting Ho Chi Minh City, Trung Luong, My Thuan, and Can Tho spans 154km Its Ho Chi Minh City - Trung Luong section is operational, while the Trung Luong - My Thuan stretch (51km) is set to open in 2021 The final segment, My Thuan - Can Tho (22.9km), is anticipated to open in 2022, completing the project's full length.
Lo Te - Rach Soi Expressway is an expressway connecting Can Tho with Kien Giang
Can Tho bridge: connecting Can Tho with Vinh Long, Vam Cong bridge: connecting Can Tho with Dong Thap In addition, the Can Tho - Xa No - Cai Tu route is an important bridge between Ho Chi Minh City, Hau Giang province and Ca Mau
Since Can Tho can connect to all of the nearby province and Ho Chi Minh City, road transport is the main mean of transportation here However, those roads just mainly travel inside Viet Nam, in order to export the goods from Can Tho to foreigners, they must use multimodal transport or select other transport
Suggest 3 options for multimodal transport operation of a shipment (LCL or FCL) to and from a
Initial info of shipment: cargo, volume, quantity
Can Tho Seafood Import Export Joint Stock Company Lot 2.12, Tra Noc 2 Industrial Park, Can Tho city
Seafood Supply Company 1500 Griffin Street East Dallas, Texas
− Value: USD 61,700 equivalent USD 2.74 /kg
Cargo specifications
Frozen fish sent to a location where it will be sold immediately is likely to be devoured within a few hours, and there is no danger in its being partially thawed upon arrival Depending on the length of the travel, frozen fish may be transported in uninsulated containers Frozen fish that must be carried to other cold storage must be transported in an insulated truck, preferably with refrigeration equipment to keep the air space at a temperature of around -20 degrees Celsius
The following is a list of possible cooling methods:
− Mechanical refrigeration is accomplished by moving air across the storage space using wall coolers or forced convection coolers In certain circumstances, a jacketed system is used to distribute the air
− Eutectic plates that can be recharged
− A complete loss system can employ solid or liquid carbon dioxide or liquid nitrogen.
Select the appropriate service
Figure 2-1: The route 1 from Can Tho to Dallas through Ningbo Port
Ningbo Port boasts an illustrious history, dating back 7,000 years Its strategic location and deep-water harbor have made it a major hub for international shipping In 2013, Ningbo Port ranked third and fourth in cargo tonnage and container volume on the Chinese mainland and the world, respectively Natural advantages such as calm currents, minimal silt, and ice-free conditions further enhance its capabilities Notably, Ningbo Port can accommodate super-large vessels (100,000+ DWT), the highest number among Chinese mainland ports.
Presently, Ningbo Port has established business relations with over 600 ports from more than 100 countries and regions The top 20 liner companies in the world all have liners calling at Ningbo Port By the end of 2013, the number of container liners of Ningbo Port amounted to 235, including 117 main ocean-going liners And the average number of container liners calling at Ningbo Port per month has surpassed 1,400
From Can Tho to Cai Mep Thi Vai seaport cluster: by road transport, trucks will transport goods along National Highway 1A, then go to Trung Luong - City Expressway Ho Chi Minh
From Cai Mep Thi Vai seaport cluster to Ningbo port, transshipment at Ningbo: by maritime transport
From Ningbo port to Houston port: by maritime transport, the vessel will across the Pacific Ocean, go through the Panama Canal
From Houston port to Customer warehouse in Dallas city: by road transport
Figure 2-2 shows route from Vietnam to Dallas through Ningbo Port
We can see the transport road in the picture above The road from Can Tho to Dallas will go through the Panama Canal via the Ningbo port The total distance from Can Tho to Dallas is estimated at about 23,051km and it took about 38 days 1 hour
Table 2-1: Distance and lead time of route 1
Phuoc Thoi O Mon – Cai Mep Thi Vai seaport cluster (including handling time)
Customs procedure at Cai Mep Thi Vai seaport cluster
Cai Mep Thi Vai seaport cluster– Ningbo port 2,830 5 days
Houston port-Dallas city 384.6 9 hours
Base on the commodity and the route, we have established the table which give the cost in detail, including all charges and surcharges:
Table 2-2 Cost of shipping of route 1
8 House B/L or FCR correction stamp 42
Table 2-3 Total cost of the shipping lines of route 1
1 O/F (including all charges and surcharges) 22,513.74
2 Trucking fee (from Can Tho - Cai Mep Thi Vai seaport cluster)
3 Trucking fee (from Houston port - Dallas) 971.48
Figure 2-3: Total cost of multimodal transport of shipment in route 1
The total cost of multimodal transport of a shipment is 24,015 USD Due to Covid 19, the cost has fluctuated significantly However, this is a reasonable cost for transporting a reefer container, since the reefer container required more cost Also, our cargo is seafood, this is quite hard for us to transport by air, it is very costly Therefore, the lead time is usually long, commonly it lasts more than 1 month
− Of the three routes, this one is the shortest
− Navigation circumstances are simpler, therefore less comprehensive marine maps are required
− Charges via the Panama Canal are substantially lower than those through the Suez Canal;
− The ship may go over the equator at 5 degrees latitude Most days of the year, the weather in the north is quite consistent and pleasant
− Paying fees through the Panama Canal is a drawback
− This shipping line is quite crowded, also this is the peak time, especially when we tranship at Ningbo port, we have to take everything into account, also considering the delays
− The total lead time is quite long, it lasts for more than 1 month Therefore, whenever we take a shipment, we must consider carefully about the ETD, ETA
Figure 2-4: The route 2 from Can Tho to Dallas through Panama Canal
Since the Canal first opened on 15 August 1914, the waterway has provided transit service to more than 815,000 vessels
Of the thousands of vessels transiting the Canal each year, about 30% of the total oceangoing transits are by Panamax-size vessels, the largest vessels the waterway can accommodate
Panama Canal connects more than 144 routes, reaching 1,700 ports in 160 countries By providing a short passageway between the Atlantic and the Pacific Oceans, the Canal has influenced world trade patterns, spurred growth in developed countries, and has been a primary impetus for economic expansion in many remote areas of the world
By far, most of the traffic through the Canal moves between the east coast of the US and the Far east (such as China, Japan, North Korea, and Vietnam)
From Can Tho to Cai Mep Thi Vai seaport cluster; by road transport, a truck will transport cargoes along National Way 1A and National Way 50
From Cai Mep Thi Vai seaport cluster to the Savannah port: by marine transport, the Panamax vessel 3000-
5000 TEU will sail from Vietnam to the Philippines, then cross the Atlantic, transit the Panama Canal, and arrive on the Savannah port at the East Coast of the United States
From Savannah port to Dallas: by road transport, a truck will carry the cargoes from Savannah port and go through Macon, Atlanta, Mississisppi and Shreveport to Dallas
Figure 2-5: shows route from Vietnam to Dallas through Panama Canal
We assume that the vessel will operate with a velocity of 37 km/h (the average speed of the vessel at sea) The total distance from Cai Mep Thi Vai seaport cluster to Dallas city is estimated at about 26,401km and it took about 27 days (The distance and lead time are calculated based on Ports.com website)
Table 2-4: Distance and lead time of route 2
Phuoc Thoi O Mon – Cai Mep Thi Vai seaport cluster (including handling time) 263km 7 hours
Custom procedure at Cai Mep Thi Vai seaport cluster
Cai Mep Thi Vai seaport cluster - Panama Canal 21,000 km 21 days
Panama Canal - Savannah Port 3,493km 3 days
Savannah Port - Dallas 1645 km 16 hours
It can be seen that transporting cargo through the Panama Canal saves much time other than other routes When compared with the alternative routes – circumnavigating South America and the notorious Cape Horn or taking a more northern route and negotiating the icy waters of the Arctic Sea – this short period of time saves any container vessel about 22 days and a great deal of peril For ships using the canal to avoid the Cape of Good Hope around the southern tip of South America, the voyage is shortened by about 15,000km
Based on our customer’s commodity and requirements, our company offers cost in detail, including all charges and surcharges
Table 2-5 Cost of shipping from Cai Mep Thi Vai seaport cluster to Savannah port
8 House B/L or FCR correction stamp 42
Table 2-6 Total cost of the shipping line of route 2
1 O/F (including all charges and surcharges) 22,413.7
2 Trucking fee (from Can Tho- Cai Mep Thi Vai seaport cluster) 530
3 Handling fee at Savannah Port 100
3 Trucking fee (from Savannah port- Dallas) 2,873
Figure 2-6 Total cost of multimodal transport of shipment in route 2
After considering all the factors from the route, cost to reliability, Maersk is the most suitable shipping company since they have direct shipment from Cai Mep Thi Vai seaport cluster to Savannah port through Panama Canal without transshipment
− This route has the shortest transport time The vessel does not need to stop at any transit port Navigation circumstances are simpler, therefore less comprehensive marine maps are required
− As the vessel does not stop at any transit port and it does not go along the coast so when any accidents happen, it’s difficult for the rescued ship to help it It needs more food and fresh water preparation for a very long day voyage since sailors and workers working on the vessel stay on it for at least 20 days
Figure 2-7: The route 2 from Can Tho to Dallas through Suez Canal
The Suez Canal (in Egypt) is an artificial transportation channel running from the north to the south through the Suez Strait in northeastern Egypt, connecting the Mediterranean Sea with the Gulf of Suez, a tributary of the Red Sea It was built at the beginning of the 16th century The Suez Canal is 163 km long, the narrowest part is 60 m, and the depth at it is 16 m enough to allow large ships of 150,000 tons to pass Today, it plays an important role in international transportation because it not only saves money but also saves natural resources in transportation In 2016, the Egyptian government decided to expand this project by building a new Suez Canal The new canal is 72km long, 35km of which is newly dug parallel to the old canal and 37km of new islands, expanding and dredging the old canal bed
From Can Tho to Cai Mep Thi Vai seaport cluster: by road transport Trucks will transport goods along National Highway 1A, then go to Trung Luong - City Expressway Ho Chi Minh
From Vietnam's Cai Mep Thi Vai seaport cluster, Panamax vessels with capacities ranging from 3000 to 5000 TEU embark on a maritime voyage to Houston port Their journey traverses the Singapore Strait, Malacca Strait, and Indian Ocean, where they divert southward to Sri Lanka before navigating through the Red Sea Continuing through the Suez Canal and the Mediterranean Sea, the vessels pass the Gibraltar Strait and traverse the Atlantic Ocean, eventually reaching their destination at Houston port.
From Houston port to Customer warehouse in Dallas city: by road transport, a truck will carry the cargoes from Houston port and go through East Fwy, North Fwy to Dallas
Figure 2-8: Route from Can Tho (Viet Nam) to Dallas (USA) on the map
Evaluate the impact of Covid- 19 to Vietnam’s logistics industry and suggest at least 3 solutions for
Important impacts of Covid-19 to Vietnam’s logistics industry
3.1.1 The distribution of containers is uneven among countries:
The reason is said to be the imbalance in the structure of import and export goods during the epidemic season, especially with the Asia route to Europe and America In early 2020, the US and Europe imported a lot of goods, but because of the severe epidemic in these places, the containers could not be exported to other places
If a country is closed, the container is also stuck in that country Moreover, The broken containers are more than the containers produced in recent years In the stressful epidemic situation, many businesses could not go to the port to pick up their goods, and many containers were still stuck at the port
Solution: Shipping lines need to strengthen repair of damaged containers and produce more containers to compensate for the part of containers stuck in the epidemic area The government needs to have a policy to facilitate businesses to bring goods to the warehouse because leaving containers stuck at the port not only causes difficulties for the port's operation but also costs businesses more
Many drivers transporting goods from epidemic areas to safe areas were not allowed Drivers also face psychological problems Some drivers will not accept to work in epidemic areas, so many drivers quit their jobs and they are ready to work again when the epidemic is over
International cooperation is vital, with countries agreeing on import and export standards for epidemic areas, including requiring two doses of vaccination and certificates Companies must incentivize drivers with competitive salaries to maintain operations despite the pandemic Instead of solely prioritizing prevention, a balance should be struck to adapt to the realities of the epidemic.
3.1.3 Shipping costs increased by about 10 times compared to previous years
•The increase in gasoline prices,
•The decrease in number of trips of shipping line going to Vietnam
•Many costs of disease prevention, shipping line companies, etc
Solution: since this is a worldwide situation, it is very difficult to change Therefore, the initiative of businesses will help themselves overcome difficulties Enterprises should carefully consider the cost and profit when exporting, focusing only on producing potential products during the epidemic season As for food items stored in cold storage, they can still be exported after the epidemic is over
3.1.4 Logistics companies are facing difficulties in payment terms during the epidemic season
Prior to the pandemic, logistics providers granted customers a 15-day grace period from the completion of services However, the prolonged epidemic has strained customer businesses, prompting them to request extended payment terms This deferral has negatively impacted logistics companies.
Solution: Logistics companies should have stricter payment terms:
The company will accept a longer delay in payment than before the pandemic but must give a specific date for partners to follow
The company may add provisions that require the intervention of a third party such as a bank If the payment date is reached but the client company has not yet paid, the bank will pay the logistics company and the bank will be the new creditor of the client company
3.1.5 Although the epidemic creates many difficulties in the logistics industry, it also creates many opportunities:
− Large quantities of vaccines imported from abroad are stored in cold warehouses
− Seafood and vegetable products that cannot be exported due to covid 19 are being stored in cold warehouses
The activities of the government and cold warehouse businesses also contribute to the development of the warehouse service industry in the epidemic:
− VLA proposes to the Government to reduce corporate income tax by 30% for 2020 This tax reduction is considered as a part to support businesses to overcome business difficulties in 2020
− For cold storage enterprises, cold storage of imported and exported goods should be preferentially priced because currently the price of this service area is still 25% - 30% higher than the price of electricity produced
− Warehouse businesses have actively reduced the rental price of cold storage by 10-20%; actively participate in transporting goods to the domestic market in addition to serving import and export, especially goods for production and consumption during the time of social distancing
− This creates a premise for cold chain development in the future because it is expected to be a logistics trend in the next few years
− Information technology in logistics develops
Logistics activities are gradually being modernized Promoting digital transformation has
− Saved operating costs: cutting costs for daily use such as: pen, paper, etc
− Saved working time because the computer will do several things such as automatically making reports, creating meetings at home without going to work, etc
− Stored data on a common platform so that employees can get and receive information to work during the epidemic season
The company can still operate during the epidemic season and create a premise for applying information technology in the future.
3.2 Solutions for the Covid-19 situation:
− Monitor and receive timely and accurate information for customers about the situation of the epidemic and the transportation situation
− Provide anti-epidemic masks to all employees of the company, especially voucher staff working directly at warehouses and outside airports, enhancing antiseptic and disinfection throughout the operation stages
− Control the price, do not increase the price too high, cut costs that may arise unnecessarily
− Ensuring the most suitable fare balance for customers
The COVID-19 epidemic has had an impact on their labor resources and migration to certain regions It will be tough to solve cases needing professional expertise Companies must use temporary labor techniques for some positions while also considering automation or technology for others
Following the pandemic, digital and cybersecurity industries grew increasingly reliant on technology As cyber attackers take advantage of transitory instability and rapid technological and operational changes in the business, the nature of technology risk is gradually evolving Responding to this threat will have a long-term impact because remote and digital work will become more common in many sectors
− Supply chain mapping and analysis
The outbreak of the COVID-19 pandemic has caused consecutive disruptions across the globe It's more necessary than ever to improve transparency for each critical component of the supply chain, as well as the level of interdependence and related data, in order to identify potential financial and operational impediments This enables businesses to create and manage contingency plans, resulting in a more flexible and long-term supply chain
Additional alternative supplies should be identified and developed
Make use of tools to have a deeper grasp of the needs of your customers (e.g., changing service mixes, better understanding the reasons for ordering)
Increasing the transparency of the supplier system (e.g., risk warning, scripted planning methods)
Task Allocation
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5 Ngành Logistics trước Sức ép Của Dịch Covid-19: Nganh-Logistics-Truoc-SUC-EP-CUA-Dich- Covid-19: Công Ty cổ Phần Cảng Dịch vụ Dầu Khí đình VŨ Ngành logistics trước sức ép của dịch
The COVID-19 pandemic has created significant challenges for the logistics industry, impacting global supply chains and economic activities As a consequence, the industry has had to adapt to the new circumstances, implementing measures to safeguard operations and ensure the uninterrupted flow of goods.
6 Ảnh Hưởng TỪ đại Dịch Covid-19 đến Doanh Nghiệp Logistics và Giải Pháp đề Ra Cho Năm 2021
Logistic (2021, May 16) Retrieved November 3, 2021, from https://xnktrongquan.com/khach- hang/anh-huong-tu-dai-dich-covid-19-den-doanh-nghiep-logistics-va-giai-phap-de-ra-cho-nam- 2021/