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Shipping costs on the rise in Vietnam - impacting exporters

Industry insiders and experts have reported a surge in shipping fees from Vietnam to major markets in the EU and the US, affecting exporters' profit margins. The cost for transporting a container to Europe has escalated to $4,000-5,000, marking a significant increase from the previous year. Similarly, the price to ship a container to the US is now $6,000-7,000. Even routes to closer destinations like China, Japan, South Korea, and Southeast Asia have seen an increase of $1,000-2,000 per container. This rise in shipping costs has raised concerns among exporters about their shrinking profit margins and competitive edge in the global market.

The CEO of a fruit export company in Đồng Nai highlighted the financial burden, with shipping costs to Europe and the US rising by thousands of dollars per container, impacting the company's monthly expenses severely. Nguyễn Đình Tùng, director-general of Vina T&T Group, noted that the cost of shipping a container to the US had peaked at $8,700 last month, before dropping to $6,000, still nearly double last year's figures.

With daily shipments, the financial strain is substantial, and renegotiating contracts with customers has become a necessity to manage delivery costs. Nguyễn Văn Kịch, CEO of Cafatex Corporation, echoed these concerns, stating that Vietnamese seafood exporters are struggling with the increased transport costs to the US.

Source: vietnamnews.vn

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