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MINISTRY OF TRANSPORTATION

MINISTRY OF EDUCATION & TRAINING

VIETNAM MARITIME UNIVERSITY

STUDENT NAME: NGUYEN LE HOANG

DISSERTATION
GLOBAL STUDIES AND MARITIME AFFAIRS

RECOMMENDATIONS TO IMPROVE THE FREIGHT
FORWARDING SERVICES FOR LCL CARGOES AT DUYEN
HAI ROAD TRANSPORT CO., LTD

HAI PHONG – 2015


MINISTRY OF TRANSPORTATION

MINISTRY OF EDUCATION & TRAINING

VIETNAM MARITIME UNIVERSITY

STUDENT NAME: NGUYEN LE HOANG
CLASS: GMA 02

DISSERTATION
GLOBAL STUDIES AND MARITIME AFFAIRS

RECOMMENDATIONS TO IMPROVE THE FREIGHT
FORWARDING SERVICES FOR LCL CARGOES AT DUYEN
HAI ROAD TRANSPORT CO., LTD
Supervisor:

Doan Trong Hieu

Division:

Economics of International Trade

Faculty:

Economics

HAI PHONG – 2015


RECOMMENDATIONS TO IMPROVE THE FREIGHT FORWARDING SERVICES FOR LCL
CARGOES AT DUYEN HAI ROAD TRANSPORT CO.,LTD

PREFACE

Nowadays, in the context of development, industrialization and globalization are
happening strongly and fast in all over the world, which create many potential chances
for developing countries such as Vietnam. In relations between countries and
countries, economic issues are always the most important factors to be discussed.
Foreign trade is a sustainable way for Vietnam to develop since we join the WTO.
There are no other choice is to boost exports, give priority to the export and import

operations to create a competitive advantage for them. Foreseeing the importance of
training and high-quality workforce recruitment in the foreign trade sector, many
companies have taken the initiative to contact cooperation with universities, help
creating conditions for students practice and working in the real environment
combined with the knowledge about foreign trade techniques they were taught at
school.
Vietnam Maritime University is one of these universities which already applied this
model successfully. Thanks to the help from the International School of Education
(ISE), ISE students has been given chances to practice in import and export business,
logistics and transportation companies to be able to apply the knowledge learned into
real business. During the practice times, I had a chance to practice at Duyen Hai Road
Transport Co., LTD (TASA TRANSPORT), one Member Company of DUYEN HAI
MULTIMODAL TRANSPORT JSC (TASA DUYEN HAI). Duyen Hai Road
Transport Co., LTD is a company which specialized in road transportation, freight
forwarding process, import and export through Haiphong port and the other ports in
surrounding area. In this time, I was allow to know not only about freight forwarding
services, how does it operate but also know many things in real life that I never know
before. Now, I would like to present my dissertation about recommendations to
improve the LCL freight forwarding services at Duyen Hai Road Transport Co., LTD.
I also want to give my thanks to the general director and all the staff of Duyen Hai
Road Transport Co., LTD who allowed me to practice at the company
I declare that this report is my own unaided work. It has not been submitted
before.
If violated, I am solely responsible for and bear the punishments of the Institution and
University.
Student Name and Signature
Nguyen Le Hoang

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RECOMMENDATIONS TO IMPROVE THE FREIGHT FORWARDING SERVICES FOR LCL
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ACKNOWLEGEMENT

Firstly, I would like to express my sincere gratitude to my advisor Prof. Doan Trong
Hieu for the continuous support of my dissertation, for his patience, motivation, and
immense knowledge. His guidance helped me in all the time of research and writing
of this thesis. I could not have imagined having a better advisor and mentor for my
study...

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CARGOES AT DUYEN HAI ROAD TRANSPORT CO.,LTD

TABLE OF CONTENTS
Preface......................................................................................................................... i
Acknowledgement ...................................................................................................... ii
List of abbreviation ..................................................................................................... v

List of table ............................................................................................................... vi
INTRODUCTION ................................................................................................... 1
1. The importance of the topic .................................................................................... 1
2. Research structure................................................................................................... 1
3. Research Object ...................................................................................................... 1
4. Research Scope ....................................................................................................... 1
5. Research Method .................................................................................................... 2
CHAPTER 1: LITERATURE REVIEW ................................................................ 3
1.1 Definition of freight forwarding services ............................................................. 3
1.2 Freight forwarder .................................................................................................. 3
1.3 Forwarder responsibility and rights ....................................................................... 4
1.4 Forwarder liability ................................................................................................ 5
1.5 LCL freight forwarding process ............................................................................ 6
1.5.1 The definition of LCL cargo .............................................................................. 6
1.5.2 Consolidator ...................................................................................................... 6
1.5.3 General LCL forwarding process ....................................................................... 6
1.6 Legal basis framework ........................................................................................ 11
CHAPTER 2: THE SITUATION OF LCL FREIGHT FORWARDING
SERVICES AT DUYEN HAI ROAD TRANSPORT CO., LTD.......................... 12
2.1 Introduction about company ............................................................................... 12
2.1.1 Introduction about Duyen Hai Multimodal Transport JSC (TASA Duyen Hai) 12
2.1.2 History ............................................................................................................. 13
2.1.3 Functions ......................................................................................................... 13
2.1.4 Organization .................................................................................................... 14
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RECOMMENDATIONS TO IMPROVE THE FREIGHT FORWARDING SERVICES FOR LCL
CARGOES AT DUYEN HAI ROAD TRANSPORT CO.,LTD

2.1.5 Member Companies ......................................................................................... 14
2.1.6 Personnel ......................................................................................................... 16
2.1.7 Introduction about Duyen Hai Road Transport Co., ltd .................................... 17
2.2 The situation of LCL cargo freight forwarding services at Duyen Hai Road
Transport Co., ltd...................................................................................................... 19
2.2.1 The LCL cargoes freight forwarding process ................................................... 19
2.2.2 The LCL business result at Duyen Hai Road Transport Co., ltd Company ....... 29
CHAPTER 3: EVALUATION AND RECOMMENDATIONS ........................... 30
3.1 Goals and directions............................................................................................ 30
3.2 Evaluation about LCL forwarding activities at TASA ......................................... 30
3.3 Recommendations............................................................................................... 32
CONCLUSION ....................................................................................................... 38

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CARGOES AT DUYEN HAI ROAD TRANSPORT CO.,LTD

LIST OF ABBREVIATIONS
LCL


Less than container load

CFS

Container Freight Station

D/O

Delivery Order

B/L

Bill of Lading

C/O

Certificate of origin

EIR

Equipment Interchange Receipt

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CARGOES AT DUYEN HAI ROAD TRANSPORT CO.,LTD

LIST OF TABLES
Table 1: The number of staffs TASA TRANSPORT Company
Table 2: Standard of Containers.
Table 3: LCL cargo forwarding business result (2011-2014)

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RECOMMENDATIONS TO IMPROVE THE FREIGHT FORWARDING SERVICES FOR LCL
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INTRODUCTION
The importance of the topic
In the context of globalization in all over the world, economic integration between
countries with each other is increasing strongly. Economic integration rises up
quickly also bring the chance to increase the export activities and import activities
more than ever before. With the development of foreign trading, forwarding
services also expands and both in quality and quantities and take an important role
in cargo transportation. The forwarding services can me see to be link to connect
sellers and buyers, manufacturers and customers.
In Vietnam, although foreign trading activities only happens in some decades
recently, they also play an important part to the development of the economy and
open more relationships in many fields between Vietnam and other countries.
Forwarding process is not only a continuous economic process but also a big part of

trading, increase the efficiency of foreign trading.
Understand the importance of freight forwarding services; I would like to choose
the topic: “Recommendations to improve LCL freight forwarding services at Duyen
Hai Road Transport Co., ltd” to write in this dissertation.
Research Structures
1. Introduction
2. Chapter 1: Methodology
3. Chapter 2: The situation of LCL forwarding services at Duyen Hai Road
Transport Co., LTD
4. Chapter 3: Evaluation and recommendations
5. Conclusions
Research Object
Besides learning about Duyen Hai Road Transport Co., ltd, the research object of
this dissertation is to clarify the cargo forwarding activities, the reality or current
status of LCL cargoes activities at Duyen Hai Road Transport Co., ltd. From these
activities to point out the advantages and disadvantages, the difficulties, strength
and limitations of the company with LCL cargoes activities, and in the last part
solutions and recommendations to solve will be proposed.
Research Scope-subject
Research Subject: the freight forwarding services for importing and exporting
LCL cargoes at Duyen Hai Road Transport Co., ltd
Research Scope: The reality and current status of operative LCL cargoes
activities at Duyen Hai Road Transport Co., ltd
Research Method
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CARGOES AT DUYEN HAI ROAD TRANSPORT CO.,LTD

Analysis: Data of the research is collected by many ways. In this research, the most
commons ways to collect numbers and evaluate the operations are interviewing the
forwarder staffs and comparisons numbers from annual reports. By these ways,
comments and evaluations about the operations of the company can be proposed.
 Interviewing the staff forwarders directly
 Comparisons statistics from annual reports
 Observation from practical cases or in daily works

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