Businesses worry over order loss as input costs escalate

VOV.VN - Many Vietnamese businesses have felt the pinch as petrol and logistics costs are rising considerably, causing many to lose export orders signed with partners.

Le Thi My Hanh, general director of Banana Brother Farm Joint Stock Company, said the company has faced an array of difficulties in export activities due to high shipping costs.

In addition, limited customs clearance at the northern border gates has forced the company to transfer its containers to Hai Phong port in the north or Cat Lai port in Ho Chi Minh City for export.

Meanwhile, Cat Lai port has begun to charge a service fee of between VND1 million and 1.5 million for each container. Other shipping lines have also resorted to hiking fuel prices to increase their transport costs, causing businesses to suffer heavy losses.

At present, the freight rate for a container shipped to China has risen by VND30 million to VND200 million, dealing a blow to the company’s shipping plan, according to Hanh.

“We have planned to export 40 containers of bananas in February, but only 12 such containers have been shipped due to rising costs,” complained the female executive. “Late last year ministries and agencies agreed to seek ways of reducing transportation costs, but reality is quite different.”

Ngo Thi Hong Thu, general director of Ameii Vietnam Joint Stock Company, revealed that logistics charges are now beyond the firm’s control. Since the beginning of the year, Ameli has received plenty of orders to export carrots and cabbage to demanding markets, including the Republic of Korea, Europe, Australia, and the United States.

However, the recent shortage of refrigerated containers coupled with rising freight rates have prompted the company to cancel some orders.

“We have mobilized all resources to incur the rising costs, but the current freight rates not only affect businesses but also farmers as the purchasing prices of agricultural products will also be reduced,” confided Thu.

Truong Dinh Hoe, general secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), outlined that high logistics costs and a shortage of containers have exerted a significant impact on the general competitiveness of Vietnamese enterprises.

“Unless these matters are soon resolved, seafood enterprises will still struggle to recover this year,” noted Hoe.  

Van Nhat Tung, marketing director of CMA-CGM Vietnam Joint Stock Company, a shipping line with the second largest market share in the local market, said the company currently has between 250 and 300 empty containers each week.

However, he pointed out the freight rates have seen a threefold increase to US$16,000 per container at present compared to a year ago. He predicted that shipping costs are likely to keep rising in March on high input costs.

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Logistics costs see unprecedented rise due to lack of empty containers
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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

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.