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Exporters must bear increased cargo rates
Local exporters stand to lose profits because of the recent increase of freight charges by ocean shipping companies.
Export companies have been hit hard by cargo rate hikes of as much as US$400 per 20-foot container (1 TEU).
Seafood export firms said the increase of freight charges meant problems for them since under C&F (Cost and freight) delivery conditions, sellers have to bear transport costs.
It was hard for export companies to negotiate with importers to raise export prices, said Tran Thien Linh, Director of Thuan Phuoc Seafood Company in central Da Nang City.
"If we maintain the export price, our profits will drop," he added.
Rice exporters also face losses since export prices for rice were calculated on the C&F basis, said Pham Van Bay, Deputy Chairman of the Viet Nam Food Association
The German-based Hapag Lloyd maritime transport carrier has adjusted cargo rates from HCM City to EU countries twice within two weeks.
With the first increase, effective from January 15, the charge for a 20-foot container was raised by $250. And it will be increased by another $150 starting from February.
The Japanese liner MOL from mid-January increased ocean freight rates for all cargo originating in Asia.
The general rate increase for MOL will be $320 per 20-foot equivalent unit, and $400 per 40-foot equivalent unit.
Other firms in the container transport industry including APL, Cosco, Hanjin, Hyundai, NYK and Yang Ming have also announced a two-phase increase in their freight charges.
Sea shipping companies said they had to cover losses suffered during the slowdown last year – When they also had to cut costs as demand dropped due to the global financial crisis.
Analysts blamed the increase on a supply and demand imbalance, adding that shipping companies have reduced their fleets.
vietnamnews
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