Goods are loaded at the Quy Nhon Port in the central province of Binh Dinh (Source: VNA) Hanoi (VNS/VNA) - Thenovel coronavirus has caused problems to most of the roadway logistics firms,however at sea it is having a mixed affect.
One of the country’s largest seaport logistics firms revealed the first quarteris often low due to the inclusion of the Tet (LunarNew Year) holiday.
A representative of Gemadept, which runs seven seaports from the north to thesouth, said a slow start to the year is factored into their forecasts.
“The import and export workis often lower in the Q1 after the long Tet holidayeven with or without the epidemic,” the representative said.
“Normally we have annual contracts, so if the orders are not done in the firstquarter, they must be done in the other quarters.”
The company says they arepreparing for what they feel will be an increase in business once the outbreakhas subsided.
She added: “Luckily, theepidemic did not happen in Q4 last year as that was the busiest duration of theyear.”
However, unlike Gemadept,some firms from the biggest seaport corporation, the VietnamNational Shipping Lines (Vinalines), reported losses during the epidemic asthey must skip Chinese ports to lower the risk of infection while many of theirshipping partners and customers were in China.
According to Vinalines'website, during the epidemic, many of its companies lost up to 70 percent ofthe volume compared to the same period last year.
Sai Gon Securities Inc (SSI), said the exports to China will be badlyinfluenced in Q1 and it would impact import and export activities.
SSI said as the third largest importer from Vietnam, China was still animportant destination for the local agricultural and wood products as well asmobile phones and components and China was the country’s largest exporter ofmachinery, textile materials, footwear, plastics, chemicals, steel, mobilephones and components.
If the epidemic last long, SSI reported: “The import export turnover which is adriving force for the seaport industry will be hurt.”
Despite reaching the 516billion USD turnover for the first time last year, the seaport logistics’growth rate of 8.1 in 2019 was lower than the growth of 13 percent in 2018.
According to the Vietnam Maritime Administration, the total cargo volume in thefirst nine months of 2019 on all Vietnam's seaports increased by 12 percentover the same period, lower than 19 percent in 2018.
SSI also said though the seaport firms experienced growth on the local stockmarket at the end of 2019, most of them lost between 10 and 20 per cent of thevalue in the whole year.
Seeing not much change in thefirst quarter, however, Gemadept’s representative agreed with SSI, saying: “Ifthe epidemic lasted longer, Gemadept or any of the seaport logistics firmscannot avoid being hurt.”/.
VNA
