Illustrative image (Photo: VNA) Hanoi (VNS/VNA) - Many container shipping lines have announced furtherincreases in transportation fees starting from late May, causing difficultiesfor import-export companies.
Sixmonths on from when a lack of containers globally pushed up marinetransportation fees, import and export companies were expecting that the feeswould be reduced thanks to the vaccination campaigns which helped controlCOVID-19.
However,experts said it would be very difficult for the container shipping fees to comeback to the pre-pandemic levels despite successfully containing the virus andno severe shortage of containers.
Butfrom mid-May, several container shipping lines announced increases intransportation fees from 400 USD to more than 1,000 USD per container.
Germany’sHapag-Lloyd raised the general rate increase (GRI) for routes from East Asia(including Vietnam) to the US and Canada to 960 USD per 20 feet containerand 1,200 USD per 40 feet container starting from May 15.
TheUS shipping line CMA CGM announced an increased freight rate from mid-Mayfor routes from Somali to Northern Europe, the Mediterranean, Black Sea, Indiaand Pakistan.
TheSwiss shipping line MSC raised sipping surcharges to 800 USD per container fromMay 18.
DuongThanh Lan, Deputy Director of Blue Sea Cargo Logistics Transport Corporation,said freight rates for the route to the US saw the biggest increases.
InApril, the popular freight rates to the west coast of the US was around 5,000 USDper 40-foot container. However, the quotation is now more than 10,000 USD.
Freightrates to Europe kept increasing steadily and were also at high levels.
Therates for routes from Vietnam to Europe was now at around 7,000-8,000 USD andto the US at more than 10,000 USD compared to 1,500 USD and less than 1,000 USDin pre-pandemic times, respectively.
Thanhsaid that shipping lines said this was due to stockpiles at ports, enterpriseswanted to speed up shipping, especially to the US, which pushed uptransportation demand as well as freight rates.
TranVan Linh, Chairman of Thuan Phuoc Seafood and Trading Corporation, said thatmarine transportation fees were not at unreasonably high levels butimport-export companies like his had no choice but to accept the increases.
Haltingimport and export activities was impossible because of commitments to the partners,Linh said, adding that cancellation of orders or failure to deliver on timewould undermine the company’s prestige and efforts in finding customers in thefuture.
TruongTien Dung, Director of Sai Gon Aquatic Products Trading Joint Stock Company,said that high marine transportation fees were weighing down import and exportcompanies, with many small scale operations forced to close down ortemporarily halt business.
Despiteincreases in transportation fees, it would be impossible to negotiate forincreases in products prices because the COVID-19 pandemic made consumers inmarkets like the US and the EU tighten their budget and focus mainly onessential goods and products with reasonable prices, Dung said.
Hightransportation fees were eating into companies’ profits, he stressed./.
VNA
