Rising logistics prices hit exporters, inflicting them to say no orders

HANOI: Rising logistics prices are hindering exports, placing companies in danger.

Le Thi My Hanh, basic director of Banana Brother Farm JSC, famous that prices had elevated by three to 4 million Vietnamese dong (US$131 to US$175 or RM547 to RM730) per truck to move bananas from rising areas to frame gates or seaports.

Delivery traces have raised freight charges, including a value of a minimum of 30 million dong (RM5,479) to each container shipped to China.

As her agency has been in a dire scenario since final yr because of the pandemic, mounting transport payments are including to its woes.

“On account of excessive prices, we deliberate to export 40 banana containers to China in February however have been capable of export simply 12 to date,” mentioned the final director.

Ngo Thi Hong Thu, basic director of Ameii Vienam JSC, admitted that logistic prices had been climbing past her agency’s capability.

Accordingly, the agency has to say no a number of long-distance orders from its international companions due to excessive transport prices.

She additionally believes that not solely companies however farmers will endure from the blow. “Companies are struggling to cowl rising logistics prices. Given the scenario, farmers’ produce shall be bargained down,” she defined.

Ngo Tuong Vy, deputy director of Chanh Thu Fruit Export and Import Ltd, mentioned that her agency had by no means gone by such a tricky time as now.

Her agency, which has not recovered from the pandemic shocks, is experiencing new points from rising gasoline costs and rising logistics prices. She revealed that the agency had no selection however to cost up its merchandise to cowl the mounting prices.

“Prices are going up, so fruit costs shall be adjusted up a minimum of 5% to 10% accordingly. Nevertheless, greater costs usually erode aggressive benefits, growing enterprise dangers,” she mentioned.

Nguyen Hoai Nam, deputy basic secretary of the Vietnam Affiliation of Seafood Exporters and Producers, acknowledged that logistics prices had been US$5,000 to US$10,000 (RM20,954 to RM41,911) greater than in 2020 for each container to Europe or the US.

Nevertheless, greater freight charges don’t essentially imply higher service.

The secretary mentioned that some transport traces steadily delayed shipments for 10 to 30 days for no cause, compounding the scenario. “Companies not solely should pay greater freight charges but additionally to compensate commerce companions for late supply,” he defined.

Van Nhat Tung, advertising and marketing supervisor of CMA-CGM Vietnam JSC, mentioned freight charges soared to round US$16,000 (RM67,053) per container to Europe recently, from US$5,000 (RM20,954) in 2021. — Viet Nam Information/ANN


Source link

Leave a Comment