VN’s shipping lines gear up to meet high demand

The total volume of goods that passed through Vietnam’s seaports has been growing despite continuous increases in container freight rates since the COVID-19 pandemic.

VN’s shipping lines gear up to meet high demand
A container is loaded on a vessel in Tan Cang - Cai Mep Thi Vai Port in Vung Tau Province. — VNA/VNS Photo Huynh Ngoc Son

The move has helped to create more motivation for domestic shipping companies to invest in new cargo vessels and renovate old ones to meet certain high-demand routes both domestically and internationally.

In August, the International Gas Product Shipping JSC (GSP) purchased a 20,000 DWT oil tanker worth US$14.3 million. It is scheduled to receive another in September. The company had offered to sell 20 million shares to its existing shareholders with a view to raise its charter capital to VND560 billion (US$24.3 million) from VND360 billion (15.6 million), ensuring capital investment to purchase one more tanker.

Last month, Hai An Transport and Unloading Joint Stock Company (HAH) signed a contract to build a 1,800 TEU container vessel. In April this year, HAH purchased two more container vessels. They are now in operation on international and domestic routes.

In addition, the company has invested in more containers and the first batch was put into use from late May this year. The purchasing of containers offers more options to shipping companies facing a shortage due to the impacts of the pandemic.

The company also sold its old vessels and purchased new ones to meet the rising demand of maritime transport.

In April, Gemadept Joint Stock Company (GMD) launched a 248 TEU barge. This is one of the five barges Gemadept bought from SSMI Shipbuilding Company. The new investment has helped to raise transport capacity, saving costs, reducing shipping time while still meeting customer demand. Gemandept also bought six rubber type gantry cranes (RTG) to maximise cargo loading and uploading capacity at Cai Mep seaport.  

Hoa Phat Shipping Joint Stock Company, a member of Hoa Phat Group, also completed the purchase of two 90,000 TEU vessels in the first quarter this year for transportation of coal and iron ore. By doing so, Hoa Phat has been proactive in plans to import raw materials for its steel production factories and minimise the risks after the sudden rise in shipping costs.

Hoa Phat group also plan to buy more vessels to serve the construction of Hoa Phat Dung Quat 2 iron and steel factory project in Quang Ngai Province. The project is expected to be built over the next three years and become operational in 2024.

The outbreak of COVID-19 causes a massive disruption to the global supply chains and shipping costs skyrocketed around the world. The pandemic has prolonged the unpacking and rotation cycle of containers, while the recent rise in export goods headed to Europe or the US has caused a shortage of empty containers.

 

Some shipping lines said that the number of shipments leaving Vietnam for other countries had not fallen, and even increased on some routes, but freight prices had been higher due to the lack of containers.

A recent report of Rong Viet Securities Joint Stock Company (VDSC) has showed that container port congestion and a lack of empty containers have stretched around the globe and has caused an 80 per cent increase in shipping costs since the beginning of 2021.

Vietnam's shipping industry has been also affected by the serve shortage of containers, causing price hikes for container rental fees and shipping costs.

Industry insiders said that the purchase of new vessels and disposal of old vessels should make Vietnam’s shipping industry more competitive and minimise the rising shipping costs for local exporters in the remaining months this year.

In recent years, the total container traffic of domestic shipping companies has risen rapidly. The total volume of goods passed through Vietnam sea ports has increased from 442 million tonnes in 2017 to 689 million tonnes in 2020.

Deep-sea port systems have always played an important role in the shipping industry as the deeper draft and longer berths are an indispensable trend of marine economies.

Experts at Rong Viet Securities said the total volume of goods passed via Vietnam’s sea port system would rise as the vaccination rate increased across the country and Vietnam still attracted a wave of investors shifting from other countries.

Source: Vietnam News

Transport Ministry directs to ease operation of seaports amid pandemic

Transport Ministry directs to ease operation of seaports amid pandemic

The Ministry of Transport (MoT) has asked provincial and municipal authorities to ease the travel of labourers at seaports so as to avoid the disruption of production and supply chains amid the COVID-19 pandemic.

 
 

Other News

.
Vietnam boats advantages in foreign investment attraction
Vietnam boats advantages in foreign investment attraction
BUSINESSicon  28/11/2021 

Vietnam is assessed to have plenty of room to compete for foreign direct investment (FDI) against major competitors in the current global production shift, said Nguyen Bich Lam, former Director General of the General Statistics Office.

Woodwork enterprises racing for year-end orders
Woodwork enterprises racing for year-end orders
BUSINESSicon  28/11/2021 

Despite the adverse effects caused by the Covid-19 pandemic, export sales of Vietnam’s woodwork industry have climbed.

C.bank expands credit quota for banks to meet growing credit demands
C.bank expands credit quota for banks to meet growing credit demands
BUSINESSicon  28/11/2021 

Many banks have reached their respective credit limits in the first nine months of 2021.

New foreign investment approvals seen hitting US$30 billion this year
New foreign investment approvals seen hitting US$30 billion this year
BUSINESSicon  27/11/2021 

Vietnam attracted US$2.72 billion in new foreign investment approvals in November, raising the total in the January-November period to US$26.46 billion. 

COVID severely impacts stock markets in Southeast Asia including VN: conference
COVID severely impacts stock markets in Southeast Asia including VN: conference
BUSINESSicon  27/11/2021 

Stock markets in Southeast Asia including Viet Nam have been severely impacted by the COVID-19 pandemic outbreak, according to studies presented at the annual Conference on Business, Economics & Resources held from November 25 to 26.

ASEAN market boasts opportunities for Vietnamese firms: official
ASEAN market boasts opportunities for Vietnamese firms: official
BUSINESSicon  27/11/2021 

Amid the COVID-19 pandemic’s severe impacts on global supply chains, the ASEAN market in close proximity with Vietnam is holding opportunities for the country’s enterprises, an official has said.

Vietjet signs 150-million-USD deal with Swiss MRO service provider
Vietjet signs 150-million-USD deal with Swiss MRO service provider
BUSINESSicon  27/11/2021 

Vietjet and SR Technics on November 26 inked a Memorandum of Understanding (MoU) worth 150 million USD involving the provision of MRO services on Vietjet’s CFM56-5B engine fleet, installed on their Airbus A320 and A321 aircraft.

President co-chairs Vietnam - Switzerland Business Forum
President co-chairs Vietnam - Switzerland Business Forum
BUSINESSicon  27/11/2021 

Vietnamese President Nguyen Xuan Phuc and his Swiss counterpart Guy Parmelin co-chaired a Vietnam - Switzerland Business Forum in Bern on November 26.

Concerns on money investment during high inflation
Concerns on money investment during high inflation
BUSINESSicon  27/11/2021 

According to the Economist Intelligence Unit (EIU), the world economy could lose trillions of dollars due to the prolonged pandemic, with developing economies suffering the most damage. 

Only 1% of American businesses plan to withdraw from Vietnam
Only 1% of American businesses plan to withdraw from Vietnam
BUSINESSicon  27/11/2021 

Only 1% of American businesses plan to withdraw from Vietnam, according to the latest survey of the American Chamber of Commerce in Vietnam (AmCham Vietnam).

Stock trading booms, money flows to bankers’ pockets
Stock trading booms, money flows to bankers’ pockets
BUSINESSicon  26/11/2021 

Bank shares continue to attract cash flow. The VN Index has climbed to new highs, exceeding the 1,500 point benchmark.

Vietnam’s global commitments force ministry to reconsider electricity projects
Vietnam’s global commitments force ministry to reconsider electricity projects
BUSINESSicon  27/11/2021 

The latest draft of the eighth national power development plan in 2021-2030 shows considerable reductions in coal-fired power and increases in wind power, following Vietnam’s strong commitments at COP26.

International, domestic gold price gap widens to VND11 million
International, domestic gold price gap widens to VND11 million
BUSINESSicon  26/11/2021 

While the gold price in the world market is falling sharply, the domestic price keeps rising, with the gap between prices hitting VND11 million per tael.

Cold storage is more attractive  during the pandemic
Cold storage is more attractive during the pandemic
BUSINESSicon  26/11/2021 

There has been a sharp rise in demand for cold storage in the Asia-Pacific region which has pushed foreign investment into Vietnam, strengthening the value of the local supply chain.

13th EuroCham White Book released at Meet Europe 2021
13th EuroCham White Book released at Meet Europe 2021
BUSINESSicon  25/11/2021 

Despite the COVID-19 pandemic, two-way trade between Vietnam and the EU still expanded by nearly 20 percent annually, reaching more than 56 billion USD last year.

Ministry takes action as market sets up new price levels
Ministry takes action as market sets up new price levels
BUSINESSicon  25/11/2021 

It was recorded on November 23 in Ho Chi Minh City that some products and many services set new price levels.

2021 Black Friday is truly ‘black’ for shop owners
2021 Black Friday is truly ‘black’ for shop owners
FEATUREicon  26/11/2021 

Many retailers say that consumers ate indifferent to sale promotion programs for Black Friday 2021, the biggest sale campaign of the year.

VIETNAM BUSINESS NEWS NOVEMBER 26
VIETNAM BUSINESS NEWS NOVEMBER 26
BUSINESSicon  26/11/2021 

Aviation authorities proposes full resumption of domestic flights from 2022

Average tourism wages fall by nearly 18% due to Covid
Average tourism wages fall by nearly 18% due to Covid
BUSINESSicon  26/11/2021 

Due to the heavy impact of the Covid-19 pandemic on enterprises and workers in the tourism industry, the average tourism wages in Vietnam have fallen by nearly 18%, with the decline for women employees even higher at almost 23%.

Seven commodities with export value hitting over US$10 billion each
Seven commodities with export value hitting over US$10 billion each
BUSINESSicon  25/11/2021 

Vietnam has boasted seven commodities with an export turnover exceeding US$10 billion each as of November 15 following the post-pandemic resumption of various businesses.

 
 
 
Leave your comment on an article

OR QUICK LOGIN