In order to remove difficulties for import-export activities and logistics services, associations and businesses recommend strengthening the management of surcharges and service fees of shipping lines.
Recently, Vietnam’s import and export activities of goods and logistics services have been seriously affected by the tense situation in the Red Sea region.
Import-export and logistics service businesses continue to encounter difficulties
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Due to tensions in the Red Sea area, since December 2023, a series of large shipping companies have suspended their schedules through the Red Sea, hundreds of large ships have had to change their routes, going around the Cape of Good Hope in southern Africa. , causing the seafaring time to extend by 10-15 days, thereby significantly increasing shipping costs, affecting international trade and the global supply chain, including import-export enterprise and Vietnamese logistics service enterprises.
In addition to long shipping times, one of the most obvious negative impacts is the increase in sea freight rates and surcharges and surcharges on shipping lines.
Information from the Vietnam Shippers Association said that since the beginning of February 2024, foreign shipping lines have simultaneously announced a 10% – 20% increase in cargo handling fees (THC) for each type of container service. in Viet Nam. If considered in absolute value, the 10% – 20% increase in THC fees of shipping lines is 3 times higher than the adjusted price for loading and unloading containers at Vietnamese seaports.
It can be mentioned that shipping company KMTC increased fees from 126 USD to 138 USD from February 15, 2024, (equivalent to an increase of about 290,000 VND) for 20-foot containers. Heunga brand increased from 120 USD to 132 USD; TSL increased from 3 million VND to 3.55 million VND (equivalent to an increase of 550,000 VND); Yang Ming increased from 2,536 million VND to 3,042 million VND (equivalent to an increase of more than 500,000 VND) from February 20, 2024…
According to Circular No. 39/2023/TT-BGTVT issued on December 25, 2023 of the Ministry of Transport, from February 15, 2024, prices for pilotage services, services for using bridges, wharves, and mooring buoys , container loading and unloading services and towing services at Vietnamese seaports were adjusted to increase.
Accordingly, the price range for container loading and unloading services for import, export, temporary import, re-export, transit, and transshipment in region I (seaports from 20 degrees latitude or more to the North includes regional seaports). Quang Ninh, Hai Phong, Thai Binh, Nam Dinh and not applicable to Lach Huyen port) from ship (barge) to yard will increase the minimum from 33 USD to 36 USD for a 20-foot container (an increase of 3 USD, equivalent to about 75,000 VND). In the Cai Mep – Thi Vai area, it increased from 52 USD to 57 USD/20-foot container (an increase of 5 USD, about 120,000 VND) and increased from 77 USD to 85 USD/40-foot container (an increase of 8 USD, about 200,000 VND)…
However, many businesses reflect that in fact foreign shipping lines increase THC fees beyond the framework prescribed in Circular No. 39/2023/TT-BGTVT. Specifically, the increase specified in the Circular is about 100,000 – 200,000 VND/container, but shipping lines increase THC fees to more than 500,000 VND/container. On the other hand, the Circular divides into 03 seaport areas across the country with different increases, but shipping lines increase the common THC fee for ports in Vietnam.
Recommendations to strengthen surcharge management of shipping companies
In order to remove difficulties for businesses, in a recent document sent to the Prime Minister and relevant ministries and branches, the Vietnam Shippers Association proposed 03 solutions to strengthen surcharge management of foreign shipping lines.
The first, adding surcharges in addition to the price of container shipping services by sea to the list of goods and services subject to price declaration to complete the price management mechanism and types of surcharges for goods at the port sea, avoiding the case of shipping companies arbitrarily increasing prices and overcharging, affecting the interests of import-export owners. Shipping lines need to have a report on the THC fee structure. In case these surcharges are very profitable, the authorities should consider applying special consumption tax collection policies.
Monday, soon review and promulgate a mechanism to manage the collection of surcharges, compare with provisions of Vietnamese law and international practices, request ship owners to immediately stop collecting unreasonable fees; At the same time, we propose that the Prime Minister soon issue appropriate mechanisms to manage fee collection by foreign shipping lines operating in Vietnam.
Tuesdayrefer to experience in managing foreign shipping lines from neighboring countries to build and complete solutions to strengthen control over the operations of foreign shipping lines, avoid loss of state budget revenue, and protect benefits of domestic businesses.
Before the Vietnam Shippers Association, the Vietnam Association of Agents, Brokers and Maritime Services (VISABA) also sent a document to the Prime Minister and a number of relevant ministries and branches requesting the addition of external surcharges. The price of container shipping services by sea is included in the list of goods and services subject to price declaration to improve the price management mechanism and surcharges for goods at seaports, avoiding cases where Foreign shipping companies arbitrarily increase prices and overcharge, affecting the interests of shippers. In the case of super profitable surcharges, special consumption tax must be imposed…
There needs to be sharing, cooperation and response to negative impacts
Previously, there was a discussion at the meeting to discuss removing difficulties for import-export businesses affected by the tense situation in the Red Sea by the Ministry of Industry and Trade in coordination with the Vietnam Maritime Administration (Ministry of Transport). , the Middle East – Africa Department (Ministry of Foreign Affairs) held on February 6, 2024, representatives of industry associations, import-export businesses, and logistics associations requested shipping companies to share, support and cooperate to jointly respond to negative impacts from the tense situation in the Red Sea, especially stabilizing freight rates and freight fees.
Mr. Nguyen Hoai Nam – Deputy General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP) informed that for frozen seafood products, shipping costs to the West Coast of the US are currently increasing by 70%; to Europe increased about 3.5 – 4 times. Along with the difficulty of declining export orders, tensions in the Red Sea cause additional difficulties for the seafood industry.
Reflecting on the situation of shipping lines collecting additional fees, Ms. Hoang Thi Lien – President of the Vietnam Pepper and Spice Association cited a case where a business had loaded goods on a ship from December 20, 2023 but arrived On January 5, 2024, the shipping company imposed a surcharge of 2,000 USD/40-foot container.
“The application of surcharges by shipping lines without prior notice and without exchange of agreements puts export businesses in a “fish on the chopping board” position.“, Ms. Lien commented and said that with the conflict in the Red Sea, the spice industry has many advantages in exporting to Europe. Although the export value is low, it is greatly affected. Therefore, the relevant ministries and branches need to have sanctions to implement the provisions of Vietnamese law for shipping companies operating in Vietnam, avoiding the situation where shipping companies increase surcharges and surcharges without notice. prior notice, no agreement with the business.
Regarding the application of surcharges by shipping lines, Ms. Nguyen Thi Thuong – Representative of the Vietnam Maritime Administration (Ministry of Transport) said that currently, according to the provisions of Decree No. 146/2016/ND- CP dated November 2, 2016 of the Government stipulates the listing of prices for container shipping services by sea, surcharges in addition to the price of container shipping services by sea, service prices at seaports, and other services. Shipping companies must publicly post freight rates as well as surcharge issues on the shipping company’s website and notify customers. In case of changes or increases, notification must be made 15 days in advance.
“Regarding shipping lines immediately increasing surcharge prices without notice, in any case that shipping lines apply incorrectly, businesses send information to the Vietnam Maritime Administration, which commits to Consider handling cases of shipping lines and enterprises that violate the price listing according to the provisions of lawt”, said a representative of the Vietnam Maritime Administration.
To respond and minimize the negative impacts of the Red Sea situation on import-export activities and freight transport related to Vietnamese businesses, the Import-Export Department recommends groups of solutions such as: price stabilization Freight and shipping fees; cargo routing and alternative route selection; diversifying supply sources of goods; Pay attention when negotiating sales contracts and insurance contracts to closely follow the situation…
It emphasized that shipping lines need to seriously implement the provisions of Vietnamese law, especially the regulations on posting and publicizing shipping rates. Do not impose unfounded fees and surcharges, with rates that are too high, affecting import and export activities.
According to Tapchicongthuong.vn
