Logistics costs see unprecedented rise due to lack of empty containers

The Import and Export Sub-Department, has received complaints from businesses and business groups about a shortage of containers that has led to an unprecedented increase in shipping tariffs, its deputy director Tran Thanh Hai has said.
Logistics costs see unprecedented rise due to lack of empty containers ảnh 1Illustrative photo (Source: VNA)

HCMCity (VNS/VNA) - The Import and Export Sub-Department, has receivedcomplaints from businesses and business groups about a shortage of containersthat has led to an unprecedented increase in shipping tariffs, its deputydirector Tran Thanh Hai has said.

Thecost of transporting a container to EU countries now is around 10,000 USD asagainst a normal rate of 1,500-1,800 USD, he said.

TheCOVID-19 epidemic means EU countries and the US buy goods from East Asia butcannot return empty containers because of border closures, he explained.

NguyenDinh Tung, chairman and general director of fruit exporter Vina T&T Group,said there was a shortage of containers for shipping dry goods while the costof shipping to the US has increased by nearly three times since last year.

DangPhuc Nguyen, general secretary of the Vietnam Fruit and Vegetable Association,said the lack of containers was because exports have been booming and shipcrews taking them are quarantined on reaching foreign ports.

TheVietnam Logistics Business Association said part of the cause is that Vietnamis a trade surplus country. In the third quarter exports increased by 11 percentyear-on-year, it said.

Besides,due to the weather, the transportation of empty containers back from the US,Japan and China has been difficult, it said.

Thecontainer scarcity usually peaks at the end of the year, and the Covid-19pandemic has worsened the situation, it said.

Toovercome the above situation, Vietnam Logistics Business Association depotsshould be tasked with repairing empty containers to reduce thewaiting time for them, and ships should work closer with depots and accuratelynotify their empty containers situation, experts said.

Consignorsneeded to make use of containers efficiently and quickly so that they could beused by others, it added./.
VNA

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