Vietnam warns of up to 80% surge in international shipping rates


FILE PHOTO: Hai Phong port cluster in Vietnam in 2023. Rising logistics costs are expected to affect import-export prices and erode Vietnam's competitive edge. — Vietnam News/ANN

HANOI: Vietnam's international shipping rates could rise by 50 to 80 per cent as tensions in the Middle East disrupt supply chains, local media outlet VnExpress reported Wednesday (April 1).

Marine fuel prices have increased to US$1,100 to 2,000 per tonne from US$550 to 750 before the conflict, forcing shipping lines to adjust freight rates, as fuel accounts for 30 to 40 per cent of total costs, the report said, citing the Vietnam Maritime and Waterway Administration.

As rising logistics costs are expected to affect import-export prices and erode Vietnam's competitive edge, the administration suggested tightening supervision of pricing and surcharges while working with carriers to stabilise transport capacity and curb unreasonable price hikes.

Domestic container transport prices have climbed by seven to 12 per cent since mid-March, with rates on the Hai Phong-Ho Chi Minh City route reaching up to 2.8 million Vietnamese dong (about US$111.56) per 20-foot container and 5.3 million Vietnamese dong (about US$211.17) per 40-foot container, with higher rates on the return leg. - Xinhua

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