Shipping costs gone down to pre-pandemic level

Shipping costs gone down to pre-pandemic level

Freighters have even started accepting small orders at low prices in the hope they may be able to pool them together to make a trip worthwhile.

Freighters have even started accepting small orders at low prices in the hope they may be able to pool them together to make a trip worthwhile.

Containers at a sea port in northern Việt Nam. — VNA/VNS Photo


HẢI PHÒNG — After skyrocketing to a historic level during the pandemic, sea transport prices have steadily gone down to almost pre-pandemic level with a large number of containers available as freighters making generous offers to exporters.Đặng Đình Long, CEO of Logistics Mega A, a logistics and warehouse solutions company in Việt Nam, said traditionally, this time of the year would be high-season for freighters and exporters alike with Vietnamese firms looking to deliver their goods to international markets.

"We must stay open for business. Even small orders now are a good thing as we can save on storage cost for all those empty containers lying at the ports," he said.

Long said a 40-feet container heading for China that could bring in US$7,000-8,000 just four months ago has now dropped to $1,600-1,700. The US was not much better, at just under $2,000 per container and slightly higher at $2,200 for US East Coast.

According to a report by the General Department of Vietnam Customs, Việt Nam's export in the month of September decreased significantly, bringing sea transport costs to a new low. Particularly, the shipping cost to the EU has dropped as low as $900, a 50 per cent decrease from the beginning of the year.

Nguyễn Đình Tùng, CEO of Vina T&T Group, said shipping cost has come down to near pre-pandemic level.

"This has been a reflection of the global economy heading for a recession. Consumers in international markets were increasingly made to choose more affordable, instead of luxury high-quality import goods," he said.

In addition, slow sales resulted in a high inventory level and fewer new orders from retailers, especially for high-end commodities. That's not to say everyone was affected equally, he said, exporters of basic commodities should be doing quite well as demand for their goods largely remained unchanged while shipping costs went down.

Phan Minh Thông, chairman of Phúc Sinh JSC., a Vietnamese food exporter company, said his company's shipping cost has gone down to the pre-pandemic level after shooting up almost tenfold during the pandemic.

"We have been spending around VNĐ4 billion on shipping per month. It [reduction in shipping cost] has been a tremendous help for the company compared to during the pandemic," he said.

Shipping, however, is only a factor in an exporter's input cost.

Nguyễn Quốc Anh, president of the HCM City Rubber and Plastic Association, said while shipping cost has gone down other logistics-related costs remained unchanged.

"For us, it makes little difference. A large part of our input cost comes from importing raw materials. As the US dollar continued to appreciate, our bottom line has benefited very little," said Anh.

Coupled with lower demand in both domestic and international markets, rubber and plastic producers have seen sales dropping from 20-40 per cent compared to the beginning of 2022.

Anh said the gloomy picture is likely here to stay, at least until the end of the second quarter of next year.

"The next 8-9 months will prove crucial for us. A significant drop in orders, increased pressure on cash flow and financial liabilities will put everyone to the test," he added.

Anh said for the time being, the top priority is to maintain production, even at minimum, to sustain the labour force and be ready for when the market recovers. — VNS

vietnamnews.vn

Ý kiến bạn đọc
Chủ đề liên quan
Có thể bạn sẽ quan tâm

Regional linkages to enhance the value of Vietnamese goods in the supply chain

The logistics service chain linking product consumption and distribution is a bottleneck, hindering the growth of the southern key economic region.

Increase the competitiveness of goods from logistics services

The Mekong Delta is the rice, fishery and fruit bowl of the whole country. Therefore, developing a worthy logistics system and improving the competitiveness of key goods of the region in the direction of efficiency and sustainability is essential.

Development of logistics competitive index aims to develop logistics industry

The launch of the Vietnam Provincial Logistics Competitiveness Index (LCI) is expected to help reduce logistics costs, support production and export development, and attract foreign investment more effectively in the future

Hanoi establishes Logistics Association

On 12/11, Hanoi Logistics Association held the first Congress for the term 2022-2025.

CNL delivered Pet Chip to the USA via two breakbulk vessels.

In april of this year 2022, with trust from customers, CNL Transport handled two shipments of Pet Chip for delivery to the United States.

Hai Phong - regional logistics service center - Last post: Human resource development levers

Hai Phong has been offering breakthrough policies and solutions, capturing new ideas to further promote advantages, enhance the role of logistics services in the economic structure of the city, strengthen connectivity and create diffusion in the region. However, human resources for this industry are still modest, requiring a sustainable development strategy.

By 2025, the ICD could handle up to 8.7 million tons of cargo.

By 2025, develop a dry port system capable of approving about 20% - 30% of the demand for import and export container transport with a total capacity of about 6 - 8.7 million Teu / year.

Global 3PL logistics growth rate reaches 9%

The global third-party logistics (3PL) market size is expected to grow from $900 billion (2021) to $990 billion this year at a 9.4% CAGR, according to Business Research Company.

Long An develops border trade infrastructure

Enterprises believe that there should be mechanisms and policies to promote investment in border areas; At the same time, it is necessary to focus on investing in the development of transport infrastructure and smooth connectivity for trade.

8 Golden rules when loading and transporting goods by container

PRINCIPLE 1: CLEAN THE CONTAINER, DEODORIZE BEFORE LOADING THE CONTAINER There are many items that are smelly, and a lot...