You are on page 1of 29



OPS: Operation
OPS CY: Operation at Container Yard
EQC: Equipment Quality Control
MT: Empty Container
MA: Empty Container Available
MD: Empty Container Damaged
FD: Full Container wait for dispatching to customer
FC: Container unpacked at customers warehouse
DO: Delivery Oder
Longstay: Long-staying empty container on port
EIR: Equiment Interchange Recepit

TABLE 1: Fixed Assets in 2014..................................................................................15
TABLE 2: Business Result 2013 and 2014.................................................................20

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


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
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
CONTAINER CONTROL PROCESS" as mid-course report.


1.1 General Information
1.1.1 Introduction
largest companies in terms of transport capacity in Vietnam and has been actively
providing its services since 2008. Below are some general informations:
Abbreviation name: VOSCO
Date of foundation: 2008, January 1st
Address: No. 215 Lach Tray Str, Ngo Quyen District, Hai Phong, Viet Nam
Telephone: (84-31) 3731090
Fax: (84-31) 3731007
General Director: Mr. Cao Minh Tuan
Spokesman: Mr. Bui Viet Hoai
Capital (VND): 1.400.000.000

Vietnam Ocean Shipping Joint Stock Company (VOSCO) commenced operations on

January 1st, 2008 based on the foundations laid by Vietnam Ocean Shipping Company,
which itself was established on July 1st, 1970. VOSCO has made great efforts to
continuously develop and improve its fleet since its founding in 1970. VOSCO currently
has a diverse fleet of modern ships comprising general cargo, bulk carriers, product
tankers and container vessels trading worldwide.

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
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
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.

Multi modal transportation& logistic services.


Shipping agency (Ships agent and broker).

Transportation agency.

International freight forwarding for air and ocean going cargoes.

The supplying of highly qualified seafarers to foreign ship owners.

Marine supplies and materials service.

Ship sale and purchase.

Shipping co-operation and joint ventures.

Airline ticketing agent.

1.3 Organization

Mr. Cao Minh Tuan General Director

Mr. Le Viet Tien Vice General Director
Mr. Lam Phuc Tu Vice General Director
Mr. Nguyen Hoang Dung Vice General Director
Mr. Nguyen Quang Minh Vice General Director

Figure 1: Organization Chart of VOSCO


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
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
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
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

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,
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

Machinery and equipment for the work

Affiliates, agents, ship repair firms

The fleet consists of 19 ships

Some vehicles serving for administrative work

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

Fixed Assets

Cost (VND)

Depreciation (VND)

Fixed Assets



Leased fixed assets

Construction in progress


Intangible fixed assets



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.

The companys fleet:

Total tonnage: 472.212 DWT
Average age of ship: 11.5 years old
1.5 Personel
On December 31st 2014, the total number of employees is 1,290 people currently
including 1228 men and 62 women arranged to work on 19 vessels, 9 branches and 13
business departments.
About working age:
From 18 to 29 years: 462 people
From 30 to 44 years: 489 people
From 45 to 60 years: 339 people
From 60 years or so: 0 people
About the arrangement of labor
Labour department devision: 176 people
Labor branch devision: 138
Labour ship devision (crew): 976 people
Regarding to labor skills
Master: 28 people
University: 653 people
College: 113 people
Intermediate: 92 people
Primary: 404 people
Unskilled workers: 0 people
1.6 Business Result
Table 2: Business Result 2013 and 2014


Year 2013

Year 2014




(2)/ (1)

Total revenue










Revenue before tax Billion VND -187,12


Revenue after tax

Billion VND -190,33







revenue ratio

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.



2.1. Purposes of Container Control Process in VOSCO

Container Control Process describe the process of activities related to tracking and
management container status of Container Department and related divisions in terms of
order and time so as to improve the company performance.
2.2. The range of application of Container Control Process in VOSCO
This process is the coordination between Equipment control EQC, Operation OPS,
Sales/ Marketing in the operation and management all of the containers which are owned
by VOSCO. In particular, the EQC division plays first fiddle and responsible for:
operating container; renting container/lending container; bargaining container; repairing
container/ hiring for repairing container, ensuring the quality of container. The work as
Forecast of the amount of required container, transfer container (between ports ...)
or conducting SWAP (Direct Interchange), Free Use with other shipping
Check the status of containers, lease or repair container (if it is necessary).
Receive report from the depots and update system
Check and confirm demurrage fee, container storage, container storage fee.
Reports (daily, weekly, monthly ...) the list of available container at the ports, the
amount of longstay container, special container, damaged container.
Negotiate and observe contracts of the purchase, sale, rent, and lease containers.
The EQC operations closely linked with the activities of other divisions as follows:

Provide documentation/order/paper
Other information

Documentation DOC
Longstay information
Other information

Forecast / Request containers

Other Information

Sales/ Marketing
Updates the number of available / prior container
Support trucking, terminal
Other information

Invoices were examined and certified

Supporting documents
Other information

Unclear invoices / information
Other information

Update providing container information

Import/ export information
Loading list
Other information
List of available container
Other information


2.3. Container Control Process in VOSCO

Diagram of Container Control Process in VOSCO:
MT: Empty Container

MS: Empty Container Shipper

Full Container Load
Loading Container
Container is shipped on board
Discharging Container
FD: Full Container wait for dispatching to customer

FU: Container unpacking

Container returned to CY

Allow to re-use without returned to CY

Container is re-used for packing

2.3.1. MT: Empty container:

a. MA: Empty Container Available
EQC division and OPS CY division are responsible for tracking and managing empty
containers including containers owned by VOSCO, leasing containers, and free use
containers which are ensured in good status and available for packing.
MA container control system is run on principle: "first-in, first-out". (FIFO) in order to
avoid longstay and minimize containers turn-around time.

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.

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:

Approved by VOSCO Lines.

Taken picture before/after repairing

After repairing, MD continue to operation as MA.

Figure 2: Damaged Container

(Source: VOSCO Depot)
2.3.2. MS: Empty Container Shipper
Container release process is illustrated by the following diagram:

Shipper booking empty container

Check the container availability based on list of Empty Container Available

Ensure the container availability meet customer requirements

Check the containers availability at the terminals and ports

Selecting port to provides Container for customers with the most convenient

Provide Empty release order

Update information in the system

Finish the processes

Containers are released for packing cargo at customers warehouse or CY.

a. Containers are released for packing cargo at customers warehouse.
First of all, EQC coordinate with OPS CY to release container to customers for
packing cargo when they present Booking Note and Empty Release Order. Preparation for
Booking Note and Empty Release Order are implemented as follows:
Booking Note:
After receiving booking requests from customers (through negotiations, or based
on the contracts ...), Sales / Marketing division have to collect essential
information for Booking Note.

Sending Booking Note to the client (Shipper) by mail or fax.

Shipper have to check, edit, and send it back (usually by fax), to confirm the
accuracy of the information.
Sales personnel sign and send to the client Booking Note.
Empty Release Order:
According to the regulation of VOSCO, "Empty Container Order" while packed in
customers warehouse could be in the form of the original order or fax to ensure customer
convenience. Under the original order only one copy is required and order must be
acquired in Container Department of VOSCO. On the other hand the fax order form
includes two copies, one to be issued to clients and the other to (Depot).
EQC have to confront information in Empty Release Order and Booking Note which
are presented by customers with information are provided by Sale/Marketing division,
then supervise lifting container on truck of OPS division.
Customers are received EIR and confirm Container status when conducting lease
Container at CY. Container are released have satisfy requirements of Booking as well as
the following technical standard: container watertight, door can be opened normally,
double-walled corrugated, good floor, no affect for goods when packing...
There is no fee if containers are detained at customers storage less than 3 days.
Detention Charge will be 100000 VND/20/day; 150000 VND/40/day since the fourth
day. EQC have to update data in the system so that Sales division have evidence for
requiring customers payment.
b. Container are released for packing cargo at CY
EQC coordinate with the Sales/Marketing division to forecast the amount of container
to satisfy the customers demand for packing at CY. Customer have to present Booking
Note or Empty Release Order to lease Containers. Containers are packed at CT will be
already to export and tracked as Full Export Container.
2.3.3. Full Export Container.

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
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
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)

Figure 4: Container engaged with container

(Source: VOSCO depot)
2.3.5. Container is shipped on board
The containers are loaded on the ship and transported from a port of loading to a final
destination. Sailors and officers working in this shift have to keep track of everything
carefully to discover break-downs of the container-which happens very frequently,

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
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
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.


Currently, EQC Dept and other Department of VOSCO are transforming their
management method from paper-based form to electric form. However, many actions still
have to perform by hand so that it takes a lot of time. In the future, to enhance work
efficiency as well as to improve service quality, Company needs to further promote the
application of scientific and technological achievements, especially computer software in
Container Control Process.
Although Container is made of durable martarial, Container is still damaged during a
long period time of transport, loading, and discharging. Curentlly, VOSCO have just
applied repair process for damaged container instead of a periodic maintenance of all
containers. In my opinion, the periodic maintenance is very necessary in order to ensure
the ability of supply best quality container which satisfy customer demand.
In addition, the company also needs to focus on upgrading infrastructure,
warehousing and port infrastructure. So that Company can maintain and improve the
quality of service as well as the efficiency of the Container management process.


In the market economy, competition for survival and development among enterprises
is an objective necessity. Therefore, enterprises must either constantly improve
themselves to develope, win the competition or fall behind, sliding off the general
trajectory of the economy, making losses lead to bankruptcy if they waste potentials and
be unable to keep up with timely changes in the marketplace.
After the visit at Transport Container Department of Vietnam Marine Transport Joint
Stock Company, I was acquainted with practical work in the company, along with the
rationale acknowledged in school, I strongly conclude that the organization and
management of the resources of the company in general and the management of container
extraction in particular has a significant impact and is especially important for the survival
and development of the company.
Due to my limited knowledge and time, mistakes are inevitable in the report, I would
be glad to be assessed by teacher in order to perfect my report.
Once again, I sincerely thank the enthusiastic help of Prof.Vu Le Huy and the staff of
Container Deparrment of VOSCO for helping me complete the mid-course report

2. VOSCO depot