module multimodal transport management exportation from ho chi minh to frankfurt germany

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VIETNAM GENERAL CONFEDERATION OF LABOUR TON DUC THANG UNIVERSITY

FACULTY OF BUSINESS ADMINISTRATION

MODULE: MULTIMODAL TRANSPORT MANAGEMENT

EXPORTATION FROM HO CHI MINH TO FRANKFURT, GERMANY

Mentor: Ms. Lê Th ị Thu Dư

Group: 05

Nguy n Lê Th y Nguyên ễ ủ 719H0453 Hu nh Quang Sang ỳ 719H0500 Đào Hồng Khoa 719H1083 Nguy n Minh Khôi ễ 719H1084 Ph m Th Thu Loan ạ ị 719H1091 Nguy n Th Hoài Nhi ễ ị 719H1098 Ngô Đông Quân 719H1105 Nguy n Th Di m Qu nh ễ ị ễ ỳ 719H1108 H Nguyồ ễn Phương Uyên 719H1123

Ho Chi Minh City, 05/2022

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ACKNOWLEDGEMENT

In the path of gaining general theoretical knowledge and necessary abilities for a career in international business, we have had opportunities to attend practice classes and do short-term internships at businesses that provide us with incredibly valuable key aspects. Thanks to this, we know how to combine the knowledge gained so that it can be put into reality.

First of all, we would like to express our greatest appreciation to Ton Duc Thang University (TDTU) and Vietnam Logistics and Aviation School (VILAS) for your assistance. The international and important themes in this major have been made more accessible. We get the opportunity to meet business lecturers and mentors who can help us understand our major better so that we can set goals for not just this research but also our future jobs.

Second, we would like to show our gratitude to our lecturer - Mrs. Dang Thi Bich Hoai, from whom we've gained a wealth of knowledge and experience. Finally, we would like to convey my heartfelt appreciation to Mrs. Le Thi Thu Du for her insightful and constructive ideas during the preparation and production of this study. Her willingness to volunteer has been much appreciated. We've been studying and collaborating to make this presentation the best it can be. Despite the inevitable errors and conflicts, we did our utmost to provide the most comprehensive product as best as possible.

In addition, in the process of completing the report, we recognize that we are still juniors, with many questions and challenges in solving and organizing the problems in this study. Although flaws and mistakes are unavoidable, we hope to receive valuable comments from you. These pieces of advice would give us an opportunity to improve our knowledge and skills.

Thank you sincerely!

GROUP 05

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1.1.3 Products and Services ...9

1.1.4 The advantages of Louta’s: ... 11

1.2 Multimodal transportation: ...11

1.2.1 The reason to choose multimodal transportation: ... 11

1.2.2 Multi-modal transportation from Vietnam to Germany: ... 12

CHAPTER 2: PROPOSED PLAN FROM VIETNAM TO FRANKFURT, GERMANY ... 21

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LIST OF FIGURES

Figure 1: Logo of Louta's Logistics Company... 8

Figure 2: Proportion of road types in Vietnam 2020 ... 13

Figure 3: Vietnam Airports Map ... 15

Figure 4: Main Maritime Shipping Routes ... 16

Figure 5: Asia Highway Network ... 17

Figure 6: General route on the world map ... 21

Figure 7: A carton box after marking and labelling ... 23

Figure 8: The physical flow of the Sea Route ... 25

Figure 9: The physical flow of the Air Route ... 26

Figure 10: The physical flow of the Rail Route ... 27

Figure 11: The physical flow of the Sea-Air Route ... 27

Figure 12: The physical flow of the Truck-Rail Route ... 29

Figure 13: The physical flow of the Sea-Air Route ... 33

Figure 14: Shipping Schedules on Max Service Website ... 36

Figure 15: The Quotation of Louta's Logistics ... 47

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LIST OF TABLES

Table 1: Summary of current capacity of Vietnam's seaport system ... 14

Table 2: Quantity of aiport in Vietnam by region ... 15

Table 3: Transport infrastructure in Germany scores ... 18

Table 4: Multimodal transport connectivity in Germany... 19

Table 5: The dimension of container 20’ DC ... 23

Table 6: Cargo Information Summary ... 23

Table 7: Cargo Packing into two containers ... 24

Table 8: Total cost of Sea Route ... 25

Table 9: Total cost of Air Route ... 26

Table 10: Total cost of Rail Route ... 27

Table 11: Total cost of Sea-Air Route ... 28

Table 12: Total cost of Road-Rail Route ... 29

Table 13: the summary of above routes ... 30

Table 14: The scores for criterias ... 30

Table 15: The percentage of priorities ... 31

Table 16: The valuation of the routes ... 31

Table 17: Container freight from Ho Chi Minh to Binh Duong ... 35

Table 18: Container freight from Binh Duong to Cat Lai port ... 35

Table 19: The summary of Stage 1- Vietnam inland transport by truck ... 35

Table 20: The Shipping Schedule of ONE shipping line ... 37

Table 21: The shipping schedule of RCL shipping line... 38

Table 22: The comparison of two shipping lines ... 39

Table 23: The local charge of Stage 2 - Sea Route in Vietnam ... 40

Table 24: The local charge of Stage 2 - Sea Route in Dubai ... 41

Table 25: The summary of Stage 2 - Sea Route ... 42

Table 26: The summary of Stage 3 - Dubai inland transport by truck ... 42

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Table 27: The flight schedule of Lufthansa and Qatar Airline ... 43

Table 28: The comparison between two airlines ... 44

Table 29: The local charge of Stage 4 - Air Route in Dubai ... 44

Table 30: The local charge of Stage 4 - Air Route in Frankfurt ... 45

Table 31: The summary of Stage 4 - Air Route ... 46

Table 32: The overall timeline of SEA-AIR Route ... 46

Table 33: The overall cost of SEA_AIR Route ... 46

Table 34: The information of EUR 6 Pallet ... 49

Table 35: Pallet packing into two containers 20 DC ... 50

Table 36: The alternative flights of Qatar and Emirates Airline ... 52

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Logistics services are crucial to the national economy's overall structure, especially in light of expanding international integration. A variety of logistical advantages with a direct economic impact might be mentioned. The increased desire for commercial linkages between the country's regions brings logistics into play. It can also boost cross-border goods flows, resulting in more products being available in more places and reaching customers faster. Furthermore, logistics is critical to the correct dispersion of manufacturing sectors to ensure the stability and long-term development of the national economy. The Logistics business is regarded to have a substantial impact on our society as a result of the aforementioned benefits.

Besides, to serve the complex requirements of the shipments and optimize the logistics operating efficiency, it is essential for the logistics providers to utilize various types of freights as well as integrate many forms of transportation to increase circulation as well as seamless, precise, and secure product delivery. One of those solutions is called multimodal transportation. Multimodal transport is an advanced type following the continuous global change in transportation requirements and the logistics providers who handle this type are requested to have more knowledge with some specialized certificates.

Our report has chosen to do additional in-depth research on the topic as a result of the above ideas: Exportation from Ho Chi Minh to Frankfurt, Germany by using multi-modal transportation. As a multi-modal transport operator (MTO), we focus on analyzing the characteristics of the shipment, thereby recommending the optimal route with the most reasonable cost while ensuring the safety and security of the shipment.

There are four primary contents in our essay layout:

Chapter 1: Introduction

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CHAPTER 1: INTRODUCTION

1.1 Information of LOUTA’S:

- Name: Louta’s Logistics - Website: www.loutas.com.vn - Tel/Fax: 028.3 850 135 - Established date: 15/3/2003

- Address: 19 Nguyen Huu Tho, Tan Phong Ward, District 7, Ho Chi Minh City. - Vision: Top 5 logistics service providers in Vietnam.

- Mission: To provide the most integrated and innovative transportation, aviation logistics services with mutual respect to our customer.

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Figure 1: Logo of Louta's Logistics Company

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1.1.3.1 Warehousing and distribution service:

Having 19-year experience, possesses a countrywide warehouse system of more than 70,000m2, convenient traffic position, suitable for storing and transporting products and production materials in Ho Chi Minh City and Hanoi.

1.1.3.2. Freight management:

− Consolidation service: With only a portion of the retail items, 1/2m3 of your

goods are customers, we have met and received the appropriate address of the required Louta's

Functional division dep.

WarehouseLogisticsInt. Freight

Business DevelopementGeneral Dep.

Finance Accounting

-Branches and Offices

Ha Noi BranchHai Phong

BrachHo Chi Minh

Warehouse Systems

Thu Duc WarehousePhu My (BRVT)

WarehouseHa Noi Warehouse

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container securely, swiftly, saving costs according to the route, and maintaining a consistent weekly shipping schedule.

− Cross border transport: Louta's has established a cross-border shipping business

from Vietnam to Laos, Cambodia, and Thailand. Louta's also assists with customs declaration and door-to-door delivery.

− Air freight: Since 2012, the company has been operating in the air freight

segment, benefiting from a wealth of market knowledge and a proven success-driven methodology in the region. Louta's Aviation's key distinction is our ability to provide flexibility and dependability while maintaining the highest level of experience in cargo sales, operations, and marketing.

− Sea freight: Our network coverage includes a full range of services including

Less than Container Load (LCL), Full Container Load (FCL) and Buyers Consolidation (CFS) in all trade lanes. In addition, Louta’s offers full service EOR (Exporter of Record) and IOR (Importer of Record) services to its customer base as required.

− Road transport: Louta’s offers value to your doorstep with our high quality road

transport solutions, with an owned fleet of over 50 container prime movers and 70 chassis consolidated in 3 main transport hub cities in South, Central, and North Vietnam. Furthermore, Louta's has the market's top visibility offering, providing a complete and integrated Transportation Management System (TMS) GPS SMS e-alert and Track – –and Trace solution.

− Multimodal transport: With a global dealer network in over 40 countries, Louta's

can handle door-to-door transportation demands by coordinating several modes of transportation: sea, air, land, or train. Customers may use our solution setup capabilities to optimize prices and shipping methods to achieve the optimal balance of cost, dependability, and shipment time.

1.1.3.3. Railway logistics:

Louta's operates the transportation from the Yen Vien train port in Hanoi. Because of this competitive advantage, Louta's is able to provide a one-of-a-kind, best-in-class rail logistics product. In addition to traditional domestic rail and sea freight services, Louta's also provides customized and value-added solutions, specializing in solution design for each customer's specific needs such as high-value goods, heavy goods, emergency goods, and raw material flows for manufacturing or project-based requirements. Through operational excellence in KPI management, customer service, and technical capabilities, Louta's Railway Logistics delivers market-leading stable and dependable rail services to clients

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1.1.3.4. Contract logistics:

We are committed to providing entire logistics solutions that are tailored to the needs of our customers. We can handle everything from basic pick and pack and storage and distribution services to more complicated hub, cross-dock, and reverse logistics.

With over 19 years of expertise, Louta's has many offices and employs over 700 people. Our staff must complete training programs and hold industry certifications from FIATA, IATA, and others.

Louta's Aviation represents several well-known airlines across the world, including Qatar Airways, Jestar Airlines, AirFrance, Delta Air Lines, and Vietnam Airlines. Furthermore, with the ability to operate more than 20 flights per week and a cargo capacity of more than 40,000 tons per year, we are devoted to offering our clients a diverse variety of service options that are customized to their requirements and the economy.

We are one of the leading warehousing service providers in Vietnam with more than 70,000m2 of international standard warehousing area spread from north to south. With a fleet of 50 container tractors and 90 ro mooc concentrated at 3 main transit stations north, central, south, Louta's is committed to bringing high-quality road transport solutions.

Louta's multinational corporations such as Sanofi, Scavi, Cargil, PepsiCo, Samsung, Unilever, ... selected as a forwarding service provider in Vietnam market.

Louta's participates fully with industry associations to ensure international standard service when providing to customers, including: FIATA, IATA, VLA, ASA.

1.2 Multimodal transportation:

− The drawbacks of sea transport include: it is not possible to deliver goods directly to the destination but must dock at ports and transport by trucks or trains to the mainland; the transit time is slow and heavily dependent on weather factors; and the goods are susceptible to each other if a problem occurs on the ship during transportation.

− The drawbacks of air transportation include: the high cost of transportation, the restricted number of commodities, and the difficult and time-consuming customs processes for shipping goods.

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− The drawbacks of road transport include: the number of products transported is likewise restricted, and there are several hazards such as traffic accidents, traffic jams; and the need to pay additional road surcharges such as toll stations, fuel costs, and tolls... As a result, we should adopt multimodal transportation to take advantage of the aforementioned modes while minimizing dangers. Because of its advantages:

− The cost of multimodal transport will be cheaper than the cost of air freight, saving shippers, consignees, and freight forwarders money.

− When compared to the two modes of rail and road transportation, multimodal transport will save time.

− The utilization of a single unit load saves time and reduces the danger of loss or damage to products at transit locations.

− Using only one shipping contract would also assist to reduce risks such as loss and misunderstanding, consequently increasing logistics productivity and efficiency.

However, Multimodal transportation will definitely have limitations that need to be handled as:

− High requirements to ensure security due to constant inspections by the authorities at stations or other roads.

− Certain restrictions of a legal and operational nature due to differences in international standards.

− For safety reasons, inspections in terminals are frequent, which limits operations.

A. Vietnam

• Geography

Vietnam is located in the middle of the world's most vibrant economic region, with a geographical position and favorable natural conditions for the development of all types of freight transport. Furthermore, as a marine country with a lengthy territorial sea (3,000 kilometers of coastline), Vietnam's territory can serve as a gateway between Asia and the Pacific. The North connects to China's southwest sea, the Central with Laos, Thailand's northeast, and Myanmar, and the South with Cambodia both on land and at sea. Vietnam has various seaport construction regions along its coastline, including many deep-water ports, allowing the country to play an important economic role and provide logistics services to countries in and around the world.

Vietnam offers good conditions to improve connectivity, encourage collaboration, and growth in the region as a bridge between the two marine economic

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