Logistics and transportation companies play an active role in efficiently managing and coordinating all aspects of the cargo transportation process from origin to destination. Their responsibility is not only to optimize costs but also to ensure the minimization of risks for goods through the implementation of comprehensive insurance policies.With professionalism and extensive knowledge of international trade processes, logistics and transportation businesses create a conducive environment, supporting nations in accessing and expanding their markets on a global scale. In addition to promising growth prospects, these businesses also encounter numerous challenges and difficulties arising from intense competition across industries when engaging in international trade. To ensure sustainable existence and development in an increasingly competitive landscape, they must continuously research, stay updated on market trends, and enhance service quality. This is imperative for optimizing business performance and maintaining long-term viability in the face of the escalating challenges of international business. Additionally, recognizing that crayons are widely used as educational and creative tools in schools, offices, and households, it is observed that the demand for importing this product from China, Vietnam's largest supply market, is steadily increasing. However, during the internship at Top Shipping Vietnam Joint Stock Company - Danang Branch, the author noted that the importation of this item, while promising, is relatively novel and not fully exploited. Engaging in the business of delivering crayons, though seemingly straightforward, still presents significant challenges affecting various processes, such as handling complex documentations and efficiently managing relationships between customers and staff, as well as internal staff relations. These issues contribute to delays and unwanted costs. Therefore, efficiently understanding and implementing the Full Container Load (FCL) import process of crayons from China via maritime transportation will contribute to enhancing the overall business efficiency for the company. This is the reason behind the selection of the research topic: “Analyzing the process of importing Full Container Load (FCL) sea freight forwarding for crayons from China at Top Shipping Vietnam Joint Stock Company – Da Nang Branch” for my graduation thesis. The objective of this study is to assess the advantages and limitations of the current process, thereby proposing solutions to enhance the efficiency of import-export operations at Top Shipping Vietnam Joint Stock Company. The aim is to assist the company in tightly controlling the quality of services and establishing a professional image, creating a positive impression in the minds of customers.
Rationale
In recent years, Vietnam has made significant strides in global integration and trade enhancement to revitalize its economy following the adverse effects of the Covid-19 pandemic Notably, in 2023, Vietnam's total import-export turnover reached $683 billion USD, with consumer goods contributing 6.2% at $18.49 billion USD Despite a 6.6% decline from the previous year due to the global economic downturn, this figure indicates positive progress for Vietnam's economic development in 2024 Key import markets for Vietnam include ASEAN, South Korea, and China, with China emerging as the largest partner, boasting an estimated import turnover of approximately $111.6 billion USD.
According to Statista, around 80% of products are transported by maritime vessels, underscoring the significance of ocean shipping in global trade In Vietnam, seaport transportation reached approximately 693.756 million tons in the first 11 months of 2023, reflecting a 1.1% increase from the previous year, with imported goods making up 203.434 million tons This data highlights the crucial role of maritime transport in Vietnam's trade development Notably, the volume of imported goods from China via maritime routes continues to rise, driving businesses to meet growing trading demands and enhancing their integration into international markets through cross-border transportation.
2 freight and transportation services becom crucial, efficiently supporting the export and import processes for commercial enterprises
Logistics and transportation companies are essential for effectively managing the cargo transportation process from origin to destination, focusing on cost optimization and risk minimization through comprehensive insurance policies With their expertise in international trade, these businesses facilitate global market access and expansion for nations However, they face significant challenges due to intense competition in international trade To thrive in this competitive environment, logistics and transportation firms must continuously research market trends and improve service quality, which is crucial for optimizing performance and ensuring long-term sustainability.
The increasing demand for crayons as educational and creative tools in schools, offices, and households has led to a rise in imports from China, Vietnam's primary supplier During an internship at Top Shipping Vietnam Joint Stock Company - Danang Branch, it was observed that while the importation of crayons holds potential, it remains underutilized Despite the apparent simplicity of the crayon delivery business, significant challenges arise, including complex documentation and the management of customer and staff relationships, which can lead to delays and added costs Therefore, effectively understanding and implementing the Full Container Load (FCL) import process for crayons from China via maritime transport is essential for improving overall business efficiency.
This is the reason behind the selection of the research topic: “Analyzing the process of importing Full Container Load (FCL) sea freight forwarding for crayons
This graduation thesis focuses on evaluating the strengths and weaknesses of the import-export operations at Top Shipping Vietnam Joint Stock Company – Da Nang Branch The study aims to propose solutions that will enhance operational efficiency, enabling the company to maintain high service quality and build a professional image Ultimately, the goal is to foster a positive perception among customers, reinforcing the company's reputation in the shipping industry.
Objectives
• Firstly, synthesize and structure key theoretical knowledge related to the Full
The Full Container Load (FCL) shipping process by sea involves several critical steps that ensure efficient and quality transportation of imported shipments Initially, a freight forwarding company must coordinate the booking of container space with shipping lines, followed by the careful planning of cargo loading to maximize container utilization Once the shipment is in transit, real-time tracking and communication with carriers are essential to monitor progress and address any potential issues Upon arrival at the destination port, the freight forwarder manages customs clearance and documentation, ensuring compliance with regulations Finally, the efficient delivery of the cargo to the final destination is facilitated through effective logistics management, guaranteeing a seamless experience for the importer.
• Secondly, describe and analyze the FCL shipping process for colored wax crayons from China at Top Shipping Vietnam - Danang Branch
• Thirdly, conduct a detailed analysis and evaluation of the current strengths and weaknesses of the importing process (FCL) by sea through a survey of employees at Top Shipping Vietnam - Danang Branch
• Fourthly, provide recommendations and solutions to enhance the overall efficiency of the shipping process for the company.
Research scope
Data and information have been systematically collected during the period from
2021 to 2024, within the scope of Top Shipping Vietnam Joint Stock Company – Da Nang Branch Particularly, these are elaborated in more detail during the author’s internship from January 2024 to May 2024.
Research subject
This research examines the full container load (FCL) sea freight forwarding process for crayons imported from China, specifically at Top Shipping Vietnam Joint Stock Company’s Da Nang Branch.
Methodology
The author employs a qualitative research method, utilizing both primary and secondary data that has been meticulously selected The secondary data is derived from credible sources, including textbooks, scholarly articles, and reputable online research, along with information from various internal and external data providers, ensuring the article's objectivity.
Furthermore, the author collected primary data through two main research methods: observation and survey
The observational method was utilized to analyze real-life scenarios in the FCL shipping and maritime transportation process, allowing for a comparison with theoretical knowledge This approach established a strong foundation to improve the quality of the research.
The survey method involved interviewing employees engaged in the shipping process to collect their insights and feedback on various steps The data gathered from these interviews will be systematically organized and analyzed, facilitating enhancements and optimizing service quality throughout the procedure.
To process the collected data, the author utilized a combination of research methods, including analysis, synthesis, and comparative statistical methods, ensuring accuracy and transparency throughout the research analysis.
Research structure
In addition to the table of contents, list of tables, list of figures, abbreviations, references, and conclusion, the report is structured into four chapters as follows:
Chapter 1: Theoretical foundations of Full Container Load (FCL) import shipping process by sea
Chapter 2: Overview of Top Shipping Vietnam Joint Stock Company
Chapter 3: The situation of import Full Container Load (FCL) process of crayons shipment by sea freight at Top Shipping Vietnam Joint Stock Company – Branch in Da Nang
Chapter 4: General evaluation and proposal of solutions for the import process of FCL
Crayons shipments by sea at Top Shipping Vietnam Joint Stock Company
THEORETICAL FOUNDATIONS OF FULL CONTAINER LOAD (FCL) IMPORT SHIPPING PROCESS BY SEA
Logistic service
Services are a broad and complex concept defined from various perspectives, with Philip Kotler describing them as activities or benefits provided from one entity to another The intangible nature of services means that they do not involve actual ownership, but rather the right to use, and may or may not be linked to tangible products Research by Vries et al highlights that services are unseen, perishable activities that directly meet consumer needs rather than desires for ownership Additionally, the Vietnamese Law on Prices (2012) characterizes services as intangible goods where production and consumption occur simultaneously, aligning with the legal framework of Vietnam's product structure.
Services fundamentally consist of interactive activities between customers and business elements, incorporating both human and mechanical factors to deliver satisfying experiences These experiences arise from customer perceptions and emotions throughout the service usage process Each service activity follows a defined procedural sequence, involving both employees and customers, along with specific equipment Factors such as the sequence, means, timing, and location of service delivery significantly impact the overall customer experience Consequently, services are closely linked to the processes and procedures that generate them (Wirtz, J & Lovelock, C., 2022).
Services differ significantly from tangible products due to four key characteristics: intangibility, where services cannot be physically touched; simultaneity of production and consumption, meaning they are produced and consumed at the same time; perishability, indicating that services cannot be stored or saved for later use; and heterogeneity, which reflects the variability in service delivery and quality.
Intangibility is a defining trait that sets services apart from tangible products, as services cannot be directly seen or touched Customers assess services primarily through their experiences and personal perceptions, though the level of intangibility can differ among various services.
The unique characteristic of services is the simultaneity of production and consumption, where both processes occur at the same time and are inseparable This simultaneity can manifest in both spatial and temporal dimensions, with varying degrees depending on the specific type of service provided.
Services are characterized by their perishability, meaning they cannot be stored for future use If not consumed at a particular moment, these services will vanish completely Consequently, customers do not possess services after utilizing them; rather, they can only experience and appreciate their value during the time of use.
Heterogeneity in service quality arises from multiple factors, including employee skills and attitudes, timing of service delivery, and customer mood Consequently, even identical services can vary in quality when provided to different customers, by different employees, or at different times.
Logistics services have become crucial in the global economy, serving both individual and organizational customers To boost operational efficiency and remain competitive, businesses must grasp the significance of logistics Understanding this concept is essential, as various sources offer definitions that highlight its importance.
7 there has yet to be a comprehensive interpretation of this concept This is because the concept of logistics services undergoes changes with the development and trends of the logistics industry
Logistics services are defined as comprehensive offerings by companies that adhere to legal procedures, including customs, to facilitate the efficient transportation and storage of goods while addressing customer needs (Gołembska, 1999) Effective logistics services necessitate seamless coordination among delivery, transportation, warehousing, and related activities to ensure a smooth flow of goods throughout the supply chain (Jeszka, A M., 2013).
According to Article 233 of the Vietnamese Commercial Law of 2005, logistics services encompass a range of commercial activities performed by businesses to fulfill customer transportation needs These activities include receiving and transporting goods, warehousing, managing customs procedures and paperwork, offering customer advice, packaging and labeling products, and delivering goods, all conducted in accordance with customer agreements for payment.
The Service Quality model developed by Zeithaml, Parasuraman, and Berry identifies five key factors that shape service quality: Reliability, Responsiveness, Assurance, Empathy, and Tangibles According to JR Evans in "Managing for Quality and Performance Excellence," these factors differ from those associated with manufactured products Parasuraman et al (1985) define service quality as the degree to which a service surpasses customer expectations, a notion echoed by Maister (1984), who emphasizes that customers assess quality by comparing their actual experiences with their expectations This highlights the importance of understanding that both customer expectations and perceptions are mental constructs rather than objective realities Furthermore, while service quality is linked to customer satisfaction, it is not synonymous with it For service-oriented businesses, maintaining high service quality is essential for customer retention.
8 focus on enhancing service quality to attract and retain customers, establish a competitive advantage, and achieve sustainable growth
1.1.5 Definition of logistics service quality
Logistics service quality (LSQ) is essential for a company's success, reflecting its ability to deliver products and services accurately to both internal and external customers (Murphy, J M, 2015) As noted by Ph.D Nguyen Han Khanh and Pham Quang Long (2023), LSQ encompasses more than just the transportation of goods; it signifies a business's commitment to providing professional, reputable, and reliable services that meet or exceed customer expectations, thereby delivering tangible value and optimizing supply chain efficiency A high level of LSQ not only enhances customer experience but also strengthens a company's market position, establishing a competitive advantage and fostering long-term profitability (Huiskonen, J.; Pirttilọ, 1998).
Overview of process
In 2004, the International Federation of Freight Forwarders Associations (FIATA) defined freight forwarding services as encompassing all transportation-related services, whether single-mode or multimodal This includes consolidation, warehousing, handling, packing, distribution, and various auxiliary services such as customs and financial consultancy, cargo declaration, insurance procurement, and documentation related to goods.
According to the Vietnamese Commercial Law of 2005, freight forwarding encompasses commercial activities where freight forwarders manage the receipt of goods from senders and coordinate with transport organizations and warehouses This includes handling paperwork and providing related services to ensure the timely delivery of goods to recipients, as designated by the consignor, carrier, or other consignees.
In the book "Supply Chain Management: Strategy, Planning & Operation," freight forwarding is explained as: "Freight forwarding is an integral part of the supply
9 chain, involving activities related to transporting goods from suppliers to customers, including selecting transportation modes, arranging transport schedules, tracking goods, etc."
Freight forwarding plays a vital role in the supply chain by coordinating essential activities for transporting goods from origin to destination This includes transportation, delivery, loading and unloading, and packaging, all aimed at ensuring the safe, efficient, and cost-effective movement of goods.
1.2.2 The role and scope of freight forwarding
Transportation is essential in today's socio-economic landscape, connecting regions and promoting trade and development across various sectors Freight forwarding services streamline the import and export process, enabling swift and convenient goods exchange between countries With their extensive expertise and professionalism, freight forwarders effectively manage the entire logistics process, including route selection, packaging, loading, unloading, warehousing, and timely delivery, ultimately helping clients save on costs and resources Furthermore, these service providers support customers with legal documentation and issue resolution during transportation, ensuring safety and compliance with schedules.
Freight forwarding companies play a crucial role in international trade by advising and acting on behalf of consignors and consignees, as highlighted in Ngo Thi Hai Xuan's textbook on international freight forwarding They manage and execute all stages of the sales contract, taking on essential responsibilities that help streamline processes and improve transportation efficiency for their clients.
Figure 1.1 Responsibilities of the forwarder when representing the
Shipper/Consignee ( (Ngô Thị Hải Xuân, 2014))
Freight forwarding services share four key characteristics: intangibility, variability, inseparability, and perishability The intangibility of these services complicates customers' ability to assess and price the quality they need, making it challenging to build trust Variability introduces difficulties in maintaining consistent service quality, influenced by the provider, timing, location, and customer perceptions Additionally, the inseparability of logistics services means they are created and consumed simultaneously, directly involving both the service provider and the customer Finally, the perishability of these services results in dependence on seasonal fluctuations, as freight activities cannot be stored and vary with the volume of goods and import-export cycles.
1.2.4 Freight forwarder’s relationship with related parties
The term "international freight forwarding" lacks a standardized definition, resulting in varied interpretations and applications across different contexts.
According to the International Freight Forwarders Association - FIATA, “A forwarder is a person who arranges for the goods to be transported under a contract of
A freight forwarder acts on behalf of the principal, managing essential tasks related to the delivery contract This includes responsibilities such as preservation, storage, transshipment, and customs clearance, ensuring a smooth and efficient shipping process.
Under the Commercial Law of Vietnam (2005), a freight forwarding service provider is defined as a trader with a registered certificate for freight forwarding services This trader is responsible for coordinating various tasks such as receiving, transporting, storing, and delivering goods, as well as handling customs clearance, paperwork, customer consulting, packing, and marking, all in accordance with customer agreements for compensation.
Figure 1.2 The relationship between the forwarder and stakeholders
The table highlights the essential role of the forwarder in the freight forwarding process, acting as a vital link within the supply chain Their activities benefit all stakeholders involved, including customers, shipping lines, and the Customs department, who often engage in close interactions with the forwarder Understanding these relationships is key to grasping the dynamics of the freight forwarding industry.
In the freight transportation process, "customer" encompasses both the shipper and the consignee The shipper, who contracts with the freight service provider, collaborates closely with the consignee, the recipient of the shipment Effective coordination among the shipper, consignee, and forwarder is crucial for ensuring a smooth and efficient transportation experience.
A shipping line, or carrier, is a company that offers freight transportation services through different modes, including road, sea, and air These carriers work in partnership with shippers to efficiently move goods between locations.
According to Article 12 of the 2014 Customs Law, the Customs of Vietnam is responsible for inspecting and supervising goods and vehicles, combating smuggling and illicit cross-border trade, and enforcing related laws They also propose policies and administrative measures for customs applications in export, import, exit, entry, and transit activities, as well as tax policies for exported and imported goods Those required to declare customs for these goods include the owner, the owner of the transport means, the person in charge of the transport, customs clearance agents, and individuals authorized by the owner to carry out customs procedures.
Overview of the goods import process
In section 3.4.1 of the ISO 9001:2015 standard (Quality management systems,
In 2019, the term "process" is defined as a series of interrelated activities that utilize inputs to achieve expected outcomes Similarly, in "Business Process Improvement: The Breakthrough Strategy for Total Quality, Productivity, and Effectiveness," a process is described as a sequence of clearly defined steps designed to accomplish a specific task.
Effective processes in logistics and transportation are essential for achieving profitability goals efficiently and sustainably, as they focus on activities performed in a sequential manner to meet objectives.
1.3.2 Criteria for evaluating the effectiveness of the process
Assessing process performance is essential for effective operations and achieving established goals, as highlighted by the American Society for Quality (ASQ) Joseph M Juran emphasized that measurement is fundamental to improvement; without the ability to measure, understand, and control processes, businesses cannot enhance their operations Consequently, organizations striving for operational efficiency must adopt appropriate, scientific, and objective evaluation methods to optimize their processes.
The Devil’s Quadrangle, developed by Brand and Kolk in 1995, is a prominent process performance measurement system that assesses processes through four key criteria: time, cost, quality, and flexibility This evaluation framework has been referenced in numerous studies, including works by Sarin et al (2011) and Wu & Liu (2008).
Time plays a crucial role in the production process, directly influencing operational efficiency, product quality, and business competitiveness By minimizing production times, companies can quickly respond to market demands and enhance profitability In contrast, extended delays in obtaining raw materials and machinery lead to increased costs and wasted time.
Cost is a vital factor in assessing the efficiency of business operations By measuring, analyzing, and managing costs, leaders can make informed investment, production, and business decisions, leading to optimized resource allocation, reduced waste, and increased profitability.
Manghani's research also indicates that achieving strategic business goals relies heavily on maintaining high-quality standards (Manghani, K., 2011) A work process is assessed from two perspectives: external quality and internal quality
External quality focuses on customer satisfaction regarding products or services, assessing factors such as performance, suitability, serviceability, and employee attitude In contrast, internal quality is evaluated from the perspective of the task performer, highlighting aspects like task completion, skill utilization, the impact on others, autonomy, and performance feedback.
According to Slack's research (1987), flexibility is the capacity to modify production processes or services, encompassing four key types: mix flexibility, labor flexibility, volume flexibility, and process modification flexibility This flexibility criterion signifies an organization's ability to adjust resources, tasks, and workflows to accommodate new demands, enabling businesses to swiftly adapt and respond to changes in the dynamic business environment.
Overview of full container load (FCL) freight forwarding service
According to the International Federation of Freight Forwarders Associations (FIATA), "FCL is a method of transporting goods using a full container for a shipment."
In the Transportation and Insurance in Foreign Trade curriculum, FCL stands for "Full Container Load," which signifies a shipment from a single shipper that requires one or more containers due to its large volume This transportation method is ideal for businesses dealing with heavy shipments or raw materials like sand and cement By securely packing goods in dedicated containers, FCL enables efficient monitoring and management of cargo while minimizing risks associated with transportation.
15 risk of damage during transportation due to collisions with other shippers' cargo and eliminates the risk of loss, providing a high level of safety and security
1.4.2 Responsibilities of related parties in FCL
• Hires a truck or delivers empty containers to the port and transports them back to the warehouse for packaging
• Packages the goods at the warehouse/yard
• Carefully arranges the goods and leaves marking signs for the recipient
• Pays the expenses as per responsibility
• Submits the bill of lading to the shipping line or freight forwarder
• Returns the draft bill of lading to the shipper for verification of information, issues the bill of lading, and declares the manifest
• Receives the container from the consignor, loads it onto the ship, and arranges the containers properly for safe anchoring of the vessel
• Upon arrival, the carrier is responsible for unloading the container from the ship to the yard and delivering it to the consignee
• Prior to delivery, must issue a Delivery Order (D/O) upon arrival of the goods, and verify the consignee's Bill of Lading (B/L) information
• Proactively contacts the shipper to obtain necessary documents and complete customs procedures to take delivery of the cargo
• Receives the container, transports it to the warehouse, and after unloading the cargo, returns the container to the address provided by the shipper
• Pays fees such as Local Charges, Delivery Order (D/O), Container Detention charges responsibly
1.4.3 Necessary documents and systems for import FCL
The Ocean Bill of Lading (OB/L or BL) is a vital document for sea freight, issued by the carrier or their agent to the shipper once goods are loaded onto the vessel or upon receipt for loading This document plays three essential roles: it acts as proof that the carrier has received the goods, serves as a title of ownership for the cargo for banking transactions, and functions as a written contract of carriage.
A commercial invoice, as defined by the WTO, is a key document that serves as primary evidence of payments made or to be made from the buyer to the seller of imported goods It includes essential details about the shipped goods, their prices, and shipping costs as agreed upon by both parties This document can also be transmitted electronically using the EDIFACT universal standard language It plays a vital role in commercial transactions, facilitating payment, tax calculations, and information cross-referencing during the import and export process.
A packing list is a crucial document that details the contents of each package, including weights and measurements, according to the International Trade Administration It should be placed inside each carton or package, with an additional copy attached to the exterior Freight forwarders rely on this document to assess weights and calculate freight costs effectively.
The Certificate of Origin (C/O) is a crucial document in import-export activities, providing a comprehensive declaration regarding the product, its destination, and the country of origin This document is essential for confirming the source of goods, ensuring compliance with customs regulations and facilitating international trade.
17 requirements Additionally, the C/O is used to benefit from customs duty preferences in free trade agreements
A customs declaration is a crucial document in import-export activities, prepared by the cargo owner, whether an exporter or importer It provides detailed information about the shipment to customs authorities when entering or leaving Vietnam This legal document is essential for determining applicable taxes, fees, and other costs owed to customs, while also facilitating the regulation of import-export operations.
A Delivery Order (D/O) is an essential document issued by the shipping line to the consignee, facilitating the collection of goods from the warehouse or port It specifies the party responsible for the cargo and the designated recipient To obtain the cargo, the shipper must present a delivery instruction from the shipping line, while the consignee is required to pay a fee to the transportation companies or shipping lines to receive the D/O.
An Equipment Interchange Receipt (EIR) is a crucial document that records the status of a container during its exchange in the transportation chain It details essential information, including the container number, dimensions, type, condition, and accompanying accessories such as seals and clips, along with the date, time of exchange, and recipient's signature Nowadays, electronic EIR receipts are commonly transmitted through email or mobile applications, enhancing efficiency in logistics.
An Arrival Notice (A/N) is a crucial transportation document provided by carriers or logistics service companies to inform consignees about their shipment's arrival schedule, estimated quantity of goods, and cargo pickup location This document enables consignees to effectively plan their transportation methods and coordinate the timing and location for cargo pickup, ensuring a smooth logistics process.
18 customs procedures, and update the status of the goods for all involved parties Typically, A/N is sent 2-4 days before the arrival date of the shipment
A Manifest is a crucial system for managing information and documentation related to shipments, essential for customs clearance at ports during vessel arrivals or departures Upon a shipment's arrival at the port, an Arrival Notice is issued, typically by port agents or forwarders This notice includes vital details such as the bill of lading number and date, a description of the goods, their quantity, comprehensive shipment information, and the vessel's departure date.
ECUS5-VNACCS is an electronic customs system that aligns with the VNACCS/VCIS processes of Vietnam Customs, offering features for businesses to declare customs, register tax-exempt inventories, and manage both dutiable and duty-free goods It streamlines procedures for low-value items and efficiently handles temporary imports and re-exports, while providing robust support for customs declaration functions to the centralized customs reception system.
1.4.4 General process of FCL sea freight forwarding service for goods imported
Figure 1.3 Process of importing FCL goods by sea
The import cargo handling process involves a sequence of activities that facilitate the transportation of goods from their origin to their final destination Freight forwarders play a crucial role in this process by managing vessel bookings, handling necessary documentation, ensuring customs clearance, and coordinating delivery vehicles for their clients.
Step 1: Negotiation and contract signing
After pinpointing the target customer for import cargo services, the sales department gathers essential shipment details before consulting the pricing department to propose competitive rates Once all terms, including price, quantity, delivery time, and payment method, are finalized in the sales contract, it is signed Following this, the company’s forwarder promptly secures space with the shipping company to ensure timely transportation of the goods.
Step 2: Receipt of documents and document verification
The document department at the company meticulously receives and reviews essential documents, including the Packing List, Certificate of Origin, Commercial Invoice, Bill of Lading, and Sale Contract, along with critical details such as estimated departure time (ETD), estimated arrival time (ETA), port of loading (POL), port of discharge (POD), and vessel name The document staff's primary responsibility is to thoroughly check the information provided by the exporter to identify any errors promptly and communicate with the customer for necessary adjustments.
Step 3: Receipt of Arrival Notice (A/N) and declare Manifest
At least one day prior to the vessel's arrival, the freight forwarder receives an Arrival Notice from the shipping company, detailing the expected arrival time of the shipment The forwarder subsequently verifies all information and oversees the Manifest declaration process to ensure accuracy and compliance.
Step 4: Obtain Delivery Order (D/O) and Print Equipment Interchange Receipt (EIR)
OVERVIEW OF TOP SHIPPING VIET NAM JOINT STOCK
General introduction
Top Shipping Vietnam Joint Stock Company is an emerging player in the logistics industry, specializing in freight forwarding and cargo transportation With over three years of dedicated service, the company has successfully established branches in Hanoi, Hai Phong, and Danang, with plans for future expansion into Ho Chi Minh City As a proactive member of both domestic and international logistics associations, Top Shipping Vietnam has developed a robust network of relationships with various agents and reputable shipping lines worldwide.
• Company name: TOP SHIPPING VIET NAM JOINT STOCK COMPANY
• International name: TOP SHIPPING VIET NAM JOINT STOCK COMPANY
• Head office address: Room 621, 6th Floor, TD Business Center, Lot 20A, Le Hong Phong Street, Ngo Quyen District, Hai Phong City, Vietnam
• Representative: CEO Trinh Thi Mai Phuong
• Website: https://www.topshipping.vn/vi
• Main line of business: The company specializes in providing services related to transportation (freight forwarding; maritime, land, and air transportation activities; customs clearance, etc.)
Figure 2.1 Logo of Top Shipping Viet Nam Joint Stock Company
Top Shipping Vietnam Joint Stock Company – Branch in Da Nang
Address: Room 57, Floor 9, Block 11, Da Nang Post Office, 271 Nguyen Van Linh, Vinh Trung, Thanh Khe District, Da Nang, Vietnam
Top Shipping Vietnam Joint Stock Company – Branch in Hai Phong
Address: Room 621, 6th floor, TD Business Center, Lot 20A, Le Hong Phong, Ngo Quyen, Hai Phong, Vietnam
Top Shipping Vietnam Joint Stock Company – Branch in Ha Noi
Address: Room 1307, 13th floor, CharmVit Building, 117 Tran Duy Hung, Cau Giay District, Hanoi, Vietnam
History of formation and development
Top Shipping Vietnam Joint Stock Company was established on August 27,
In 2021, a freight forwarding agency in Hai Phong City, Vietnam, played a crucial role in enhancing trade and economic growth by offering comprehensive shipping and logistics solutions This company has effectively supported businesses with their transportation and delivery needs, facilitating smoother operations in the region's trade activities.
On September 9, 2022, CEO Ms Trinh Thi Mai Phuong announced the establishment of a second branch in Cau Giay District, Hanoi City, marking a significant milestone in the company's growth and expanding its operations in Vietnam's logistics market.
At the same time, recognizing the central Vietnam region as a potential market for expanding and developing transportation and delivery services, on September 17,
2022, Top Shipping chose Da Nang City as the third location to expand the company's
25 operations This was a strategic decision demonstrating the leadership's long-term vision for the company's development
In just three years of operation, Top Shipping Vietnam has established itself as a trusted provider of quality logistics services With a dedicated team of skilled, passionate, and experienced professionals, the company has quickly become a leading choice for customers seeking reliable transportation and delivery solutions in both domestic and international markets.
The company prioritizes establishing robust relationships with reputable global shipping lines like One, Hapag Lloyd, Evergreen, Zim, and Wanhai, as well as distinguished airlines such as Vietnam Airlines, Asiana Airlines, Vietjet Airlines, Busan Airlines, China Airlines, Korean Air, and Japan Airlines This strategic approach enables the company to meet diverse customer needs while delivering high-quality services at affordable prices, ultimately saving time and effort and ensuring peace of mind for its clients.
In 2022, Top Shipping Vietnam proudly joined the World Cargo Alliance (WCA) and WCA China Global, a premier network for independent freight forwarders in the logistics sector This membership enhances Top Shipping Vietnam's competitiveness and market presence both locally and globally, while providing access to valuable resources and business opportunities within the WCA network Ultimately, this affiliation represents a significant opportunity for sustainable growth and alignment with international standards for Top Shipping Vietnam.
Vision, mission of Top Shipping Vietnam
"Top Shipping Vietnam aims to become an expert in the field of multimodal transportation, providing professional shipping and logistics solutions that best meet customer satisfaction."
Top Shipping Vietnam has clearly demonstrated its company's direction, objectives, and development strategy, aiming to become one of the leading experts in
26 multimodal transportation in Vietnam The company provides high-quality and reputable transportation services that maximize customer satisfaction, ensuring peace of mind for customers when utilizing the company's transportation services
Top Shipping Vietnam is dedicated to achieving customer satisfaction through high-quality, professional, and reliable transportation services This commitment is reflected in their business philosophy, which prioritizes service quality and professionalism By consistently adhering to these principles, Top Shipping Vietnam is establishing a strong presence in the transportation service market and earning the trust of a diverse customer base.
Management model of Top Shipping Vietnam Joint Stock Company
Figure 2.2 Management model of TOP SHIPPING Viet Nam Joint Stock Company
About Top Shipping Vietnam Joint Stock Company – Branch in Da nang
• Official name: Top Shipping Vietnam Joint Stock Company – Branch in Da Nang
• Moderator: Branch manager - Doan Bich Van
• Address: Room 57, Floor 9, Block 11, Da Nang Post Office, 271 Nguyen Van Linh, Vinh Trung, Thanh Khe District, Da Nang, Vietnam
The organizational structure diagram of Top Shipping – Branch in Da Nang is allocated as follows:
Figure 2.3 Organizational structure chart of Top Shipping - Branch in Da Nang
Source: Information from Branch manager (2023)
2.5.3 Functions and duties of departments
Top Shipping Vietnam – Branch in Da Nang utilizes a functional organizational structure to effectively manage its operations Each department is assigned specific tasks and led by a senior manager, optimizing overall efficiency This model not only clarifies the roles and responsibilities of employees but also fosters autonomy and encourages diligent task execution, ultimately enhancing the branch's operational performance.
The Da Nang branch is led by Branch Manager Ms Doan Bich Van, who oversees and manages local departments Her responsibilities encompass all cargo transportation operations in the central region, along with the authority to resolve customer and partner issues Furthermore, she prepares regular reports and statistics for Top Shipping Vietnam's headquarters in Hai Phong.
The Sales Department is crucial for executing the customer revenue plan on a monthly, quarterly, and annual basis Its primary responsibilities include market research and analyzing customer needs to identify and develop potential clients interested in logistics services Acting as a liaison between the business and its customers, the department focuses on building and nurturing relationships It gathers customer information from internal systems and industry resources, providing consulting support and negotiating prices to secure service contracts Effective coordination with other departments, such as Pricing and Documentation, is essential for monitoring the transportation process and keeping customers informed about their shipments.
Customer Support Staff / Documentation Department (Cus/Docs): This is one of the crucial departments within the company, responsible for drafting contracts, Bill of
The logistics team is responsible for managing essential documents such as the Bill of Lading (B/L), Delivery Order (D/O), and ensuring the accuracy of transportation-related paperwork, including the Commercial Invoice and Certificate of Origin (C/O) They assist customers in preparing necessary documentation and completing manifests (MNF), while also addressing customer inquiries about the transportation of goods Collaborating with the sales department, they monitor shipment statuses and resolve import-export issues Furthermore, this department handles the review and processing of payments with relevant parties on behalf of the accounting department.
The Pricing Department plays a crucial role in researching and monitoring transportation service provider prices, ensuring they remain competitive They interact with shipping lines, airlines, and overseas agents to manage shipments effectively Upon receiving quotation requests from the Sales department, they verify prices online and negotiate the best deals for customers Monthly and quarterly, they compile updated price files and collaborate with Sales and Docs-Cus to resolve customer issues Skilled negotiation is essential for maintaining and expanding relationships with transportation entities to secure favorable cost agreements Additionally, the Pricing department at Top Shipping Vietnam's Da Nang branch supports other branches, including Hai Phong and Hanoi, by checking export-import route prices from Ho Chi Minh City, Da Nang, and Quy Nhon.
The Operations Department (OPS) at Top Shipping Vietnam plays a crucial role in managing the transportation of goods by coordinating with external drivers This department is tasked with monitoring, tracking, and inspecting goods in warehouses and at ports prior to loading Furthermore, OPS staff oversee port activities, manage the logistics of transporting goods, and ensure efficient shipping processes are followed.
The company boasts state-of-the-art facilities designed to enhance employee productivity Equipped with essential tools like desktop computers, printers, and photocopy machines, the office layout fosters a professional atmosphere that promotes efficiency in daily operations.
Table 2.1 Personnel of Top Shipping Viet Nam – Da Nang branch
Personnel of TOP SHIPPING Viet Nam - branch
Top Shipping Vietnam's Da Nang branch, established nearly two years ago, features a streamlined organizational structure focused on key departments aligned with the company's business strategy With a total of nine personnel, 78% are aged 20-30, reflecting the company's commitment to cultivating a young, dynamic, and creative workforce The gender distribution shows 66.7% female and 33.3% male employees, driven by the need for meticulous customer support and documentation processes All staff possess at least a university degree and have strong industry knowledge, enabling the delivery of high-quality services Additionally, the branch includes three interns undergoing training to support future growth Under the guidance of a director with over a decade of import-export experience, a professional and friendly work environment has been fostered, encouraging employees to excel and contribute effectively.
2.5.5 Main business activities of Top Shipping Vietnam – Branch in Da Nang
Top Shipping Vietnam's Da Nang branch specializes in customer support, acting as an intermediary to connect clients with reputable transport partners and secure competitive pricing The branch also offers consulting services for multimodal transportation solutions Additionally, it plays a crucial role in assisting the Haiphong and Hanoi branches in market expansion and revenue growth Currently, the Da Nang branch is concentrating its efforts on developing import shipments while continuing to maintain and expand its services.
32 relationships with transport partners in both import and export routes to always secure good positions at competitive prices.
Top Shipping Vietnam is a premier and trustworthy player in Vietnam's maritime transportation industry, serving as a vital link between shippers and shipping lines The company excels in facilitating the selection and scheduling of the most economical shipping options, while also providing essential support in document preparation and customs procedures to ensure seamless maritime logistics.
Top Shipping Vietnam, in partnership with esteemed global agent networks, has successfully managed the transportation of countless sea shipments to and from Vietnam Leveraging strong relationships with major shipping lines, the company provides highly competitive freight rates, particularly for routes to Europe, America, and the United Kingdom Over its three years of operation, maritime transport has significantly contributed to the company’s revenue growth.
Top Shipping Vietnam offers reliable air freight services, utilizing strong partnerships with airlines to ensure customers access the fastest transit times, high security, and competitive pricing For clients shipping to countries with stringent customs regulations, such as the United States and Canada, the company provides tailored solutions to streamline procedures, ensuring timely delivery of goods as needed.
Top Shipping Vietnam - Da Nang Branch prioritizes maritime transportation in its business strategy, as this sector remains the primary source of revenue despite its currently limited market share The company continues to focus on enhancing its maritime services to drive growth and strengthen its position in the industry.
Top Shipping Vietnam serves as a vital intermediary in road transportation, linking customers with partners for inland transport rentals The company has cultivated strong relationships and established a robust network of diverse vehicle fleets, offering various load capacities, including full container loads This strategic approach ensures flexibility and a broad spectrum of options for freight transport.
Top Shipping Vietnam offers a variety of vehicle options tailored to meet diverse customer needs, accommodating everything from small shipments to large cargo transportation With competitive pricing and a focus on convenience and timeliness, customers can easily select the most suitable transportation solution for their requirements.
THE SITUATION OF IMPORT FULL CONTAINER LOAD (FCL)
Overview of import Full Container Load (FCL) crayons shipment
- Import commodity name: Artmate‘s Crayons
Artmate's crayons are a user-friendly and convenient choice for artists, crafted from high-quality, non-toxic materials to ensure user safety Their smooth finish and vibrant colors facilitate easy blending, while the soft, durable wax core provides a comfortable grip, making them easy to handle even if they come into contact with skin or clothing This product is 100% new and designed for effortless creativity.
- Quantity: 1 Container with 810 cartons (CTNS)
- Delivery Terms: FOB - NINGBO, CHINA, Incoterms 2010
● Port of loading: Ningbo, China
● Port of discharge: Tan Vu, Hai Phong
● Exporter: Zhejiang Hongye Imp & Exp Company Limited
▪ Address: No 15 Jinshan Road, Pingdu Comprehensive New Area, Qingyuan County, Lishui City, Zhejiang Province, Lishui, Zhejiang, China
● Importer: Hai Ha International Investment Joint Stock Company
▪ Address: No V6A-12 Van Phu Building, Van Phu Urban Area, Phu La Ward,
Ha Dong Dist, Hanoi, Vietnam
● Importer's representative:: Top Shipping Vietnam Joint Stock Company -
Branch in Hai Phong City
▪ Address: Room 621, 6th Floor, TD Business Center, 20A Le Hong Phong Street, Ngo Quyen District, Hai Phong City, Viet Nam
The process of importing crayons shipment (FCL) at Top Shipping Vietnam - Branch
- Branch in Da Nang (shipment of Hai Ha International Investment Joint Stock Company)
3.2.1 Flowchart of the process of importing FCL crayons shipment by sea freight at Top Shipping Vietnam - Branch in Da Nang
Through my research and internship observations, I've discovered that the import process for shipments generally follows similar steps However, variations in handling procedures may arise based on the type of goods, categorized as green, yellow, or red streams The following flowchart provides a comprehensive overview of the procedures for receiving and transporting full container load (FCL) crayon cargo via sea freight at Top Shipping Vietnam Joint Stock Company.
Figure 3.2 Flowchart of the freight forwarding process (FCL) by sea at the Company at Top Shipping Vietnam Joint Stock Company - Branch in Da Nang
3.2.2 Description of the process of importing FCL crayons shipment by sea freight at Top Shipping Vietnam - Branch in Da Nang
Table 3.1 Overview of FCL import process by sea at Top Shipping Vietnam –
Negotiate, convince customers and sign freight forwarding contracts
Find out customer information to be able to advise and persuade customers to sign contracts to use freight forwarding services
Receive requests from sales book space with shipping lines
Responsible for contacting and negotiating good prices with shipping lines to choose a route that matches the customer’s booking requirements
Receive documents from customers, check and recheck to ensure the neceesary documents are complete and accurate
▪ Bill of Lading (MBL,HBL)
Receive Arrive Notice (A/N) and Declare the Manifest
Receive notification of goods arrival from the shipping company and send A/N to the customer, declare the Manifest
▪ Arrive Notice (from Shipping Line)
Prepare relevant documents to change D/O orders
Using ECUSS-VNACCS software to transmit customs declarations
Pay tax and complete import customs clearance procedure
Consider the type of goods and notify the consignee to pay tax
Liquidate the declaration and transport the shipment to the warehouse
Complete payment related to liquidation of declarations and arrange procedures for transporting goods out of port to warehouse
Return of empty container and
Follow up and ensure the carrier has returned the empty container on time
Docs-cus Send payment requests and hand over documents to customers
Send debit note to customer for payment
Sales Save records and documents
Maintain relationships with customers for future transactions
3.2.3 Detailed description of the the process of importing crayons (FCL) by sea freight - Cargo of Hai Ha International Investment Joint Stock Company
3.2.3.1 Negotiate, convince customers and sign freight forwarding contracts
The FCL import goods delivery process begins with the Sales department at Top Shipping company, which plays a crucial role in identifying potential customers, negotiating terms, and finalizing freight forwarding contracts.
When engaging with first-time customers, sales staff must gather essential information about the import process, including the customer's name, type of goods, packaging specifications, required documents, quantity, shipper and consignee details, desired delivery address, and incoterms This information enables the sales team to understand customer needs and provide tailored advice They will then share these details with the pricing department to collaborate with shipping lines for competitive ocean freight rates Furthermore, they will work with the outsourced customs clearance service to facilitate cargo-related procedures and negotiate effectively with customers.
For customers who have previously transacted with the company, the implementation of the freight forwarding process will be discussed directly within a
42 shared Zalo group consisting of the brand manager, sales staff responsible for customer care, and the customer
On November 16, Hai Ha International Investment Joint Stock Company imported a shipment of crayons, which is associated with a customer who has previously engaged in transactions with Top Shipping Vietnam.
• Customer Name: Hai Ha International Investment Joint Stock Company
• Container Type: 20ft dry container
• POD: Tan Vu, Hai Phong
• Additional Services: Customs clearance and inland transportation by road
After sending the quotation to the customer, the sales team will clarify the various fees included to ensure a clear understanding of the payment amount required for the forwarding company Once both parties reach a mutual agreement, the sales department will then draft a contract to formalize the terms.
A freight forwarding service contract defines the obligations of all parties involved and ensures compliance with applicable legal regulations Two copies of the contract will be created: one for the forwarding company and one for the customer.
Due to security protocols, the service contract between Top Shipping Vietnam Joint Stock Company and Hai Ha International Investment Joint Stock Company is confidential; however, it is essential that the contract outlines commitments regarding specific conditions.
Top Shipping Vietnam Joint Stock Company will represent Hai Ha International Investment Joint Stock Company in ensuring timely transportation of goods to the designated location, handling customs declarations, acknowledging receipt notifications, and submitting tax receipts.
Hai Ha International Investment Joint Stock Company is required to submit all pertinent cargo documents and an introduction letter to Top Shipping Vietnam Joint Stock Company, enabling Top Shipping to act on behalf of Hai Ha in interactions with customs authorities at the port.
Hai Ha International Investment Joint Stock Company is required to adhere to legal regulations concerning tax payments and fulfill all transportation costs for Top Shipping Vietnam Joint Stock Company, as stipulated in their contractual agreement.
3.2.3.2 Receive requests from sales, book space with shipping lines
The pricing department analyzes ocean freight rates and surcharges from various shipping lines based on information from the sales department to identify the best carrier for customer needs After reaching an agreement on pricing and terms, the Sales team informs the Docs-Cus department to coordinate with exporting agents for booking arrangements with the selected shipping line The exporting agents then send shipment schedule details to Top Shipping for accuracy confirmation and booking validation.
The pricing department has selected Cosco shipping company for the crayons shipment due to its competitive rates for the Ningbo, China to Tan Vu, Hai Phong route under FOB terms, aligning with the customer's timing requirements After finalizing the agreement and signing the contract, the sales team will notify the Docs-Cus department to coordinate with the exporting agents, Shanghai Puyuexin International Logistics Company, to initiate the booking process with the shipping line Essential information for this booking will be provided to ensure a smooth transaction.
• Port of Loading (POL): Ningbo, China
• Port of Discharge (POD): Tan Vu, Hai Phong
• Estimated cargo volume (GW): 12,150 KGS
• Estimated date of delivery: November 16, 2023
Upon receiving the necessary information, the exporting agent will provide Top Shipping with a draft booking that includes key schedule details such as Estimated Time of Departure (ETD), Estimated Time of Arrival (ETA), Port of Discharge (POD), Port of Loading (POL), vessel name, and voyage number It is then the responsibility of Top Shipping's sales team to verify these details with the customer and confirm them with the Shanghai Puyuexin agent to secure the official booking.
Shanghai Puyuexin will act as the agent for issuing both the Master Bill of Lading (MBL) and House Bill of Lading (HBL) The exporting agent will send an official booking confirmation to Top Shipping, which will contain essential details regarding the shipment.
• Port of Loading (POL): Ningbo, China
• Port of Discharge (POD): Tan Vu, Hai Phong
• Shipping Line: COSCO SHIPPING Lines
• Estimated Time of Departure (ETD): November 9, 2023
• Estimated Time of Arrival (ETA): November 16, 2023
Upon receiving the complete set of documents from the importer, the Docs-Cus department will meticulously review all accompanying documents for consistency and accuracy, promptly addressing any identified deficiencies or errors.
GENERAL EVALUATION AND PROPOSAL OF SOLUTIONS
General evaluation and proposal of solutions for the import process of FCL crayon
Top Shipping Vietnam Joint Stock Company, despite being a relatively new entrant in the transportation and logistics sector, has gained the trust of numerous domestic and international import-export businesses in just over three years This success reflects the company's commitment to innovation and adaptability, as well as its dedication to soliciting customer feedback to enhance operational efficiency By prioritizing a professional, safe, and reliable service experience at competitive prices, Top Shipping Vietnam aims to meet the demanding needs of its customers.
In the face of intense competition within the industry, forwarding companies must continuously adapt to maintain customer trust and effectively identify potential clients This requires a commitment to embracing new trends, avoiding complacency, and remaining open-minded in their operational processes To enhance service quality, businesses should evaluate their shipment processes after each delivery to identify any bottlenecks To gain insights into persistent challenges in the import process, a survey was conducted at Top Shipping Vietnam Joint Stock Company, gathering feedback from departments directly involved in importing FCL crayon shipments by sea.
Table 4.1 Employee composition participating in the survey
Job Title Years of experience
Job responsibilities in the process
8 Supervise and guide the implementation of shipments according to the correct process, represent and resolve situations that arise when the shipment encounters problems with related parties
2 Sales staffs 2-3 Communicate and maintain relationships with customers and provide necessary information when customers request
Pricing staff are responsible for regularly updating shipping line prices and responding to requests from the Sales team to secure competitive rates for shipments They facilitate communication between Sales and shipping lines, negotiating and resolving any price-related issues that may arise.
To ensure a smooth import process, first, verify the shipment documents and receive the Advance Notice (A/N) from the shipping company Notify the customer promptly and address any debt notices by making the necessary payments to the shipping company After completing the import shipment, request payment from the customer and declare the manifest accordingly.
Operations staffs means of transport, execute goods delivery orders, present documents to state agencies
2 Handle documents and procedures related to electronic customs, coordinate and support Operations staff to carry out customs clearance procedures in accordance with legal regulations