Báo cáo thực tập tiếng anh GRADUATE INTERNSHIP REPORT FREIGHT FORWARDING ACTIVITIES

VIETNAM NATIONAL UNIVERSITY, HANOIINTERNATIONAL SCHOOL *** GRADUATE INTERNSHIP REPORT FREIGHT FORWARDING ACTIVITIES ELS AIR & OCEAN C/O THE VY CO., LTD SUITE 401, NO 131, BUI THI XUAN ST

VIETNAM NATIONAL UNIVERSITY, HANOI

INTERNATIONAL SCHOOL

***

GRADUATE INTERNSHIP REPORT

FREIGHT FORWARDING ACTIVITIES

ELS AIR & OCEAN C/O THE VY CO., LTD

SUITE 401, NO 131, BUI THI XUAN ST., HAI BA TRUNG DIST., HANOI, VIETNAM

Supervisor: Tran Hong Ngan, M.A

Student’s full name: Nguyen Kieu Oanh

Having such an amazing and satisfying experience at The Vy Company overthese 6 weeks, I would like to express my gratitude and thanks towards thefollowing people for their support:

To the company perspective, if they had not made the decision to select me forthe internship, I would not have this opportunity to practice my learning, specialthanks to:

Mr Nguyen Phi Hung – Director, also my supervisor

Mr Cong Phuong Hiep – Deputy Director

I would also like to acknowledge Prof Tran Hong Ngan’s involvement andsupervision of my internship as well as her valuable advice during doing this reportBesides, I would like to thanks to Mrs Nguyen Thi Le Van of Student trainingand management Department for supporting me such up to date and informationalmaterial to complete this report

Last but not least, to my dear friends Ms Dang Thanh Thao, Ms Bui HongCuc, Ms Le Thi Thuy Hong for their guiding, sharing and supporting

Table of Contents

INTRODUCTION 5

I Rationale 5

II Purpose and Scope of study 5

III Structure of the report 5

CHAPTER I: AN INTRODUCTION TO THE VY COMPANY, LIMITED 6

I Basic information 6

II Functions, Duties, Administration and Personal management structure 7

1 Functions 7

2 Company’s duties 7

3 Human resources and Administrative structure 8

CHAPTER II: THE COMPANY’S BUSINESS 10

I General business activities 10

1 The Vy business’s characteristics 10

2 Competitive position 10

II Freight Forwarding Activities 11

1 Freight Forwarding Basic information 11

a Definition 11

b Functions of Freight Forwarder 12

c Reason for working with a Freight Forwarder 12

2 Span of International Operation 14

3 Conference Lines 14

4 Services Offered and Assets 16

a Trade Routes 16

b Containers 17

c Vessels 18

d Bill of Lading 19

5 Freight forwarding clients: 22

CHAPTER III: INTERSHIP ACTIVITIES 25

I Objectives 25

II Content 25

1 Scanning order email from the customer 27

2 Bill of lading tracking 27

3 Transshipment 28

III Methodology 28

CHAPTER IV: PERSONAL LEARNING AND REFLECTION 30

I Knowledge improvement 30

II Social and communication skills 30

III Time management 31

IV Positive working attitude 31

V Observation and recommendation 32

1 Observation 32

2 Recommendations 33

CHAPTER V: SUMMARY AND CONCLUSION 35

REFERENCES 36

APPENDIX 37

I Rationale

I had done the internship for about 2 month at The Vy Co., Ltd and I hadsome experiences that I brought out here in this report During the internshipperiod, I got used to with the real working environment, built new relationshipswith the co-worker and studied work place communication manors Moreover,through the internship, I can bring what I studied at university program in the realworking world

II Purpose and Scope of study

The purpose of the report is to give an in-depth insight of my experiences as

an office intern at The Vy over this short but enriching 6 weeks

This report is carried out by self-study and collecting materials from The Vy’sstored documents as well as the Internet combining with materials collected fromcurrent employees of The Vy

III Structure of the report

The first part of the reports offers an overview of the organization The nextpart is main logistic activities of The Vy Limited Company This part will be themain content of this report which shows out my understanding about the practicallogistic activities The next part is about internship activities with some personallearning and reflection of the internship to me Finally, the report warp-up with afew closing remark with summary and conclusion from the experiences

CHAPTER I: AN INTRODUCTION TO THE VY COMPANY, LIMITED

I Basic information

The Vy Company Co., Ltd is the Hanoi representative office of ELS air &Ocean Limited Company which located in Taipei, Taiwan The Vy Company Co.,Ltd was formally established and put into operation according to Businessregistration certificate No 0102025865 of Department of Planning and InvestingHanoi on 17th April, 2006

Official name: Công ty TNHH Thế Vỹ

English name: The Vy Company Limited

Name in short: The Vy Co., Ltd

Address: Suite 401, No 131, Bui Thi Xuan St.,Hai Ba Trung Dist., Hanoi,

Mr Nguyen Phi Hung 28.57%

Ms Pham Thi Ngoc

II Functions, Duties, Administration and Personal management structure

1 Functions

The company’s functions include international services in transportation,logistic, exportation, importation, agency, consulting, etc for domestic andforeign companies in transportation, logistic, exportation and importationsectors

In detailed, The Vy’s functions include:

- Logistics services import and export goods

- Goods on consignment agent

- Customs brokerage services, warehousing

- Buying and selling personal belongings and family (except sportingguns), metal products, electrical appliances, garments, fabrics, sportsequipment, cosmetics (except cosmetics are harmful to health), arts andcrafts products, electrical goods, electrical appliances, computers, officemachines (except for color printers), paper, plastic resins, fertilizers,household goods, exterior decoration, aluminum products, plastics, food,food, agricultural and fishery products, leather buffalo - cattle primaryprocessing

Besides, depending on client’s requirements, The Vy may take care of otherservices arising in delivery and special services like collecting, relevantservices related to logistics activities

2 Company’s duties

- Build plans and implement business services following recent regulations

- Ensure preservation and addition capital based on self-financing, reasonableand efficiency usage of capital; fulfill payment obligations of the StateBudget.

- Regularly promote, improve company’s facilities

- Joint and associate venture to carrying out delivery, transportation goods bymodern vehicles in flows, transport routes rationally and safely; improvetransportation, transition, storage in warehouse and yard, delivery; and ensuresafe storage of cargoes within the responsibility of The Vy

3 Human resources and Administrative structure

The company is being managed by a direct scheme in which Director NguyenPhi Hung is the most powerful person, have responsibilities in every activity ofThe Vy Under his business are 100% staffs having university degrees whotake charge of others positions

The following diagram is the simple human resources structure of The Vy:

In which:

- Director: Directly running the company, negotiating, signing contracts,

executing deal, resolving problems with clients and being legal representative

- Deputy Director: Helping the Director in personnel management,

recruitment, finding clients, resolving clients’ problems

- Accountant: Monitoring expenditures, accounting business through

documentary

- Specialist staff: Organizing and implementing professional works in

logistics In charge of researching activities, find ding potential clients in bothair way and ocean

 Personal Evaluating: The simple personnel structure of the

company helps reduce cost and easily to manage

CHAPTER II: THE COMPANY’S BUSINESS

I General business activities

1 The Vy business’s characteristics

Seasonal: it is a general characteristic of almost company, which works in

this logistic sector Seasonal business activities depend on the seasonality ofexport/import goods

Having not own any ship or container: This is a disadvantage to compare

with others because this may cause passive situation for the company,especially in Maritime season Sometimes the company has to struggle to theproblem of competition between the vessel providing firms

2 Competitive position

Nowadays, along with the open market policies of Vietnam government,there are hundreds of state companies, joint stock companies, joint venturecompanies, and private companies competing with The Vy in logistics sector

Those companies are so variety in scale, type of ownership and functions…This fact forces The Vy to have a clear plan, suitable develop policies to utilizehuman resources effectively, and promote advantages to survive and develop

II Freight Forwarding Activities

1 Freight Forwarding Basic information

a Definition

Freight forwarding is a service used by companies that deal in international

or multi-national import and export While his freight forwarder does notactually move the freight itself, it acts as an intermediary between the clientand various transportation services Sending products from one internationaldestination to another can involve a multitude of carriers, requirements andlegalities A freight forwarding service handles the considerable logistics ofthis task for the client, relieving what would otherwise be a formidableburden

Freight forwarding services guarantee that products will get to the properdestination by an agreed upon date, and in good condition.The freight forwarding service utilizes established relationships with carriers

of all kinds, from air freighters and trucking companies, to rail freighters andocean liners

Freight forwarding services negotiate the best possible price to move theproduct along the most economical route by working out various bids andchoosing the one that best balances speed, cost and reliability

A freight forwarding service generally provides one or more estimates tothe client along with advisement, when necessary Considerations that effectprice will range from origin and destination to special requirements, such asrefrigeration or, for example, transport of potentially hazardous materials.Assuming the client accepts the forwarder’s bid, the freight is readied forshipping The freight forwarding service then undertakes the responsibility ofarranging the transport from point of origin to destination

b Functions of Freight Forwarder

There is a lot that goes into arranging your international shipping While thefreight forwarder handles the details of your international shipping, it isimportant to know what a freight forwarder does not do in order tounderstand what a freight forwarder actually does.

A freight forwarder does not actually move your freight itself

The freight forwarder acts as an intermediary between a shipper and varioustransportation services such as ocean shipping on cargo ships, trucking,expedited shipping by air freight, and moving goods by rail

A freight forwarding service utilizes established relationships with carriers,from air freighters and trucking companies, to rail freighters and ocean liners,

in order to negotiate the best possible price to move shippers' goods along themost economical route by working out various bids and choosing the one thatbest balances speed, cost, and reliability

Freight forwarders handle the considerable logistics of shipping goods fromone international destination to another, a task that would otherwise be aformidable burden for their client

To comply with export documentation and shipping requirements, manyexporters utilize a freight forwarder to act as their shipping agent Theforwarder advises and assists clients on how to move goods most efficientlyfrom one destination to another A forwarder’s extensive knowledge ofdocumentation requirements, regulations, transportation costs and bankingpractices can ease the exporting process for many companies ( Export.gov)

c Reason for working with a Freight Forwarder

 A good freight forwarding service can save you untold time andpotential headaches while providing reliable transportation of products atcompetitive rates

 A freight forwarder is an asset to almost any company dealing ininternational transportation of goods, and is especially helpful when in-house resources are not versed in international shipping procedures.

There are many advantages to using a freight forwarder Here are a fewlisted:

 A Freight Forwarder handles ancillary services that are part of theinternational shipping business

- Risk Assessment and Management

- Methods of International Payment

2 Span of International Operation

Once again, The Vy Co., Ltd was a brand representative of ELS air & OceanLimited Company

The company’s headquarter located in Taipei, Taiwan As being amultinational company, under the company line, they lay the individualcountry that are their main customer destination market with theirrepresentative branch offices In some country, the company has an associatedcompany through which they provide their services

3 Conference Lines

A shipping conference is a voluntary association of ocean carriers operating

on a particular trade route between two or more countries These associationswere originally formed in the nineteenth century as a means to providetransport services for trade between England and its colonies

A shipping conference establishes uniform freight rates, and terms &conditions that are adhered to by the member carriers Although the sheernature of this organizational structure can be compared to that of a cartel, it isseen as very beneficial in the growth of international trade through theestablishment of stable and predictable rate levels This in turn, reduces thethreat of predatory price competition

Although a conference serves as the association at large, member carriers aredivided into alliances, which provide the basis for a liner service The carriersshare or lease out an agreed portion of their ships to other members, thusproviding more frequent services for each At the benefit of countries andcustomers, liner services provide sailings on a regular schedule to and fromspecific ports along a trade route This schedule is regularly updated for eachship’s ETA and ETD The intervals, upon which the sailing schedules are set,are determined by the amount of cargo transported on that route For large

routes from Asia-Europe, this is a weekly service For smaller inter-regionaltraffic, these may be on a two weeks basis.

In order to keep conferences from unfairly discriminating againstindependent carriers through particular membership requirements, the U.S andGermany require that all conferences that serve their ports must be open Thismeans they must be willing to accept new carriers under fair and reasonableterms and conditions

The formation of modern alliances began in 1994 with the formation of theGlobal Alliance between American President Lines, Mitsui OSK Line,EXPOLANKA FREIGHT LIMITED LINES, and Nedlloyd Lines The GrandAlliance came next with the members: NYK, Hapag-Lloyd, Neptune OrientLine, and P&O) The following shows the major alliances today:

New World Alliance Independent Carriers Alliance

APL CMA/CGM

Hyundai CSAV/Chilean LineMOL Hanjin Shipping

Montemar Maritime Zim Israel NavigationCo

MISC· Yang Ming Line

Trans-Atlantic Trade is TAT, whereas Asia-Europe Trade is AET

Asia – North America: There is the Gateway Express consisting of three

services lines each running once a week between 5 European cities andMontreal

Asia – North Europe : In conjunction with the New Grand Alliance,

EXPOLANKA FREIGHT LIMITED LINES offers six service loopsconnecting 10 European cities to China, Japan, Singapore, Korea, Indonesia,Sri Lanka, and the Middle East Each loop covers a particular group of cities,but the two main Asian cities covered are Singapore and Busan

( Top trade route in 2013)

b Containers

The first and most popular sport is the general twenty and forty foot lengthcontainer The exact dimensions are 20/40’ x 8’ x 8’6” High Cube (HQ)containers are also available which offer one-foot greater height, 9’6” Thesecontainers are made of steel or aluminum (which is lighter and can bear ahigher max gross weight)

Reefer containers are refrigerated containers for temperature sensitive goodslike food, chemicals, pharmaceuticals, and particular medical equipment.Cooled air is delivered through the floor to allow thorough distribution Thesecontainers are made of steel with a stainless steel lining and are available in20ft, 40ft and 40ft high cube sizes

Open top containers allow bulk cargo like machinery to be loaded fromoverhead They come with a PVC tarp cover and attachable bows with cable

sealing devices, in addition to removable container doors for easier cargostuffing They are made of steel available in 20 and 40ft sizes Flat racks arestandard 20-40ft containers designed for heavy cargo loaded from the sides ortop, for example lumber and pipes These are available as collapsible or non-collapsible with or without walls, and are made of steel.

To suit the shipment needs of clothing manufacturers and distributors whichhave either a string or bar system (or both) for hanging clothes, and offer theclient greater load internal capacity and lower handling costs

As being a forwarder, The Vy received every order from the clients.Therefore it is cannot deny that if the order will be on full container load (FCL)

or less container load (LCL)

c Vessels

All of their ships which was used by The Vy as the vessels are registered andcome in different classes with respect to capacity and purpose The S-classwith 10 ships carry within an average of 5,500 TEU The E-class with 2 shipscarry 2,450 TEU The F-class with 6 ships carry an average of 3,200 TEU TheICE class has 3 special ships with strong reinforced hulls for very cold weatherand ice conditions; two carry up to 3,100 TEU while the last one up to 4,400TEU

The need for larger ports:

Although ocean ships will only get bigger and have higher-capacities overthe next 20 years, an important issue for certain ports is the ability toaccommodate these massive vessels At the present, it is the fact that there is

no eligibility port in Vietnam which can suite the international large shippingvessels Therefore all the shipment will be load on Hai Phong port then beingtransferred to another vessel to meet the destination port

Some destination port of The Vy’s shipment is listed as following:

This official legal document issued by the carrier to the shipper is a contract

of carriage that represents the ownership of cargo, a negotiable document toaccept cargo, and the terms and conditions under this contract that identify theresponsibilities and liabilities of each party Issued B/Ls come usually in a set

of three originals which are signed by the master of the ship or anotherauthorized person on behalf of the shipping company On presentation of any

of the three originals (along with appropriate payment), the master orauthorized person has to turn over the goods to the consignee or delegatedparty

Types of B/Ls