Source: Economic and Commercial Office, Consulate General in Ho Chi Minh City
Vietnam’s Commerce and Industry Daily reported on March 13 that the price of refined oil continued to rise in February and March this year, making transportation companies nervous as production could not be restored to pre-epidemic levels and input costs were too high.
From land to sea, shipping companies are preparing to raise prices. The head office of Sai Kung New Port has recently informed shipping lines that it will adjust the prices of container transport services by land and water between Gila – Heep Fuk port, Tong Nai Port and the related ICD. The price will increase by 10 to 30 percent from 2019. The adjusted prices will take effect on April 1.
Routes from Tong Nai to Gilai, for example, will rise by 10%. A 40H’ container (similar to a 40ft container) carries 3.05 million dong by land and 1.38 million dong by water.
The line from IDC to Gilai New port increased the most, up to 30%, 40H’ container price of 1.2 million dong, 40 feet set 1.5 million dong. According to the Saigon Newport corporation, fuel, freight and handling costs have all increased at the ports and ICD. As a result, the company has been forced to raise prices to maintain service.
The pressure of high oil prices has anchored shipping costs, making it difficult for many importers and exporters, not to mention congestion at ports, especially in the United States. According to ONE Shipping’s latest announcement, shipping rates to Europe (currently around $7,300 per 20-foot container) will rise by $800- $1,000 from March.
Most transportation companies expect fuel prices to continue to rise between now and the end of the year. Therefore, in addition to negotiating to adjust freight rates, merchants also need to review the company’s entire transportation process to reduce costs, so that transportation costs do not fluctuate like the price of refined oil.
Post time: Mar-23-2022