VIETNAM GENERAL CONFEDERATION OF LABOUR

TON DUC THANG UNVERSITY

FACULTY OF BUSINESS ADMINISTRATION

CASE STUDY 2:
PROVIDE QUOTATION FOR 2 ROUTE SERVICES USWC &
USEC AND PROPOSE SHIPPING SOLUTION

Mentor: Tran Vu Nhu Anh

Group of class: 03
List of members:
1. Phan Hong Diem - 718H1856 – Team leader
2. Vo Thi Hoang Anh – 718H0822
3. Tran Que Chi – 718H1847
4. Huynh Thi Hong Hanh – 718H0877
5. Bui Thi Thanh Thuy – 718H2026
6. Le Pham Ngoc Tieu Tran – 718H1069
7. Pham Le Vy – 718H2075
8. Le Thi Nha Vy – 718H2070
9. Pham Thi Truc Vy – 718H2077

TPHCM, May, 2020

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 INSTRUCTOR’S COMMENTS
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 TABLE OF CONTENTS
ABSTRACT.................................................................................................................. 5
1. INTRODUCTION.................................................................................................6
1.1. Ho Chi Minh’s ocean market.........................................................................6
1.1.1. Export & Import Volume (Compare with other provinces in Vietnam).....6
1.1.2. Export & Import Items...............................................................................6
1.1.3. Ocean Ports................................................................................................7
1.1.4. Road System...............................................................................................7
1.2. Our Company..................................................................................................8
1.2.1. Company background.................................................................................8
1.2.2. Company’s services....................................................................................9
1.2.2.1. CFS warehouse...........................................................................................9
1.2.2.2. Inland Transportation.................................................................................9
1.2.2.3. Ocean Freight.............................................................................................9
1.2.2.4. Services Routes:.........................................................................................9
1.2.3. The partners of our company:...................................................................10
1.3. The customer’s Company.............................................................................10
1.3.1. Export Company – Minh Duong Furniture...............................................10
1.3.1.1. Company background...............................................................................10
1.3.1.2. Items for exporting...................................................................................12
1.3.2. Import Company - Home Depot Company...............................................13
1.4. Research Questions.......................................................................................14
2. PROBLEM ANALYSIS......................................................................................15
2.1. The definitions...............................................................................................15
2.1.1. Incoterms 2020 CPT.................................................................................15
2.1.2. Surcharges & Local Charges....................................................................16
2.2. Route: HCMC to USEC................................................................................17
2.2.1. Customer Information...............................................................................17
2.2.2. Vessel Schedule........................................................................................18

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 2.2.3. Services Detail.............................................................................................18
2.3. Route: HCMC to USWC..............................................................................20
2.3.1. Customer Information...............................................................................20
2.3.2. Vessel Schedule........................................................................................20
2.3.3. Services Detail..........................................................................................21
2.4. Customer service reviews.............................................................................23
2.5. General operation process............................................................................24
2.6. Required document:......................................................................................27
2.6.1. Commercial Invoice:................................................................................27
2.6.2. Packing List:.............................................................................................28
2.6.3. Certificate of Origin (CO):.......................................................................28
2.6.4. Bill of Lading:..........................................................................................29
2.6.5. Importer Security Filing (ISF):.................................................................29
2.6.6. Customs declaration.................................................................................30
2.6.7. Goods purchase and sale contract.............................................................30
2.6.8. Letter of introduction from exporting company........................................30
2.7. Additional services provided........................................................................31
2.7.1. CFS Warehouse........................................................................................31
2.7.1.1. Geographical location...............................................................................31
2.7.1.2. Facilities of CFS warehouse.....................................................................32
2.7.2. Trucking service.......................................................................................32
2.7.2.1. The Advantages:.......................................................................................32
2.7.2.2. Quotation:.................................................................................................33
3. CONCLUSION....................................................................................................34
4. RISK MANAGEMENT.......................................................................................35
4.1. Additional surcharges...................................................................................35
4.2. Cut-off time....................................................................................................36
4.3. Covid19 pandemic.........................................................................................36
REFERENCES...........................................................................................................37

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 ABSTRACT
To summarize the structure, this report includes the following main sections:
First, we introduced our company - Sealines Logistics - a young company with
enthusiastic and professional staff, modern to meet transaction needs. Our company has
a high reputation always paying attention to customer service, ensuring the best
experience for you. After that, we had a brief introduction about our client company,
importers and exporters. We then proposed research questions that we would clarify in
the following sections.
In the problem analysis section, before proceeding with the quotation, we
introduced the concept of incoterms 2020 CPT and the costs. When making quotes, we
provided two options for exporting furniture to the US with two routes, USWC and
USEC, with two reputable shipping lines, COSCO and ONE. To help you better
understand how our company works, we also provided you with a detailed operation
process with accompanying documents. For this transaction, we assumed you would
use the FCL service. But we also offered you the LCL service with additional services
provided (CFS warehouse & Trucking service) if you need it.
Next, we analyzed a number of factors to suggest a route for your company. We
used the Performance Ranking Method to evaluate the factors on a scale of 1 to 5, 1 =
the worst and 5 = the best, then we calculated the average of the factors and we got the
final result.
Finally, we provided the Risk Management with bad situations related to
objective and subjective issues and proposed solutions to help you take notice and
avoid them.

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 CHAPTER 1: INTRODUCTION
1.1. Ho Chi Minh’s ocean market

1.1.1. Export & Import Volume

Export: According to 2019 statistical results, the total export turnover of city
businesses exporting via Ho Chi Minh City port (including crude oil) in 2019 was
estimated at 39,682.7 million USD, up 17.3% compared to last year.
Import: The total import turnover of enterprises through Ho Chi Minh City port
was estimated at US $ 44,076.6 million, up 10.9% over the same period last year.
Ho Chi Minh City maintains its leading position in the country in terms of both
exports and imports. In particular, export turnover reached US $ 34.8 billion, up over
US $ 3 billion over the same period in 2018.
1.2. Export & Import Items
Export Items: Ho Chi Minh City has 5 items with export value of over 1 billion
USD, accounting for 83.3% of total export turnover: Leading computers, electronic
products and components reached 14.9 billion USD, followed by other commodity
groups reaching 7.8 billion USD. Textile and garment industry ranked third with 5.6
billion USD, followed by footwear with 2.6 billion USD and fifth was machinery,
equipment, tools and spare parts with 2.1 billion USD.
Import Items: Types of cars, turnover reached 484.1 million USD. Imported
motorcycles also increased, with a turnover of 287.1 million USD (121,984 vehicles).
Cars with fewer than 9 seats imported, turnover reached 254.8 million USD (11,649
vehicles). Computers, electronic products and components have an import turnover of
11,242.3 million USD. Household electrical appliances, turnover only reached 832.8
million USD.
1.2.1. Ocean Ports
The Port of HCMC is located on the Saigon River. It is a network of ports
functioning as a hub for the import and export of goods in south Vietnam. It’s the
country’s most important economic center, contributing to more than two-thirds of its
economy. It caters to a host of industries, including mining, processing seafood and
agriculture.

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 Some prominet ocean ports under Ho Chi Minh City’s ocean market: Saigon
Port (a system of seaports in HCM City that acts as the gateway of the South in export
and import activities; Cat Lai Port (located on Dong Nai River is one of the key ports
of the Ho Chi Minh City Port system). There are also Tan Thuan Dong Port, Tan Cang
Port, Vietnam International Container Terminals (VICT), International Container
Terminal,…
1.2.2. Road System
Transporting goods by road in Ho Chi Minh City developed at a high speed,
accounting for an increasing proportion of the total freight volume. Cargo
transportation between Ho Chi Minh City and other localities by road has a faster
growth than cargo transport activities between Ho Chi Minh City and other countries in
the world (mainly by sea).
However, road system in Ho Chi Minh still have many situations that need to be
addressed. Currently, the system of seaports in Ho Chi Minh City and neighboring
provinces is lacking in synchronization in transport infrastructure, lack of resources for
modernization, between ports with an imbalance between supply and demand. ... These
limitations make the system not promote its full capacity, causing logistics costs to rise.
1.3. Our Company
1.3.1. Company background
Company’s Name: SeaLines Logistics Joint Stock Company.
Address: 3SB1-12 My Vien Quarter, Street 30, Phu My Hung, Tan Phu Ward, District
7, Ho Chi Minh.
Founded year: 2010.
Transaction name: SLC.
Tax code: 0302697556.
Fax: +84-08-3863 4212.
Email: sl.pricing@sealines.com.vn
Tel: 02432011930.

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 SeaLines is a member of Vietnam Logistics Business Association (VLA) and
International Freight Forwarding Association (FIATA). We are a company specializing
in providing logistics services with the mission to contribute to the development of
business. By developing comprehensive not only normal logistics services, but also
other types of logistics services with added value that can meet all customer
requirements, contributing to the development of trade.
Vision: We are always at the forefront of global logistics service solutions and
are proud to bring our customers and shareholders the long-term benefits.
Mission: meeting the needs and exceeding customer expectations is an
important factor in our field of international forwarding. As a leading enterprise in the
field of logistics, SeaLines always accompanies customers to develop professional and
diverse services, constantly improving the quality of customer service, controlling
costs reasonably and effectively. Our motto is: Professional - Dedicated - Reliable -
Effective.
Core values:

 Customer first: Pursuing solutions to provide professional goods service with

more added value to customers.
 We are committed to providing the best value to our customers by constantly
improving and investing in our people and services.
 We seek and aim for prosperity in the lives of our employees as well as our
customers and partners.
 Building corporate culture with sense of responsibility, integrity and collective
spirit. Staff training and development policy is a key factor for self-
improvement and innovation to better serve customers.
1.3.2. Company’s services
1.3.2.1. CFS warehouse
Our network of strategically located, SeaLines-staffed CFS permits safe and
efficient cargo handling of LCL freight across the globe.In these state-of-the-art
CCTV-monitored facilities, export loading and import unloading are managed using
bar-code labeling with RF-supported, and a full range of specialized equipment is on
hand for packing and crating and heavy-lift.

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1.3.2.2. Inland Transportation
With a team of skilled and professional drivers, 100% of whom have an FC
class license, SeaLines readily makes fast, safe, and precise container deliveries as
designated. Our truck team is well managed, operationally and technically with
contemporary management methods. All tractors are fitted with GPS navigation
devices to ensure fast transit times and accurate itineraries. SeaLines promises to serve
all customers’ demands with our best effort (Container Trucking Services).
1.2.2.3. Ocean Freight
SeaLines Logistics provides professional customs services as Customs service,
Customs clearance service, Service tax declaration, Clearance service.
We provide customs declaration services for export - import consignments at
many border gates nationwide, connected to the electronic declaration system in all
branches. Guided overview of the necessary work of the customs declaration, the
customs authorities, the system handles VNACCS information from the stage of the
export declaration/export, customs declaration registration, related procedures during
customs clearance, to be licensed as customs clearance.
1.2.2.4. Services Routes:
 From Vietnam to America (Los Angeles Long Beach, New York Port…): 2-3
trips / week.
 From Vietnam to Europe (Hamburg, Palermo...): 5-6 trips / week.
 From Vietnam to Asia (Shanghai, Changzhou...): 1-2 trips / week.
1.2.3. The partners of our company:
WANHAI: WanHai is the only carrier in Taiwan have exclusive terminal in the
North, Central and Nam.Wanhai has strategic alliances with well-known shipping lines
to reduce operating costs, minimize risk, consolidate service network.
ONE: ONE shipping line officially came into operation on April 1, 2018. ONE
is a merger of three largest Japanese shipping lines, NYK (Nippon Yusen Kaisha),
MOL (Mítui OSK Lines), K Line (Kawasaki Kisen Kaisha). ONE Capable of
providing approximately 1,400,000 TEUs with a fleet of 230 container ships.
MAERSK SEAKAND: Maersk operates in many fields, mainly shipping
(Maersk is the largest transporter in the world), offshore drilling and exploitation,

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consumer retail business. It is also the largest container shipping company in the world
(20% market share).
COSCO & COSFI: It is the 6th largest shipping company and the 9th largest
container shipping company in the world. the largest bulk cargo in the world. In
addition, COSCO is also the largest shipping company in China.
MSC: MSC Mediterranean Shipping Company is a global business engaged in
the shipping and logistics sector. Present in 155 countries, MSC facilitates international
trade between the world’s major economies, and among emerging markets across all
continents.
OOCL: is one of the world's largest logistics and transportation companies with
more than 280 offices across 55 countries around the world, providing 78 services
covering international trade markets with a train of more than 270 the ship.
1.3. The customer’s Company
1.3.1. Export Company – Minh Duong Furniture
1.3.1.1. Company background
Company’ name: Minh Duong Furniture - Minh Duong Wood Joint Stock Company.
Address: Quarter 1B, An Phu Ward, Thuan An Town, Binh Duong, Vietnam.
Warehouse: 3B / 2 1B, 228H / 3A Quarter, An Phu Ward, Thuan An Town, Binh
Duong Province, Vietnam.
Factory’s area: 3 ha.
Machinery system: 80% machines imported from abroad.
The product is ISO 9001 certified by Bureau Veritas.
Main export markets: USA, Australia and Korea.
Minh Duong Furniture is one of the leading enterprises in Vietnam in the field of
manufacturing and exporting wooden and home furniture items.
 Distance from warehouse to Cai Mep port: 69km.

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  Distance from warehouse to Cat Lai Port: 36km.

1.3.1.2. Items for exporting

Name’s product: Marbelle Dining Set.
Material Pine & Rubber wood 1x40’HC 82 sets.
Cargo Volume: 30 container.
Dimensions: Table - W1524 x D915 x H737 mm & Chair - W545xD572xH1016 mm.

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1.3.2. Import Company - Home Depot Company
The Home Depot, Inc. is the largest home improvement retailer in the United States,
supplying tools, construction products, and services. The company specializes in
warranty repairing Interline Brands, also owned by The Home Depot with 70
distribution centers across the United States.
Company’s name: The Home Depot, Inc.
Founded: 1978.
Home Depot’s warehouse: 150 Greenwood Rd, Locust Grove, GA 30248, United
States.

 Distance from 150 Greenwood Rd, Locust Grove, GA 30248, United States to Port
of Los Angeles: 3592 km.

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 Distance from150 Greenwood Rd, Locust Grove, GA 30248, United States to New
York Harbor: 1423 km.

1.4. Research Questions

This report will answer the following questions:

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 Analyze the costs and provide services to export 30 containers of tables and chairs
to the US with 2 routes USWC and USEC to deliver to the Import company –
Home Depot.
 Consider and propose the most reasonable route for Export company - Minh Duong
Furniture.

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 CHAPTER 2: PROBLEM ANALYSIS
2.1. The definitions of Surcharges & Local Charges:
LSS (Low Sulfur Surcharge): is a sulfur reduction surcharge, applied in
transport, import and export of sea and air transport routes.
(THC) Terminal Handling Charge: the loading and unloading charge at the
port is the fee collected on each container to offset the costs for cargo handling
activities at the port, such as loading and unloading, gathering containers from CY to
wharf.
Handling fee: actually this fee is set by the Forwarders to collect
Shipper/Consignee. Handling roughly is the process of a Forwarder transacting with
their agents abroad to agree on representing agents abroad in Vietnam to perform some
tasks such as declaring manifest with customs authorities, B/L, D/O issuance as well as
related papers ...
The AMS (Advanced Manifest System fee): is about 25 Usd/Bill of lading.
This fee is required by the US, Canada and some other countries customs declaration
required details of goods before goods are loaded onto ships to transport to USA,
Canada ...
Bill fee: the bill fee is the surcharge for making bill the necessary information
such as the shipper's name, consignee's name and the notify party. Beside, the bill fee
also includes additional charge for issuing B/L (bill of lading).
Seal charge: is the fee charged by shipping lines to issue a high quality seal
(High Security Seal) to customers.
Telex release: a form of delivery to consignee consignees that the shiper does
not need to send the original bill to consignee, making the faster delivery more
convenient in case the consignee does not request to get the original bill.
C/O form (if any): the additional charge for issuing C/O.
Inland trucking: to transport inland.
Customs clearance fee: when going through customs, you need to pay customs
clearance.

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 VGM fee: confirm the Gross Weight of international shipping containers.
Fumigation fee: Fumigating or De-fumigating (removing fumigants after
treatment) cargo goods, packaging and wood pallets.
2.2. Route: HCMC to USEC
2.2.1. Customer Information

Company’s Minh Duong Furniture Joint Stock Company

Name
Address 3B / 2 1B, 228H / 3A Quarter, An Phu Ward, Thuan An Town,
Binh Duong Province, Vietnam.
ID Tax Email box contact@minhduongf.com
Company
Represented by Position General Manager
Minh Tue
Working phone +84 274 3711 Cell Phone 0911472506
098

II.2.2. Vessel Schedule

We choose ONE as carrier for this route because ONE has high frequency of
trips. Moreover, in Viet Nam, most of the customer evaluate ONE is one of the
shipping line that has high the ability to meet the customer satisfaction because of
specialist in solving problem.

Description of Marbelle Dining Term CPT Method Sea

good Set
POL TCIT, - Cai Mep, POD USNYC - New York,
VN USA
Estimate Date Every Thursday Estimate 28-32 days
Departure Transitime
Routing TCIT - NYC Carrier ONE
Direct Service
CY Cut off 18:00 Tuesday Container 20DC/40DC/40HC

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SI Cut- off 5 days before CY Volume 30
Cut-off

Seq. Port of ETD Vessel Port of ETA Transit

loading name destinatio Time
n
1 Cai Mep- 2020-05- ONE New 2020-06- 29 days
TCIT 10 MINATO York, NY 08
009E
2 Cai Mep- 2020-05- MOL New 2020-06- 31 days
TCIT 18 MARVEL York, NY 19
051E
3 Cai Mep - 2020-06- YM New 2020-07- 29 days
TCIT 04 WITNES York, NY 03
S 026E

2.2.3. Services Detail

20DC 40DC 40HC Per

1 Ocean USD 2,050.00 USD 2,500.00 USD 2,500.000 Cont
Freight

+ LSS USD 199.00 USD 398.00 USD 398.00 Cont

Origin Charges
2 THC USD 180.00 USD 180.00 USD 180.00 Cont
3 Bill fee USD 40.00 USD 40.00 USD 40.00 Set
4 Seal fee USD 9.00 USD 9.00 USD 9.00 Piece
5 AMS USD 35.00 USD 35.00 USD 35.00 B/L
6 Telex USD 35.00 USD 35.00 USD 35.00 B/L
Release

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 Other charges
(If any)
7 Trucking USD 70.00 USD 100.00 USD 100.00 Cont
8 Customs USD 60.00 USD 60.00 USD 60.00 Cont
9 Handling USD 65.00 USD 65.00 USD 65.00 Shipment
fee
10 C/O Form USD 30.00 USD 30.00 USD 30.00 Shipment
(If any)
11 VGM fee USD 12.5 USD 20.00 USD 20.00 Cont
12 Fumigation USD 20.00 USD 25.00 USD 25.00 Cont
fee

Remark:
1. The above rate is exclude: VAT, packing fee, cargo insurance, over time charge,
depot for inspection charge, duty & tax, lobby fee, road forbidden fee, time
forbidden fee and other third party special charges if any.
2. Export combined Demurrage and Detention in Viet Nam.

Port OB DND Remark

Country/Region
Type Day 20’/40’ charge
per day
GP/HQ 1-8 free Combine day
cover first day
VietNam 9-20 USD 15/30
21- USD 25/50

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2.3. Route: HCMC to USWC
2.3.1. Customer Information

Company’s Minh Duong Furniture Joint Stock Company

Name
Address 3B / 2 1B, 228H / 3A Quarter, An Phu Ward, Thuan An Town,
Binh Duong Province, Vietnam.
ID Tax Company Email box contact@minhduongf.com
Represented by Minh Tue Position General Manager
Working phone +84 274 3711 Cell Phone 0911472506
098
2.3.2. Vessel Schedule
We choose COSCO as the carrier in this route because it is the member of
Ocean Alliance (CMACGM, Evergreen, OOCL & COSCO Shipping), the charge is
quite cheaper than other shipping lines and it has main routes is US- Asian.

Description of Marbelle Term CPT Long Method By Sea

good Dining Set Beach Transport
POL TCIT – Cai POD USLAX – Los
Mep, VN Angeles, USA

Estimate Date Every Monday/ Estimate 18-22 days

Departure Wednesday Transitime
Routing TCIT- LAX Carrier COSCO
Direct Service
CY Cut-off 18:00 Saturday/ Container 20DC/40DC/40HC
Monday
SI Cut- off 5 days before Volume 30
CY Cut-off

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 Seq. Port of ETD Vessel Port of ETA Transit
loading name destination Time

1 Cai Mep- 2020-05- OOCL Los 2020-06- 20 days

TCIT 15 BRUSSEL Angeles 04
S AWE/
039E
2 Cai Mep- 2020-05- CAPE Los 2020-06- 19 days
TCIT 20 FERROL Angeles 09
CV3/
1057N
3 Cai Mep - 2020-06- WAN HAI Los 2020-06- 21 days
TCIT 08 282 Angeles 29
CV3/N109

2.3.3. Services Detail

20DC 40DC 40HC Per

1 Ocean USD 1,080.00 USD 1,350.00 USD 1,350.00 Cont
Freight
+ LSS USD 127.00 USD 254.00 USD 254.00 Cont
Origin charges
2 THC USD 180.0 USD 180.00 USD 180.00 Cont
3 Bill fee USD 40.00 USD 40.00 USD 40.00 Set
4 Seal fee USD 9.00 USD 9.00 USD 9.00 Piece
5 AMS USD 35.00 USD 35.00 USD 35.00 B/L
6 Telex USD 35.00 USD 35.00 USD 35.00 B/L
Release
Other Charges
(If any)
7 Trucking USD 70.00 USD 100.00 USD 100.00 Cont
8 Customs USD 60.00 USD 60.00 USD 60.00 Cont

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 9 Handling USD 65.00 USD 65.00 USD 65.00 Shipment
fee
10 C/O Form USD 30.00 USD 30.00 USD 30.00 Shipment
(If any)
11 VGM fee USD 12.5 USD 20.00 USD 20.00 Cont
12 Fumigation USD 20.00 USD 25.00 USD 25.00 Cont
fee
Remark:
1. The above rate is exclude: VAT, packing fee, cargo insurance, over time charge, depot for
inspection charge, duty & tax, lobby fee, road forbidden fee, time forbidden fee and other
third party special charges if any.
2. Export combined Demurrage and Detention in Viet Nam.

Port OB DND Remark

Country/Region
Type Day 20’/40’ charge
per day
GP/HQ 1-8 free Combine day
cover first day
VietNam 9-20 USD 15/30
21- USD 25/50

2.4. Customer service reviews

Carrier COSCO ONE

Deposit Adapt according to the date of Adapt according to the date of
time release of the plant. release of the plant.
Schedules are available on Schedules are available on
Mondays and Wednesday, while Thursdays, while goods are in stock
goods are in stock on on Wednesdays.
Wednesdays.
Frequency About 8 ships every three weeks Around 5 ships every three weeks,
of trips but it has another shipments to although other trips to the local
local ports like Long Beach…. . ports also occur. Besides, ONE’s
Besides, COSCO is member of member of THE ALLIANCE

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 Ocean Alliance(CMACGM, (ONE, Hapag- Lloyd, Yang Ming)
Evergreen, OOCL & COSCO  Get a variety of options.
Shipping )
 Get a variety of options.
Charges Cheap because of long-term Cheap because of long-term
forwarder collaboration. forwarder collaboration.
Cheaper than Maersk or other Cheaper than Maersk or other
shipping lines, … shipping lines, …
Major EU- Asian, US- Asian,… US - Asian, US – Japan,...
routes
Customer Have many service to support Focus on customer needs well and
satisfaction customers and concentrate on deliver satisfaction that exceeds
meeting customer satisfaction. expectations.
Innovation Delivering services that Delivering services that contribute
contribute to the customer’s to the customer’s business through
business through self-innovation self-innovation and creativity.
and creativity.
Reliability Sustainable and professional Delivering stable, sustainable and
services. professional services.
Best Continuing to improve ourselvesContinuing to improve ourselves
Practice based on the knowledge
based on the knowledge cultivated
cultivated. by three shipping companies to
deliver the best services.
Quality Pursuing the best quality that Pursuing the best quality that
always exceeds customer always exceeds customer
expectations. expectations.

2.5. General operation process

Step 1. Customer send a booking request
Booking request includes the following basic information that customer provide:
 Type of commodity.
 Port of departure, port of arrival.
 Shipping line.
 Estimated time of shipment.

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  Container type
 Tonnage
Step 2. Contact shipping line to make a booking request
We will base on the customer's request and send the booking request to the
carrier to make a reservation. The carrier will then confirm that the reservation has
been successful by sending an booking confirmation. After we received the booking
confirmation from the shipping line, it will be sent back to the export company so that
they could prepare the goods.

Step 3. Export company prepare goods

Export company will prepare goods and carry out empty containers at the
container yard based on their booking request . After that, pack the goods on the
container and check all the papers to clear the customs then transport to POL according
to the required booking.
At the same time, prepare SI/VGM/ISF to send to our forwarder before the
timeline so we could proceed to make the bill and AMS files.
Step 4. Prepare custom documents concerning mandatory inspection
Custom documents includes:

 Customs declaration: 2 originals (1 copy for exporters, 1 copy for customs).

 Goods purchase and sale contract: 1 original.
 Commercial invoice: 1 original.
 Packing list: 1 original.
 Letter of introduction from exporting company: 1 copy.

When the documents are ready, the delivery staff will take the documents to the
customs office. When the goods have arrived at the port, the delivery staff will take the
inspection staff to the container location and conduct cargo inspection. Goods will be
issued a certificate after checking the standard.
Step 5. Custom clearance for export:
Goods will be classified into 3 channels:

 Green channel
 Yellow channel

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  Red channel

Step 6. Issue Bill of Lading:

The document division is responsible for monitoring the shipment to prepare
export documents. The specific work of document staff is as follows:

 Contact customer to check if shipment is completed or not.

 Get the container’s number to notify shipping lines to update and arrange
container on board.
 Request the shipper to provide information (Shipping Instruction) to issue the
bill of lading.

Step 7. Send documents to oversea parties:

After completing the set of shipping documents (HB/L, MB/L) the document
staff will send a brief description of the shipment: Shipper/Consignee, ship
nam/number of trips, port of departure/port arrival, ETD/ETA, Bill of lading number,
bill of lading type, contract, invoice, packing list for big related agent for agents to
follow up the consignment at the port of destination, attached is a copy of HB/L,
MB/L.
Step 8. Create financial paper and keep record:
Based on the booking Profile, the terms of freight are prepaid (freight prepaid)
so the voucher staff will make the Debit note (debit note) sent to the customer and
transferred to the accounting department to track debt collection. Only when the
shipper pays the freight and related fees (THC, Bill fee, Seal fee ...) will the document
officer issue the bill of lading to them.
In case of postpaid freight (freight collect), the voucher staff will make Debit
note (debit note) to collect freight from the consignee at the port of destination for
collection, the shipper only pays the surcharge in Vietnam and accept bill of lading.
Estimate
Week 1 Week 2 Week 3 Week 4
Transitime
Step
Day 1- Day 4- Day 8- Day Day Day Day Day
ETD ETA
3 7 10 11-14 15-17 18-21 22-25 26-28
1

24
 2

2.6. Required document

2.6.1. Commercial Invoice
Commercial invoice is used as a customs declaration provided by the person or
corporation that is exporting an item across international borders. A commercial
invoice must often include a statement certifying that the invoice is true, and a
signature.
A commercial invoice is used to calculate tariffs, international commercial
terms (like the Cost in a CIF) and is commonly used for customs purposes.
2.6.2. Packing List
A packing list is a document that includes details about the contents of a
package. The packing list is intended to let transport agencies, government authorities,
and customers know the contents of the package. These details help each of these
parties handle the package accordingly.
2.6.3. Certificate of Origin (CO)

A Certificate of Origin (CO) is an important international trade document that

certifies that goods in a particular export shipment are wholly obtained, produced,
manufactured or processed in a particular country.

COs are requested by customs, banks, private stakeholders and importers for
several purposes. Almost every country in the world requires CO for customs clearance

25
procedures: when determining the duty that will be assessed on the goods or, in some
cases, whether the goods may be legally imported at all.

2.6.4. Bill of Lading

A bill of lading (BL or BoL) is a legal document issued by a carrier to a shipper

that details the type, quantity, and destination of the goods being carried. A bill of
lading also serves as a shipment receipt when the carrier delivers the goods at a
predetermined destination. This document must accompany the shipped products, no
matter the form of transportation, and must be signed by an authorized representative
from the carrier, shipper, and receiver.

2.6.5. Importer Security Filing (ISF)

In addition to information like the AMS declaration, the ISF declaration
procedure requires US importers to provide additional information. This information is
also required to be declared to US Customs 48 hours prior to the time the ship in the
transshipment port departs to the US.
2.6.6. Customs declaration (form)
As a rule of thumb, a standard importing or exporting transaction usually
requires a commercial invoice, packing list, bill of Lading and an insurance
certificate ,depending on your Inco terms.
Customs Declaration for export commodity:

 Fill out a customs declaration.

 Commercial invoice (The exporting firm’s invoice, a record of details of a
transaction).
 Packing list (Made out by the seller, check the goods before shipment).
 Issued by customs .
 B/L (Issued by an ocean carrier, received of goods, a property document).
 Clearance number, good’s information, contract number…
2.6.7. Goods purchase and sale contract
Some basic parts of a sale - purchase contract that needed to be mention:

 Sale of goods.

26
  Purchase price.
 Payment term.
 Seller’s representation.
 Delivery of goods/ shipping.
 Risk or loss.
 Acceptance.
2.6.8. Letter of introduction from exporting company
For a typical introduction letter. You have to add your company's name with full
address. And the receiver's name and full address also should be added in the place
allotted for that purpose. Without those primary details no letter carries any
significance. So, you are requested to provide all those important details. Failing which
the letter will make a wrong impression about your company and you among the
receivers of your letters. This is the most unwanted attitude on your side in dealing
with the clients who are the most valued assets of any business organization. If
necessary, leave those spaces blank.
2.7. Additional services provided
2.7.1. CFS Warehouse
2.7.1.1. Geographical location

Address: No. 08, Thong Nhat Boulevard, Song Than 2 Industrial Park, Di An,
Binh Duong.
Distance from CFS Warehouse to warehouse of export company. The distance
between the two warehouses is 11.2 km. Just 30 minutes, we can consolidate LCL
shipments quickly. In addition, the proximity to each other helps customers save
maximum shipping costs.

27
 Distance from CFS Warehouse to Cai Mep Thi Vai Port is 64,2 km. Go through
the highways of DCT HCMC - Long Thanh - Dau Giay/DCT01 and Highway 51. For
customers who want to use LCL consolidation service, with only 1 hour 30 minutes
your goods are brought to the port for transport. We guarantee to provide you with
reasonable cost and quality service to make you satisfied. SeaLines has good
relationships with shipping lines such as WanHai, MSC, ... to capture the strong routes
of each shipping line and that is the premise to be able to facilitate the transport of
goods to customers.

28
2.7.1.2. Facilities of CFS warehouse
CFS warehouse area: 10,000 m2, modern warehouse system. CFS warehouse is
equipped with automatic fire protection system, surveillance cameras, security
assurance, and customs at the warehouse. The warehouse is equipped with a fire
protection system, supervised by CCTV, available warranty, and Customs.
In addition, the warehouse also has a system of selective pallet racking, plastic
pallets and forklifts. Professional staffs apply Oracle ERP software in updating data,
measuring accuracy in data import and export. Goods are scientifically arranged by
region, using modern management software, bar code system to ensure the correct
import and export of goods.
2.7.2. Trucking service
2.7.2.1. The advantages
Trucking is an inseparable part of other logistics services. SeaLines Logistic
provides scheduled transportation services, consolidation and full chartering services.
We set up a professional, dynamic transport team on all routes. Offering
flexible transport solutions, with flexible plans, and we promise on time delivery to
achieve maximum efficiency. We are also committed to protecting commodity
information as well as customer information in order to bring absolute trust to our
customers.
As all value goods are insured, We are responsible for compensating 100% of
the value of goods damaged at market prices. We always notify customers in case of
any delay. Besides, we have a parking lot located in the central area of Binh Duong to
create favorable conditions for vehicle regulation and cost savings for customers.
In our company, ISO-5S-Kaizen standards are always communicated,
implemented and continually improved. The most outstanding advantage is we have 42
trailer tractor truck, more than 73 somiromooc and small trucks of from 1 ton to 3.5 ton
specializing in transshipment of goods to/from seaports/Ho Chi Minh airport/to nearby
industrial clusters such as Binh Duong, Dong Nai, Vung Tau, Tay Ninh, Long An, etc.
2.7.2.2. Quotation
Price : 70.00 USD/cont 20’/ from Cat Lai Port (Including from taking empty
containers to factory => carrying full containers to yard).

29
 Price: 100.00 USD/cont 40DC/HC/ from Cat Lai Port (Including from taking
empty containers to factory => carrying full containers to yard).

30
 CHAPTER 3: CONCLUSION
In the table below, we evaluate the important factors that your company needs
to take notice and choose the appropriate route. There are 4 factor: Costs (40%),
Frequency (10%), Transit Time (20%), Customer Service (30%):

SCORECARD
Cost Frequency Transit Customer Total
Time Service
Route 40% 10% 20% 30% 100%
HCMC - 2 3 3 5 3.2
USEC
HCMC - 3 4 4 5 3.9
USWC

The cost plays an important role in vessel schedule selection criteria. Therefore,
we have assessed this factor quite high (40%). The Route from HCMC to USEC has a
long distance, it takes about 28 - 37 days to reach New York Port. We have the ocean
freight USD 2050/cont/20DC, USD 2500/cont/40DC and USD 2500/cont/40HC much
higher than the route from HCMC to USWC only takes about 18-22 days to arrive with
the ocean freight USD 1080 / cont / 20DC, USD 1350 / cont / 40DC and USD 1350 /
cont / 40HC. That's why we gave a score of 2 for the service to the USEC and a score
of 4 for the USWC.
The frequency represents the professionalism and productivity of a logistics
company. In this factor, we consider that for each route, the route with more trips per
week will be more appreciated. Obviously, as we mentioned in the vessel schedule
section, the route from HCMC to USEC has 1 trip / week while the route from HCMC
to USWC has 2 trips / week. So, we gave score of 3 for the USEC and score of 4 for
the USWC.
Transit time is also a factor that should be included in this scorecard because
every importer wants the goods to arrive early and the shortest possible time and the
importer also wants their goods to arrive early to get a reputation and start other deals.
As we mentioned before, the route from HCMC to USEC (score of 3) takes about 28 -
37 days while the route from HCMC to USWC (score of 4) takes about 18-22 days. So
that we think these scores are reasonable.

31
 Similarly to the cost, the customer service (30%) also plays a very important
role to win customers' trust. Here we both score of 5 for two shipping lines with two
routes (ONE and COSCO) ) because we realize that the services these companies
provide are equal and can meet customer needs well.
Finally, after scoring the factors, we calculated the average based on the points
and the percentage divided, then the route from HCMC to USEC with 3.2 points and
the route form HCMC to USWC with 3.9 points. As such, we would like to propose to
your company the route from HCMC to USWC which is beneficial for you and your
customers.
Thêm tổng kết

32
 CHAPTER 4: RISK MANAGEMENT
4.1. Additional surcharges

BAF (Bunker Adjustment Factor): Fuel price fluctuation surcharge: It is an

additional charge (in addition to sea freight) shipping lines collected from goods
owners to offset expenses incurred due to fuel price fluctuations.
CAF (Currency Adjustment Factor): Surcharge of exchange rate fluctuation:
is the extra fee (in addition to sea freight) shipping lines collected from goods owners
to offset the costs incurred due to fluctuations in foreign exchange rates ...
COD (Change of Destination): Surcharge of changing destination: is the
surcharge of shipping lines to cover expenses incurred in case the shippers request to
change the destination port.
PCS (Port Congestion Surcharge) Port congestion charge: applied when a port
loading or unloading occurs in congestion, which may cause the ship to be delayed,
resulting in a related cost to the shipowner.
PSS (Peak Season Surcharge): Peak season surcharge. This surcharge is
usually applied by shipping lines during the peak season from August to October, when
there is a sharp increase in demand for transporting finished goods to prepare goods for
Christmas and Thanksgiving Day in the market.
DDC (Destination Delivery Charge - For LCL service): Surcharge of
delivery at destination port: This surcharge has nothing to do with actual delivery to the
consignee, but actually the ship owner charges a fee. This is to offset the cost of
unloading the ship, arranging containers in the port (terminal) and the port entrance fee.
The shipper does not have to pay this fee because this is a charge incurred at the port of
destination.
4.2. Cut-off time
Cut-off time: the deadline for the exporter to deliver the goods to the container
yard.
After the deadline, your goods have not been delivered, there will be additional
charges for shipping lines.

33
 Solution: Advising customers the most suitable ship schedule to timely deliver
the goods to the container yard and complete the clearance procedures for the goods so
that the goods will not miss the ship and avoid incurring charges.
4.3. Covid 19 pandemic

In 2015, the US market accounted for 21% of Vietnam's total exports, while the
Chinese market accounted for 10%. Statistics from the General Department of Vietnam
Customs show that the US is currently the main market for many of Vietnam's strong
export items, such as textiles, footwear, seafood, wooden products, etc. According to
preliminary statistics of the General Department of Customs, the total export turnover
of wood products is 608,042,746 USD, down 25.1% compared to December 2019 and
14.8% compared to the same month in 2019. As a result, the demand for goods makes
the demand for import also decreases.
Along with policies restricting trade from the US such as restricting import,
goods imported to this country must also ensure safety measures within 10 days. This
causes stagnant exports, significantly reducing the amount of exports.

34
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39
 APPENDIX
Incoterms 2020 CPT
 Allocation of costs:
The seller
- Expenses for carrying out export
procedures.
- The costs associated with delivering and
delivering to the first carrier.
- The cost of bringing goods to the port of
destination under the contract of transport
signed.
- Cost of delivering documents to the buyer.
- Transport costs through transit countries
under transport contracts.
 The obligations of 2 parties:
The seller
- Provide commercial invoices and other
documents according to the contract.
- Be responsible for safely transporting
goods to deliver to the first transporter at the
agreed place at the agreed time.
- Rent and make a transport contract to
bring goods to the port of destination on the
The buyer
- The costs related to the goods
(except for the costs of export
procedures borne by the seller and the
costs already included in the contract
of carriage) after the first carrier
receives the goods.
- Cost of goods handling at the port of
destination and transport to the
warehouse.
- Local charges at the port of
destination minus those that the seller
has paid to the carrier.
- Costs incurred due to the buyer not
timely or not accurately notify the
seller of the time and place of receipt.
- The costs associated with pre-export
inspection of goods unless these
procedures are with the authority of
the exporting country.
The buyer
- Responsible for all risks and losses
occurring to the goods since they were
delivered to the first carrier.
- Procedures for importing goods.
- Doing customs procedures to import
goods.
- Inform the seller exactly about the
40
most convenient regular routes. destination of destination and the time
- Properly packed to ensure safety of goods of delivery.
during transportation. - There is no obligation to contract of
- Making export procedures, providing carriage or insurance contract.
information and documents for buyers to
carry out import procedures.
- Notify the buyer of the delivery to the
carrier and provide evidence of safe
delivery to the carrier.
- It is not required to buy insurance for
goods, but it is necessary to provide buyers
with sufficient information to buy
insurance.

41