The freight forwarding process of exported fcl shipment at inforeign logistics co

TABLE OF CONTENTS Table of Contents List of Symbols, Abbreviations List of Tables and Graphs List of Figures Preface CHAPTER 1: THEORETICAL BACKGROUND 1.1 Freight Forwarding 1.1.1 Defini

SHIPMENT AT INFOREIGN LOGISTICS CO., LT

Supervisor: Dr Pham Thi Yen

Student Name: Nguyen Thuy Quynh

VIETNAM MARITIME UNIVERSITY

SHIPMENT AT INFOREIGN LOGISTICS CO., LT

Supervisor: Dr Pham Thi Yen

HALPHONG— 2021

TABLE OF CONTENTS Table of Contents

List of Symbols, Abbreviations

List of Tables and Graphs

List of Figures

Preface

CHAPTER 1: THEORETICAL BACKGROUND

1.1 Freight Forwarding

1.1.1 Definition of Freight Forwarding

1.1.2 The most popular types of freight forwarding services

1.1.2.1 Rail freight service

1.1.2.2 Sea freight service

1.1.2.3 Air freight service

1.1.2.4 Road freight service

1.1.3 The role of freight forwarding

1.1.4 Definition of Freight Forwarder

1.2 FCL (Full Container Load)

1.2.3 The freight forwarding process of exported FCL shipments

CHAPTER 2: INTRODUCTION OF INFOREIGN LOGISTICS Co., LT

2.4 Company’s Organizational structure

2.5 Business situation of company

CHAPTER3: THE FREIGHT FORWARDING PROCESS OF EXPORTING AT INFOREIGN LOGISTICS CO.,LT

3.1 The freight forwarding process of exporting

3.1.1 Practical Freight Forwarding Process of Exporting Cargo at INFOREIGN Logistics CO.,LT

3.1.2 Description of the freight forwarding process of exported FCL shipments 3.1.2.1 Shipper requests and sends information about consignment to the freight forwarder

3.1.2.2 Freight forwarder books space with Shipping company

3.1.2.3 Freight forwarder arranges truck and picks up empty container

3.1.2.4 Customs Declaration

3.1.2.5 Shipper sends SI to freight forwarder

3.1.2.6 Freight forwarder declares $I and collects Master B/L, VGM from Shipping Line

3.1.2.7 Freight forwarder sends Debit note to shipper

3.1.2.8 Informs Oversea Freight forwarder/ Sends Documents for exporter

3.2 EXAMPLE OF SHIPMENT 21

3.2.2 Detailed freight forwarding process of exporting Powder paint at INFOREIGN

House Bill of Lading Third party Logistics Viet Nam Automated Cargo Clearance System Viet Nam Customs Intelligence Information System Notice of Assessment

Demurrage charge Detention charge Estimated Time of Arrival Certificate of Origin Certificate of Quality Shipping Instruction

LIST OF TABLES

PREFACE

Logistics management has its origins in the British Army long before the

outbreak of

World War I, where a military supply chain system was developed through the

construction of infrastructures such as: roads, railways, ports, airfields, supply

depots and vehicles for transporting weapons and troops Today, along with the development of the world economy, the global supply chain plays an increasingly important role and contributes significantly to the global economy In order to promote economic development, countries have stepped up their integration into the world market, encouraged domestic enterprises to attack more strongly abroad, and sought cooperation opportunities as well as calling for investment capital Therefore, the Logistics industry becomes a new industry with a lot of potential, helping to connect businesses and support import and export activities, bringing high profit value to national income Grasping this situation, the education sector also urgently added a new discipline in the training system to meet the needs of personnel in a timely manner and ensure quality

In this report, we will focus on one segment in the field of logistics that is freight forwarding process of FCL shipment exported I confirm that this dissertation is my own work, is not copied from any other person's work (published

or unpublished), and has not previously submitted for assessment either at Vietnam Maritime University or elsewhere The report consists of 3 chapters:

Chap 1: Theoretical background of the freight forwarding process of exported FCL shipments

Chap 2: The overview of International Foreign Trade Forwarding Company Limited Chap 3: The freight forwarding process of exported FCL shipments at International Foreign Trade Forwarding Company Limited

CHAPTER 1: THEORETICAL BACKGROUND OF

FREIGHT FORWARDING

1.1 Theoretical background of the freight forwarding process

1.1.1 Definition of Freight Forwarding

“Freight forwarding is the planning and coordinating of the movement of commodities across international borders, on behalf of shippers Other tasks involved include, but are not limited to: warehouse planning, supplying cargo insurance, and customs brokerage” — by CAF worldwide — a member of GLA The freight forwarding process is the flow of shipment and goods from two destinations carried out by a freight forwarder Businesses that want to grow and expand should consider trading on an international level Shipping items in and out might present an opportunity to expand customer-base but can become very complex very fast Logistics for international trade can become complicated, thus requiring the need for freight forwarders to help

1.1.2 The most popular types of freight forwarding services

1.1.2.1 Rail Freight Service

One of the most efficient forms of land transportation, rail freight services allow cargo to be transported across massive distances across vast rail networks

An advantage of this service is that railroad networks are rarely interrupted, providing an operation that is able to travel for multiple hours at a time, only needing to stop to drop off cargo and refuel One of the few issues with rail freight services is the limited amount of space for wider cars, which can become an issue for larger and heavier loads

Most countries have their own railroad systems Freight forwarders make use of these networks to transport supplies and goods across these regions, ensuring that they will be able to arrive safely

1.1.2.2 Sea Freight Service

One of the largest freight operations around the world involves the use of cargo ships, which are some of the largest sea vessels in the world These cargo ships carry millions of tons of cargo on a daily basis, traversing oceans and seas in order to reach their destination

This is one of the most cost-efficient methods of transporting bulk goods and supplies across different regions and countries

1.1.2.3 Air Freight Service

For the most part, this is the fastest freight service Air freight services are able to deliver goods and supplies farther than ships and trains, as they are able to travel thousands of miles non-stop While this may be one of the costlier options for sending goods and supplies, you will be able to save a great amount of time, allowing you to beat deadlines and deliver everything on time

Another area of concern with air freight services is the weight limit on certain items, as cargo planes can only carry a certain number of materials

1.1.2.4 Road Freight Service

The most common freight method, road freight services are commonly the last mode of transportation that delivers goods and supplies to their intended customers Delivery trucks and vans are in charge of transporting these goods, which can take from afew minutes to a number of hours depending on the traffic

and road conditions

Road freight is usually the end-point for many supplies While the amount of time can be inconsistent, these are the most abundant forms of freight forwarding

services around

1.1.2.5 Customs Broker

A customs broker is a service, in the form of an individual or a firm, that is able to

process different kinds of shipment through customs in the most efficient fashion These brokers make sure that goods would be provided with the necessary documents and clearances in order for the transporting process to proceed smoothly This means that they have to adhere to various rules and regulations

from a number of different countries — a challenging feat without the right skills and documentation From government regulations to international tax laws, a customs broker has the ability to smoothen out the delivery process and save more time overall

1.1.3 The role of freight forwarding

Freight forwarding contributes part of delivered fee to merchandise and services First of all, the shipping meets the necessities of the consumer in phrases of location: the product is most effective legitimate while it reaches the consumer, if

it is miles transported to the proper location; it approaches the fee of the

products increased At the identical time, it additionally meets the want for time,

the selection of delivery approach of shipping and shipping will determine whether or not the products arrive in time or not Value delivered is the reality that clients get products or services within side the proper location on the proper

time

In addition, forwarding performs in particular vital role, because the value of forwarding debts for a developing proportion Therefore, shipping will at once

competitiveness of establishments within side the market Because of forwarding

is so vital, directors are not the handiest involved with the value of shipping in their organization, however additionally approximately the value of shipping of the competitor as this value has a chief effect to the competitiveness of the 2 organizations

1.1.4 Definition of Freight Forwarder

Freight forwarders are the people in the middle responsible for the

themselves, freight forwarding services are much more specialized to the process It’s important that they understand international trade, the regulations of trade and how to ship on behalf of a company that requires shipment throughout the world

1.2 FCL (Full Container Load)

1.2.1 Definition of FCL

The full FCL form is "Full Container Load", a container that can only be used by one consignee Shippers do not need to share containers with goods already booked by other shippers, which improves security and simplifies shipping logistics management

1.2.2 Documents Required

When we do the freight forwarding process of FCL shipments by sea, we have some

of the basic to carry out the process would be:

1.2.2.1 Packing List

A packing list is a document used in international trade It provides the exporter, international freight forwarder, and ultimate consignee with information about the shipment, including how it's packed, the dimensions and weight of each package, and the marks and numbers that are noted on the outside of the boxes The person who makes the packing list is the seller, which clearly states all the details of how the goods are delivered to the buyer

1.2.2.2 Commercial Invoice

The commercial invoice is one of the most important documents in international trade and ocean freight shipping It is a legal document issued by the seller (exporter) to the buyer (importer) in an international transaction and serves as a contract and a proof of sale between the buyer and seller

Commercial Invoice is an invoice made by the seller, stating the amount to be paid

by the buyer The buyer will make the payment according to the amount stated on

the invoice

1.2.2.3 Sale Contract

A sale contract is a written agreement between a buyer and seller of real estate, setting forth the terms of the sale, and specifying the rights and duties of the parties in the real estate transaction It will be signed by the buyer and seller and their witnesses and will become legally binding upon each party

A sale contract is made by seller to deal the price and the necessary terms to ensure both party satisfy

1.2.2.4 Booking Request

We can simply understand that a booking request is a reservation request from a shipper or a Forwarder — a logistics service company sent to a carrier such as a shipping line, an airline to confirm the reservation for their import and export shipments

Booking Request is a basic term in import and export that is issued by shipping lines to carriers to request service users to provide information in an available form

1.2.2.5 Verified Gross Mass weight - VGM

VGM in import and export of goods is a confirmation of the whole weight (Gross Weight) of both the container and the goods VGM stands for Verified Gross Mass This document is specified in SOLAS (Safety of Life at Sea convention) — A public charge for the safety of human life at sea

This SOLAS regulation has been added by the World Maritime Organization (IMO) in the method of transporting goods by sea, requiring the shipper (Shipper)

to practice VGM before the goods can be loaded on the ship

1.2.2.6 Booking Note

Booking Note is a storage agreement, which is a document showing that the shipper makes a reservation with the shipping line to transport the goods Usually, shippers often make bookings through forwarders or logistics companies,

or can also get them directly from shipping lines and airlines (not many)

1.2.2.7 E-custom declaration paper

A customs declaration is a document whereby the owner of the goods must declare the number of such goods to the controlling force when importing and exporting goods into our country (also known as exit)

1.2.2.8 Shipping instruction

SI is the shipping / delivery instructions of the exporter / shipper to the transport / forwarding company Make sure the forwarder transports the goods according to the consignor's request And limit the above errors on other delivery documents, especially Bill of Lading

1.2.2.9 Bill of Lading

MBLis a type of bill of lading issued by the owner of the means of transport or the operator of the means of transport to the shipper The shipper here can be the actual shipper or an intermediary company such as a forwarder

An HBL or House Bill of Lading is a transportation contract issued by a forwarder

to their customer This contract typically acknowledges that the forwarder received the good, what transit service will be provided by the forwarder, the route and commodity that was handed over

1.2.4 The freight forwarding process of exported FCL shipments

3 PL

consignment in container

Step 5: 3PL do Customs procedure for consignment

Step 6: 3PL deliver full container under seal to vessel

Step 7: 3PL deliver container under seal to the vessel

O Step 9: 3PL release House B/L to shipper

CHAPTER 2: INTRODUCTION OF INFOREIGN LOGISTICS

CO., LT

2.1 Overview of INFOREIGN Logistics CO., LT

INFOREIGN -— International Foreign Trade Forwarding Company Limited was established in the year 2015 with the sole purpose of being a major player in the Vietnamese freight forwarding market Always meet requirements of customers and partners by their professional freight forwarding services are their first priority With network of offices spread at almost main air, sea ports of Vietnam (Ho Chi Minh, Hai Phong)

Dict, Hai Phong (Head Office)

O Ho Chi Minh Branch: L14 Villa Thu Thiem, Thach My Loi Ward, District 2,

Ho Chi Minh City

2.2.2 Transportation:

They provide domestic transportation service as follows:

sand, stone, iron and steel, plaster, furniture,

O Transportation of agricultural products: Rice, corn, flour, fresh

vegetables,

machinery and equipment, etc

Why should choose INFOREIGN land transportation?

guarantee to transport from 200 tons to 300 tons per day In particular, they have a daily bus schedule to ensure that small orders are delivered in the fastest time according to the time and requirements of our customers

A fast, reliable and safe shipment will help the production line to operate efficiently and create the reputation of your business or individual to your partners

with shipping units, is professional in forwarding Competitive freight rates, good prices always benefit customers Provide detailed shipping contract, clear and reputable goods receipt Customers should provide delivery address, phone number, complete documents when sending goods to Company Having trouble on the road or damaged or malfunctioning goods

is something no one wants to happen But if there is, the Company is fully responsible for the customer's property, the two parties negotiate and we adequately compensate you

2.2.3 Air Freight:

INFOREIGN specializes in providing air transportation services from Tan Son Nhat, Noi Bai, Da Nang airports to all airports in the world and vice versa through agency service contracts signed with a number of airlines such as: Cathay Pacific, China Airlines, Korea Airlines China Southern and Malaysia

Airlines

Their transportation services include:

destination in Asian area and 2-3 days transit time to destination in USA, Europe

destination within 2-7 hours in Asian area and within 24 hours in USA,

Europe

L1 Direct services to destination in Asian area such as Korea, China,

Singapore, Japan, Thailand, Malaysia, Indonesia, Cambodia

world to Vietnam at Tan Son Nhat and Noi Bai airports

airports with best transit time

2.2.4 Sea Freight:

With networks of agents spread over all seaports around the world, INFOREIGN has signed service contracts with many reputable carriers such as KMTC,

Huyndai, Sinokor, NYK, Kline, Evergreen, APL, MSC, Yangming for full container

loading (FCL) INFOREIGN had focused to invest on it and has become one of the leading providers of containers of Viet Nam for routes to US, Europe, Asia

Services include:

Phong, Da Nang, Quy Nhon to all ports around the world with competitive prices and appropriate shipping schedule, especially to main ports of

Korea (Seoul, Inchone, Pusan, Kwang Yang ) and Japan (Tokyo, Osaka,

Yokohama, Nagoya va Kobe)

— Da Nang with best transit time and cost

The Freight Forwarding Process of exported FCL shipment at INFOREIGN Logistics CO., LT

Minh, Hai Phong, with variety of delivery services such as receipt of goods

at the port(CFS — CFS), receipt of goods at factory(DOOR — CFS), and deliver goods directly to the consignee Door (DOOR — DOOR)

2.2.5 Custom Clearance:

With a global presence and thousands of team members throughout the world, they strive to provide top tiered performance with unprecedented operational

excellence

the most important steps in the chain of procedures for international freight forwarding It has a great impact on the cost of goods delivery of enterprises today

Automated Cargo Clearance System, used to clear import and export goods; VCIS - Vietnam Customs Intelligence Information System VCIS mainly serves internally for risk management and professional supervision

of Customs E-Manifest system is the system "Receipt of cargo declarations, other relevant documents and electronic clearance for incoming and outgoing ships" for customs declarants who are shipping lines and agents shipping lines and forwarding companies

parties (Customs, a principal (i.e an importer), and a surety) to ensure that all the duties and fees associated with the rules and regulations of importing or other Customs activities are paid to Customs by the principal

O Special delivery services including after hours & residential delivery

reference in processing Customs entries

2.2.6 Insurance: Transportation carriers are often responsible only for their legal liability for damage caused to your cargo, which may not be equal to the full value of your cargo, and in many cases, such as acts of god, may not be liable for the damage for the loss or damage at all Even in the case your cargo was not damaged and discharged successfully at your destination, you may still need to pay for the loss of others under the “General Average” concept

With our cargo insurance, our customers know their goods are in the safest

hands INFOREIGN CO ,LTD Based on international standards and tailored

extension clauses INFOREIGN CO ,LTD offers you the opportunity to fully secure your cargo during transportation We are able to offer marine cargo insurance on almost all types of commodities including bulk interests and hazardous cargo INFOREIGN CoO., LTD has teamed up with a leading global insurance broker and internationally acclaimed and financially strong A-rated insurance companies Additional clauses that complement coverage for full cargo protection:

Institute War Clauses

Institute Frozen Food Clauses

Institute Frozen Meat Clauses

Institute Classification Clause

Institute Replacement Clause

Institute Cyber Attack Exclusion Clause

Institute Radioactive Contamination, Chemical, Biological, Biochemical

and Electromagnetic Weapons Exclusion Clause

2.3 Company’s facilities

2.4 Company’s human resources & Organizational structure

transportation and warehousing operations of the industrial park

Orienting, building and implementing a business development strategy for transportation services to ensure business targets and effective service quality to meet the development requirements of the company

Organizing the development of standard business processes - ensuring

departments/departments/units throughout the system

Building structure, managing human resources and supervising all activities of the company

Training and developing employees, motivating and encouraging work Spirit to improve efficiency

Absolutely ensure labor safety, minimize risks in cargo transportation

Recruiting, training new employees, improving and developing the old sales force Set goals and monitor sales rep's performance

potential customers

Report actual revenue, expenses and forecasts to management

Identify emerging markets, market changes and fully aware of new products and competitor status

Decide on the appropriate distribution channel

Perform other duties assigned by the director

Responsible for planning to achieve sales target

Responsible for making exploratory calls

Responsible for establishing and managing relationships with customers wishing to use the company's freight services

Maintain positive interactions continuously to nurture relationships with customers

Take ownership of customer issues and follow up until resolved Represent the company in negotiating and building relationships with shippers and carriers

Receiving requests for import and export documents for shipments from sales to transfer (if the Import-Export company does not do it

by itself but hires a forwarder to do it)

Must handle import and export documents to help customers if the

forwarder hires to do such as: Invoice, Packing List, C/O,

Fumigation, Phytosanitary, other Certificate, license, quality control

or specialization to complete with Operations in parallel

Transmit customs declarations for export and import shipments, then hand them over to Operations - field staff for customs

clearance at the branch

Making Bill, AWB of shipments, support VGM declaration, upload Debit Note from the system to send Sales, then sales send to customers

Receive/do pre-alert or send Agent/Lines imported goods, declare

E-manifest, do NOA to send customers

Contact foreign lines/agents to get the best rates, ask for Dem/Det, check space and get booking from shipping lines to send sales or send to direct shipper/consignee

Arrange / coordinate with dispatchers to plan the dispatching of vehicles, packing containers (trucking) Check the progress of packing and unloading Update status (tracking, tracing) of export/import shipments on the system to notify customers

Support sales/docs to document export and import shipments, check ETA

Match inventory between actual and book numbers

Responsible for keeping all export and import documents fully and scientifically

+ Operation:

Receive export and import documents from sales/docs and assist in tax payment, customs clearance for export or collection of goods (imported goods) at the customs branch outside the border gate,

ICD, port (border gate), airport, customs courier

Receive documents and requests from sales/docs to do documents

such as C/O, Fumigation, Phytosanitary, insurance, C/Q, license,

certification or have to go to inspection, support analysis and classification and carry out specialized management procedures (quality inspection, announcement .)

Directly declare ECUS/VNACCS customs or support declaration documents when necessary

2.5 Business situation of company

forwarding company

- Cut the cost

Hai Duong, Hung Yen, Bac Ninh, Ha Noi: Honda, Canon, Samsung Factory,

Toan Thang Company Trade companies in Ha Noi and Ho Chi Minh city

The amount of customer increase from 10-20 customers to 30-50

customers per year

a rookie company in the logistics industry, INFOREIGN quickly became a

transportation services, INFOREIGN has increased its revenue by 200% within 5 years Although in 2019 - 2020, under the influence of the covid-

19 pandemic, the company's revenue tends to decrease, but not because of that, it does not lose INFOREIGN's position in the logistics industry By the