Shipping costs erode Vietnamese exporters profit

Vietnamese exporters are facing a mounting crisis as shipping costs to major markets have skyrocketed, severely impacting profit margins.

In recent weeks, the cost of transporting a container to Europe has surged to between $4,000 and $5,000, more than double the price from the same period last year. Similarly, shipping costs to the US have climbed to between $6,000 and $7,000 per container.

Even shipments to closer destinations like China, Japan, South Korea, and Southeast Asia have seen an increase of $1,000 to $2,000 per container.

This dramatic rise in transport costs is forcing exporters to grapple with shrinking profit margins and increased competitiveness in the global market.

A fruit export company in Đồng Nai province reported spending hundreds of thousands of dollars on shipping fees since the beginning of the year. With an average of 100 shipments per month, the company is incurring additional costs of $2,500 per container to Europe and $3,500 to $4,500 per container to the US.

Nguyễn Đình Tùng, director-general of Vina T&T Group, highlighted the volatility of shipping costs, which peaked at $8,700 per container to the US last month but has since cooled down to $6,000.

Vietnamese seafood exporters are also grappling with the rising costs. Cafatex Corporation in Cần Thơ reported an increase of nearly 100 million Vietnamese dongs per container shipped to the US.

The Ministry of Industry and Trade has recommended exploring alternative transport routes to reduce costs. However, industry experts warn that this option is limited to small orders and short-term contracts, and may introduce additional customs duties and procedures.

Attribution: Vietnam News Agency

Subediting: M. S. Salama