Struggling with surcharges from foreign shipping companies

Many logistics businesses as well as export businesses have proposed this, saying that foreign shipping companies, with the advantage of taking on up to 95% of Vietnam’s import-export cargo transport market share, have increased rates and a series of additional fees. unjustly waste, causing the cost of Vietnamese goods to increase, affecting competitiveness…

Import and export face difficulties with freight rates, surcharges…

While still struggling with the sharp increase in shipping fees due to political fluctuations in the Red Sea region, many export businesses were “stunned” when 10 foreign shipping lines massively increased loading surcharges by 10-20%. Unloading goods at the port (THC – terminal handling charge) for each type of container service in Vietnam. Specifically, THC surcharges are being collected by international shipping lines at a rate of 140 USD/20-foot container.

If all other fees are included such as delivery fees, delivery electricity, gasoline fees and equipment balancing fees, in total, shippers have to spend about 250-300 USD/20-foot container on fees.

According to the Vietnam Shippers Association, in terms of absolute value, the 10-20% increase in THC fees of shipping lines is three times higher than the adjustment in container loading and unloading prices at Vietnam seaports.

With the amount of freight and surcharges increasing sharply, Mr. Pham Quoc Long, deputy general director of Gemadept Joint Stock Company, said that foreign shipping lines are enjoying “crazy” profits from the Vietnamese market.

According to Mr. Long, when shipping lines enter and leave Vietnam, if they do not explain the factors that constitute fees and surcharges, it will be difficult for the authorities to check the reasonableness of surcharges.

That’s why when surcharges are increased, shipping lines benefit greatly, while the disadvantage falls on ports and import-export businesses.

While foreign shipping lines are mainly FDI enterprises, revenue from freight rates and other price surcharges are transferred to the parent company abroad.

It is worth mentioning that ship owners increasing fees only applies to Vietnam, while other countries in the region have not yet made any move to increase THC.

Vietnam is an important market for foreign shipping lines with 25 million TEUs through Vietnam’s seaports, of which about 15 million containers of import and export goods.

For each container, shipping lines charge an average of 200 USD/container. Every year, Vietnam will lose control of about 3 billion USD. “This increases logistics costs and reduces the competitiveness of Vietnam’s goods compared to other countries,” said the leader of a transportation business.

Meanwhile, according to sea freight price data statistics, freight rates to the US and Canada to the West Coast have increased sharply from 1,850 USD/container in December 2023 to 2,873 – 2,950 USD/container in January 2024. , increased by 55-60%.

Also during this period, shipping rates to the East Coast increased from 2,600 USD/container to 4,100 – 4,500 USD/container, an increase of 58-73%.

Freight rates for shipping goods to Europe also increased sharply compared to the last month of last year. Specifically, in January 2024, the freight price to Hamburg (Germany) is up to 4,350 – 4,450 USD/container, more than tripled compared to the fluctuating freight price of 1,200 – 1,300 USD/container in December 2023.

It is necessary to manage the collection of fees from foreign shipping companies

With small scale and seasonal demand, Vietnamese shippers do not plan to sign long-term transport contracts, leading to many risks when the transport market fluctuates.

To keep the market healthy and avoid being pressured by shipping lines right at home, logistics businesses believe that authorities need to add surcharges in addition to the price of container shipping services by sea to the list of goods. Services subject to price declaration.

“We must manage prices and surcharges for goods at seaports to avoid cases where shipping lines arbitrarily increase prices and overcharge, affecting the interests of import-export owners” – leader of a business speak,

At the same time, it is proposed that there should be regulations requiring shipping lines to report on the THC fee structure, even considering the application of special consumption tax collection policies.

“Authorities also need to soon review and promulgate a mechanism to manage the collection of surcharges, compare them with provisions of Vietnamese law and international practices, and request ship owners to immediately stop collecting surcharges. inconsequential,

At the same time, we recommend that the Prime Minister soon issue appropriate mechanisms to manage fee collection by foreign shipping lines operating in Vietnam…”, a shipper proposed.

Meanwhile, Mr. Le Duy Hiep, vice chairman of the Board of Directors of Transimex Joint Stock Company, said that it is time to strengthen the national shipping fleet, expanding routes to Europe and the Mediterranean.

Even for air cargo transport, Vietnam still does not have any airline specializing in cargo transport; this market share is in the hands of foreign airlines.

However, Mr. Pham Quoc Long – deputy general director of Gemadept – said that it is not necessary to focus on investing heavily in the national shipping fleet traveling to Europe when there are not many advantages.

Instead, logistics costs can be reduced by developing inland waterways. For example, transporting North – South by sea costs 3 million VND/20-foot container but by road is 30 million VND.

The waterway from the Mekong Delta to Ho Chi Minh City costs 2.5 million VND, the road cost 4 million VND. Cai Mep – Ho Chi Minh City costs 750,000 VND but road transport is up to 4 million VND.

“Inland waterway transport has many advantages but only accounts for 20% of the country’s transport. Therefore, there needs to be a specific strategy to promote it” – Mr. Long said.