Professional Documents
Culture Documents
LIST OF TABLES
TABLE 1: Fixed Assets in 2014..................................................................................15
TABLE 2: Business Result 2013 and 2014.................................................................20
LIST OF FIGURE
FIGURE 1: Organization Chart of VOSCO................................................................15
FIGURE 2: Damaged Container.................................................................................20
FIGURE 3: Twistlocks................................................................................................15
FIGURE 4: Container engaged with container............................................................20
FIGURE 5: Turnbukle................................................................................................15
PREFACE
Transportation service plays an increasingly important role in world trade. Today, the
abundance in global trading goods contribute to the development of transportation, which
quickly distributes goods to markets worldwide by narrowing the gap of space and time.
And history has proven that the great revolution has taken place in human social life are
reflected in the transport sector. Among which, the "containerization" revolution
profoundly changes many aspects, not only the transport sector but also in other economic
sectors.
Cargo transportation with containers has brought significant economic benefits. With
features such as: short transportation time, high safety for transporting objects, reduce
transportation costs to a minimum, ... container shipping increasingly dominated the
transport system in the world and is growing at a breakneck pace. While in the first phase,
the new container revolution took place in width, then today, the revolution is going on in
depth and gradually improved with the use of large container at most ports sea world.
During visit at Container Department of VIETNAM OCEAN SHIPPING JOINT
STOCK COMPANY I have learned about the process of foundation and development as
well as the actual management of container operation of the company and grown more
confident in the outlook development of container transport services. However, in the
time of volatile and intensely competetive economy, in order to survive and grow, the
Company requires an appropriate management and exploitation of containers. According
to theoretical basics, knowledge acquired from schools along with practical and dedicated
guidance of teacher V L Huy I have chosen the topic: "INTRODUCTION OF
VIETNAM OCEAN SHIPPING JOINT STOCK COMPANY (VOSCO) AND
CONTAINER CONTROL PROCESS" as mid-course report.
The Companys philosophy, which underwrites all its activities, is best quality of
service with efficiency, creativity, safety, economy and good reputation; built to justify
your carrier; solid partner - reliable carrier; our word, our bond.
Being the first Ocean shipping company in Vietnam, VOSCO has inherited admirable
traditions but through the generations has also aspired to grow and improve. It has
developed and become a public owned company which is more dynamic, transparent and
trusted by our partners and shareholders.
1.1.2 Brief History
Below are some typically developmental milestones of VOSCOs brief history:
1973: On November 9th, the ship Hong Ha opened the route Vietnam - Japan, the first
ship of maritime openning overseas route
1974: VOSCO took loans to buy three ships including Song Huong, Dong Nai and Hai
Phong.
1975: In October, two oil tankers including Cuu Long 01 and Cuu Long 02 first opened
route East Africa and Southern Europe.
1977: The first ship Song Chu in Maritime industry open the route Australia and India
1982: Two ships including Thai Binh and To Lich open route to countries of West
Africa and the Americas.
1996: On July 24th, the company receiving a bulk carrier vessel Morning Star marked
transformation in the field of investment in specialized and large size vessels.
1999: On October 27th, the company receiving oil tankers in Ursa Mizushima port in
Japan marked the return of the company in the field of oil-gas transportation.
2008: On January 1st, becoming VIETNAM OCEAN SHIPPING JOINT STOCK
COMPANY (VOSCO).
2008: On December 2nd, the company has purchased and operated 2 containerships
Fortune Navigator and Fortune Freighter in liner shiping. It marked the participation of
the company in the field of transport of goods by container liner service.
2010: On April 17th, the company has received and put Vosco Sky the first bulk carrier
with Supramax size into operation.
2010: On September 8th, Listed on HOCHIMINH STOCK EXCHANGE
1.2 Business Services
The scope of VOSCO business operation is mainly including domestic and international
shipping accounting for 95 percent of total sales of the Company, including dry bulk
carrier, container vessels and oil tankers. In three transport sector, bulk transportation is
bringing the numerous revenue for the company accounting for 65 percent, oil tanker
occupies the second ones with the proportion approximatly from 25% to 30%, container
transportation is concentrated on developing in order to create harmonious balance among
three sectors. The other business activities, such as shipping agents,multimodal transport
agents, supply and export crews, ship repairing, container yard operators is only
supportive and accounted for less than 5% .Scope of main business includes:
Ship owners, ship manager and ship operator of bulk carriers, product tankers and
container vessels.
Chartering.
Transportation agency.
1.3 Organization
1.3.1 Shareholders Assembly is the most powerful agency of the company with all
shareholders who have rights to vote and people authorized to vote. The meeting has
rights to:
Approve the companys development strategy, annual financial report, supervision
reports repaired by Board of Managements.
Decide on annual dividend for each stock and a number of Board of Managements
members.
Select, dismiss members of Board of Managements and Board of Supervisors;
approve a decision to select a Chief Executive Officer by Board of Managements.
1.3.2 Board of Managements has all rights, except those possessed by Shareholders
Assembly
Decide on the companys organization, development plan and strategy, and annual
business plan. Moreover, decide on an amount of new stocks sold, forms of financial
mobilization; propose types of stock issued.
Select, dismiss and supervise Chief ExeCutive Officer who manages the daily
business.
P;ropose annual dividend rate and certify a temporary dividend rate; decide a
dividends term and payment procedure; deal with loss arisen in the companys business.
In addition, propose to re-organize, liquidate or bankrupt the company if
1.3.3 Board of Supervisors will supervise all management and business activities of the
company on behalf of the all shareholders. Board of Supervisors is responsible to
Shareholders Assembly and law for these following rights:
Made reference by Board of Managements on selecting an independent auditing
company, fee rate for auditing and other issues relating to withdraw or dismissal of the
independent audit company, discuss with the auditors about scope of auditing activities.
Check financial reports before submitted to Board of Managements.
Discuss with auditors difficulties, shortcomings from the auditing results.
Review the companys reports on the internal control system before approved by
Board of Managements.
1.3.4 Chief Executive Officer is assigned by Board of Management. CEO is responsible
for:
Carry out resolutions, business and investment plans approved by the Board of
Managements and Shareholders Assembly.
Sign and carry out economic and civil contracts which serve for production and
business activities of the company.
Make proposal to Board of Managements on number of managers necessary, salary
rates, fees, other benefits and terms of a labor contract.
Decide on number of labors, salary rates, allowances, benefits, selection, dismissal
and other terms in a labor contract with a reference to Board of Managements.
Prepare long-term financial forecast reports to serve for long-term management.
1.3.5 Vice General Director
Quantity: 4 people
Vice General Director in term of exploitation
Functions and duties: assist the general director to manage and control activities of
manufacturing, business operation, investigating market research, coordinating,
capturing sources of merchandise and constituting business plans, proposing to the
General Director of the company to sign contracts for cargoes transportation, and
measures of improving manufacturing efficiency in the company, observe operation of
the fleet.
Vice General Director in term of technique
Functions and duties: assist the general director to manage and control activities of the
technical occupation, material, repairs, investigating research and application of
innovative science to reality, rationalize manufacturing and other related activities,
proceed supervising fleet operations, ensuring safe training operation.
Vice General Director in term of oil transportation
Functions and duties: assist the general director to manage and control activities of
investigating oil price and cargoes flows, operation of oil tankers and repairs,
maintenance.
Vice General Director of Southern branchs
Functions and duties: assist the general director to manage and control activities of
whole Southern branchs of company.
1.4 Infrastructure
Vietnam Ocean Shipping Joint Stock Company (VOSCO) occupies spacious working
office with fully equipped features, there is a large ocean fleet in Vietnam, with factories,
ship repairing enterprises with abundant scales serving the companys fleet.
Technical facilities of the Company now comprise:
House, building materials
At the end of 2014, total assets of the company are 5.091 billion, in which equity
accounted for 1.291 billion.
1.4.1 Fixed Assets:
Table 1: Fixed Assets in 2014
Numbe
r
Fixed Assets
Cost (VND)
Depreciation (VND)
Fixed Assets
6.597.419.070.186
2.559.804.573.421
Construction in progress
111.056.000
10.572.868.680
599.678.901
(Source: www.vosco.vn)
1.4.2 Fleet List
According to the annual report of VOSCO in 2014, it illustrated that the fleet of dry cargo
and bulk cargo consists of 15 units for the tonnage from 6,500 DWT to 56,400 DWT
(Supramax). This is the core of Vosco fleet, largely built in the shipyards of Japan and
activities all over the world. The fleet of oil tanker consists of 2 mordern ships oil with
tonnage about 47,000 DWT each, mainly transporting oil products. The fleet of shipping
container follows the schedule two times a week from Hai Phong to Ho Chi Minh
proceeded by two modern vessels with capability of transporting 560 TEUs each.
Unit
Year 2013
Year 2014
Comparison
(%)
(1)
(2)
(2)/ (1)
Total revenue
Million
VND
2.438.064
2.283.875
93,68
Transportation
revenue
Million
VND
2.050.974
1.889.098
92,11
25,39
73,86
COGS/Revenue
ratio
92,01
83,37
47,19
39,77
Fuel
cost/transportation
revenue ratio
(Source: www.vosco.vn)
In 2014, the shipping industry was facing many difficulties, VOSCO earned VND 2,283
billion of total revenue (5.25% less than that in 2013), but exceeded original plan of about
0.43%. In particular, transportation revenue was 1,889 billion - fell more than 7% in
comparison to 2013 and only achieved 95.72% of the plan.
Total revenue before tax of VOS reached about VND25 billion - 87.5% higher than
expected. This is a better result compared to VND187 billions of loss in 2013
Total revenues and transportation revenues in 2014 compared to 2013 is 93.68% and
92.11% respectively , while "cost of sale to revenue" (COGS / Revenue ratio) in 2014
accounts for 83.37%, lower than in 2013 (92.01%), which means reduced costs in 2014
because the Company has undertaken many positive management measures.
Provide documentation/order/paper
Other information
EQC
Documentation DOC
Longstay information
Other information
Sales/ Marketing
Updates the number of available / prior container
Support trucking, terminal
Other information
EQC
Unclear invoices / information
Other information
EQC
Container returned to CY
In the case of empty containers are returned to the CY, customers have to present EIR
Equipment Interchange Receipt and receive Lift-off order for empty containers. EQC and
OPS CY check the status of containers.
b. MD: Empty Container Damaged
To ensure the quality of Container are provided for customer, EQC have applied the
following repair process for damaged container:
VOSCO Depot responsibility:
Sending the reports about damaged containers to VOSCO lines before 8 A.M.
The report have to contain the status, size, seriousness of damaged containers.
Sending the images and the estimate for repair of damaged containers to
VOSCO before 2 P.M
Sending list and images of container are repaired. It is required that all repaired
container are taken pictured for confrontation.
Sending report about container are not approved to repair and customer did not
accepted to take.
Tracking and urging the repair.
Taking responsible for ensuring the quality of repair work. Container are
repaired and taken pictures can be provide for customers.
VOSCO Lines responsibility:
Sending the requisitions for estimate and pictures of damaged containers to
VOSCO depot before 9 A.M
Sending confirmation of repairing damaged containers before 5 P.M
Reviewing, inspecting, and confirming the amount of repaired container
through picture or directly.
Collecting customers payment for repairing.
Note:
Before the third day of month, VOSCO Depot have to completes the list of
containers are repaired and send to VOSCO Lines to conduct payment.
VOSCO Lines will not conduct payment for repairing damaged containers
which are not:
-
Full Export Container includes completely packing containers which are returned to
CY (regardless container packing at customers warehouse, at CY, or re-use container).
Customer will received Lift-off Order and pay Lift-on/ Lift-off charge. According to
regulation, the maximum tonnage of goods in containers is: 25T / 20 '& 28T / 40'.
EQC responsible for tracking the Full Export Container, and coordinate with the OPS
and Sales / Marketing in minimizing lying time of container on the port in order to
decrease demurrage fee and avoiding customers use containers as their own storage.
2.3.4. Loading Container
EQC division will incorporate with Operation department and marketing division
based on Full Container List in order to make plan and prepare a Loading list. After the
container is loaded on ships, based on the Loading list, Bay plan, the OPS department will
draw up a Final loading list and send to EQC division to support for supervision. In the
process of loading, it is essential to pay attention to the following aspects:
First, the mooring work must be carried carefully before sailing under all
circumstances and weather, especially the bridge fittings for the top layer which
serve to link all the containers into a block against the shifting of each individual
container.
Besides, it is important not to use concurrently the twistlocks which have reverse
dimensions. If those are used, it leads to some container will not be locked by
mistake and sometimes container is craned when it is not unlock, so that it could be
impaired.
In particular, the reefer-containers have to load onto the ship with air conditioning
and a fan turned to sailing that avoids the impact of wind and wave to damage the
container's refrigeration system. It is also necessary to avoid stacking containers in
tier 2 or more. This will make difficult for the inspection record of the status
parameters of the container and the time to repair it in cruise time.
Figure 3: Twistlocks
(Source: VOSCO depot)
particularly when lifting goods by crane ship. That making timely records will prevent the
ship owner from unnecessary grievances, also laying foundation for claiming to
compensate for break-downs of the ship as mentioned above. Everyday, sailors have to be
assigned to check and modulate turnbuckcle because when the ship is moving, containers
will be vibrated leading to mooring loosened gradually. When the ship is moving, in
particular in bad weather conditions, please note that the sailors and the offices should
avoid passing waves, turning suddenly to prevent the ship from being flipped or
containers from being dropped into the sea.
Figure 5: Turnbukle
(Source: VOSCO depot)
2.3.6. Discharging Container
When the ship comes to the port, based on the Loading list and Bay plan, OPS
department makes unloading plan and inspects the special containers under the tracking of
EQC. During unloading process, it is essential to remind workers throwing tying devices
down the deck into the ocean precaution. When ship berthed, it is important for shift
guard to watchful mooring equipment stolen, even dump into the water and reopen after
the ship departure.
2.3.7. FD Container
After being lift-off at CY, Full Import Container will return to state of FD Container. EQC
coordinate with OPS in tracking FD Container. Within 05 days since being unload on
port, customer have to come to CY to receive container. DO charge is 50.000 VND/order.
Since 6th day, customer have to pay Demurage fee (120.000 VND/20/day, 160.000
VND/40/day). For reefer containers, electric charges are calculated since container are
unloaded from ship. EQC division have to update information about FD Container into
the system so that Sales division have evidence for requiring customers payment for
Demurrage.
2.3.8. FU Container
a. Container Unpacking cargo at customers warehouse
Client have to present DO to exchange for EIR if they want to Unpacking Container at
their own warehouse. EQC coordinate with Sales/Marketing in tracking container which
are leased to customer, and require customer for returning container as soon as possible in
order to enhance efficiency of container turnaround performance. Customer have to pay
Detention Charge if they failing to complete unpacking within the time allowed.
Deposit for leasing container are: 500.000 VND/20; 1.000.000 VND/40. Special
customers or patrons can deposit per month (depending on the agreement between the
com
b. Container Unpacking cargo at CY
In the case of Container Unpacking at CY, EQC coordinate with OPS in tracking
unpacking process and update data in systems. After unpacking, these containers return to
state of MT.
2.3.9. Container is re-used for packing (without returned CY)
These are Full Import Container. After delivery to the customers warehouse for
unpacking, instead of returning CY, they re-use for packing other goods. This process
applies only to customer who have two-way delivery (sender is also receiver). Customers
must complete asking the permission to re-use for before unpacking. Local
Sales/Marketing divisions are responsible for checking and confirm Re-use Container
Application. EQC will base on status of Containers and Container Using Plan to make
the decision for this.
BIBLIOGRAPHY
1. www.vosco.vn
2. VOSCO depot