Any further increase in costs for the business at this point would complicate matters further, adding direct cost pressures on exports. The Association of Seafood Exporters and Producers (VASEP) said that the increase in port infrastructure fees from April to Ho Chi Minh City is also an issue that needs to be carefully reviewed.
Due to the “hot” increase in gasoline prices, from road to sea, transport businesses are all moving to a new price increase plan.

Saigon Newport Corporation has just announced that due to the continuous increase in gasoline prices, fuel input costs, freight rates, handling charges at ports and ICD (inland ports) have all increased, so the unit also adjusted the price. container transportation services by road and waterway serving back and forth between Cat Lai – Hiep Phuoc port, Dong Nai port and associated ICDs… with an increase of 10 – 30% compared to the unit price maintained since 2019 from April 1st.

VASEP believes that the logistics costs that “exporters” have to bear in Vietnam are exceeding the limit because the ceiling cannot be controlled.

There are many reasons given by shipping lines for the galloping rate increase such as: the consequences of more than two years of the COVID-19 pandemic leading to chaos in the container supply chain, shipping lines lack of manpower, lack of containers in the shipping industry. when sea freight recovers; conflict in Ukraine…

“However, all these reasons are rationalizations for “price-fixing”, “picking up goods”, generating negative “soft costs”. The ultimate loss is the  businesses, the owners goods when facing a difficult choice whether or not to accept the goods to be shipped,” said VASEP.

According to the results from the MNSC (Malaysia) survey in October 2021, sea freight rates are at an all-time high because they have increased from 100% to 700% compared to pre-pandemic levels. Sea freight rates in some routes have increased by 800%, 100% increase over the same period in 2020 (700%).

According to the Freightos freight index, charter rates per 40-foot container remain near all-time highs on global shipping lanes.

Even if the fares for some European routes such as Rotterdam, Hamburg… tend to drop a little from last year’s record high, it is still a “heavenly” price. Up to now, sea freight rates between Asia and Europe have remained high due to reduced capacity of shipping lines and lack of containers.

Some seafood exporters said that up to now, sea freight rates are even higher than this peak of last year. The more difficult thing is the placement of containers, the level of difficulty depends on each route, each airline.

According to many businesses, many containers can only be shipped after nearly 2 months of production, so when they can book a place, they are happier than signing a new order.

Even the situation of cancellation of the type of booking happens continuously, near the date of towing the container, the agent (Forwarder), the shipping company will notify the goods owner that the container is out of or lacks so that the exporter has to carefully find other parties with the freight rate. has been raised or higher it remains.

This phenomenon of “making prices” or deliberately “hooking goods” causes shippers to be forced to “pickpocket” to pay other parties, sometimes up to thousands of dollars to get a booking.

Always in a state of anxiety because of missing flights, shippers still have to queue to book seats, even now they have to wait until the ship’s departure date to be delivered empty containers.

The port is stuck, the ship’s schedule is constantly delayed, and there are tons of containers pulled into the port with no room for congestion.

“If you book a seat, you may not have a container, if you have a container, you may not be able to lower the container, if the container is lowered, it is not sure that the ship will run … this is a chain of anxiety and anxiety for shippers,” said VASEP.

T&G International Joint Stock Company

Address: 352 Hue Street, Le Dai Hanh Ward, Hai Ba Trung District, Hanoi

Hotline: 0345786803

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