Due to the impact of shipping, many orders of Vietnamese enterprises have been canceled by EU partners and transferred to import from other markets. It is expected that the global supply chain will continue to face the risk of congestion until the end of 2022.
The Ministry of Industry and Trade said that according to information from businesses, many orders signed with EU partners are usually sold seasonally and exported to the EU at fixed times.
However, due to the impact of transportation, many orders of Vietnamese enterprises were canceled by EU partners and transferred to import from other markets. It is expected that the global supply chain will continue to face the risk of congestion until the end of 2022.
The 4th wave of COVID-19 broke out in the third quarter of 2021, causing many businesses to close due to a lack of workers and input materials for production or only low productivity, which is the main reason why The growth rate of trade between Vietnam and the world in general and with the EU market in particular has slowed down markedly in recent months.
The localities hardest hit by this epidemic are mainly in the southern provinces and cities – the key areas of production, processing and export of goods of the whole country and where many businesses are concentrated. a large center for processing and manufacturing footwear, textiles, furniture, agricultural products and aquatic products. These are all key export items to the EU market.
Meanwhile, trade and transportation activities still face many obstacles in the context of a serious shortage of containers at seaports around the world, while COVID-19 broke out in the region. The southern region also caused international shipping lines to cut flights and reduce trips to Vietnam, making the supply even more limited.
Over the past month, although Vietnam has gradually reopened its economy, contributing to improving the circulation of goods, the problems of workers, drivers, warehouses, and sea freight rates have increased. , shortages of containers, loading and unloading equipment and carriers are still putting supply chains under great pressure.
At some ports, there was a situation where shipping lines canceled their customers’ bookings because of a lack of seats. This development caused many export orders not to be on schedule and not to be completed on time, causing disrepute with partners.
As of October 29, the composite World Container Index (WCI), which measures freight rates of eight major global shipping routes published by Drewry World, stood at $9,669 per 40ft container, although although significantly cooled down compared to 10,361 USD/40ft container at the end of September 2021, it still increased by 276% over the same period last year.
The World Container Index (WCI) measures the freight rates of eight major global shipping routes. (Source: Drewry World)
In which, the cost of shipping container goods by sea from Asia to Europe recorded the strongest increase, up 300%-500% compared to a year earlier.
Along with the general situation, Vietnam’s freight rates also recorded a strong increase on a large scale in all routes and modes of transport.
Currently, freight rates from Vietnam to markets around the world have increased dramatically compared to the time before the outbreak of COVID-19 and are being set at record high levels, especially for the domestic market. The school is geographically located as far away as the EU.
In the context that 95% of the market share of import and export goods of our country depends on 38 foreign shipping lines in Vietnam, this situation puts more pressure on and reduces the competitiveness of Vietnamese goods in the market. world.
With the global epidemic situation showing positive signs and in Vietnam basically under control, it is expected that the difficulties for the global supply chain in general and Vietnam in particular will gradually decrease. from the end of the first quarter of 2022.
In 2023, when the size of the shipping fleet of more than 20% of shipping lines increases as planned, as well as the investment plan for port infrastructure of major markets is implemented, sea transportation is expected. will return to normal.
According to VietnamBiz.vn
