Amidst the surge in shipping costs for containerized goods to Europe and the Americas, the Ministry of Transport has recently sent an official letter to the Vietnam Maritime Administration, requesting support for businesses.
In response, the Ministry of Transport has requested the specialized state management agency for maritime affairs to take the lead, coordinate with relevant agencies and units, and ensure the smooth operation of the national seaport system. Simultaneously, favorable conditions are to be created for import and export transportation while researching and promptly implementing solutions to enhance the efficiency of maritime infrastructure exploitation.
The Vietnam Maritime Administration has also been tasked with expediting procedures for vessels entering and leaving ports, as well as loading and unloading goods for vessels transporting import and export goods, especially containers bound for the Americas and Europe. Urgent efforts are being made to work with shipping companies operating routes to the Americas and Europe, urging them to maintain and supplement container capacity in Vietnam to meet the demand for cargo transportation.
The Ministry of Transport has assigned the Vietnam Maritime Administration to research policy mechanisms to attract container shipping lines to open new routes to Vietnam. Furthermore, there is an urgent need to study and streamline administrative procedures, particularly those related to maritime activities.
According to the container shipping price index from Drewry (an independent maritime research center), the service fees for transporting containers from Asia to Europe and the Americas experienced significant fluctuations in the first week of January 2024, increasing by about 60% compared to the end of 2023 and 25% compared to the same period last year. Currently, prices are approximately 88% higher than pre-COVID-19 levels and 1-2% lower than the average prices of the past 10 years.
In addition to the price increases, the transportation market is also witnessing cancellations and omissions of voyages. Drewry's report indicates that on major shipping routes worldwide, including the Pacific, Atlantic, Asia-Northern Europe, and the Mediterranean, 78 out of 650 routes were canceled from the second week of January 2024 to mid-February 2024, accounting for a cancellation rate of 12%.
The Vietnam Maritime Administration explains that traditionally, for routes from Asia to Europe, the route through the Red Sea and the Suez Canal is the shortest with optimal costs. However, since the end of 2023, due to conflicts in the Red Sea region, shipping companies have had to change routes, bypassing the Suez Canal and taking a longer route around the Cape of Good Hope, resulting in a 10 to 14-day extension of the journey compared to before. This has led to additional transportation costs, contributing to the surge in shipping prices and the potential occurrence of container shortages."
Source: Bnew.vn
