Logistics costs up enormously due to lack of empty containers

Vietnam’s Import and Export Sub-Department has received complaints from businesses and business groups about a shortage of containers that has led to an unprecedented increase in shipping tariffs. According to its deputy director Tran Thanh Hai, the cost of transporting a container to EU countries now is around US$10,000 as against a normal rate of US$1,500-1,800.

Due to the -19 epidemic, the EU and the US buy goods from East Asia but cannot return empty containers because of border closures, he explained.

Nguyen Dinh Tung, chairman and general director of fruit exporter Vina T&T Group, stated there was a shortage of containers for shipping dry goods, while the cost of shipping to the US has increased by nearly three times since last year.

A spokesperson from the Vietnam Logistics Business Association told en.vietnamplus.vn that part of the cause is that Vietnam is a trade surplus country. In the third quarter exports increased by 11 percent year-on-year. Besides, due to the weather, the transportation of empty containers back from the US, Japan and China has been difficult.

To overcome the current situation, Vietnam Logistics Business Association depots should be tasked with repairing empty containers to reduce the waiting time for them, and ships should work closer with depots and accurately notify their empty containers situation, experts say.

Photo source: Dreamtime.com

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