The role of forwarding agents and logistics service providers

However, over the past time, many manufacturing and import-export enterprises (enterprises), even some relevant industry managers, think that this is just an "intermediate stage". need to limit or eliminate to cut logistics costs are still high; asked the Vietnam Maritime Administration to establish an exchange to store freight directly between the shipper and the carrier. Recently, the import-export industry has been strongly affected by the COVID-19 epidemic, the global supply chain has been interrupted, broken, the supply-demand relationship has also been changed, leading to the lack of containers, shipping lines increased. Sea freight rates are continuous, often canceling periodic trips to some ports for the reason that the rotation of containers is congested at the main ports of Asia, Europe and America, lack of labor to handle the goods... Therefore, we once again need to understand the role of forwarding agents and logistics service providers, especially shipping goods by sea to and from the United States that require a bond. .

 

What is a forwarder/logistics service provider?

 

In the view of FIATA (International Federation of Freight Forwarders), the freight forwarder (Freight forwarder) is the "architect" of the shipping service. In sea transportation, the Freight forwarder is the person who arranges the transportation of goods and related formalities on behalf of the shipper. Some of the main jobs of a forwarder include booking space for goods on a liner service and other means of transport; prepare and complete the necessary documents and forms and do customs clearance, arrange the return of goods to the consignee. The freight forwarder may act as either a contractual “Contracting Carrier” or a “Multimodal Transport Operator” (MTO). Once operating in that capacity, they are no longer agents but real owners (Principal) and must be directly liable to customers.

 

The freight forwarder becomes a logistics service provider (LSP - Logistics Service Provider) when providing additional related services to deliver goods to the consignee under the entrustment of the shipper (Cargo owner), of the freight forwarder. transport or other forwarding service providers - collectively referred to as customers.

 

Today, with the increasing globalization of trade, digital transformation drastically changing logistics activities, the supply chain has many pressures on security issues along with procedural restrictions in cross-border transportation. Borders, freight forwarders must focus on the value-added services that can be offered to customers, making outsourcing increasingly strong. Therefore, Freight forwarders have turned into 3PL service providers to provide more complete services to customers in the logistics industry.

 

Third-party logistics (3PLs) became widely used in the second half of the 1980s to describe the process by which companies subcontract certain logistics services to other service providers. Because 3PL services can bid more efficiently such as transportation and distribution operations, warehousing, inventory, purchase order management, freight delivery. A simple example is that the forwarder does not need to have its own delivery department, but can hire companies specializing in this work such as VN Post, Viettel Post, DHL... to deliver goods much more efficiently than by themselves. i do. In short, 3PL provides professional expertise to the supply chain, thereby helping the Freight forwarder to ensure impeccable customer service. A 3PL provider is a company that provides a variety of logistics services to customers. Often these services are consolidated or combined. These companies will facilitate the movement of raw materials from suppliers to manufacturers and finished products from manufacturers to distributors and retailers. Types of services include transportation, warehousing, packing at warehouses, inventory management, packaging, inspection, shipping... According to the Vietnam Logistics Report 2019 of the Ministry of Industry and Trade, "revenue in the logistics service market." (3PL, 4PL) globally reached over 1 trillion USD in 2019”. "The world's largest 3PLs are still mainly concentrated in the US and EU... Asia's representatives are Nippon Express of Japan and Sinotrans of China." Many of the world's big 3PLs have been present in Vietnam. Currently, the world is using 4PL and 5PL forms in addition to 3PL.

 

The role of Freight forwarder/Logistics service provider

 

Article 233, the 2005 Commercial Law of Vietnam stipulates that “Logistics service is a commercial activity whereby a trader organizes to perform one or more jobs including receiving goods, transporting, storing, storing, etc. Customs clearance, other paperwork, customer consultation, packaging, marking, delivery or other services related to goods as agreed with customers to enjoy revenge. TB". Article 235, Clause 1., Section a) stipulates “Enjoyment of remuneration for services and other benefits

 

 

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