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International Cargo Transportation and Insurance

Quản trị tài chính (Đại học Tôn Đức Thắng)

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TON DUC THANG UNIVERSITY

BUSINESS ADMINISTRATION
INTERNATIONAL BUSINESS ADMINISTRATIVE

ESSAY
INTERNATION CARGO TRANSPORTATION

FORWARDING PROCESS OF GOODS EXPORTED

FCL BY SEA TRANSPORT AT SEAHORSE
SHIPPING CORPORATION

Lecturers: Nguyen Hoang Dung

Team: 2

Shift: 2, Saturday

Ho Chi Minh City, 2023

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TEAM MEMBERS

No Full name Student ID Evaluation

1 Lục Diễm Quỳnh 721D0060 100%

2 Lê Hoài Khang 720I0159 100%

3 Nguyễn Ngọc Thanh Tâm 721D0031 100%

4 Nguyễn Trúc Mi 720I0177 100%

5 Nguyễn Uyên Nhi 721D0058 100%

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TEACHER’S COMMENT
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TABLE OF CONTENTS
LIST OF ABBREVIATIONS...................................................................................6
TABLE OF FIGURES ..............................................................................................7
FOREWORD .............................................................................................................1
CHAPTER 1: INTRODUCTION TO SEAHORSE SHIPPING
CORPORATION ......................................................................................................2
1.1 HISTORY OF FORMATION AND DEVELOPMENT (CORPORATION, 2020): .............2
1.1.1 Meaning of company name: .......................................................................2
1.1.2 General introduction of the company and activities: ................................2
1.2 FIELDS OF OPERATION OF THE COMPANY: .........................................................3
1.2.1 Transportation: ..........................................................................................3
1.2.2 E-commerce: ..............................................................................................3
1.2.3 Consolidation: ............................................................................................3
1.2.4 Ocean Freight: ...........................................................................................4
1.2.5 Air Freight: ................................................................................................4
1.2.6 Customs Clearance: ...................................................................................4
1.2.7 Warehousing and Packaging: ....................................................................4
CHAPTER 2: CASE STUDY OF PROCEDURES FOR STRETCH FILM
DELIVERY BY CONTAINER OF SEAHORSE SHIPPING CORPORATION
.....................................................................................................................................6
2.1 BRIEF INTRODUCTION OF THE SHIPMENT ...........................................................6
2.2 THE PROCESS OF EXPORTING GOODS ON THE SEA BY CONTAINER .....................7
2.2.1 Contact sales staff and sign the contract ................................................7
2.2.2. Receive booking information and release for the shipper ....................11
2.2.3. Collecting empty cargo to the factory and exporting goods at the port .12
2.2.4. Custom Clearance for Export .................................................................13
2.2.4.1 Commercial Invoice ..........................................................................14
2.2.4.2 Sale Contract .....................................................................................15

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2.2.4.3 Packing List .......................................................................................17

2.2.5 Submit SI, VGM for the carrier. ...............................................................18
2.2.5.1 VGM's Information ...........................................................................18
2.2.5.2 SI Declaration....................................................................................18
2.2.6 Do House Bill of Lading and Master Bill of Lading. ...............................19
2.2.7 Pay all fees ...............................................................................................19
2.2.8 Send arrival notice to the buyer. ..............................................................20
2.2.9 Close case and record document .............................................................20
CHAPTER 3. PROCESS EVALUATION AND SOLUTIONS .........................21
3.1. PROCESS EVALUATION ....................................................................................21
3.2. SOLUTIONS AND RECOMMENDATIONS ............................................................22
3.2.1 Pre-Shipment planning & documentation................................................22
3.2.2. Technology application ...........................................................................22
3.2.3. Partnering with a Reliable Shipping Company .....................................23
CONCLUSION ........................................................................................................24
REFERENCES ........................................................................................................25
APPENDIX ..............................................................................................................26

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LIST OF ABBREVIATIONS

Abbreviation Meaning

FCL Full Container Load

WCA World Cargo Alliance

AIG American International Group

MPL Marco Polo Line

FMC Federal Maritime Commission

B/L Bill of Lading

SI Shipping Instructions

VGM Verified Gross Mass

CY Container Yard

ETD Estimated Time of Departure

DEM Detenion

DET Demurrage and Detention

OTI Ocean Transportaion Intermediary

NVOCC Non-Vessel Operating Common Carrier

LTL Less than Truckload

SIAC Singapore Internal Arbitration Centre

D/O Delivery Order

THC Terminal Handling Charges

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TABLE OF FIGURES
FIGURE 1: THE PROCESS OF EXPORTING STRETCH FILM BY SEAHORSE CORPORATION
..............................................................................................................................7
FIGURE 2: FOUR STEPS TO RECEIVE BOOKING CONFIRMATION ..................................11
FIGURE 3: THREE STEPS BEFORE CARGO IS TRANSPORTED ........................................12

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FOREWORD
In order to develop the country in the context of globalization, regionalization, and
international economic integration, international trade activities cannot be ignored,
because it ensures the exchange of goods and trade with other countries. countries in
the world, helping to effectively exploit the potential and strengths of both domestic
and foreign resources. When it comes to import and export activities, it is impossible
not to mention international freight forwarding services, because these two activities
are inseparable, they affect each other and unite with each other. The increase in the
scale of import and export activities in recent years is the direct cause of the rapid
development of the freight forwarding industry in general and the sea freight
forwarding industry in particular. With more than 3000 km of coastline and many
large and small ports stretching across the country, the shipping forwarding industry
has made significant strides.
During the time studying and learning about International Cargo Transportation and
Insurance, we come to the decision to choose the topic “FORWARDING PROCESS
OF GOODS EXPORTED BY SEA TRANSPORT AT SEAHORSE SHIPPING
CORPORATION” to learn and put into practice the export activities of a company,
specifically here is the process of exporting stretch film products by SEAHORSE
who serves as a forwarder company for Mai Phuong from Vietnam to the USA.
• The subject of my group's research is the sea freight forwarding business process by
a container of SEAHORSE SHIPPING CORPORATION is divided into three
chapters:
⁃ Chapter 1: Introduction To Seahorse Shipping Corporation
⁃ Chapter 2: CASE STUDY OF PROCEDURES FOR STRETCH FILM DELIVERY
BY CONTAINER OF SEAHORSE SHIPPING CORPORATION
⁃ Chapter 3: Process Evaluation and Solutions
Reporting is not immune to errors due to limited knowledge and expertise. I look
forward to the guidance, contributions, and additions of teachers to make my report
more complete. Finally, our team would like to express our sincere thanks to the
supervisor who helped me to complete this report. I would like to express my sincere
thanks to Mr. Nguyen Hoang Dung - The person who wholeheartedly guided me,
contributed ideas, and answered questions for me during the process of writing the
thesis.

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Although I have tried to complete the topic, due to the short study course period and
limited understanding, this essay cannot avoid errors. I hope you will give me more
comments to improve my thesis.
CHAPTER 1: INTRODUCTION TO SEAHORSE SHIPPING
CORPORATION
1.1 History of formation and development (Corporation, 2020):
1.1.1 Meaning of company name:
Eight core values are the foundation of the company's People, Brand and Ethics:
S – Service-driven: Customer is the center
E – Efficiency: The company's key solution is the competitive advantage of
customers
A – Aim high: Always focus on process improvement and service quality
H – Honestly: Committed to doing everything in accordance with ethical standards
and integrity
O – One global network: Going beyond the concept of market expansion
R – Reliability: Consistency in promises
S – Social responsibility: Being a corporate citizen with a high sense of people,
environment, and social responsibility
E – Employee: Inspiring and nurturing employees to reach their full potential
1.1.2 General introduction of the company and activities:
- Company name: Seahorse Maritime Joint Stock Company
- Transaction name in English: Seahorse Shipping Corporation
- Website: https://seahorseshipping.com/
- Tax code: 0310643138
- Phone number: VN +84 2838488000 - ENG +84 2838489000i
- Hotline: +(84)973807920
Seahorse Shipping Corporation was established in 2011 in Ho Chi Minh City, started
with 12 members. Now the company has an enthusiastic team with more than 70
employees and branch offices in Vietnam:

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- Ho Chi Minh City (head office): 45 Street 41, Van Phuc Urban Area, Hiep
Binh Phuoc Ward, Thu Duc City - Ho Chi Minh City, Vietnam
- Hai Phong: 3 Le Thanh Tong Street, May To Ward, Ngo Quyen District, Hai
Phong, Vietnam
- Hanoi: 6/82 Duy Tan Street, Dich Vong Hau Ward, Cau Giay District, Hanoi,
Vietnam
International branch:
- Phnom Penh: No. 97B, Samdech Monireth Blvd (217), Alpha Tower 1,
Sangkat Phsar Doeum Kor, Khan Toul Kork, 12159 Phnom Penh, Cambodia
For the company, people are the foundation of success. Seahorse operates the
business with a key role in providing comprehensive logistics solutions that help
customers expand their international business reach, especially the US, China and
Europe routes.
Seahorses shipping corp is a member of World Cargo Alliance (WCA), Marco
Polo Line (MPL), and AIG insurance and owns a license issued by the US Federal
Maritime Commission (FMC) affirming that Seahorse is a business achieving strict
standards to become an OTI - NVOCC organization, giving customers many
exclusive benefits in terms of costs and secure transactions.
1.2 Fields of operation of the company:
1.2.1 Transportation:
+ Inland transportation
+ International shipping
1.2.2 E-commerce:
Seahorse provides services for businesses wishing to expand their business in the
international and domestic e-commerce market such as Amazon, Walmart, Shopee,
Lazada, Tiki, etc.
1.2.3 Consolidation:
+ Regular departure schedule
+ Packing handling
+ Domestic shipping

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1.2.4 Ocean Freight:

+ Extensive partnerships: America, Europe, and China.
+ Diversified cargo experience: Transporting a wide range of items such as
frozen goods, apparel, textiles, food, electronics, furniture, PVC, fiber optic
cables, etc.
+ Long-term contracts with major shipping lines: Being a long-term partnership
with major shipping lines in the world such as ONE, YANG MING, COSCO,
OOCL, EVERGREEN, HYUNDAI, WANHAI, MSK, APL, MSC, and ZIM.
1.2.5 Air Freight:
There are accompanying services such as the delivery of goods from the warehouse
to the airport (door-to-airport), from the airport to the warehouse (airport-to-door),
and door-to-door delivery (door-to-door).
Air import and export services:
+ Air Cargo
+ Express/ Courier
+ Air charter
1.2.6 Customs Clearance:
Customs brokerage solution:
+ Support for electronic customs declaration and registration
+ Support customs solutions for complex shipments
+ Tax calculation support
Consulting and preparing documents:
+ Consultancy on import and export licenses
+ Taxes consultant
+ Quarantine consulting: plant quarantine paper, animal quarantine paper,
fumigation
+ Consulting documents: certification of origin, certification of quality
1.2.7 Warehousing and Packaging:
+ Packed in cartons and wooden pallets

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+ Wrap shrink film for open bales

+ Wooden bales, for fragile items, and bulky goods.
Packing service process:
+ Sort
+ Check quality
+ Packing, repacking
+ Packaging Labeling

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CHAPTER 2: CASE STUDY OF PROCEDURES FOR STRETCH FILM

DELIVERY BY CONTAINER OF SEAHORSE SHIPPING CORPORATION
2.1 Brief introduction of the shipment
The company's forwarding service segment is implemented according to the general
process according to “Figure 1: The process of exporting raw container goods by
sea.” In this report, I would like to select the shipment with foreign trade contract
number MP-KANGAROO001-2020 signed on August 2, 2020 between MAI
PHUONG VINA LIMITED COMPANY and KOOGAROO PAK INC (New York).
Types of Stretch Film, imported at fob prices include:

- Origin of goods: Vietnam

- Port of loading: Hai Phong, Viet Nam
- Port of discharge: New York, America
- Terms of payment: Collect
- Shipping Line: COSCO SHIPPING LINE (Viet Nam)
Each imported goods has its own policy, so companies need to rely on the fact of the
goods, to be able to compare with the current regulations and the lead content to
classify and identify the specific code for each item. According to the regulations of
the Government of Vietnam, Stretch Film is on the list of goods that need to be
declared when exported by sea, as stipulated in Decree No. 69/2018/ND-CP dated
May 15, 2018 of the Government of Vietnam on external trade promotion activities
of small and medium enterprises. According to Article 10 of this Decree, enterprises
must declare full information on exported goods, including the name of the goods,

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invoice code, quantity, value, weight, packaging specifications and information

related to origin and legal certification. Therefore, when shipping stretch film by sea,
MAI PHUONG VINA needs to comply with customs regulations and declare full
information about the goods to ensure the shipping is carried out in accordance with
regulations and safety.
2.2 The process of exporting goods on the sea by container

Rceive booking Collecting empty

Contact sales
confirmation and cargo to factory
staffs and sign a
release for a and exporting
contract
consignor good at port

Do custome Submit SI, VGM Do House B/L

declaration for carrier and Master B/L

Send arrival
notice to Close case, record
Pay all fees
forwarder of the document
buyer

Figure 1: The process of exporting stretch film by Seahorse Corporation

2.2.1 Contact sales staff and sign the contract
Seahorse is an enterprise that meets strict standards to become an OTI - NVOCC
organization. Reservation requests for Seahorse can come from customers who are
cargo owners or from customers who are agents or large import and export
companies. With MAI PHUONG – a long-standing company, requests will be sent
through the company's direct office or email. In addition, Seahorse's electronic system
also allows customers to consult and quote at https://seahorseshipping.com/.
Expanding the electronic system for SEAHORSE will help the company expand its
business partners, helping customers to capture prices and control the payment source
of the business. Booking request requires the following information (The handle
process of export goods FCL from VN to USA, n.d.):

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- Port of departure
- Port of destination
- End destination
- Ship's name, ship number or ship departure date
- Carrier information: Name, phone number, fax number, and address
- Consignee information: Name, phone number, fax number, and address
- Delivery information: Name, phone number, fax number, and address
- Detailed description of goods
- Quantity and type of packaging
- The net weight of the shipment
- Total weight of the shipment
- Payment method: Prepayment or collection
When serving repeat customers, strive to learn about their interests, preferences for
rapid trips, degree of price sensitivity, or ability to balance price and schedule in order
to provide a few possibilities.
Since Mai Phuong firm has been around for a while, and Mai Phuong's partner, in
this case, a study has also been around for a while and is a significant firm, Seahorse
will proactively approach and make an offer for fair, balanced pricing to prevent
losing a sizable client base. The business will as quickly as possible examine the
timetable, and train fares, and notify consumers in response to Mai Phuong's booking
request. At the same time, Seahorse will make arrangements with the foreign shipping
firm to pay the representative a reasonable price and to guarantee that the business
plan will be completed on time. The consignor and Seahorse will agree on a contract
after some haggling. From here, Seahorse will serve as a forwarder.
After receiving the booking request from the representative company, Seahorse will
contact the shipping line and discuss the number of specific information of goods,
prices, and specifications to choose the right shipping line and proceed to sign the
contract.
After negotiating, the parties proceed to draft and sign the contract. Seahorse then
acts as an intermediary between the seller and the buyer. Checking documents will
be the responsibility of the Forwarder. Mai Phuong Company in this case study will

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send Seahorse a copy of a sales contract (Sales Contract) which is a brief form of
contract in principle for each shipment. During the document checking process, there
are three documents between the seller and the buyer that the intermediary here,
Seahorse, needs to understand: Purchase contract, Commercial Invoice, and Packing
list.
Purchase contract – a type of contract with an agreement of the parties through which
the seller is responsible for transporting the goods or the ownership of the goods to
the importer (Ship, n.d.)
And in this contract, the contract expressed between the seller is: MAI PHUONG
VINA LIMITED COMPANY and the buyer is: KANGAROO PAK INC. It should
be clearly stated that this is a contract with an agreement between the two companies.
The consignments in the contract have clearly stated the item information, weight,
quantity, and unit price of each shipment. The forwarder needs to know the
description of the items in this section so that he can make the right choice of shipping
lines and check the correct amount of B/L documents.
Regarding the payment method, in the contract, it is clearly stated that the buyer will
deposit 20% of the copy fee in advance of the total shipment and then transfer the rest
when receiving the goods. The contract will not accept force majeure circumstances
causing the shipment to be delayed compared to the contract period due to the fault
of the seller.
As for the dossier, In this contract, the MAI PHUONG party will have to prepare 3
Original Commercial Invoices,3 Original Detail Packing List, and 1 original.
Seahorse is responsible for checking the number of Original B/L documents that the
importer needs to be able to receive the goods at the port of destination.
For international commercial contracts (Commercial Invoices), it is necessary to
clearly define the rights and responsibilities of the parties. A general foreign trade
contract will require the following provisions:
1. Information between the seller and the buyer:
- Seller: MAI PHUONG VINA CO., LTD
+ ADD: TIEN SON INDUSTRIAL ZONE, TUONG GIANG COMMUNE, TU SON
VILLAGE, BAC NINH PROVINCE, VIET NAM
- Buyer: KANGAROO PAK INC

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+ ADD: 335 NEW SOUTH ROAD, HICKSVILLE, NEW YORK, THE UNITED
STATES
+ Tel: 516-935-0618
+ Fax: 516-681-0305
2. Product information: LLD STRETCH FILM CLEAR and LLD STRETCH FILM
BLACK.
- Total quantity: 2025 cases
- Amount (USD): $23.746.50
3. Time and terms of payment:
- INVOICE DATE: AUGUST 30, 2020
- CONTRACT DATE: AUGUST 02,2020
- SHIP ON/BOUT: SEPTEMBER 02, 2020
- PAYMENT TERM: DP (FOB HAIPHONG, VN)
In addition, to avoid unwanted damage to both parties, the commercial contract
should have additional provisions on
Terms of packaging, packaging
- Insurance terms
- Penalties
- Force majeure clause
- Arbitration Terms
- Trade discount
Finally, in the list of contracts of the buyer and the seller, Seahorse will check the
packing list documents to be able to check the weight, volume, number of packages,
and the way of packing that the seller requires to have considering renting containers
from shipping lines.

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2.2.2. Receive booking information and release for the shipper

Seek for
carrier

Send
booking
reservation

Receive
booking
confirmation

Send BC
back to Mai
Phuong

Figure 2: Four steps to receive booking confirmation

First step: The choice of the proper shipping business and the shipping firm's
assurance of on-time delivery of the products in accordance with the schedule is
crucial in a reservation booking in order to prevent delays in the delivery of the goods.
The intermediary will submit a booking request to the shipping business once the
price has been accepted and the shipping time has been agreed upon by both sides. In
this case, Seahorse will begin issuing a booking request to COSCO SHIPPING
LINES after the carrier has completely met the shipper's needs. From there, Seahorse
will serve as a forwarder. In this case, Mai Phuong VINA CO., LTD entrusted
Seahorse Shipping, and Seahorse Shipping made a transaction with COSCO
SHIPPING LINE (VIET NAM) COMPANY LIMITED to be able to bring the empty
container to the required location.
Second step: Here, the shipping line, namely COSCO SHIPPING LINE, will rely on
the request of the forwarder through a booking reservation to send the estimated ship
schedule + freight rates about the Time of the ship, ship name, number of ships,
loading port, port Unloading, the number of goods, yard for approval of the order to
issue empty containers, cutting time (losing time)…
Third step: The buyer receives a Booking Confirmation, which is a confirmation of a
successful booking for the shipment, after the specific carrier, in this case, COSCO

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SHIPPING LINE, closes the booking note. Once the reservation has been confirmed
with the shipping company, the carrier knows to start setting up transactions to carry
the items.
The following details are repeated on the booking confirmation: ship name, voyages,
ETD, trough cutting time, amount of cargo, contact information for empty containers,
and DEM/DET time.
The shipper will use this booking confirmation to approve the request to take the
empty container, close the goods, and follow the necessary procedures, including
submitting SI (Shipping Instructions), VGM, and the cutoff time according to the
time given on the booking confirmation to avoid dropping the goods.
Last step: After receiving the booking confirmation, the forwarder will then send
information to the consignor to note:
• Deadline SI/VGM/CY, the deadline for editing BL: should be given earlier
than the shipping line's deadline because I need time to make B/L and submit
it to the shipping line and customers also need time to check B/L.
• DEM/DET free times: let the shipper know so that they can pick up the
container to close the goods early without incurring any additional fees.
2.2.3. Collecting empty cargo to the factory and exporting goods at the port

Loading
Empty cargo at Seal
container port Cargo

Figure 3: Three steps before cargo is transported

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After confirming the contract and documents between the buyer and the seller, the
company proceeds to place the ship at the port and confirm the place by issuing an
empty container order to the consignor.
In this case study, Mai Phuong company entrusted the intermediary, Seahorse, so
Seahorse will have the task of renting a trailer to pull empty containers to the factory.
Based on the general process, there will be two ways to pack goods into empty boxes
depending on customer requirements. Customers can choose to pack their goods at
their factories or pack them right at the customs export processing zone.
The cargo was loaded at Hai Phong port, and the staff of the forwarding team and the
export sales staff will collect the goods at a full yard for customs control. Here the
customs officer will inspect the goods, if the declaration is correct, the customs officer
will record the goods inspection results, and stamp and seal the customs into the
container.
2.2.4. Custom Clearance for Export
After packing and sealing, customs procedures (customs declaration) will be carried
out. Ship owners who want to build goods at export processing zones will be allowed
to carry out customs procedures at industrial parks.
During customs clearance, it will be necessary to prepare sets of bill of lading
documents (Bill of lading) including
● Export Declaration: 2 Originals
● Sale Contract (1 copy)
● Commercial Invoice: 1 Original
● Packing List: 2 Originals
● Downgrade slip
● Business brochure: 1 copy
Through the use of customs declarations, employees can enter information about the
intended shipment for export. After the documents are received by the department
receiving the export documents of the Customs Sub-Department, the number of
declarations will be sent to the Branch staff for feedback to analyze the declarations.
Specifically, the shipment can be threaded as follows (Truong Phat Trading Co.,
2022):

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• Green Channel: Accepted through the shipment, the delivery team only needs
to print two declarations and submit them to the Department of Woodworking
for customs clearance.
• Yellow Channel: Customs will require the Branch to present a set of
documents including declarations, Commercial Invoices, Packing List, and
other relevant documents. If the documents are valid, Customs will close the
carpentry.
• Red Channel: The above shipment will be taken to a reality check. After
receiving feedback from Customs on the number of declarations and
channeling results, the forwarder will proceed to print out and prepare the
necessary documents to make a declaration at the customs office.
2.2.4.1 Commercial Invoice
A commercial invoice is one of the important documents in the process of importing
and exporting goods, and it contains full information about the goods, value and terms
of transactions between the seller and the buyer, so we need to carefully check the
information contained in this type of paperwork (Viet, 2023):
1. Information between Seller and Buyer:
- Seller: MAI PHUONG VINA Co., LTD
+ ADD: TIEN SON INDUSTRIAL ZONE, TUONG GIANG COMMUNE,
TU SON VILLAGE, BAC NINH PROVINCE, VIET NAM
- Buyer: KANGAROO PAK INC
+ ADD: 335 NEW SOUTH ROAD, HICKSVILLE, NEW YORK, THE
UNITED STATES
+ Tel: 516-935-0618
+ Fax: 516-681-0305
2. Information of goods:
- LLD STRETCH FILM CLEAR AND LLD STRETCH FILM BLACK.
- Total Quantity: 2025 cases
- Amount (USD): $23,746.50
3. Time and conditions of payment:
- INVOICE DATE: AUGUST 30, 2020

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- CONTRACT DATE: AUGUST 02,2020

- SHIP ON/OFF: SEPTEMBER 02, 2020
- PAYMENT TERM: DP (FOB HAIPHONG, VN)
A commercial Invoice is an important document in the implementation of customs
procedures and payment of goods. Therefore, in order to minimize as well as avoid
risks, it is necessary to prepare and carefully check the information mentioned above.
2.2.4.2 Sale Contract
Sale contracts are also important and necessary documents in the purchase and sale
process. Therefore, it is also necessary to consider the types of information that are
essential in this type of contract ( (Khau, 2019):
1. Information about the buyer and seller:
- The Seller: MAI PHUONG VINA LIMITED COMPANY
+ADD: TIEN SON INDUSTRIAL ZONE, TUONG GIANG COMMUNE,
TU SON VILLAGE, BAC NINH PROVINCE, VIET NAM.
+TEL: +84-02413.714.498
+FAX: +84-024133.714.499
+THE PRESENTATIVE: DEPUTY DIRECTOR TRAN THE TRUNG
- The Buyer: KANGAROO PAK INC
+ADD: 335 NEW SOUTH ROAD, HICKSVILLE, NEW YORK, THE
UNITED STATES OF AMERICA
+TEL: 516-935-0618
+FAX: 516-681-0305
2. Information about the goods:
- LLD STRETCH FILM CLEAR 18’X850’ 20MIC NET 4ROLLS/CASE; NET
2.18KG/RL; 8.72KG/CS; GROSS 10.52KG/CS; N.W 8.679KGS; G.W
9.215KGS; Q’ 825CASE
- LD STRETCH FILM BLACK 18’X850’ 20MIC 4ROLLS/CASE NET
2.18KG/RL; 8.72KG/CS; GROSS 10.52KG/CS; N.W 3,156KGS; G.W
3,351KGS; Q’ 300CASE

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- LLD STRETCH FILM CLEAR 18’X670’ 20MIC NET 4ROLLS/CASE; NET

1.72KG/RL; 6.88KG/CS; GROSS 8.68KG/CS; N.W 7,812KGS; G.W
8,397KGS; Q’ 900CASE
3. Time, payment conditions, and transaction terms:
- Time of shipment: latest shipment date is 2nd September 2020
- Term of payment: Deposit 20% value of the contract and make balance 80%
by DP
● ACCOUNT NAME: MAI PHUONG VINA LIMITED COMPANY
● ACCOUNT: 0931374204997
● AT BANK: JSC BANK FOR FOREIGN TRADE OF VIETNAM -
HOANG MAI BRANCH
● ADDRESS: FLOOR 1,2 - TOWER 1 TIMES CITY, 458 MINH KHAI
STREET, HA NOI, VIET NAM, 790000
● SWIFT CODE: BFTVVNVX093
- Force majeure: The seller shall not be held responsible for the delay or failure
in the delivery of the goods.
4. Dispute resolution and jurisdiction:
- Penalty
● In the event of non-performance of all or any part of the contract, the
defaulting party shall compensate another party a penalty of 10% of
non-performance parts value, the total penalty shall not be over 8% of
the total contract
● If production is delayed due to the fault of the seller and results in the
use of Less than Truckload (LTL), the seller will bear all LTL expenses.
- Arbitration: Any disputes arising from the execution will be submitted to the
SINGAPORE INTERNATIONAL ARBITRATION CENTRE (SIAC) whose
award is final and binding upon both parties.
Preparing and checking the sale contract before making a transaction is very
important to avoid errors and risks that arise unnecessarily for both the buyer and the
seller. It is necessary to check correctly the necessary information mentioned above.

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2.2.4.3 Packing List

A Packing List is a necessary document in the process of transporting goods. This list
also contains the information needed to make the shipping process as smooth as
possible. Here's some essential information (Anh, 2022):
1. Information about sender and receiver:
- Seller: MAI PHUONG VINA Co., LTD
+ ADD: TIEN SON INDUSTRIAL ZONE, TUONG GIANG COMMUNE,
TU SON VILLAGE, BAC NINH PROVINCE, VIET NAM
- Buyer: KANGAROO PAK INC
+ ADD: 335 NEW SOUTH ROAD, HICKSVILLE, NEW YORK, THE
UNITED STATES
+ Tel: 516-935-0618
+ Fax: 516-681-0305
2. Information about the goods:
- LLD STRETCH FILM CLEAR 18’X850’ 20MIC NET 4ROLLS/CASE; NET
2.18KG/RL; 8.72KG/CS; GROSS 10.52KG/CS; N.W 8.679KGS; G.W
9.215KGS; Q’ 825CASE
- LLD STRETCH FILM BLACK 18’X850’ 20MIC 4ROLLS/CASE NET
2.18KG/RL; 8.72KG/CS; GROSS 10.52KG/CS; N.W 3.156KGS; G.W
3.351KGS; Q’ 300CASE
- LLD STRETCH FILM CLEAR 18’X670’ 20MIC NET 4ROLLS/CASE;
NET 1.72KG/RL; 6.88KG/CS; GROSS 8.68KG/CS; N.W 7,812KGS; G.W
8,397KGS; Q’ 900CASE
3. Weight and Quantity Information:
- Total Quantity: 2025cases
- Total N.W: 19,647KGS
- Total G.W: 20.963KGS
4. Shipping Information
- SHIPPING COMPANY NAME: COSCO SHIPPING LINES VIETNAM
- MODE OF TRANSPORT: BY SEA

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- VESSEL NAME: FENGYUNHE 1723N

- PORT OF LOADING: HAIPHONG, VIETNAM
- PORT OF DESTINATION: NEW YORK, UNITED STATES
5. Signatures and confirmations: Packing Lists also need to be signed and
confirmed by MAI PHUONG VINA and KANGAROO PAK INC to ensure
that the information stated in the list is accurate and eligible for processing.
In order to ensure that information related to the packaging and transportation of
goods is accurate and complete, it is necessary to prepare and check the packing list
before transporting to minimize the risks that may arise during transportation.
2.2.5 Submit SI, VGM for the carrier.
After completion and clearance from Customs, the container will be taken to the yard.
Verified Gross Mass (VGM) and Shipper's Information (SI) are two important
documents that the shipper sends to the shipping line. But at this export process
shipper (Mai Phuong VINA Co., LTD) booked a forwarder as Seahorse Shipping
Corporation, so VGM, and SI will be sent to Seahorse Shipping, then this forwarder
will send to the shipping company.
2.2.5.1 VGM's Information
VGM is provided to ensure safety during the transportation of goods by sea. It helps
to ensure that the transport vehicle does not exceed the safe load capacity. The
information on VGM includes:
- Net weight of goods: Max gross weight (kg): 32,500KGS (removed all
unnecessary items such as packaging,...). This weight is determined and
supplied by the shipper.
- Weight of transport means: This weight is determined and provided by the
manufacturer of the transport means is COSCO SHIPPING LINE.
● Size of container (20’/40’/other): 40’HQ
● Verified gross mass of a packed container (kg): 24.863KG
2.2.5.2 SI Declaration
SI is a document that contains information about MAI PHUONG VINA Co., LTD,
including; information on goods, packing, shipping, and other information.
1. Information about the goods:

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- Product name: lld STRETCH FILM CLEAR and lld STRETCH FILM
BLACK
- Number of packages: 2025 cases
- Gross Weight: 20,963,000 kgs
- Measurement: 76,000 CBM
2. Identification of packaging information:
- Quantity And Kind of Packages: 1 X 40’
- Total number of containers or packages: ONE(1) CONTAINER ONLY
3. Determine shipping information:
- Forwarding Agent: SEAHORSE SHIPPING CORPORATION
- Vessel/Voyage: FENGYUNHE 1723N
- Type of Move: FCL/FCL-CY/CY
2.2.6 Do House Bill of Lading and Master Bill of Lading.
After sending VGM to the shipping company, SEAHORSE SHIPPING will make a
draft House Bill of Lading for MAI PHUONG VINA to confirm the information on
the contract is accurate or not. Once confirmed by the shipper, the House Bill of
Lading Original will be released.
At this time, COSCO SHIPPING LINE will issue the Master Bill of Lading and
assign it to SEAHORSE SHIPPING, after receiving Master Bill from the shipping
company, the forwarder is responsible for sending this bill to the other party under
the contract is TRANSLINK SHIPPING, INC. (NY).
In the Master Bill of Lading sent to the forwarder must be ensured to be full of the
following information:
- Ocean Vessel Voyage No: FENGYUNHE 1723N
- Description of Goods: lld STRETCH FILM and lld STRETCH FILM BLACK
with toltal 2025 cases, G.W: 20,963,000 kgs, M’: 76,000 CBM.
- Container/Seal No: TCNU 4135062/10068715
2.2.7 Pay all fees
Before the ship runs and picks up the bill, SEAHORSE SHIPPING must fully pay
the fees to MAI PHUONG VINA

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Local Chares:
- THC/ cont
- BILL/ By Shipment
- Seal FEE/ per container
- OCEAN FREIGHT/CONT: FOB so MAI PHUONG VINA will not need to
bear sea freight.
- Other surcharges
SEAHORSE SHIPPING pays the above fees in advance to MAI PHUONG VINA,
takes the invoice in advance for them, and will be refunded later. When the ship starts
running, COSCO SHIPPING will deliver the bill to KANGAROO PAK INC.
After pay all the fees, custome department will send the tracking cargo to
TRANSLINK SHIPPING to keep in track with the voyage of the products.
2.2.8 Send arrival notice to the buyer.
After the cargo is loaded onto the ship and leaves the port of departure, COSCO
SHIPPING will expect the arrival date and contact the agent in New York is
TRANSLINK SHIPPING. After that, TRANSLINK SHIPPING will have to submit
D/O as well as a Master Bill of Lading and pay other fees such as the cost of
transporting goods from HAIPHONG port, VIETNAM to NEW YORK port, NY,
USA. When finished, COSCO SHIPPING will contact MAI PHUONG VINA to
inform them that the buyer has received the goods. This is also considered as a
certificate of goods and a basis for the buyer to pay for the goods.
2.2.9 Close case and record document
Upon completion of the formalities and completion of payment by the shipper and
consignee, the completion notice will be sent to all parties involved to notify them
that the container has been delivered to its destination and the case has been closed.
When the Close Case process is completed, the Record Document process is
performed. Container-related documents such as export invoices, shipping contracts,
customs papers, etc., and transported goods will be stored.

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Chapter 3. PROCESS EVALUATION AND SOLUTIONS

3.1. Process evaluation
All the steps in the process of exporting goods by sea by FCL play an important and
indispensable role. These steps are interrelated and any mistake or omission in one
step can have serious consequences for the entire process. This is why it is important
to be extra careful and attentive to detail when going through each step.

In particular, preparing the necessary documents and papers is an important step in

the process. This includes preparing the bill of lading, export declaration, commercial
invoice, packing list, and any other required documents. Any errors or omissions in
these documents may lead to a delay or even refusal of the shipment by customs
officials. For example, if the bill of lading contains incorrect information or is not
properly validated, the shipment may be delayed or even held up at the port of
destination. Similarly, if the export declaration contains incorrect or incomplete
information, customs officials may refuse the shipment or impose a fine. And based
on preparing documents carefully, MAI PHUONG company as well as SEAHORSE
have done well in having provisions to avoid unintended situations in this case study.

In addition to the importance of preparing documents related to the transport process,

it is also important for SEAHORSE SHIPPING CORPORATION to note about
external factors that may affect the import or export of goods. As if:
● Weather conditions: Weather conditions can have a significant impact on the
import or export of goods by sea or by air. Adverse weather conditions such
as storms, and high winds can delay or even disrupt the movement of goods,
resulting in additional costs and the potential for cargo damage.
● Economic and political conditions: Economic and political conditions can
affect the import and export of goods in a variety of ways.
● Transportation and logistics: Transportation and logistics are important factors
in importing or exporting goods. It is important to stay informed of any
changes in shipping routes, schedules, or costs that may affect the delivery of
goods. So, it can be seen that in this case, SEAHORSE had the right choice
because the ship was not delayed on this journey.

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Forwarders should not only pay attention to external factors but also need to consider
internal factors in the transportation process of goods. Internal factors such as
packaging of goods, selecting ships/transportation companies, loading and unloading
goods, warehouse management, technology and skills of employees, all affect the
quality of service and effectiveness of the goods transportation process.
3.2. Solutions and recommendations
3.2.1 Pre-Shipment planning & documentation
To avoid errors in the plan and document preparation process for the transportation
of FCL by sea for SEAHORSE, the following measures can be applied:
● Ensure the accuracy of information: SEAHORSE needs to ensure the accuracy
of information and data entered into documents and paperwork. Entering
incorrect information, especially information related to goods, can lead to
issues related to customs or other legal regulations.
● Comply with procedures and regulations: SEAHORSE needs to comply with
procedures and regulations related to document preparation. Compliance with
procedures ensures the accuracy and completeness of the information
recorded on the documents and paperwork.
● Train employees: The company needs to train employees on the procedures
and regulations related to document preparation. Training ensures
professionalism and enhances the capacity of employees, helping to avoid
errors related to document preparation.
● Check and verify the information: SEAHORSE forwarder needs to check and
verify information on documents and paperwork before sending them to
customers or related to the process of transporting goods. Checking and
verifying ensures the accuracy and completeness of the information before the
documents are used for purposes related to the transportation of goods.
3.2.2. Technology application
With the continuous development of technology, SEAHORSE should invest in
technology tools to improve the process of transporting goods. Technologies such as
artificial intelligence, blockchain, and transportation management software help the
company manage and monitor transportation activities more efficiently as well as
minimize mistakes happening in the steps of the transport process.

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For example, document and information management systems help SEAHORSE

manage and share information about transportation schedules, orders, invoices, and
other important documents with customers and transportation partners. The
application of artificial intelligence and IoT to monitor and predict the status of goods
during transportation helps the forwarder quickly detect and address issues before
they become major problems.
Investing in these technologies not only helps SEAHORSE increase competitiveness
and improve service quality but also helps reduce errors in the transportation process
and increase safety during the transportation of goods.
3.2.3. Partnering with a Reliable Shipping Company
Even though SEAHORSE is still a small-scale company in Viet Nam, they give
customers a wide choice of carrier partners which will meet the requirement of
customers even in the peak season. However, SEAHORSE also needs to
establish a good relationship with transportation partners by these suggestions:
● Search for and choose a suitable shipping partner: SEAHORSE should
select a shipping partner with experience and credibility, who can provide
quality shipping services and meet SEAHORSE's needs.
● Establish standards and requirements for the shipping partner:
SEAHORSE should establish standards and requirements for the shipping
partner, ensuring that the shipping partner complies with SEAHORSE's
regulations and policies to ensure quality and safety in the shipping
process.
● Provide information and support to the shipping partner: SEAHORSE
should provide full information and support to the shipping partner to
ensure that the shipping process runs smoothly and efficiently.
● Build a long-term relationship: SEAHORSE should establish a long-term
and stable relationship with the shipping partner, ensuring that both
parties benefit and can cooperate on many shipping projects in the future.

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CONCLUSION
Sea transport plays an important role in promoting the development of foreign trade
activities, especially the development of the national economy. With limited
operating experience, the company has been affirming its reputation and service
quality among the best in Vietnam's international freight forwarding industry over the
years. Profit is not only a guarantee for the existence of the business, but also a
condition for the business to develop. Besides the company's achievements in the
past, the company itself also has difficulties, objectively, SEAHORSE
TRANSPORTATION JOINT STOCK COMPANY is constantly striving to have a
firm foothold in the market mechanism. By understanding the import and export
freight forwarding process and the problems faced by the company, propose some
solutions to improve the import and export agency activities of the company. Faced
with a difficult economic situation,
Our team hopes that in the coming time, the company will overcome difficulties, have
a firm foothold, and continue to develop. Vietnam's economy is expected to attract
more foreign capital, the seaport is crowded with ships, and the trade in goods is also
growing rapidly. For companies like SEAHORSE SHIPPING CORPORATION
involved in freight forwarding, this is an opportunity as well as a challenge.

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REFERENCES
Anh, X. N. (2022, October 11). What is Packinglist? . From Xuat Nhap Khau Le Anh:
https://xuatnhapkhauleanh.edu.vn/packinglist-la-gi-lap-packing-list-can-chu-
y-nhung-gi.html
Corporation, S. S. (2020). Seahorse Shipping Corporation. From Seahorse Shipping:
https://seahorseshipping.com/
Khau, H. X. (2019, June 17). Hop dong ngoai thuong - Sale Contract - The content
of Sale Contract. From Hoi Xuat Nhap Khau:
http://hoixuatnhapkhau.com/hop-dong-ngoai-thuong-sale-contract-noi-dung-
cua-hop-dong-ngoai-thuong/
Ship, G. C. (n.d.). Contract between cargo seller and buyer - Procedure for Cargo
ships employment. From General Cargo Ship:
http://generalcargoship.com/cargo-contract.html
The handle process of export goods FCL from VN to USA. (n.d.). From Billcompany:
https://billcompany.vn/quy-trinh-handle-mot-lo-hang-xuat-fcl-tu-viet-nam-
di-usa-cong-ty-forwarder-phan-2
Truong Phat Trading Co., L. (2022, January 20). What is selectivity of customs
declaration? From Quoc Te Truong Phat Trading Company Limited :
https://truongphatlogistics.com/phan-luong-hai-quan/#
Viet, V. H. (2023). What is Commercial Invoice? From VinaLogs - Van Tai
Container: https://www.container-transportation.com/commercial-invoice-la-
gi.html

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APPENDIX
APPENDIX 1: BOOKING RESERVATION BETWEEN COSCO SHIPPING LINES AND
SEAHORSE SHIPPING CORP .........................................................................27
APPENDIX 2: COMMERCIAL INVOICE BETWEEN MAI PHUONG AND KANGAROO
PAK ....................................................................................................................28
APPENDIX 3: PURCHASE CONTRACT BETWEEN MAI PHUONG AND KANGAROO
PAK ....................................................................................................................29
APPENDIX 4: PACKING LIST BETWEEN MAI PHUONG AND KANGAROO PAK ....30
APPENDIX 5: VGM DOCUMENT OF CASE STUDY .......................................................31
APPENDIX 6: B/L DOCUMENT ....................................................................................32
APPENDIX 7: ORIGINAL B/L DOCUMENT ...................................................................33
APPENDIX 8: TRACKING CARGO SENT BY CUSTOME DEPARTMENT ...........................34

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Appendix 1: Booking reservation between COSCO

SHIPPING LINES and SEAHORSE SHIPPING CORP

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Appendix 2: Commercial Invoice between MAI PHUONG and KANGAROO PAK

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Appendix 3: Purchase contract between MAI PHUONG and KANGAROO PAK

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Appendix 4: Packing List between MAI PHUONG and KANGAROO PAK

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Appendix 5: VGM document of case study

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Appendix 6: B/L document

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Appendix 7: Original B/L document

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Appendix 8: Tracking cargo sent by custome department

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