Vietnam Faces Difficulties In Exporting Due To Lack Of Empty Containers

Vietnam News Agency reported on December 10 that the end of the year is the time node for enterprises to speed up exports and serve the consumption demand of Christmas and new year's day. However, almost all export industries in Vietnam are facing common problems, namely, the lack of empty container loading and the soaring sea freight prices, which cause many enterprises to worry.

According to the survey of Vietnam Logistics Service Enterprises Association, nearly 40% of enterprises said they encountered the problem of no empty containers. Enterprises said that the shortage of containers began in September, and the closer it was to the end of the year, the more serious it was. Shipping prices have soared 4-5 times. Usually, the price of 20 foot containers to the United States is 800-900 US dollars / piece. Now it has risen to 3300 US dollars, and to 6000 US dollars / piece in Germany, there is no empty container.

In addition, enterprises can not wait for empty containers, the goods are left in the warehouse, or detained in the port waiting for packing, which will cause costs and affect the quality of goods. Some enterprises were difficult to maintain their operations during the new outbreak. When the epidemic situation improved, they wanted to speed up exports, but they encountered transportation problems. The enterprise is not easy to book a position, but was told that there is no empty container. Logistics enterprises said that at present, not one shipping company or one route is short of containers, but all shipping companies are short of containers on all routes, so enterprises can only wait.

Many enterprises have never had such a serious shortage. With the increasing freight rate of shipping companies, enterprises must scramble to get containers to load goods.

The price changes every day, even if there is no empty container, the price can double every other week. If this situation continues, Vietnamese enterprises will not be able to export, and this is the time to speed up exports to increase annual income.

At present, exporters can only wait for empty containers to be loaded according to the quotation of shipping companies, and there is no room for negotiation. This situation will greatly affect the flow of goods and exports. And most shipping companies are foreign, so companies don't know who to look for.

Cmacgm Vietnam said that the situation is not only in Vietnam, but all countries in the world are suffering from the same difficulties caused by the new outbreak. After being interrupted for a long time, the export enterprises concentrated on delivering the orders that had been delayed before, and there were not many containers for loading and importing into Vietnam, resulting in the lack of empty containers.

On the other hand, so far, China's major ports have been transshipment ports from regional countries to other continents, especially the United States. However, due to trade friction between China and the United States in the past period of time, the export of goods from China to the United States was not smooth, which led to the retailers in the region to transfer their transshipment places to Vietnam, and then exported to the United States and other markets, resulting in the increase in demand for air containers in Vietnam.

As for freight, due to the requirements of epidemic prevention, disinfection and monitoring must be carried out for goods, containers and ships entering and leaving the port, which leads to a slight increase in costs. In terms of container leasing, the shipping companies must adjust the price according to the strong market demand.

Three months ago, the price of a 20 foot container from Vietnam to China ranged from $5 to $10. Now shipping companies are offering more than $150. Freight to India and the Middle East increased from $200-300 / container to $1500. At the same time, prices are also rising in other regions, such as Europe and the United States, which is unprecedented in the shipping industry for decades.

At the same time, some logistics service companies believe that shipping companies may take advantage of the situation of cargo congestion after the epidemic, and at the same time raise freight and container rental fees to make up for the loss of shipping interruption caused by the epidemic.

Logistics service companies forecast that container shortage and freight increase may continue until the end of the first quarter of 2021, when the market demand for goods will decline after the holiday.