II.

Multimodal transport operation of a shipment

2.1 EXPORTED CARGO
(Hà) 2.1.1 Initial info of shipment:
- Shipper’s information:
Exporter: Thai Binh Investment Joint Stock Company - TBS Group
Address: 5A Xa lo Dai Han, Xuyen A, Di An, Binh Duong Province, 70000
- Recipient's information:
Destination: 425 S. Palos Verdes St., San Pedro, CA 90731, USA.
- Commodity: Footwear
- Goods’ information:
Max Cushioning shoes: HS code: 6404.11.90
Shoe name: Sketcher Max Cushioning Premier 2.0 - Vantage: Unit: pair
Shoe box: 33 cm x 21 cm x 12 cm
Carton: 10 shoe boxes for each
- Quantity: 01x40HC container with 792 cartons, including 7920 pairs of shoes
- Weight: 7920 Kgs; Volume: 65.88 CBM
- Total value: $938.440 with 118.49 USD/pair
2.1.2 Cargo specifications:
- Goods: Considering the goods on a deeper level, here are some more details
about its characteristics:

Features

Type It is a running shoe specifically designed for sports purposes

Size Varies from US: 7 to US: 11

Color Navy Black/ Charcoal
 - The lightweight, responsive ULTRA GO® cushioning
provides a comfortable and energetic stride.
- The Goodyear® Performance Outsole ensures excellent
traction, stability, and durability.
- The Skechers Air-Cooled Goga Mat™ breathable insole offers
high-rebound cushioning and breathability.
Key - The Ortholite® comfort foam insole adds long-lasting comfort
Features
and breathability.
- The NRT - Natural Rocker Technology provides a smooth
heel-to-toe transition.
- The engineered mesh and synthetic upper with a lace-up front
offer a secure fit.
- The shoes are machine washable for easy care.

- Additional requirements:
+ Packaging Type: Each pair of shoes is packaged in a cardboard box with
a branded Skechers label. Then those boxes are typically packed in a
larger carton for shipment.
+ Handling Requirements: The shoes should be handled carefully to avoid
damage to the cardboard boxes. They do not require any special
handling procedure.
+ Loading and Unloading Restrictions: There are no specific restrictions
for this type of product, it is normally loaded and unloaded by forklifts
or pallet jacks.
+ Storage Conditions: The shoes can be stored at room temperature within
a dry environment to prevent mold or mildew.
- Incoterm Explanation: For a better understanding of the Incoterm that is used
in this project, the CFR (Cost and Freight) Incoterm states that the seller's
responsibility ends when the goods are on board the ship and cleared for
export. The seller also pays for the shipping costs to the buyer's port of
destination. However, the buyer assumes the risk of loss or damage during
 transportation. Additionally, this Incoterm is widely used in maritime and
inland waterway transportation, and the contract must clearly illustrate the port
of discharge, whereas the port of loading is optional, depending on the
agreement terms from both sides. The seller covers the cost of freight until the
port of discharge. The buyer covers discharge and import clearance costs.
CFR – Cost and Freight (named port of destination) - Incoterms 2020 -
Incoterms (internationalcommercialterms.guru)

2.1.3 Select the appropriate service

Intermodal Intermodal Final

Route Origin Mode Mode Mode
Transfer Transfer Destination

Binh Port of
1 Road Cat Lai port Maritime Maritime Los Angeles Port
Duong Singapore

Binh Hai Phong Hong Kong

2 Road Maritime Maritime Los Angeles Port
Duong Port Port

Binh
3 Road Cai Mep port Maritime Busan Port Maritime Los Angeles Port
Duong

Route 1:
From TBS Group in Binh Duong to Cat Lai port, Vietnam: by road transport
From Cat Lai port to the port of Singapore: by maritime transport.
From the port of Singapore to the port of Los Angeles: by maritime transport
The responsibility of the carrier ends when our container arrives at the destination
port. Therefore, the process of unloading and transporting cargos to the warehouse of
the importer is not mentioned here.
The whole route can be illustrated as Figure 1:
Table 2: Distance and lead time

Lead Time
Cost
Route Distance (in ideal
(USD)
condition)
Warehouse in Binh Duong - Cat Lai 1 hour 30
port 20.1 km $221
minutes
(including handling time)

Customs procedure at Cat Lai port 1 day

Cat Lai port - port of Singapore

2600km 3 days $504
(including handling time)

Transshipment procedure in port of

2 days
Singapore
Port of Singapore - Port of Los
14,205km 20 days $3860
Angeles

Operator OOCL

16,825.1k
26 days 45
Total $4585
m minutes
Cost from TBS warehouse to Cat Lai port

No. Component Cost

(01x40HC dry container)
1 Transport fee $142.04
2 Trucking fee $59.28
3 Fuel and toll fee $19.76
Total $221
Cost from Cat Lai port to port of Singapore

No. Component Cost

(01x40HC dry container)
1 Terminal handling charge $172
2 Ocean freight $200
 3 Bill of Lading $34

4 Seal fee $8
5 AMS Fee $30
6 ISPS $10
7 Documentation and Administration Fees $50
Total $504
Cost from port of Singapore to the port of Los Angeles

No. Component Cost

(01x40HC dry container)
1 Terminal handling charge at port of $172
Singapore
2 Ocean freight $2500
3 Delivery order fee $50
5 Automated Manifest System Fee $30
6 ISPS $10
7 Terminal handling charge at Los Angeles $435
port
8 Import Handling Fee $75
9 Phí thông quan $100
10 Documentation and Administration Fees $100
11 Destination Handling Fees $200
12 Importing tax $188
Total $3860
Total cost = $221 + $504 + $3860 = $4,585
Advantages:
Using major ports like Cat Lai and Singapore ensures access to frequent shipping
routes, reducing transit time variability. This is beneficial for consistency and allows
better forecasting for supply chain management.
Maritime shipping is the most economical mode for transporting large volumes of
goods, such as shoes, over long distances. It provides lower costs per unit, which is
crucial for exporting lower-margin goods like footwear.
The estimated cost is reasonable thanks to the combination of the three cheapest
modes of transportation.
Disadvantages:
Maritime shipping is slower than other modes like air freight, which might not be
suitable for high-demand or time-sensitive goods, as it extends the overall lead time.
The Port of Los Angeles is a busy port that often faces congestion. This can lead to
delays in unloading and higher demurrage fees, impacting the timeliness and cost-
effectiveness of deliveries.
https://maps.app.goo.gl/P8XMB8NTqYgckYp46
Vận chuyển hàng đi Singapore bằng đường biển (logone.vn)
SEA-DISTANCES.ORG - Distances
Bảng Giá Cước Vận Chuyển Container Đường Bộ Nội Địa Mới
(truongphatlogistics.com)
Bảng giá vận chuyển từ cảng Cát Lái đi Bình Dương Th10 2024 (idaiduongxanh.com)
Freight Rate Calculator | 20 / 40 Ft Sea Container Shipping Cost (gocomet.com)
Cước vận chuyển từ Hồ Chí Minh đi Singapore
Route 2:

Figure: Route 2’s Illustration Chart

- The specific address of each location is stated as below:
+ TBS Warehouse: 5A Xa lo Dai Han, Xuyen A, Di An, Binh Duong
Province, Vietnam.
+ Hai Phong Port: 1 P Le Thanh Tong, May To, Ngo Quyen, Hai Phong,
Vietnam.
+ Hong Kong Port: Harbour Building 38 Pier Road Hong Kong, Hong
Kong.
 + Los Angeles Port: 425 S. Palos Verdes St. San Pedro, CA 90731 United
States.
- Analyze for Route 2 in personal:
+ From TBS Warehouse in Binh Duong to Hai Phong Port: The main
mode of transport on this route is by truck/ container. The primary road
is via the Ho Chi Minh - Long Thanh - Dau Giay Highway (North-South
Highway)/CT01/ĐCT01),
(https://maps.app.goo.gl/M1VwUfNia8Y9L2FQ6).
+ From Hai Phong Port to Hong Kong Port: the main mode of transport on
this route is by maritime. The primary route is through the Gulf of
Tonkin and the South China Sea until reaching the Hong Kong Port.
(Port of Hai Phong, Vietnam to Port of Hong Kong, Hong Kong - Sea
route & distance - ports.com)
+ From Hong Kong Port to Los Angeles Port: The main mode of transport
on this route is often by maritime. After leaving the South China Sea,
vessels continue into the East China Sea before reaching the Pacific
Ocean. Upon nearing the United States, vessels pass close to the coast of
California and head toward the Los Angeles Port, entering through the
San Pedro Bay.
Assuming that the speed of the container on the road is around 20 knots, which means
about 37.04 km/hr.

Estimated Lead Estimated Estimated

From - To Mode
Time Distance Cost

1 day 18 hours
(including the time
TBS Warehouse in
spent on unloading
Binh Duong - Hai Road 1,700 km $1,379
from the container
Phong Port
and loading onto
the ship)

Hai Phong Port - Hong Maritime 4 days (including 1,187.8 km $989

 the time spent on
unloading from the
Kong Port
ship of Hai Phong
Logistics Explorer
Port and loading
(searates.com)
onto the ship of
Hong Kong Port)

19 days (including
the time spent on
Hong Kong Port - Los
unloading from the
Angeles Port
Maritime ship of Hong Kong 12,219.6 km $3,311
Logistics Explorer
Port and loading
(searates.com)
onto Los Angeles
Port)

Total 24 days 18 hours 15,107.4 km $5,679

Table: Costs from TBS Warehouse in Binh Duong to Hai Phong Port

Cost
No. Component
(01x20’ dry container)
1 Trucking fee (including handling, fuel, and toll $1,244
cost)
2 Terminal handling charge $50
3 Document fee (B/L, CO, customer clearance, $55
export tax, etc)
4 Delivery order fee $30
Total $1,379

Table: Costs from Hai Phong Port to Hong Kong Port

Cost
No. Component
(01x20’ dry container)
1 Terminal handling charge $100 (for both ports)
 2 Ocean freight $804
3 Container maintenance surcharge $15
4 Delivery order fee $70
Total $989

Table: Costs from Hong Kong Port to Los Angeles Port

Cost
No. Component
(01x40’ dry container)
1 Terminal handling charge $2,061 (for both ports)
2 Ocean freight $750
3 Delivery order fee $500
Total $3,311

Table: Total cost of the three transit locations

No. Costs Total

Costs from TBS Warehouse in Binh Duong to
1 $1,379
Hai Phong Port
Costs from Hai Phong Port to Hong Kong
2 $989
Port
Costs from Hong Kong Port to Los Angeles
3 $3,311
Port
Total $5,679

Route 3:

Lead Time (ideal

Route Distance
condition)
TBS Warehouse in Binh 121 minutes
61.1 km
Duong - Cai Mep Terminal
Customs procedure at Cai
1 day
Mep Terminal
 Cat Mep Terminal - Hyundai
3,636.73km 12 days
Pusan Newport
Transshipment procedure in
1 day
Hyundai Pusan Newport
Hyundai Pusan Newport -
10,397.95km 13 days
Los Angeles APM Terminal

Operator HHM
https://mlc-ttl.com/en/sea-freight-vietnam-united-states-usa-rate-transit-time/
https://www.hmm21.com/e-service/export/bookingrequest/BookingStepByStep2.do?
grmNo=I241019085878446&grmSeq=2
Cost from TBS warehouse to Cai Mep port

No. Component Cost

(01x20’ dry container)
1 Trucking fee $60.52
2 Transport fee $145.31
3 Fuel & Toll fee $20.17
Total $226
Cost from Cai Mep port to Hyundai Pusan Newport

No. Component Cost

(01x20’ dry container)
1 Terminal handling charge $210
2 Ocean freight $220
3 Bill of Lading $52
4 Documentation and Administration Fees $70
Total $552
Cost from Hyundai Pusan Newport to the Los Angeles APM Terminal

No. Component Cost

(01x20’ dry container)
1 Terminal handling charge $700
 2 Ocean freight $3000
3 Delivery order fee $650
Total $4350
Total cost = $226 + $552 + $4350 = $5128
(Hà) 2.1.4 Recommend the best option of modes of transport and relevant route
Table 6. Transport cost and lead time for three options

Route Total transport cost (USD) Total transit time

1 $4,585 26 days 45 minutes

2 $5,679 25 days 18 hours

3 $5,128 27 days 2 hours

As can be seen from the table, route 1 offers the lowest total transport cost at $4,585
with a delivery time of 26 days and 45 minutes. Conversely, although route 2 requires
a considerably higher transport cost at $5,679, it is faster than route 1 in just 25 days
and 18 hours, which may not necessarily be prioritized with our product type. Another
option is route 3, with a cost of $5,128 and a transit time of 27 days and 2 hours,
which does not provide significant advantages over Route 1 in terms of either cost or
lead time. Therefore, based on the data calculated, our recommended route for TBS to
export a 40HC container of shoes from its warehouse in Binh Duong, Vietnam to the
Port of Los Angeles under the CFR (Cost and Freight) Incoterms would be Route 1.
(anh Khiêm) 2.1.5 Claims (if any)

Under CFR (Cost and Freight) Incoterms, the seller is responsible for delivering the
goods to the port, loading them on the vessel, and paying the transportation costs to
the named port of destination. However, the risk transfers to the buyer once the goods
are loaded on the vessel at the port of departure. If damage occurs before loading, the
buyer may claim from the seller, but once the goods are loaded, the buyer bears all
risks of damage or loss during transit. To manage this, the buyer should arrange cargo
insurance, as the seller is not obligated to provide it under CFR. If the goods arrive
damaged, the buyer can file a claim with their insurance company, but if the damage
results from the seller’s negligence, such as poor packaging before loading, the buyer
may still have grounds for a claim against the seller. Therefore, it’s crucial for the
buyer to have adequate insurance coverage to minimize risk.

(anh Khiêm) 2.1.6 Conclusions

Route 1 is the recommended choice for optimizing both cost-efficiency and timely delivery.

References

CFR – Cost and Freight (named port of destination) - Incoterms 2020. (n.d.). Incoterms.
Retrieved November 10, 2024,
from https://internationalcommercialterms.guru/incoterms-cfr/
Vận chuyển hàng đi Singapore bằng đường biển. (2023, January 10). LOGONE. Retrieved
November 10, 2024,
from https://logone.vn/van-chuyen-hang-singapore-duong-bien/
Cước vận chuyển từ Hồ Chí Minh đi Singapore. (n.d.). Door to Door Việt. Retrieved
November 10, 2024,
from https://doortodoorviet.com/cuoc-van-chuyen-tu-ho-chi-minh-di-singapore/
Luong, J. (2021, May 16). Sea freight Vietnam - United States (USA): rate, transit time. TTL
Global Logistics. Retrieved November 10, 2024,
from https://mlc-ttl.com/en/sea-freight-vietnam-united-states-usa-rate-transit-time/