Responding to the surge in container shipping costs to Europe and the Americas by sea, the Vietnamese Ministry of Transport has instructed the Vietnam Maritime Administration and relevant agencies to provide support to enterprises.
The Vietnam Maritime Administration is tasked with ensuring the smooth operation of seaports nationwide, expediting customs clearance procedures for imports and exports, especially for containers bound for Europe and the Americas. Additionally, the administration is urged to devise and implement solutions to enhance the utilization of maritime infrastructure.
Swift engagement with shipping companies operating routes to Europe and the Americas is emphasized, encouraging them to maintain these routes and transport additional empty containers to Vietnam to meet the growing demand for cargo transport.
The Ministry of Transport has directed the Vietnam Maritime Administration to explore policies incentivizing foreign container shipping companies to establish new routes to Vietnam, with a focus on streamlining administrative procedures.
Earlier reports from the administration revealed a significant increase in container shipping service prices from Asia to Europe and the Americas, with a 60% surge over the end of the previous year and a 25% year-on-year increase in the first week of this month.
Specifically, the freight rate from Vietnam to U.S. West Coast ports has risen to $2,650 per 40-foot container, while shipping costs to U.S. East Coast ports and Europe have reached $3,900 and $4,900 per 40-foot container, respectively.
Escalating tensions in the Red Sea region have led to changes in shipping routes, with shipping lines opting for routes through the Cape of Good Hope, lengthening shipping times by 10-14 days.
As a result of disruptions in sea shipping due to attacks on vessels in the Red Sea, shippers are increasingly resorting to more expensive air freight from Vietnam to Europe. Cargo volumes from Vietnam to Europe saw a 62% surge in the week ending January 14 from the previous week, accompanied by a 10% increase in rates, according to Niall van de Wouw, chief air freight officer for the air and ocean freight rate benchmarking platform.