LABOR FOR FOREIGN SHIPS INCREASE CONTAINER CHARGES
There was an Indian business in the Vietnam – Singapore industrial park specializing in the production of export yarn announced to close the factory in December 2020. The reason that this enterprise gives is because the shipping cost is too high, affecting export activities and production costs in Vietnam are no longer as cheap as before. Therefore, they suspended all orders from December 2020.
As explained by some shipping lines, due to the impact of the Covid 19 epidemic, in the first quarter of 2020, the forecasts of import and export growth of both shipping lines and owners were pessimistic. to reduce the capacity of ships.
However, in the third quarter, there was a big change in consumer behavior from the US, Europe and Australia markets, because working from home a lot, there was an increase in the demand for buying old and new appliances, which spiked. imported into the above markets, especially the US and especially Vietnamese furniture. This market does not load quickly because of the lack of human resources due to the social gap, leading to a shortage of containers.
Many shipping lines have to increase AD HOC trains to relocate empty to Asia, but not enough compared to increased demand. The shipping lines also commit not to move empty from Vietnam to other markets.
Source: Ministry of Industry and Trade
BEFORE EYES HAVE TO SOLVE THE CONTAINER DISCUSSION PROBLEM
The reason for the lack of container shells is clear, export enterprises and the state management agencies themselves, the Ministry of Industry and Trade and the Ministry of Transport, have called on shipping lines to reduce prices and share difficulties with shippers in the context of Covid 19 scene. However, the willingness to reduce shipping costs or not depends on the will of shipping lines because it is fair to say that freight rates are being operated under the market mechanism, demand increases – supply is less, prices increase. , and vice versa.
Mr. Tran Thanh Hai, Deputy Director of the Import and Export Department (Ministry of Industry and Trade) recommended that exporting enterprises need to prepare for a possible shortage of containers in the context that the Covid-19 epidemic has not been controlled in many ways. around the world to plan to discuss with partners to extend the delivery schedule. The shipping lines also said that this situation lasted at least until the end of March 2021, even up to the second quarter of 2021 if the disease was still complicated.
MR. LE DUY HIEP – CHAIRMAN OF VIETNAM LOGISTICS SERVICE ENTERPRISES ASSOCIATION
Thus, the problem is to solve the problem of lack of containers. Some shipping lines proposed the authorities to consider solving thousands of derelict containers at ports to “source” empty containers for export. If the condition of the shell improves, the freight rate will be stable.
According to experts, Vietnam needs more businesses to invest in container production. Currently, the supply of containers is too dependent on the Chinese market, which produces the most containers in the world, also lacks shells and has to run at full capacity. While domestic enterprises that qualify for container packing, counting on the fingers, it is very rare.
“We have to call on businesses, including foreign-invested enterprises to produce containers, I have proposed, but the Ministry of Industry and Trade thinks this situation is just a sudden change, not long-term. Many opinions compare making more containers will happen the situation like a house making masks, when too much will be redundant. However, I think this is not the same, because the container costs 2,000-3,000 USD / container, the total volume of container per year is about 200 million tons, the room for business is still large ”, Mr. Le Duy Hiep, Chairman Vietnam Association of Logistics Enterprises emphasized.
WANT TO PROMOTE CHARGE PRICE TO BUILD A STRONG VIET HUNG TEAM TEAM
Covid 19 crisis has revealed the weakness of Vietnam when the market share of container ships transporting import and export goods to the EU, US and Australia is mainly foreign enterprises such as Mearsk, CMA – CGM, Wanhai, ONE, Cosco. , OOCL … almost absent from domestic enterprises. The dependence on the ability to transport foreign shipping lines leads to when there is a big change like Covid 19, it is easy for shipping lines to abuse their position to increase prices, and it is difficult for state management to intervene.
The volume of Vietnamese container ships is also very small
In order to master the freight rate of container ships, not to be overrun when encountering historical events, the only way a Vietnamese enterprise has to master its international shipping capacity, must have a fleet of container ships of Vietnamese enterprises. .
However, according to Mr. Hiep, investing in international sea shipping is not easy, easy to lose, experience, good financial capacity, especially technology. The current market itself has a shipping company with a history of hundreds of years allied together, so it will be difficult for new businesses. Not to mention, if shipping international ships to countries with business efficiency, the ship owner must have an agent office operating in the host country, building a distribution system, and warehouse in foreign countries. These costs are very expensive, up to billions of USD, while most Vietnamese shipping companies are losing money.
Therefore, if you want to have leading businesses in the field of international shipping, the state must have a mechanism. For example, the Ministry of Transport develops a project to develop shipping, especially containers, to develop a separate project.
Enterprises, large, private or state-owned corporations can all be “top cranes”, stand out and “bear the battle” for the development of this field, initially accepting difficulties and losses. For example, in China, there are two shipping lines, Cosco and Chinaseeding, both of which are state-owned enterprises. They merged together, after merging to buy another shipping line OOCL from Hong Kong. Their export volume is large so they have to own. If Vietnam also has these businesses, it will reduce dependence on foreign shipping lines.
Businesses must also commit themselves. Vietnam’s fleet of seagoing vessels is in charge of transporting about 10% of the international market share.However, mainly transporting routes like China, Japan, South Korea and Southeast Asia. There are no trips to EU or US yet.
“The State stimulates enterprises to invest in developing cargo ships mainly by accessing loans and preferential capital to stimulate demand, not to mention the assistance of ministries and agencies in terms of cargo volume, and trade agencies. , overseas counselors must also support a certain level to survive and develop “, Mr. Hiep emphasized.
According to VnEconomy
