Rational In the past, ocean freight is popular for shipping mass and heavy cargo in far distance through continents between companies. But nowadays, when e- commerce is developed in globalization era, people are being boosted to buy goods from others countries. Personal effects are often in small volume, which is suitable for shipping by air transportation but now when the demand is too high, sea carriers are focus on LCL shipment to serve small volume shipment with low rate than air method. In addition, Vietnam is a potential market for foreign investor and consignee, because labor rate is lower than other Asia countries and product is in good rate and quality.
Therefore, many consignees are hunt cargo from Vietnam, moreover, many factories are moving from China to Vietnam because of trade war between China and USA and Covid. In some countries’ opinion, Vietnam has stable political and controlling well Covid. Vietnam government are planning to receive new FDI wave, beside, logistics activities are being improved to support foreign investment. TICO International Corporation, a Vietnam forwarding company, will be effected directly by this new trend, therefore, they have to improve their LCL shipment service.
To deal with this problem, study of “Solutions for improving process of exchange LCL shipment in TICO International Corporation” is chose. Object of study Object of the study is process of exchange LCL shipment in TICO International Corporation. Aim and mission of study Aim of the study is recommendation of solutions for improving process of exchange LCL shipment in TICO International Corporation. There are missions for reach this aim: - Provide knowledge that relevant to the process of exchange LCL shipment in TICO International Corporation.
- Analysis situation of the process of exchange LCL shipment in TICO International Corporation. - Recommend solution to improve the process of exchange LCL shipment in TICO International Corporation. Range of study According to space, my study focus on the process of exchange LCL shipment in TICO International Corporation. According to time, my study analysis situation and data from 2017 to 2019 and provide some forecast from some reliable source for future.
Method of study On my study, the methods were used are: - Statistics: list data from TICO company source. - Comparison: compare different shipping method to find out the suitable. - Analysis: from these two method, I analysis the situation, find out advantage and disadvantage. - Forecast: base on the past and recently situation of TICO company and world, forecast future trend to make suitable solution.
Design of study 2 There are 3 parts and 3 chapter in the part 2, which is the main part as below: PART 1: INTRODUCTION PART 2: DEVELOPMENT CHAPTER 1: Theoretical background CHAPTER 2: Analysis LCL ocean shipment exchange situation in TICO International Corporation. CHAPTER 3: Solution PART 3: CONCLUSION 3 Chapter 1: Theoretical background. Ocean transportation The mode of sea freight is holding an important position in the global economy, with practical values brought in everyday trading activities. The developed economy has led to higher demands of people in transporting and forwarding goods with customers and their partners.
But in order to meet that demand, the use of a combination of transport modes together is absolutely necessary, which is certainly a sea route that many people cannot ignore, especially those who regularly shipment that travelling far. Definition: Ocean transportation is one of the common modes of transporting goods, using appropriate means of transport and infrastructure to meet cargo 4 activities on the sea. In particular, the most commonly used means are cargo ships of different load levels, equipment for loading and unloading goods. As for infrastructure, it is the ports, construction facilities in the port for transporting goods by sea.
New trend of human transportation: As at present, the road is no longer the main route that people exploit for cargo transportation activities. Along with that, other transport routes are also implemented to provide the most optimal transport solutions, helping each package to be delivered and received safely and effectively. Suitable for each condition and practical requirements to transport each shipment, one will use the most optimal mode of transport. Due to this fact, the current transportation routes hold a particular importance, which will ensure that each parcel of goods delivered and received takes place efficiently and brings the highest satisfaction, even though that What are the items, specification of dimensions and load capacity.
Roads are no longer the only choice of shippers and transport units, but at the same time, rail, air and sea are also fully utilized. Depending on the delivery and receipt characteristics of each shipment, what is the demand of the goods owner that will carry the goods in the best way, ensuring the factors of safety, cost, and transport time. Over time, the sea is showing a good shipping route, especially moving large shipments to areas of the country adjacent to the sea. In fact, when freight trains have increased, the frequency of traffic between the seas has increased significantly, which supports trade for improving global economies.
Which cases should we or should we ship by sea? You can refer to the following cases: + When you want to transport huge quantities of goods. + When you need to ship international goods in bulk but save money. 5 + When the place of delivery and receipt of goods is adjacent to the sea, a port is available for ships to anchor. (*) Note that the form of sea transport is only possible and should be applied to non-urgent shipments, without time pressure.
Comment [user1]: Bỏ toàn bộ nội dung của mục này vì không liên quan trực tiếp đến nội 1. Sea importation and exportation dung đề tài, chỉ giữ lại 2 definition a) Sea importation - Definition: Sea Import means buying goods and services (including investment goods) from abroad by ocean transportation. Imports are important in two ways. Firstly, together with exports, it forms a country's trade balance.
Imported goods must be paid with the equivalent value of exports to maintain a balance in the balance of payments. Second, it is a drawback or a leak from the cycle of national income, thereby reducing domestic production and income. On the one hand, imports are beneficial because they enable the country to enjoy the benefits brought about by specialization and international trade, which means the country buys goods and services at a lower price than it does itself manufacturing. But on the other hand, as the second point above points out, it is an obstacle because of the decline in domestic production and income.
It is important to maintain a balance between exports and imports. Imports are beneficial when they are paid for by the exports, because the lost income for imported goods comes back from exports or capital inflows to invest in the domestic economy. b) Sea exportation: - Definition: 6 Merchandise exports are trading activities on an international scale. It is not an act of individual trade but a whole system of trading relationships in an organized trade both inside and outside to sell domestically-made products and goods to foreign countries with foreign currencies, by promoting the development of commodity production, changing the stable economic structure, gradually raising people's living standards.
Import-export business is also the first international business activity of an enterprise. This activity is continued even if the enterprise has diversified its business activities. Exports of goods are in the area of goods distribution and circulation of an extended remanufacturing process, with the aim of linking production with consumption of one country to another. Container A container in sea transportation is any receptacle or enclosure for holding a product used in storage, packaging, and shipping.
Use ISO containers to be able to arrange on container ships, rail cars or specialized trucks. There are three standard types of container lengths: 20ft (6. Container capacity (of ships, ports, etc.) is measured in TEU (twenty-foot equivalent units, "20-foot units"). TEU is a measure of containerized cargo equivalent to a standard 20ft (long) × 8ft (wide) × 8.
The majority of containers today are variants of the 40ft type and hence are 2 TEU. 45ft containers are also counted as 2 TEU. Two TEUs are referred to as 1 FEU, or forty-foot equivalent unit. These terms of measurement are used equally.
High containers ("High cube") have a height of 9.9 m), while semi-tall containers, used to haul heavy goods, have a height of 4. 7 Today, about 90% of the goods are packed in containers and loaded onto freighters in clusters. More than 200 million containers are shipped annually. The widespread use of ISO standard containers has affected the change in transport standards, primarily changing the removable parts of trucks or exchanging parts into parts of the same size.
size and shape (although no capacity changes are needed), and it has changed the entire world wide use of transport pallets to accommodate ISO containers or commercial trucks. Method of shipping by container When cargo is load into container for sea transportation, it is divided in 2 kinds of method: FCL and LCL. In this dissertation, I will focus on LCL method. Therefore, LCL details and its comparison with FCL method will be refer on the next part as below.
LCL shipping method 1. LCL definition LCL (Less Than Container Load) cargo, meaning that the goods are not loaded in one container. This term describes the way of transporting goods when the goods owner does not have enough goods to fully pack a container, but needs to be combined with some other goods lots. Meanwhile, the service company will combine multiple LCL shipments, arrange, classify and aggregate them into containers, then arrange transportation from the port of loading to the port of destination.
This is called consolidation. And this company is called consolidator. LCL shipment is distinguished from FCL (Full Container Load) cargo, that is, the goods are fully loaded, without having to be combined with other shipments. 8 Example of LCL: May 10 Garment Company needs to transport 10 CBM garments from Hai Phong to Canada.
This shipment is not enough to fill a 20GP container because the volume is over 35 cubic meters, so it should be paired with some other shipper lots to optimize space and save costs. Of course, unless May 10 is willing to pay for a 20GP container just to send 1/3 of the allowable amount, they will certainly accept to combine with other shipments to have a reasonable price. And the May 10 company mentioned above are called LCL shipment. Benefits of LCL consolidation services - For exporters: + Reduce transportation costs.
+ More convenient when working with a consolidator. + Can be provided door to door service while the carrier does not provide. - For carriers: + Save paperwork, costs, time. + Taking full advantage of the means of transport.
+ Not afraid of losing revenue. - For consolidators: + Enjoy the difference. + Enjoy preferential rates. Comment [user2]: Dấu câu? 1.
Distinguish between FCL and LCL shipment: Table 1.2: FCL and LCL comparison Factor for LCL FCL comparison 9 1. Volume ( LCL shipments are usually a FCL shipments tend to CBM or Feet) better choice for low-volume have lower costs when shipments ranging from 2 - 13 shipments use more than cubic meters. Cargo less than 10 standard pallets or 2 cubic meters may also be occupy more than 14 operated with LCL under cubic meters. Shipment security LCL, however, may be a safer An FCL shipment tends (All subject owners choice for certain shipments.
to be safer because it has want their goods to Low-volume shipments are exclusive rights to the be safe when neatly packed, with not much entire container. That traveling across the room to move around. means it does not come ocean. But not all in contact with goods shipments require from other shippers in the the same level of case of LCL shipping.