Late delivery, export enterprises "lose points"

DNHN - Export enterprises often have to compete to book ships and containers. The price increased as well as shipping time is longer, the train could be booked and then it is often delayed. This not only causes products to be damaged due to being left for a long time but also causes businesses to "lose points" with customers for not delivering on time.

According to Mr Truong Dinh Hoe - General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), currently seafood exports are mainly by sea, mainly from Hai Phong port and Ho Chi Minh City. However, at present, the number of ships and reefer containers in these two areas often cannot meet the demand, so some enterprises are late to export to their partners. 

Mr Nguyen Van Thanh - Director of Phuoc Thanh IV Production and Trading Co., Ltd. said that the increase in sea freight rates comes from many reasons, mainly due to the Covid-19 epidemic, which makes the operating capacity of major seaports has decreased, and the turnaround time for ships is longer than usual. Besides, the speculation of logistics service enterprises, which put empty containers and then sell them back and forth to other units. Through each unit, the container price is pushed up a little bit. 

Forecasting the logistics situation shortly, a representative of the Vietnam Logistics Business Association (VLA) said that the problem of freight rates will not be improved when the phenomenon of port congestion in important areas such as China, the US, and Europe continue and tend to last. China still applies the "Zero Covid" policy, so major ports can still be blocked at any time. This makes international freight rates continue to be volatile until the end of 2023.

Faced with the above situation, he recommended that import-export businesses need to actively negotiate with carriers to allow the application of the "swap container" policy - that is, when importing a certain amount of raw materials, businesses agree with shipping lines to keep empty containers for export and vice versa. This helps import and export activities not be interrupted by waiting for empty containers and booking seats on the ship, thereby reducing costs and transportation time. 

Enterprises also need to look for reputable, reputable tier-1 shipping agents in the market to limit bookings through many agents, leading to higher freight rates and surcharges compared to public prices of the shipping company. At the same time, it is necessary to understand and control the structure of transportation costs by route, and by the unit of goods to have the optimal choice for transportation.

Lâm Nghi