Multimodal Transport, Conditions for the Development of the Freight Forwarding Service Industry.

single load and only one carrier is responsible during the entire transportation process.

- Broken transport: goods are transported from the place of departure to the place of destination by two or more different means of transport, using different transport documents and involving many carriers and each carrier is only responsible for the section of the route it transports.

- Full freight transport: The volume of goods is large enough to fill one or more wagons, cars, planes, ships, containers. The opposite is LCL transport.

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1.2.3. Multimodal transport, conditions for the development of the freight forwarding service industry.

a. Definition of multimodal transport.

International multimodal transport (Multimodal Transport) or also known as international combined transport (International Combined Transport) is a method of transporting goods by at least two modes of passenger transport, on the basis of a multimodal transport contract from a point in one country to a designated point in another country for delivery.

Multimodal Transport Operator (MTO) Acts as a principal and not as an agent of the consignor or agent of the carrier involved in multimodal transport. MTO is responsible for the goods, time... during the entire transport process until the goods are delivered to the consignee.

b. Efficiency of multimodal transport.

- Create a single point of contact for “door to door” transportation. The shipper only needs to contact one person, the MTO, to sign the contract.

Contract of carriage. All matters relating to the carriage of goods, claims for compensation for loss or damage to goods are handled by the MTO.

- Faster delivery time: This is achieved by reducing transit time and storage time at transit locations thanks to a well-planned coordination of transportation modes.

- Reduce transportation costs: Thanks to the combination of two or more modes of transportation, transportation costs and time are reduced.

- Simplify documents and procedures: Multimodal transport uses a single document, the multimodal bill of lading. Customs and transit procedures are also simplified on the basis of signed multilateral or bilateral international agreements and conventions .

- Create better conditions for efficient use of transport tools, loading and unloading vehicles and infrastructure, adoption of new transport technologies and more efficient management of the unified transport system

- Multimodal transport creates new transport services that contribute to solving employment for society.

With the above mentioned effects of multimodal transport, it can be said that multimodal transport is the main tool of freight forwarders, who are considered to be the organizers of the transport process.

However, it should be noted that the development of a multimodal transport system must be based on a foundation of developed transport infrastructure and transport science and technology.

1.3. Delivery in foreign trade

1.3.1 Concept

Delivery is an activity in the distribution circulation stage, an important stage connecting production with consumption, two main stages of the social reproduction cycle. Delivery performs the function of bringing products from the place of production to the place of consumption, completing the second aspect of distribution circulation, which is material distribution, when the first aspect, which is commercial procedures, has been formed.

Delivery is closely related to transportation, but it is not simply transportation. Delivery has a broader meaning, which is organizing transportation, arranging for goods to be transported, then loading, storing, transferring, packaging, procedures, documents, etc. With such a broad meaning, there are many definitions of delivery.

According to the model rules of the International Federation of Freight Forwarders Associations (FIATA), freight forwarding services are defined as “services of any kind relating to the carriage, consolidation, storage, handling, packing or distribution of goods as well as ancillary and advisory services in connection therewith, including but not limited to customs and fiscal matters, declaring the goods for official purposes, procuring insurance of the goods and collecting or procuring payment or documents relating to the goods”.

According to the Vietnamese Commercial Law, “freight forwarding service is a commercial act in which the freight forwarder receives goods from the sender, organizes transportation, storage, storage, procedures, documents and other related services to deliver goods to the recipient under the authorization of the owner of the goods, the carrier or another forwarder”.

So basically, freight forwarding is a set of tasks related to the transportation process to carry out the movement of goods from the place of shipment (sender) to the place of receipt (consignee).

1.3.2. Characteristics of delivery services.

Because it is also a type of service, delivery service also has the common characteristics of services, that is, it is an intangible commodity so there is no uniform quality assessment standard, it cannot be stored in a warehouse, production and consumption take place at the same time, the quality of the service depends on the perception of the person being served.

But because this is a special activity, this service also has its own characteristics:

- -Transportation services do not create physical products, they only change the spatial position of objects but do not technically change those objects. However, transportation services have a positive impact on the development of production and improving people's lives.

- Passive: This is because this service depends a lot on customer needs, carrier regulations, legal constraints, government institutions (exporting country, importing country, third country)...

- Seasonal: Delivery service is a service for import and export activities, so it depends greatly on the volume of imported and exported goods. Import and export activities are often seasonal, so delivery activities are also affected by seasonality.

- -In addition to tasks such as procedures, brokerage, and freight, freight forwarders also perform other services such as collecting goods, dividing goods, and loading and unloading, so whether or not the job is completed well depends largely on the technical facilities and experience of the forwarder.

1.3.3. Delivery service requirements

Like any other service, freight forwarding service does not have qualitative criteria to evaluate quality, but it also has its own requirements that the forwarder must meet to satisfy the needs of customers. Some requirements of this service include:

- Delivery of goods must be quick. Speed is shown in the time it takes for goods to travel from the sender to the recipient, the loading and unloading time, and the counting and delivery. Reducing delivery time helps to immediately deliver goods to meet customer needs. To do this, the delivery person must have a firm grasp of the technical process, types of goods, shipping schedules, and arrange appropriate means of transport.

- Accurate and safe delivery. This is an important requirement to ensure the rights of the shipper and the carrier. Accuracy is the main factor that determines the quality and level of completion of the work, including accuracy in quantity, quality, actual status, accuracy in shipper and brand. Accurate and safe delivery will minimize shortages, mistakes and losses of goods.

- Ensure the lowest cost. Reducing delivery costs is an effective means of competition between delivery units. To do so, it is necessary to invest appropriately in facilities, build and complete norms and waste standards, and train professional staff.

1.3.4. Delivery person

There is no internationally accepted definition of a freight forwarder. It is commonly understood that a freight forwarder or a

The freight forwarder is the forwarder (Forwarder, Freight Forwarder, Forwarding Agent). According to FIATA, “a freight forwarder is a person who takes care of the goods being transported under a contract of carriage and acts for the benefit of the principal. The forwarder also undertakes to perform all the work related to the contract of carriage such as preservation, transit storage, customs procedures, and inspection”.

The freight forwarder can be the cargo owner (when the cargo owner himself undertakes the delivery of his goods), the ship owner (when the ship owner performs the delivery service on behalf of the cargo owner), the loading and unloading company or warehouse, a professional freight forwarder or any other person who has registered to do business in freight forwarding services. According to the Vietnamese Commercial Law, the freight forwarder is a trader with a certificate of registration for the freight forwarding service business.

From the above definitions we can draw the following conclusions:

- -The freight forwarder operates under a contract signed with the cargo owner, protecting the interests of the cargo owner.

- -The freight forwarder takes care of the transportation but is not necessarily the carrier. He can use or hire a carrier. He can also have means of transportation and participate in transportation, but for the consignor, he is the freight forwarder, signing the consignment contract, not the carrier.

- -Along with organizing transportation, the freight forwarder also does many other tasks within the scope of the owner's authorization to bring goods from one place to another according to the committed terms.

Although the names of freight forwarders are different in different countries, they all have the same common name in international transactions, "international freight forwarder", and provide the same service, which is freight forwarding service.

1.3.5. Legal status of the forwarder

Because there are no international laws regulating this field, the legal status of freight forwarders in each country is different, depending on the laws of that country.

In countries with common law - unwritten law, common in the countries of the British Commonwealth, formed on the basis of common customs in civil relations for many centuries - the legal status of the freight forwarder is based on the concept of agency. The freight forwarder takes on the name of the principal (shipper or consignee) to transact the work of the principal.

The activities of the forwarder are then subject to the traditional rules of agency, such as the obligation to exercise due diligence in the performance of his duties, to be faithful to the principal, to comply with the principal's reasonable instructions, and otherwise to enjoy the protections and limitations of liability appropriate to the role of an agent.

In case the freight forwarder assumes the role of principal (acting for his own benefit), concluding the contract with the carrier and agents himself, the freight forwarder will not enjoy the above protection and limitation of liability, he will be responsible for the entire process of delivery of the goods even when the goods are in the hands of the carriers and agents he uses.

In countries with civil law - the law that regulates the rights and compensation of each individual - the legal status, rights and obligations of freight forwarders in different countries are different. Normally, freight forwarders must use their own name to transact for the work of the principal, they are both the principal and the agent. For the principal (the consignee or the shipper), they are considered agents and for the carrier, they are the principal. However, each country's institutions will have differences.

The International Federation of Freight Forwarders Associations (FIATA) has drafted the Standard Conditions of Business for countries to refer to in building conditions for their freight forwarding industry, clearly explaining the obligations, rights and responsibilities of freight forwarders.

Standard terms of business require that the freight forwarder:

- Carry out care and maintenance of entrusted goods.

- Manage and arrange the transportation of goods entrusted to the customer according to the customer's instructions on matters related to those goods.

- The forwarder does not guarantee the goods to arrive on a certain date, and has the right to hold the goods when his customer fails to pay the fees.

- Be responsible only for your own mistakes and those of your employees, not for the mistakes of third parties, provided you have exercised due diligence in selecting those third parties.

These conditions are often formulated in accordance with commercial practices or the legal regime in force in each country.

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