ACADEMY OF POLICY AND DEVELOPMENT INTERNATIONAL SCHOOL OF ECONOMICS AND FINANCE GRADUATE THESIS “Aircargo freight forwarding activities of Delta International Limited Company at Noi Bai airport and solutions to improve delivery process” Academic supervisor: MA. Pham Thanh Ha Student: Nguyen Thi Hoang Yen Student’s code: 5073106036 Class: KTĐNCLC7A Hanoi, June 2020 2020 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ACADEMY OF POLICY AND DEVELOPMENT INTERNATIONAL SCHOOL OF ECONOMICS AND FINANCE GRADUATE THESIS “Aircargo freight forwarding activities of Delta International Limited Company at Noi Bai airport and solutions to improve delivery process” Academic supervisor: MA. Pham Thanh Ha Student: Nguyen Thi Hoang Yen Student’s code: 5073106036 Class: KTĐNCLC7A Hanoi, June 2020 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ACKNOWLEDGMENT For over two months from January till March 2020, I did an internship at Delta international co., Ltd, a logistics company which serves a large number of customers and gains a high reputation both domestically and internationally. This internship project is a part of my 4-year bachelor program which I conduct at Academy of Policy and Development.
In Delta, I worked an assignment which responds for handling the import and export activities and this really suits for my major in external economics. Through the assignment, I did not only gain a lot of knowledgement but more importantly, I also had a great chance to sharpen my skills in a professional working environment, and other benefits that are far beyond what I could learn in a normal project. Not less important than the im-export operation that I have learnt is the communication skills that I have been trained and practiced through giving presentations, discussing with the supervisors, experts in the fields and other staffs within and outside the company. I am very appreciated to Ms.
Vo Thi Thai, my supervisor at Delta Co. Ms Thai gave me very in-time valuable instructions and put me in contact with experts in the field who gave me extensive guidance regarding many practical issues. I also would like to express my gratitude to MA. Pham Thanh Ha, professor at Foreign Trade University, for her permission to be my academic supervisor and advisor and more importantly for her enthusiastic encouragements and precious instructions to help me complete this thesis.
She gave me in-time feedback on my research and helped me to organize logical structure and even timetable. Last but not least, I would like to thank Delta international co., Ltd and Academy of Policy and Development for giving me this great oppoturnity in which I have developed myself both academically, professionally and socially. LUAN VAN CHAT LUONG download : add luanvanchat@agmail. The reasons to choose the topic Foreign trade plays a very important role in the era of globalization of economies.
Participation in integration and expansion of international trade relations has been an indispensable trend of nations. Imports allow the addition of products that cannot be produced domestically or inefficiently produced. Exports help boost domestic production and increase foreign exchange earnings. Implementing this activity, each country can expand, dominate the regional market and reach the world market.
Besides, Logistics is a business field that contributes greatly in import and export activities of each country. With a series of current trade agreements, Vietnam faces many opportunities to export goods to the world, so the development prospect of this industry is huge. More specifically, Logistics contributes greatly to the growth of import and export business activities of enterprises. Along with other economic sectors, the transportation industry in general and the aviation transport in particular have made great strides.
The domestic air transport network is covered, many international routes are expanded and upgraded. As a result, the volume of import and export goods by air has increased significantly, trade turnover between Vietnam and other countries is increasing rapidly, the market is expanding, and international trade is growing. Although import-export and forwarding of goods by air is very small, but due to the superiority of transport speed and safety, air transport plays a very important role… Recognizing the importance of air freight forwarding for the development of the country's economy in general and in Delta in particular, through internship to learn the business of forwarding services by air at Delta, combined with the specialized knowledge accumulated during the study process at the Academy of 5 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Policy and Development, I have confidently chosen the topic “Aircargo international freight forwarding activities of Delta International Limited Company at Noi Bai airport and solutions to improve delivery process”. Research objectives and tasks 2.1 Research objectives The project was conducted to evaluate the status as well as propose recommendations to improve the difficulties that the company is facing in air freight forwarding activities in Noi Bai of Delta International Co.2 Research tasks To achieve the above research goals, I focus on solving the following main tasks: - Give the summary of some theories related to freight forwarding logistics activities in general and by air in particular - Introduct about Delta International limited company - Find out and assess the status of air freight forwarding activities of Delta Company in Noi Bai airport - Proposing some recommendations to eliminate existing difficulties in air freight forwarding activities of Delta Company 3.
Object and scope of the research 3.1 Object Aircargo international freight forwarding activities of Delta International Limited Company at Noi Bai airport 3.2 Scope of the research The study was conducted at Hanoi head office of Delta International Co. and Noi Bai International Airport from January 7 to March 15, 2020. 6 LUAN VAN CHAT LUONG download : add luanvanchat@agmail. Research methods - Practical research: in the research process, I choose the method of practical impact on the object of the study to clarify the nature from which to follow observations and make field trips to the cargo handling areas at NCTS and ALS warehouses to draw lessons as well as experience on the rules of the research problem.
- Primary data collection: during the internship in the company by observing business activities and personal consultation, experience of employees with specific expertise in each field to collect more information to clarify the status of the delivery and delivery process at the company. - Secondary data collection: In addition to the method of observing business activities, I also collected documents available at the company (document room, accounting department, sales room, field room.) and other information sources. Information on the company's website. - Methods of data analysis: The collecting data are analyzed and systematized by Excel software to calculate suitable criteria for the topic analysis.
Thesis’s structure This thesis consists of 4 main chapters: CHAPTER I – OVERVIEW OF THEORETICAL BASIS OF FREIGHT FORWARDING ACTIVITIES IN GENERAL AND BY AIR IN PARTICULAR CHAPTER II - INTRODUCTION ABOUT DELTA INTERNATIONAL CO., LTD CHAPTER III - CURRENT SITUATION OF INTERNATIONAL FREIGHT FORWARDING ACTIVITIES OF DELTA INTERNATIONAL CO. AT NOI BAI DURING THE LAST 3 YEARS 7 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER IV – GENERAL ASSESSMENT ABOUT INTERNATIONAL FREIGHT FORWARDING ACTIVITIES OF DELTA INTERNATIONAL CO. AT NOI BAI DURING THE LAST 3 YEARS. CHAPTER V - PROPOSED SOLUTIONS 8 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER I – OVERVIEW OF THEORETICAL BASIS OF FREIGHT FORWARDING ACTIVITIES IN GENERAL AND BY AIR IN PARTICULAR 1.1 General overview of freight forwarding 1.1 Definition of forwarder and forwarder 1.1 Definition of delivery In international trade, the movement of goods between countries has led to imports and exports being transported across borders.
Therefore, for the goods to reach the buyer, the goods have to go through a series of stages such as: import and export customs clearance, preparation of documents, hiring of means of transport, loading and unloading onto means. All these jobs are called forwarding. Freight forwarding service is a commercial activity whereby traders organize one or more jobs, including receipt of goods, transportation, warehousing, warehousing, customs clearance, other paperwork, and packaging, marking, delivery or other services related to the goods as agreed upon with the customer for remuneration. (Article 233, Commercial Law 2005) Previously, the delivery could have been done by the shipper (the exporter), the consignee (importer) or the carrier.
However, along with the development of international trade, the division of international labor with the increasing level and scope of specialization, forwarding has also gradually been specialized, by organizations and businesses. Professional forwarding team conducted and forwarding has officially become a profession. In short: "Forwarding service is a service related to the transport process to organize the transport of goods from the place of receipt to the place of delivery".2 Definition of forwarder 9 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Forwarder is the person who performs forwarding services as entrusted by the customer or the carrier. In other words, dealers of forwarding services are called forwarders.
The forwarder may be the owner of the goods (when he personally performs the forwarding of his goods), the ship owner (when the ship owner acts on behalf of the goods owner), loading company or warehouse or professional forwarder or any other person providing such services. According to Vietnamese Commercial Law article 164, freight forwarders are traders who have certificates of goods delivery service business registration. According to the International Federation of International Freight Forwarders Association FIATA: “The forwarder is a person who takes care of the goods being carried under a consignment contract and acts in the interests of the consignor who is not the person himself. The forwarder also undertakes all the work related to the delivery contract such as preservation, transshipment storage, customs clearance, inspection”.2 Scope of forwarding services Except for a number of cases where the shipper / consignee himself wants to participate in any of the procedures and documents on his own, normally, the forwarder on his behalf takes care of the process of transporting goods through the stages.
The forwarder can do the service directly or through the subcontractors or agents they hire, the forwarder also uses their agents abroad. These services include: 1.1 On behalf of the shipper (exporter). • Choose the appropriate route, mode of transport and carrier, sav e freight with the selected carrier. 10 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com • Receiving the goods and issuing appropriate documents such as the certificate of delivery of the forwarder, the certificate of carriage of the forwarder • Study the terms of the letter of credit and all government r egulations that apply to deliveries in the exporting country, the importing country as well as in any transit country and prepare the necessary documents… • Packaging of goods (unless this is done by the shipper before delivery) taking into account the route, mode of transport, the nature of the goods and the applicable laws, in the exporting country, transit country and destination country.
• Storage of goods (if needed) - Measuring goods. • Note that the shipper needs to buy insurance and if the shipper requests, buy insurance for the goods. • Transporting goods to ports, handling customs declaration, handling related documents and delivering goods to the carrier. • Receiving the bill of lading signed by the carrier, delivered to the shipper.
• Arrange transport on the road (if necessary). • Supervise the transport of goods on the way to the consignee via the carrier's agent and agent's contacts abroad. • Noting the loss of goods if any, helping shipper to make a claim against the carrier about the damage of the goods (if any).2 On behalf of consignee (importer). • On behalf of the consignee overseeing the transport of goods since the consignee takes care of transporting the goods.
• Receive and check all documents relating to the transport of goods. 11 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com • Receive goods from the carrier and pay freight (if necessary).