Want to be in the loop?
subscribe to
our notification
Business News
INCREASING MARITIME TRANSPORT COST MAKING EXPORT DIFFICULT
Maritime transport costs have skyrocketed in recent months as the impact of the COVID-19 pandemic takes its toll, pushing import-export companies into a lot of difficulties.
Maritime transport costs increased by up to ten fold since the third quarter of 2020, together with the shortage of containers for packing.
“We had to consider transporting 20 containers which had already been transported to the port back to the warehouse,” Vũ Trang Nhung from Vitaly in the southern province of Bình Dương. Her company exports ceramic tiles to Malaysia, Yemen and Bahrain.
She said that freight rates increased dramatically from the end of 2020. Specifically, fees from Cát Lái Port (HCM City) to Aden Port (Yemen) increased from US$1,500 to $2,500 per 20-feet container in mid-December then jumped to $4,500 in early January 2021.
Adding to this, containers were not always transported immediately but had to wait at the ports, pushing up costs, Nhung said.
Trần Lam Sơn from the Handicraft and Wood Industry Association of HCM City said that maritime transport costs kept rising. The cost to Hamburg (Germany) rose from $2,000 per container to $8,000.
Nguyễn Anh Tú from logistics services company Vinatran said that Việt Nam could not take control over the freight rates due to a lack of competitive fleet and the rates were mainly decided by foreign shipping lines.
Trương Đình Hòe, General Secretary of the Việt Nam Association of Seafood Exporters and Producers, said that maritime shipping costs from Việt Nam to other countries increased by between two to 10 times from November.
He also pointed out that the shortage of containers also caused delays in shipment which pushing up costs for export companies.
The shortage of containers also caused difficulties for the importation of raw materials for production, disrupting the supply chains and many industries.
Hòe said that a number of seafood orders had to be cancelled due to delays in shipment.
According to Sơn, the congestion of export goods dramatically affected production, especially storage. Sơn said that as most companies had limited financial and storage capacity, they were forced to reduce production.
Another problem was that importers were also hesitant to place new orders while the shipping costs remained high.
Deputy Minister of Transport Nguyễn Nhật said that due to the impact of the COVID-19 pandemic, containers at a number of ports in Europe and the US could not be freed up in time.
When the demand for freight by sea increased, the rates would increase, this was the way of the market, he said, adding that the increase in maritime transport costs was a global problem and the Government could not force shipping lines to transfer containers to Việt Nam nor produce containers to help in the interim.
Currently, Việt Nam has 1,516 seagoing vessels, 1,049 of which were cargo ships. Just 3.7 per cent of cargo ships were container ships.
As a result, more than 90 per cent of imported and exported goods must rely on foreign shipping lines, Nhật said.
The Government only managed the disclosure of fees of shipping lines and some seaport services charges, he said, adding that the rates were decided by the market.
Source: VNS
Related News
DIGITAL TRANSFORMATION IN LOGISTICS – A KEY TO UNLOCKING SUSTAINABLE E-COMMERCE AND ECONOMIC DEVELOPMENT
Accelerating digital transformation in logistics is critical in order to promote the sustainable development of e-commerce, a conference on applying technology held by the Ministry of Industry and Trade heard on Thursday, as well as accelerating overall economic growth.
SOILBUILD EXTENDS ITS HORIZONS INTO VIETNAM INDUSTRIAL REAL ESTATE
Soilbuild Group, an integrated real estate group, has broadened its investment in industrial real estate to Vietnam through its Soilbuild International division. The official launch of Soilbuild International (Vietnam) took place in Hanoi on May 9th, 2024, and was attended by esteemed guests, including domestic and international partners.
SEMINAR: BUSINESS SPOTLIGHT - THE HONG KONG-INSPIRED PRESENCE NESTLED IN THE HEART OF HANOI'S EAST
16h00 - 18h00, Wednesday (May 22nd, 2024)Almaz Convention Center - Hanoi (GG map: https://maps.app.goo.gl/YtWyGgkiTwWvFnfX6)
VIETNAM SECURES REMARKABLE ECONOMIC SUCCESSES SINCE NATIONAL REUNIFICATION
Since the national reunification on April 30, 1975, Vietnam has obtained admirable economic achievements and is now on its way to become the 20th largest economy in the world. Back to 1975, Vietnam, torn by two major wars, was a backward economy dependent on agriculture and foreign assistance. Foreign loans and aid accounted for over 63 percent of its budget.
350 EXHIBITORS TO TAKE PART IN HCM CITY PAPER, COATINGS, RUBBER, PLASTIC EXPOS
They will have a total display area of 10,000sq.m, 30 per cent more than last year, and the participation of over 350 local and international exhibitors who will showcase thousands of products and technologies.
INT’L INVESTORS EYE VIETNAM’S DATA CENTER MARKET – REPORT
Vietnam’s data center market is increasingly attractive to foreign investors, driven by the country’s expanding digital economy, rising data consumption, and supportive government policies, said a new report by JLL. While Vietnam’s data center sector has traditionally been dominated by local telecommunications companies, global players are now entering the market.