Container shipping rates skyrocket, Maritime Administration holds urgent meeting with businesses

According to statistics on container freight rates index of Drewry (an independent maritime research center providing information on the maritime market), container shipping service prices from Asia to Europe and America started to increase from the beginning of 2024, peaking at the end of January 2024.

Leaders of Vietnam Maritime Administration inspect the container yard at Cat Lai port

In February, the fares gradually leveled out and reached their lowest point on April 25, at which point the price had dropped 32% compared to January. By May, the price had continued to increase rapidly again, currently the price is 17% higher than in January and 45% higher than the peak price during the pandemic (September 2021).

Container freight rates from Asia to Europe and the US have seen the largest increase. However, the rates from America, Europe to Asia and intra-Asian shipping routes have not fluctuated much.

According to the Vietnam Maritime Administration, container shipping rates are regulated according to the international market, fluctuating according to market supply and demand. Vietnam is a link in the global supply chain of goods , so Vietnam's shipping rates are also adjusted according to the general price of the world market.

Regarding the volume of imported and exported container goods through Vietnamese seaports in the first 5 months of 2024, it reached 7.56 million TEUs, an increase of 16% over the same period in 2023. This is the highest growth rate in the past 5 years.

At the meeting, a representative of Tan Cang Hai Phong International Container Terminal Company Limited (TC-HICT) said that currently there is no congestion of empty containers at the port, the problem of empty container overload at the port is only temporary.

Gemalink port representative said that the port has prepared a plan to receive cargo output in the coming time due to congestion at Singapore port, the shipping line will switch to neighboring markets, including Vietnam due to the advantage of deep-water ports.

Regarding transportation routes, there has also been remarkable growth. In Hai Phong area, there are 7 transportation routes to America; in Cai Mep - Thi Vai port area, there are over 35 transportation routes to Europe, America and intra-Asia.

Currently, container shells still meet the demand for exporting goods.

According to shipping lines' reports, the Chinese market is in need of a large number of empty containers to serve exports to the US before August 1, 2024. Therefore, there is a tendency for shipping lines to transfer empty containers to the Chinese market, which may affect the balance of empty containers.

However, this situation is expected to end soon. At the meeting, representatives of major shipping lines providing container shipping services to Europe and the US affirmed that "there is no shortage of containers". For now, we will ensure that we can meet the demand for import and export of goods for the Vietnamese market.

Port businesses also confirmed that the situation of ships entering and leaving the seaport is smooth and efficient, with no cargo congestion. The ports are still capable of meeting the volume of ships even in the event of a forecast increase in cargo in the coming time.

Mr. Le Do Muoi, Director of the Vietnam Maritime Administration, shared the difficulties that businesses have encountered in recent times due to the impact of increased freight rates. The subjects most affected by the increase in freight rates are small individual shippers.

For large shippers with stable sources of goods signing long-term contracts, freight rates will be kept stable and unchanged while the contract is still in effect.

To avoid being affected by fluctuations in freight rates and transportation schedules, the Director of the Vietnam Maritime Administration suggested that maritime industry associations develop production plans and transportation plans as a basis for signing long-term contracts with shipping lines, minimizing the impact of freight rates, especially in a period when the market has many complex and unpredictable developments like today.

Source: https://thanhnien.vn/gia-cuoc-container-tau-bien-tang-nong-cuc-hang-hai-hop-khan-voi-doanh-nghiep-18524061719373258.htm