Risk of widespread congestion
Container shipping freight rates have been rising vertically in recent days.
According to statistics from the independent Drewry Maritime Research Center, container freight rates on the Asia-US route have increased by about 12-17% depending on the route.
The latest Drewry WCI composite index is $5,868 per 40-foot container, 313% higher than the 2019 (pre-pandemic) average rate of $1,420.
Vietnamese shipping businesses benefit from rising freight rates, but still face many challenges.
Freight rates are expected to continue to rise as ports in Asia grapple with congestion in Singapore, which is showing signs of spreading to Malaysia.
In contrast to the soaring indexes of the shipping market to the US and Europe, short-haul routes in the intra-Asian market remain relatively stable, although there has been a slight increase in "freeloading" style.
According to shipping companies, freight rates on current routes have increased by about 10-20% compared to the end of 2023.
Mr. Nguyen Minh Tien, Head of Business Department, Bien Dong Transport Company Limited, said that Vietnam's fleet is still small, mainly running domestically or further to the intra-Asian market, so it does not benefit much from the increase in freight rates.
In fact, cargo output has gradually increased since the second quarter, reaching about 70 - 80% of ship capacity (instead of 50 - 60% as before).
Shipping companies have been gradually making profits, but not much because fuel prices are still rising. It is estimated that fuel costs have increased by about 10% compared to last year.
Ship rental prices also increased.
Not only transportation, the ship charter market also has positive developments. For the same size ship, the previous rental price was about 15,000 USD/day, now it is 20,000 USD/day, depending on the rental period and the route.
If rented short term 3 - 6 months, the average price is 17,000 - 18,000 USD/day, long term about 1 year is 11,000 - 12,000 USD/day.
According to experts, ship chartering activities are always in a cycle according to the market's supply and demand laws and the State cannot intervene.
A year ago, commodity prices declined, the market was oversupplied, and rental prices fell sharply.
Currently, due to geopolitical instability in the Red Sea region, the time spent at sea by ships is longer. As a result, the supply is reduced, leading to an increase in demand and rental prices.
However, the price of renting a ship depends on many factors such as origin, age, size, and whether the ship is fuel-efficient or not.
The same size and running on the same route, the rental price can still differ by thousands of USD.
"The majority of Vietnam's fleet is old ships that consume a lot of fuel, so the rental cost will be much lower than newly built ships," a business shared.
Efforts to seize opportunities
The market has many bright spots and positive signals, so businesses are also trying to seize opportunities.
For example, in addition to domestic operations, Bien Dong Transport also operates ships on the India - Malaysia route after the lease expires.
Hai An Shipping Company cooperates with foreign shipping companies to operate domestic and intra-Asian routes, and leases newly built ships to foreign countries.
Vietnam Maritime Transport Joint Stock Company (Vosco) also seeks many business and cooperation options, and wins transportation rights...
According to a representative of Vietnam National Shipping Lines (VIMC), shipping and logistics are a chain of dominoes. The congestion at Singapore seaports changes the supply and demand chain, causing freight rates to increase.
However, the impact on each market and segment will be different.
"For Vietnamese shipping companies in general and VIMC in particular, they usually only transport short routes, so the impact of the actual market is not large," said a VIMC representative.
Businesses admit that it is not easy for Vietnamese shipping to truly benefit from the international maritime market due to its small fleet.
Not to mention, businesses themselves are also affected by congestion problems at seaports in the Asian region.
As a company operating the train route between India and Malaysia, Mr. Tien said that seaports in Malaysia are also facing congestion.
Currently, East Sea Transport ships entering Port K'lang seaport must wait 1-2 days before being allowed to load cargo.
Fuel costs alone for waiting ships have increased by about 15%.
A leader of Hai An Transport and Stevedoring Joint Stock Company said that previously, ships arriving at the port in Singapore could load cargo immediately, but now all ships have to wait, making the turnaround time longer.
This causes businesses to suffer losses in costs, while the total revenue of a train remains the same.
"It is also difficult for the company to restructure routes to clear goods at other ports like large foreign shipping lines due to the small quantity and dependence on partners," said a Hai An leader.
According to maritime experts, market fluctuations are now very rapid, no longer following the rules or cycles of the past.
Previously, the fluctuation cycle was usually about 2 years, but now it is changing weekly, even daily.
Therefore, how to make a profitable business is quite a headache for businesses. However, many experts believe that from now until the end of 2024, the shipping market will continue to maintain its growth momentum.
Source: https://www.baogiaothong.vn/doi-tau-viet-co-de-bat-song-thi-truong-192240716001049032.htm
Comment (0)