4/17/2024

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Introduction

Logistics and international transport

MsC. Bui Thi Bich Lien

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LOGISTICS AND LOGISTICS AND
TRANSPORTATION TRANSPORTATION
Lecturer information
Name: Bui Thi Bich Lien
Graduated in 2009 Prerequisites
Master at WMU (Sweden) in 2011: shipping International Business Transaction
management
PhD student at CFVG.
Email: buithibichlien.cs2@ftu.edu.vn
Tel: 0987.708.807
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LOGISTICS AND LOGISTICS AND
TRANSPORTATION TRANSPORTATION

1. Objectives
Materials (Vietnamese)
- Offers a thorough introduction to the practice,
economics and legal understanding of international
transportation. - Textbook: Transportation and forwarding in
- It aims at professionals who work in the industry or foreign trade by Prof.Dr.Hoang Van Chau,
wish to get a better understanding of how the Laodong Publishment 2005
transportation industry works and its different aspects.
- Give the students a good overall understanding of the
transportation as well as its many aspects. There will - Textbook: Logistics and International
also be excursions to ports etc. Transportation, Laodong Publishment 2008

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LOGISTICS AND LOGISTICS AND
TRANSPORTATION TRANSPORTATION
Materials (English) for ref
- Elements of shipping 8th edition by Alan
E.Branch Assessment
- Liner Trade by ICS (Institute of charterers and Attendance: 10%
shipbrokers) Mid-term exam: 30% (date to be noticed)
- Commercial Shipping Handbook 2nd edition by
Final exam: 60%
Peter Brodie
- Logistics and Shipping
- Multimodal transport system by Slim Hammadi
and Mekki Ksouri. Wiley Publisher
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Content CHAPTER 1: INTRODUCTION

 Chapter 1: Introduction to international 1. Definition of transportation

transportation
2. Characteristics
 Chapter 2: International Shipping
3. Modes of transport
 Chapter 3: Aviation Transportation
4. International transportation and int’ trade
 Chapter 4: Container transportation
5. Incoterms
 Chapter 5: Multimodal Transport
6. Right of transport
 Chapter 6: Logistics and supply chain
management

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2. Characteristics
1. Definition of transportation
Service Characteristics
1) Intangibility
Any movement of goods or people from place Services can not be seen, taste, felt, heard, or smelled before purchase
- difficult to operate
to place - marketing for this is difficult since it is invisible
2) Inseparability
 Example: Driving my car to the university Services can not be separated from their providers
(?) Tại sao vẫn phải trả cước phí tàu dù hàng có bị mất?
Any movement of goods or people from place Vì: - Người bán: có thể claim bảo hiểm
- Chủ tàu: đã chi trả các dịch vụ rồi (về fuel cost, nhân công...)
to place but for earning profit 3) Variability
Example???? Quality of services depends on who provides them and when, where and how
4) Perishability
Services can not be stored for later sale or use
-Air transport chỉ run khoảng 70% chỗ ngồi và 30% chỗ trống và mình phải
bay chứ không store lại được 30% chỗ còn lại
- Vessel is harder to manage than car if demand increases:
+ Vì khi mua vessel thì phải đợi 1-1.5 năm mới có tàu, nên nếu tăng demand
ngay trong tháng sau thì không thể mua vessel thêm kịp và khi demand giảm
thì không store được
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2. Characteristics Transportation is the industry
of material production

2.1 Transportation is the industry of material Transportation is the fourth production

production industry
- Tools of production: car, vessel, aircraft, train, .. - industrial production
- Labor of production: driver, people working in the
train,..
- agricultural production
- Subject matter of production: goods or people - mining production
- Product: movement from place to place
Dựa trên cái gì để charge số tiền khác nhau ở transportation khác nhau?
- weight: kg/MT (LT or ST) = 1000 kg
- measurement: CBM (m3)
- distance of the cargo: km/mile or nautical (hải lý)

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2. Characteristics 3. Modes of transportation

 Based on serving scope:

2.2 Transportation is the industry of special  Internal transport
 Public transport
material production
 Based on the serving object
- Place of production: not fixed  Passenger transportation
- Process of production: the process of changing  Cargo transportation
the place, not physically changing the raw  Mixed transportation

materials.  Based on the scope of activities:

 Inland transport
- Product of production: invisible  International transport
- Storage of product: N/A, capacity of  Based on shipping distance
transportation  Near transportation
 Long distance transportation
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Based on modes of transportation: 5 main

modes

Based on the shipping itinerary/method of

transport SEA AIR ROAD
FREIGHT FREIGHT FREIGHT
 Unimodal transport chuyển tải từ tàu nhỏ sang tàu lớn nhưng chung 1 mode
 Through transport (chở suất) uni + multi, ít nhất 2 phương tiện
 Combined transport (kết hợp) nhiều người chịu trách nhiệm nhiều phần
 Multimodal transport (đa phương thức) 1 người chịu trách nhiệm
Modes of transportation vs. Means of transportation?
- 5 main modes >< a lot of means of transportation
RAIL PIPELINE
+ Air: Combined airplane (vừa chở hàng vừa chở người), Freighter/Charter (máy bay FREIGHT
chuyên chở hàng)
+ Water (sea + inland waterway): RoRo (car), LNG (liquified gas, natural gas), Tanker
(crude oil), ship
+ Road: in Vietnam: 70% cargo (most expensive mode of transportation, limited capacity)
+ Rail: 2-4% cargo
+ Pipeline

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PIPELINE OIL PIPELINE IN ALASKA
TRANSPORT
Pipeline transport is the long-
distance transportation of a
liquid or gas through a system
of pipes—a pipeline—typically to Major
a market area for consumption. Russian gas
The latest data from 2014 gives
a total of slightly less than pipelines to
2,175,000 miles (3,500,000 km) Europe in
of pipeline in 120 countries of
the world.[1] The United States 2009
had 65%, Russia had 8%, and
Canada had 3%, thus 75% of all
pipeline were in these three
countries.
Pipelines exist for the transport
of crude and refined
petroleum, fuels – such as oil,
natural gas and biofuels – and
other fluids
including sewage, slurry, water,
beer, hot water or steam for
shorter distances.
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Advantages and Disadvantages 4. International transportation

https://docs.google.com/document/d/1eXUocQf6aQVBKF0o2SA8wFYqCrpcVpadrmFbIqn0pyw/edit?tab=t.0

International transportation is a
Sometimes Yes Sometimes No
transportation process in which cargo being
Sometimes

Low High Very low Very high Very low transported has crossed national borders and
Slow Medium Slow Very fast Very low the starting and destination points of the
Medium Medium Very high Very high Low journey are located in two different
countries.
High Medium Nil High High

Medium Medium Very low Low Medium

Low High Very low Very low Low

Low Medium Low High Low

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Incoterms
4. International transportation
From country to country International Trade terms
Law applied: international law
 Examples: Vietnamese company purchases Widely accepted and recognised
goods from Shenzhen (electronics equipment)
The currency for calculating freight?foreign currency (USD) Must be seen in relation to the Sales
Which incoterms to be used? Which modes Contract
of transport to be used?
Which law can be used?
- Sometimes, for international transportation, National law can be used if two parties negotiate
- However, for container transportation, International law should be used.
Rarely see container transportation use national law because in container, you have to use
Bill of lading instead of contract. And for use of B/L, only International law can be applied
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4. International transportation
1)- International transport is based on international trade
Incoterms
- International trade is impacted by international transport
When we have crisis, the international transport decreases a lot
E.g. Many years ago in 2007-2009, the freight in the market increased a lot because we had trade among countries
increased --> the international transport developed a lot. At that time, if we had a vessel, we could have the profits.
However, after 2010, when the economics in the market decreased, the international transport became terrible.
--> A lot of companies went bankrupt

1) International transport helps to develop Incoterms also determines the liabilities

international trade and obligations of the parties, including
2) International transport helps to change types who has to arrange for transport if
of goods in trading, and market place goods need to be moved
3) International transport helps to balance of
For air transportation, the cost is very high.
payment of a country However, we can now use container --> sea transportation
--> The cost can be reduced --> It can balance the payment of the country
2) Perishables cargo (e.g. eggs, vegetables, meat, fish...)
- In the past, transport perishable goods by air or used reefer ships/vessel
--> + by air: giá rất cao, hạn chế bớt demand của mặt hàng đó
+ reefer ship: very inflexible do chỉ chở được 1 mặt hàng, hầm của reefer ship chỉ để được ở 1 mức nhiệt độ nhất định, các loại
perishable goods khác nhau thì phải được bảo quản ở nhiệt độ khác nhau --> các mặt hàng không thể để chung với nhau được
- Now: every type of cargo can be put into containers, even car or perishable cargo --> reefer containers
--> easier compared to the past
A lot of reefer ship companies went bankrupt
--> International transport can move on another mode of transport with behalf of container revelution

Việt Nam xuất khẩu Lan hồ điệp rất nhiều

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Incoterms Incoterms 2000, 2010

The first set of rules was made in 1936 and the  Categorizing the Incoterms 2000
 For editorial purposes, the terms are grouped four
rules have been revised a number of times. basically different categories.
The latest revision was made in the year 2020.  These are the so-called E terms, F terms, C terms and D
terms.
The revisions are made in order to  There are thirteen terms altogether, with various
continuously update the terms with current contents.
international trade practices and new  When using Incoterms together with the contract of
carriage, it should be noted that the terms only relate to
transportation techniques. the sales contract and not to the transport contract at
The logistics and transport means of today vary all. The Transport contract will be governed by the B/L,
C/P, Way Bill or other document used. The law or
a great deal from those used back in the 1930‘s convention applicable to the transport will be
when the first set of rules was drafted. determined by the jurisdiction or the transport contract,
not by Incoterms.
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Incoterms 2020 5. Right of transport

Which terms does the seller have to charter Why the seller/buyer would prefer to have - Quality control

the means of transport or book means of the right of transport? - Decrease the cost. If you are the person to book a vessel, you can control the cost/freight --> put into the
price of the cargo. If the price is smaller than other sellers --> have competitive advantage over them
- Manage the time --> know exactly what/when the vessel comes --> can bring the cargo to the port on time

transport? CFR, CIF, CPT, CIP, DAP, DDP, DPU - Be proactive in organizing transportation
--> be proactive in delivery

+ Select suitable mode and mean of transportation

Which terms does the buyer have to charter + Transportation route
+ Transporter
the means of transport or book means of - Be proactive in delivery
- Increase the ability to use the domestic fleet
transport? EWK, FCA, FAS, FOB - Increase foreign exchange earnings, improve trade balance
- Shipping lines in Vietnam:
Which terms are suitable for sea transport? VIMC - the biggest shipping line in Vietnam, Tan Cang shipping, Cuu Long, ....
- MSC - the biggest container shipping line in the world
Chỉ dành riêng cho sea: FAS, FOB, CFR, CIF
Which terms are suitable for multi-modal Top 10% of container shipping line around the world hold 90% of the volume of transportation
transport? còn lại
Why for Containers used FCA instead of FOB or FAS?

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ANY QUESTION?

1. Definition of transportation?
2. Characteristics of transportation?
3. Classification of transportation?
4. National transportation vs. international
transportation?
5. The function of international transportation
6. Right of transportation?
7. Incoterms and international transportation

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