The Việt Nam Maritime
Administration (Vinamarine) has issued a call to action, urging measures to
mitigate the adverse effects on imports and exports. The rising costs are attributed to a combination of factors, including
heightened demand, geopolitical disruptions, and logistical challenges.
Vinamarine’s data reveals a worrying trend: global container shipping fees have surged by
12%, with routes from Asia to Europe witnessing increases of 11-14%. The
overall increase in international container shipping rates exceeds 70% compared
to the same period last year and is over 110% higher than pre-pandemic levels.
The Red Sea conflicts, a shortage of empty containers, and surging
transportation demands are poised to drive sea freight rates to levels
reminiscent of the COVID-19 pandemic peak. Previously,
freight rates were quoted for 15-30 days, but now quotes are provided for just
a week, reflecting the rapid and unpredictable changes in the market.
Despite the current rates being double those of recent months, they are still
five times lower than the unprecedented highs seen during the pandemic.
The surge in freight costs
disproportionately affects small and medium-sized enterprises (SMEs),
particularly those that rely on short-term charter contracts. In Vietnam, where SMEs constitute the
majority of businesses, the impact is profound. Long suggested that
Vietnamese charterers should collaborate to consolidate goods, thereby
enhancing their bargaining power with carriers. This collective approach could
potentially lead to more favorable negotiation outcomes. In response to the escalating crisis, the Ministry of Transport has
directed Vinamarine to collaborate with port companies, associations, and
shipping lines to identify issues and propose solutions. Enhanced
supervision of port service charges and surcharges, alongside container
shipping fees, is one of the measures being considered to alleviate the
financial burden on businesses. Efforts
to prevent port congestion, ensure the availability of empty containers, and
expedite the release of goods are also being prioritized
According to Drewry, a leading
maritime research consultancy, the average composite index of container freight
rates has seen substantial increases across various trade lanes, reflecting a
broader trend of rising costs in maritime logistics. In the United States, the
Federal Maritime Commission (FMC) has been investigating potential price
gouging and anti-competitive practices among shipping lines. Meanwhile, the European Union is
considering regulatory interventions to address the supply chain disruptions
that have plagued the continent.
The current situation
requires coordinated efforts at both national and international levels.
Enhanced regulatory frameworks, strategic collaborations, and technological
innovations in logistics management will be crucial in navigating the turbulent
waters of global trade. For Vietnam, fostering a resilient maritime sector
through policy support, infrastructure investment, and stakeholder
collaboration will be key to mitigating the impact of rising sea freight costs.
In the face of such challenges, global supply chains’ resilience and
adaptability will be tested. The
solutions devised today will shape the future of international trade,
determining how effectively the world can respond to and recover from economic
disruptions.