For nearly a year, Vietnamese businesses have struggled to find a way to export goods in the context of a galloping increase in container freight rates and no signs of stopping.
With 90% of export goods dependent on foreign shipping lines, Vietnamese enterprises are forced to accept high prices if they do not want goods to be congested. Faced with this situation, what have the management agencies done to solve it?
Currently, 90% of export goods of Vietnamese enterprises depend on foreign shipping lines
Mr. Hoang Hong Giang (Deputy Director of Vietnam Maritime Administration):
Transparency of freight rates by exchanges
The inspection results of the Inter-sectoral Working Group on prices and surcharges in addition to the price of container freight services by sea of shipping lines operating routes to Europe and America show that, for customers signing contracts with long-term contract, the freight rate is kept fixed and not adjusted by price changes during the contract period. For small shippers who do not sign long-term transport contracts, the freight rates are floating according to the market.
However, in principle, it is difficult for the State management agency to control the freight rates of shipping lines because prices operate according to market rules.
On the other hand, because Vietnam does not have an international logistics company reaching Europe and America, 80-90% of Vietnam’s import and export goods are still following the custom of buying CIF and selling FOB (transportation conditions). common goods – PV), the right to charter ships and pay freight rates belongs to foreign partners, so it is very difficult for Vietnamese goods owners to interfere in the international transport chain.
Mr. Hoang Hong Giang
To ensure the benefits of freight rates for Vietnamese import and export enterprises, it is necessary to build a solution system. The first is to be transparent about freight rates by trading floors, avoiding the phenomenon that the headquarters (parent company) of foreign shipping lines announce the freight rate of $5,000, but agents in Vietnam “blow” the price to $7,000.
Next is transparency about service quality. The Vietnam Maritime Administration will advise the competent authorities to learn international practices to develop appropriate regulations, requiring shipping lines when operating at Vietnamese seaports to register and ensure the stability of the number of shipping lines. route, number of trips, number of vehicles, time frame of operation, number of seats available to shippers…
Regarding short-term solutions, the Department will work with related agencies, businesses and associations to work with associations, representatives of European and American businesses and shipping lines to propose stabilizing shipping prices to have can long-term exploit the potential market in Vietnam; Strengthen inspection and supervision of price listing of foreign carriers in accordance with current regulations.
At the same time, ensure smooth procedures, channel infrastructure for large ships to navigate smoothly, avoiding congestion.
The current situation of “hot” freight rates takes place globally and regionally, not only in Vietnam. In fact, at one point, the number of empty containers brought to Vietnam by foreign shipping lines was more than other markets like Thailand. They even added more trips, more routes to work with Vietnamese authorities and shippers to maintain and operate the cargo transport chain, so it was reported that shipping lines suppressed container freight rates with exporters. Vietnam import is not authenticated.
Mr. Tran Thanh Hai, Deputy Director of Import-Export Department (Ministry of Industry and Trade):
Keep abreast of developments to propose and make appropriate recommendations
Mr. Tran Thanh Hai
Logistics costs in Vietnam are still high for many reasons such as: Transportation costs, especially road transport, are still high due to the lack of synchronization in the transport infrastructure system, the lack of connectivity between modes of transport. limit; The competitiveness of enterprises is still low due to limitations in business size and capital, experience and management qualifications; fees and surcharges regulated by foreign shipping lines…
Cutting logistics costs is one of the key tasks to improve competitiveness and develop logistics services in Vietnam. Therefore, in the coming time, the Ministry will continue to review and simplify administrative procedures and specialized inspection procedures for goods under the management of the Ministry of Industry and Trade.
At the same time, coordinate with ministries, branches and localities to review and implement the planning on development of logistics centers in the whole country, ensuring synchronization and conformity with the planning on development of the transport infrastructure system. loading and other planning.
In addition, closely following the situation of shipping rates and reflections of goods import and export enterprises to have solutions, recommendations and suggestions for appropriate handling.
However, cutting logistics costs requires close coordination efforts between many parties. To achieve the goal of reducing logistics costs, it is necessary to have close coordination and synchronization of both short-term and long-term solutions from ministries, sectors, localities, associations and the initiative and innovation from the government. logistics enterprises themselves.
Mr. Pham Quoc Long (Chairman of the Association of Marine Agents and Brokers):
Need a specific tariff frame
Mr. Pham Quoc Long
The fact that the shipping company raised prices blatantly in addition to the reason of the Covid-19 epidemic caused the port operation to be congested, the turnaround speed of vehicles and containers was slow, the carrier had to adjust the price to cover the costs The root cause is also due to the limitation of the number of carriers and the increasingly strong alliances and links between shipping lines.
Specifically, in the previous period, there were about 20 major shipping lines participating in the world container transport market, but in the last 2-3 years, the process of mergers and acquisitions between carriers has made the number of carriers only 8 major shipping lines, divided into 3 alliances. The fewer shipping lines, the less choice Vietnamese shippers have and suffer from price dependence.
In fact, at present, Decree 146/2016 stipulating the listing of prices and surcharges in addition to the price of container freight services by sea and service prices at seaports only requires shipping lines to register and list prices. in the case of adjustment of shipping rates, additional surcharges on top of the price without requiring carriers to register a specific price bracket. The increase and decrease is completely decided by shipping lines.
Therefore, the current registration regulations are also of little value to management. Moreover, the form of handling for foreign shipping lines that list prices late or late is only an administrative penalty with a very low fine, insignificant compared to each price increase or surcharge of the shipping line.
Frankly, because the Vietnamese fleet only handles a very small percentage of import and export goods (mainly operating in the intra-Asia region), the container shipping playground almost belongs to foreign shipping lines. so it is very difficult to control the price they apply.
The optimal solution for Vietnamese import-export businesses to enjoy good freight rates today is that we need strong enough industry associations to negotiate with shipping lines, offering a reasonable price for shippers in the future. country.
In the context of the country’s deep economic integration, the Ministry of Transport and the Vietnam Maritime Administration need to make the most of current legal documents and study trade agreements with other countries to have appropriate regulations. on the requirement of shipping lines to register for specific route numbers and tariff brackets when operating at Vietnamese seaports.
The registration fee must have a floor, a ceiling for each specific leg, not floating, increase as much as you like, decrease as much as you want, without explaining why.
Freight rates are negotiated by the carrier and the lessee
A representative of the Price Management Department, the Ministry of Finance said, according to the provisions of the Law on Prices and guiding documents, sea freight rates and surcharges in addition to sea freight service prices are not on the list of goods. , State services to set prices, stabilize prices and list of goods and services to declare prices.
According to the provisions of the Maritime Code, the freight rate by sea shall be negotiated by the carrier and the charterer and stated in the contract. Enterprises shall list prices in accordance with the law on prices and list surcharges in addition to sea freight service prices (if any) according to the provisions of Decree No. 146/2016 on price listing, surcharges in addition to the price of container freight services by sea, service prices at seaports.
“Performing the state management function, the Ministry of Transport has presided over and coordinated with the Ministry of Finance and the Ministry of Industry and Trade to set up a team to inspect the listing of prices and surcharges in addition to the price of container freight services by sea and project. The test results will be made public in the near future,” he said.
According to the Traffic Newspaper
