Internship report topic freight forwarding process of fcl shipment exported by seaat vosco agency and logistics jsc

FREIGHT FORWARDING PROCESS OF FCL SHIPMENT EXPORTED BY SEA AT VOSCO AGENCY AND LOGISTICS JSC.. In the process of studying at Vietnam Maritime University majoring in international busines

BY SEA AT VOSCO AGENCY AND LOGISTICS JSC

Supervisor: Pham Thi Mai Phuong

Student Name: Pham Dinh Kien

Student ID: 83595

Class: IBL1002

HAI PHONG - 2022

FREIGHT FORWARDING PROCESS OF FCL SHIPMENT EXPORTED

BY SEA AT VOSCO AGENCY AND LOGISTICS JSC

Supervisor: Pham Thi Mai Phuong Division: Economic

Faculty: Logistics

HAI PHONG - 2023

LIST OF ABBREVIATIONS CFS Container Freight Station

ICD Inland Clearance Depot

LIST OF TABLES

Table 2.1: Labor structure in terms of

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Table 2.2: Labor structure in terms of

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Table 3.2: Container information of the

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LIST OF FIGURES Figure 2.1: Logo’s

PREFACE Following the trend of integration with the development of the world and regional economies, Vietnam has been gradually renovating economic activities, promoting the import and export of goods and services to many countries around the world The demand for goods in the countries increased sharply, leading to an increase in the demand for transportation Thus, delivery of goods and services will be a very important part, an indispensable link when the economy is growing But for shippers

or importers who want to carry out procedures for a small shipment, it will be difficult

to work directly with shipping lines or when working with shipping lines, it will be very expensive Therefore, companies in the field of Logistics will help businesses

reduce costs

The study of issues related to international freight transport is an urgent requirement for officials working in freight forwarding, importing and exporting goods In the process of studying at Vietnam Maritime University majoring in international business and logistics, freight forwarding is also a discipline as well as a service segment in which we are trained Therefore, with the knowledge I have learned, I signed up to practice at Vosco Agency And Logistics Jsc (VOSAL) - a reputable company, trusted

by many big partners

During the internship at the company, I somewhat understood more about the freight forwarding business, there was a connection between the knowledge taught by the teachers and when I entered this field I have summarized what I have learned through the internship report with the topic: "Freight forwarding process of FCL shipment exported by sea at Vosco Agency And Logistics Jsc"

The structure of the thesis consists of 3 chapters:

Chapter 1: Theoretical background of freight forwarding

Chapter 2: Introduction of Vosco Agency And Logistics Joint Stock Company Chapter 3: Freight forwarding process of FCL shipment exported by sea at Vosco Agency And Logistics Jsc

CHAPTER 1: THEORETICAL BACKGROUND OF

FREIGHT FORWARDING 1.1 Theoretical background of freight forwarding

The feature of international trade is that people sell and buy in different countries and countries After the sale and purchase contract is signed, in order for foreign-traded goods to be transported from the exporting country to the importing country, a series of tasks related to transporting goods must be

performed: packing, loading and unloading, storage, customs procedures, etc But not all import-export enterprises have the capacity and expertise to perform the above tasks well Thus, leading to the birth of forwarding services

Freight forwarding is all services related to transportation such as

transportation, loading and unloading, arranging storage, packing, distribution, financial matters, customs clearance, cargo insurance Freight forwarding is a collection of jobs associated with the transportation process to perform the movement of goods from the consignor to the consignee

1.2 The concept of forwarder

According to FIATA, the forwarder is the person responsible for ensuring the goods are delivered under the commission contract and acting in the interest

of the assignor The forwarder is also responsible for taking care of all activities related to the commission contract such as storage, warehousing, customs

clearance, goods inspection, etc

The forwarder can be the owner of the goods (when taking care of the delivery by himself), the owner of the ship (when the ship owner deals with the freight forwarding service on behalf of the goods owner), a loading and

unloading company or a warehouse, a specialized forwarding company, or any other type of business registered as a courier service

1.3 The role of forwarding services and forwarders in reality

1.3.1 The role of the forwarding service

To perform and complete the contract well, it is impossible not to mention the role of the import and export freight forwarding company Along with the development of import and export of goods, import and export freight forwarding has become more and more important, the number of logistics staff today is constantly increasing to help the circulation of goods domestically or

internationally becomes easier But of course, forwarding is a relatively

complicated job, requiring the forwarder to have expertise and dynamic agility O_ Forwarding promotes fast, safe and economical circulation of goods, without human involvement

O Help the delivery person to move quickly, make the most of time and transportation for work, as well as all other supporting means

OD Helps reduce cost of imported goods by helping importers and exporters reduce expenses such as travel costs, staff training costs, opportunity costs, etc

1.3.2 The role of the forwarder

Like the forwarding service, the forwarder also plays a huge role

Specifically, in trade, the forwarder plays the role of an intermediary with a close connection between the exporter and the importer with the carrier and other relevant agencies performing the authorized work to bring goods from the place

of origin to the place of receipt in the fastest, most convenient and safest way The forwarder acts as a carrier by which he transports the goods by his own means of transport, issuing transport documents With the participation of forwarders, manufacturing industries and fields have had a drastic change in production structure, helping the country's economy to develop more and more, creating more relationships with foreign countries

1.4 FCL goods

1.4.1 FCL goods concept

FCL stands for full container load which means full container shipping The shipper is responsible for packing the goods and the consignee is responsible for unloading the goods from the container The items are usually homogeneous (same) enough to pack 1 container, this is the most economical option

1.4.2 Obligations of the parties under the FCL service

O For FCL shippers

- Book containers and go to the port to pick up containers, transport them to the warehouse for packing

- Provide detailed information for shipping lines to make bill of lading

- Pack the goods into the container and reinforce the goods to ensure that the packed goods do not move during transportation

- Calculate the goods accordingly and assign labels and symbols so that the recipient can easily identify the type of goods

- Seal the lead for the container

- Change orders and lower containers at the port of export and pay the costs of lifting and lowering at the port

- Bear the costs such as loading and unloading fees, Terminal Handling Charge, DEM/DET fees if any

O For FCL cargo carriers

- Provide empty container and shipping lead to the shipper

- Receive the whole container and sealed, lead from the shipper's port at the container yard of the port of loading

- Preserve, transport to wharf delivery, load on board, issue Master bill of lading

in the form of FCL to the sender

- Carry the container to the destination port, unload the container from the ship and bring it to the container yard of the destination port

- Issue D/O to the legal recipient and deliver the sealed container with lead clamps to the recipient at the container yard of the destination port

O For FCL consignee

- When receiving the notice that the goods have arrived at the port of the

shipping line, arrange a reasonable set of documents to go to the shipping

company to change the order Then do customs clearance for the shipment

- Carrying out customs clearance procedures for imported goods

- Transport the container to the warehouse and withdraw the goods, then return the container to the right place for the shipping company or withdraw the goods

at the port if the order to empty is made

- Complete local charges, D/O, container bet fees

- Receive the original sealed container at the Container Yard at the destination port

1.5 Legal basis related to forwarding activities

The delivery and receipt of import and export goods must be based on legal bases such as international and Vietnamese laws (conventions on bills of

lading, transport, conventions on contracts for the international sale of goods ),

legal documents of the State of Vietnam on freight forwarding, types of contracts and L/C will ensure the interests of import and export goods owners

1.5.1 International legal regulations:

- International Convention for the Unification of Certain Rules of Bill of Lading, signed at Brussels on August 25, 1924

- Decree amending the International Convention to unify some rules on bills of lading (Visby Protocol 1968)

- United Nations Convention on the Carriage of Goods by Sea 1978

- The 1980 Vienna Convention on International Trade

1.5.2 Legal regulations of Vietnam:

The State of Vietnam has also issued many legal documents related to transportation, loading and unloading, delivery of import and export goods such as:

- Maritime Code 1990

- Law on Customs 2014

- Decree No 163/2017/ND-CP stipulating logistics service business issued by the

Government on December 30, 2017, effective from February 20, 2018, on

conditions for logistics service business and limited liability for traders providing logistics services, with 3 chapters and 8 articles

- Decree 25CP, 200CP, 330CP, Decision of the Minister of Transport, decisions

related to the delivery, loading and unloading and transportation of goods at Vietnam's seaports

1.6 Relevant documents in forwarding

2 Bill of Lading (B/L)

Bill of Lading is a contract of carriage between the shipper and the

steamboat company (carrier) It confirms the carrier's ownership and receipt of the goods for shipment It is released by the carrier to the shipper A straight bill

of lading is issued when a shipment is made directly to an overseas customer

O Certificate of Origin (C/O)

A certificate of origin is required by some countries to help them determine whether a product is eligible for tax incentives It is a statement of origin of the exported product and is usually obtained from local chambers of commerce

QO Commercial Invoice

Commercial invoice is an invoice for goods from seller to buyer It should include basic information about the transaction: description of the goods, terms

of delivery and payment, order date and quantity Overseas buyers need

commercial invoices to clear goods, prove ownership and arrange payment, Governments of importing countries also use commercial invoices to determine the value of goods for customs inspection

2 Inspection Certificate

Some buyers and countries may require a certificate certifying the

specifications of the goods being shipped, usually by a third party Such

requirements are often stated in contracts and quotes Inspection certificates are often required for certain items with grade marks, machinery, equipment

DO Customs Declaration

Customs declaration is a document presented by the goods owner or hired another party on his behalf to the customs authority before goods or vehicles are exported or imported through the national territory International practice as well as Vietnamese law stipulates that customs declaration is mandatory for means of export or import through national border gates Any violations such as failure to declare or dishonest declaration will be handled by the customs

authority in accordance with current law

CHAPTER 2: INTRODUCTION OF VOSCO AGENCY AND

LOGISTICS JOINT STOCK COMPANY

Pham Dinh Kien — IBL1002 Page 6

provided professional agency services for tens of thousands of ships with many different types safely and effectively arrived at Vietnamese ports and entrusted by shipowners

Vosal officially came into operation on November 16, 2010 according to the Certificate of Business Registration and Tax Registration No 0201130601 dated

November 15, 2010, registered for the second change on December 26, 2020 of the

Planning and Investment Department

|

Department Department Warehousing Department

Department

Division Division Division Division

Container Overseas

Purchase Commerce Repair & Ivision

Division Division Cleaning Vehicle

2.1.3 Functions and duties of departments

- Decide and implement decrees related to the daily work of the Company

- Manage, supervise and operate the business and transport daily

- Decide salary and allowance for employees in the Company

- Decide on business contracts

- Recruit, hire and arrange the use of labor resources

- Manage all assets of the Company

- Orientation, construction and implementation of service business development ideas

- Training, developing employees and motivating employees to encourage work spirit

O Accounting Department

Accounting Department will be responsible for the following tasks:

- Ensure the work related to the receivables or payables from foreign customers

- Controlling all revenue and expenditure activities arising in the company such

as checking receipts, payment slips, signing for confirmation, handing over copies, making advances and storing, and managing all documents related to this

process

- Manage receipts, manage expenses, control cashier's activities, monitor cash

fund management

O Administrative Department

Administrative Department will be responsible for the following tasks:

- Implement the company's activities according to a reasonable process

- Directly supervise the loading and unloading of goods at the customer's

warehouse, the company's warehouse, or at seaports

- Monitor the situation of goods during transportation

- Coordinate with the sales department to mobilize the system of workers and vehicles

- Must pay attention and report back to the person in charge of that item when the goods have officially left the port or arrived at the port

O Ship Agency & Chandling Service Department