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  • Less scarcity of containers, still 'huge' rates 03/22/2021

    Mar 22nd, 2021

    <p>Finding the container just got easier</p> <p>Mr. Truong Dinh Hoe, general secretary of the Association of Seafood Exporters and Producers of Vietnam, said that there has not been any case in the seafood industry that cannot be exported due to lack of containers. &quot;Having to pay higher costs is real. And a part of the container situation is not so scarce for the seafood industry because February is the Lunar New Year month, the export volume is much lower than the previous month&quot;, Mr. Hoe said. .</p> <p>Similarly, the Vietnam Cashew Association said that the import of raw cashew nuts from Africa and the export of cashew processed products of businesses is still normal.</p> <p>According to Mr. Nguyen Dinh Tung - General Director of Vina T&amp;T Joint Stock Company, compared to the time of the most serious shortage of containers in August 2020, it has been much easier so far to find empty containers to export goods. &quot;Shipping lines are still pegging freight rates at high levels, but saying that there is a scarcity of containers that can not be exported is currently not accurate,&quot; Tung said.</p> <p>Charge is still 4-7 times higher</p> <p>Talking with Tuoi Tre on March 16, Ms. Phung Thu Huyen - director of Nam International Company (Ho Chi Minh City) - said that container shipping rates are still at a high level with rates to the US market. Transportation companies offer up to 8,000 - 9,000 USD / 40 feet container, to the Middle East 1,600 USD / container</p> <p>20 feet and nearly 2,900 USD / 40 feet container. This price increase is 4-7 times higher than the stable level in early 2020, making many businesses (subject to delivery charges) in trouble.</p> <p>&quot;The South African market stopped importing the unit&#39;s cassava starch for more than a month because of rising charges, export pepper also had difficulty when transportation and buying prices increased simultaneously&quot;, Ms. Huyen information.</p> <p>Similarly, a representative of a business specializing in exporting agricultural products in Ho Chi Minh City said that shipping lines usually change their freight rates once every 15 days, plus volatile raw material prices, so many businesses only dare to issue orders. in the short term, forced to renegotiate each short period with new rates to avoid risks.</p> <p>A representative of a shipping unit in Ho Chi Minh City explained that the high rate of freight and anchor container rental was mainly due to the heavy impact of the COVID-19 epidemic. Shipping lines have to carry empty containers, forcing to increase freight to compensate.</p> <p>Incurring an unreasonable cost</p> <p>&quot;Recently, our containers do not understand why the continuous drop. It is expected that 1-2 days the container will be loaded on board, but many shipments are delayed for up to a week. sea ​​freight rates with shipping lines from many months ago, but in order for the goods to be exported on time, many urgent orders have to pay the new price, &quot;said the business director of a logistics enterprise based in Q. 2, Ho Chi Minh City said.</p> <p>According to this position, because empty containers are not abundant, the market is confined. In order to have containers in time to contain export goods, there is a time when enterprises have to add the cost of &quot;buying in advance&quot; for the number of containers to open before customs declarations. &quot;The current regulation must have the number of containers that businesses can transmit the customs declaration. Although they have not received the containers, they only have a new dose to not have inventory at the port,&quot; he added.</p> <p>Representative of the Vietnam Coffee - Cocoa Association said that in order to limit the risk of rising freight rates, exporters should consider switching to the form of FOB export (delivery price at the port of export), instead of Choose the form to bear the delivery cost. Authorities also need to work with shipping lines to promote appropriate rates, lower or cut fees at major ports in Ho Chi Minh City, Hai Phong ...</p> <p>40% of businesses have difficulty</p> <p>According to the Vietnam Association of Logistics Services, up to 40% of enterprises have difficulty in delivering empty containers at the gathering point, leading to goods being stored in storage waiting for export, storage costs, and storage. 5 - 10% of the value of the shipment, not to mention it may impair the quality of the goods.</p> <p>Have to pay extra fees</p> <p>Representatives of SP-ITC port, District 9, Ho Chi Minh City, said that the freight usually includes container rental fees, but now businesses have to &quot;bite their teeth&quot; to pay extra fees to have containers. The lack of containers also causes many businesses to be congested for export goods, to hire warehouses near the port to store goods, incurring significant costs.</p>


    Source: http://www.vinacas.com.vn/
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