HIGHLIGHTS
- The accumulation of exports from the road to the sea is causing the situation of “black market trading” of refrigerated containers. This pushed the price of refrigerated containers to spike.
- It’s time for businesses to change their thinking, change the export method from the road in the direction of small quotas to by waterway in the direction of official channels because for sustainable development, shipping lines need a stable commitment.
FULL ARTICLE
Refrigerated container prices are skyrocketing
Mr. Pham Ngoc Thanh, Deputy General Director of Dong Giao Foodstuff Export Joint Stock Company (DOVECO) said that the accumulation of exports from the road to the sea is causing the situation of “black market trading” of refrigerated containers. This pushed the price of refrigerated containers to spike.
According to Mr. Nguyen Dinh Tung, General Director of Vina T&T Group, the “dancing” of refrigerated container prices makes it very difficult for businesses to negotiate trade. Currently, the cost of transportation, logistics, and especially renting refrigerated containers has increased to an absurd level.
Ms. Pham Thi Thuy Van, Deputy Marketing Director of Saigon Newport Corporation also stated that there is a shortage of empty refrigerated containers because this type of container is only used one way (in the direction of exporting goods to China).
Meanwhile, in the direction of importing goods, only “dry” containers are used, leading to the difference in rental fees between Vietnam and China seaports.
Mr. Mai Xuan Thin, Director of Red Dragon Company, also asked the question: Price adjustment, but will there be a stop? International transportation is an essential need for farmers and businesses, so there should be a ceiling for this type of transportation cost.
Reduce business competition opportunities
A representative of Vina T&T Group also shared that the high freight rates forced me to increase product prices. This led to reduced competition with other countries, especially in the Chinese market. Vietnamese agricultural products also have a “heavy competitor,” which is Thai agricultural products and fruits.
Mr. Tran Thanh Hai, Deputy Director of the Import-Export Department (Ministry of Industry and Trade), also said that in fact, many Vietnamese enterprises have made good use of the sea route, but some shippers are afraid to change, so they still accept the risk of sending goods by road.
Mr. Mai Xuan Thin, CEO of Red Dragon, said that the best solution is to develop cold fleets; this type of ship is transporting a lot of Madagascar lychees, bananas from South America and America or from the Philippines to China; salmon from Nordic to China, etc.
It’s time for businesses to change their thinking, change the export method from the road in the direction of small quotas to by waterway in the direction of official channels because for sustainable development, shipping lines need a stable commitment.
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