Goods owners say shipping freight costs are far too high

The high container shipping cost has caused difficulties for import/export companies. They believe that shipping firms joined hands to push service fees up.

Goods owners say shipping freight costs are far too high

Phung Ngoc Sam, general director of Hanfimex, complained that the sea freight rates have been escalating rapidly since October 2020. The shipping rate for 40-feet container from Vietnam to Europe and the Mediterranean area has soared by 2-3 times and there is no sign of decrease.

“It was just $2,000 in the past, but now $5,000. And it is sometimes $11,000,” he complained.

The sharp rise in sea freight has made it difficult for import/export companies to execute their business plans and caused delays in export. It is estimated that 30 percent of goods planned for export have been stagnant.

If the situation cannot be improved, this will push the cost of goods up. The buyers, who cannot release goods to the market, may put pressure on Vietnam’s import/export companies.

According to Phan Thong, secretary general of the Goods Owner Association of Vietnam, the sea freight has increased because of the market disparity. Because of Covid-19, international seaports either have closed or opened with limitations, resulting in the goods stagnation.

As containers cannot be unloaded, this has led to a lack of empty containers. Meanwhile, Vietnam’s enterprises still need empty containers to load export products.

Some analysts said that China, after controlling the Covid-19 pandemic has been trying to boost exports. A high number of empty containers has been heading for China, resulting in a shortage of containers for Vietnam.

 

“The container shortage has caused difficulties for shipping firms, thus causing the freight rates to increase. However, there is also a possibility that shipping firms joined hands to push service fees up,” Sam said.

A representative of the Vietnam Maritime Administration (Vinamarine) under the Ministry of Transport said the agency set up a taskforce to inspect the container shipping freight and surcharges after it realized the continued increase in freight rates after Tet (mid-February).

The taskforce of 13 members, including the leaders of Vinamarine and the Ministry of Industry and Trade’s Import-Export Department, will inspect the observation of the regulations on quoting prices and surcharges in accordance with Decree 146 and will handle violations.

Vinamarine has also requested that shipping firms apply necessary measures to store empty 40-feet containers in Vietnam, and suggest solutions to circulate domestic empty containers to serve the import and export of goods, with an aim to curb the increase in container freight, and satisfy the export of container goods in the context of increasing demand.

Prior to that, the Ministry of Transport released a document requesting Vinamarine to examine the increase of freight and surcharges made by foreign shipping firms. 

Vu Diep

Maritime administration to inspect shipping rates hike

Maritime administration to inspect shipping rates hike

The Vietnam Maritime Administration (VMA) plans to set up a working group to inspect the hike in freight rates among shipping companies that have routes to Europe and America.

Shipping industry needs State support to develop: ministry

Shipping industry needs State support to develop: ministry

The domestic shipping industry needs support from the State to develop Viet Nam’s fleet of cargo ships, according to the Ministry of Transport.  

 
 

Other News

.
Need for digital transformation personnel sees sharp rise: report
Need for digital transformation personnel sees sharp rise: report
BUSINESSicon  27/03/2021 

As firms are accelerating digital transformation, the need for information technology (IT)-related roles, namely data engineer, infrastructure engineer, or chief technology officer (CTO), is also rising significantly.

MIC focusing on popularising Mobile Money
MIC focusing on popularising Mobile Money
BUSINESSicon  27/03/2021 

The successful implementation of Mobile Money is one of the major targets of the Ministry of Information and Communications (MIC).

Private sector unable to create necessary value chain
Private sector unable to create necessary value chain
BUSINESSicon  26/03/2021 

Vietnamese enterprises are facing setbacks and obstacles in the process to build value chains, which are essential for growth, healthy competition and more export opportunities in foreign markets.

Mobile money attempts to topple classic banking
Mobile money attempts to topple classic banking
BUSINESSicon  27/03/2021 

The newly-launched mobile money pilot programme is expected to heat up competition for domestic players but also open collaboration opportunities to cash in on the niche market.

New phase on horizon for solar power development
New phase on horizon for solar power development
BUSINESSicon  28/03/2021 

Vietnam, a rising star in Asia in solar power development, is to slash feed-in tariffs for rooftop solar installations this month, 

Ministry aiming to collect taxes from e-commerce sellers
Ministry aiming to collect taxes from e-commerce sellers
BUSINESSicon  26/03/2021 

The Ministry of Finance has asked digital-based businesses and delivery service companies to provide information about e-commerce sellers using their platforms and services so they can be taxed.

Vietnam GDP growth set to rebound to 6.6% in 2021: WB
Vietnam GDP growth set to rebound to 6.6% in 2021: WB
BUSINESSicon  27/03/2021 

Vietnam and China are the only two economies in East Asia and Pacific experiencing a V-shaped rebound where output has already surpassed pre-pandemic levels.

Wind power overdevelopment faces risks
Wind power overdevelopment faces risks
BUSINESSicon  27/03/2021 

Sharing the same fate as solar power, sales of wind power in Vietnam are expected to be difficult because of "severe excess electricity" at some point in time.

VIETNAM BUSINESS NEWS MARCH 27
VIETNAM BUSINESS NEWS MARCH 27
BUSINESSicon  27/03/2021 

Programme supporting enterprises in optimising opportunities from EVFTA debuts

Gardener confirms mutant orchid transaction, promises to pay tax
Gardener confirms mutant orchid transaction, promises to pay tax
BUSINESSicon  26/03/2021 

Bui Huu Thanh, the owner of the mutant orchid garden, said that he has actually sold a Ngoc Son Cuoc mutant orchid for VND250 billion following reports that the transaction was fake.

Trade deficit with China grows as imports soar
Trade deficit with China grows as imports soar
BUSINESSicon  26/03/2021 

The value of Chinese imports in the first months of 2021 alone reached $15.42 billion, twice as much as the value of Vietnamese exports to the market.

Regional tensions throwing investing trajectory up in air
Regional tensions throwing investing trajectory up in air
BUSINESSicon  25/03/2021 

Political stability has been seen as one of the main reasons for Vietnam’s success in recent years in terms of attracting foreign investment. 

Investors forced to wait on HSX technical upgrades
Investors forced to wait on HSX technical upgrades
BUSINESSicon  25/03/2021 

However, despite the vast potential of the equity market, the ongoing technical outages at the HSX have lowered investors’ appetite, as their buy and sell orders rarely match up.

VIETNAM BUSINESS NEWS MARCH 26
VIETNAM BUSINESS NEWS MARCH 26
BUSINESSicon  26/03/2021 

Anti-dumping investigations launched into imported welding material products

Female tycoon leaves post, daughter makes US$1 billion
Female tycoon leaves post, daughter makes US$1 billion
BUSINESSicon  25/03/2021 

Southeast Asia Commercial Joint Stock Bank (SeABank) on March 24 listed more than 1.2 billion SSB shares on the Ho Chi Minh Stock Exchange - HOSE (HSX) with the reference price of VND16,800 per share and the price range of +/- 20%.

Agencies, local authorities give back tens of trillions of VND
Agencies, local authorities give back tens of trillions of VND
BUSINESSicon  25/03/2021 

Ten ministries and agencies, as well as 45 localities, are giving back the capital allocated to them as they did not spend all the money they received in 2020.

Five suburban districts to become inner districts, land price soars
Five suburban districts to become inner districts, land price soars
FEATUREicon  25/03/2021 

The plan to turn some suburban districts in HCM City into inner districts is only on paper but it has triggered a new land fever in localities.

Investors lose big money after buying land near airport projects
Investors lose big money after buying land near airport projects
FEATUREicon  24/03/2021 

Land prices in some areas skyrocketed after rumors spread about new airport projects, helping some investors to get rich but causing many others to go bust.

Private airlines ask for VND15 trillion in preferential loans
Private airlines ask for VND15 trillion in preferential loans
BUSINESSicon  24/03/2021 

A credit package of VND12 trillion has been approved to help Vietnam Airlines, which has been hard hit by the impact of Covid-19. Private airlines have also asked for a VND15 trillion loan.

Big hoteliers still flock to Vietnam despite Covid-19
Big hoteliers still flock to Vietnam despite Covid-19
BUSINESSicon  24/03/2021 

Five-star hotel brands are ready to receive travelers back to the country with the strong belief that the tourism industry is coming back to life.

 
 
 
Leave your comment on an article

OR QUICK LOGIN