06 solutions to promote import and export amid the high increase in ocean freight rates in Vietnam

06 solutions to promote import and export amid the high increase in ocean freight rates in Vietnam (Image from the internet)

On July 19, 2024, the Ministry of Industry and Trade (Hanoi, Vietnam) issued Official Dispatch 5178/BCT-XNK regarding solutions to promote import and export amid the high increase in ocean freight rates in Vietnam.

06 solutions to promote import and export amid the high increase in ocean freight rates in Vietnam

In recent times, the increase in ocean freight rates, local congestion at some ports in the Asia region, and shortage of empty containers have impacted import and export activities. The Ministry of Industry and Trade (Hanoi, Vietnam) discusses with Associations and enterprises as follows:

(1) Coordination between import-export enterprises and logistics service enterprises

The export and import industry associations work with associations in the logistics sector, the Vietnam Shippers’ Association, the Vietnam Shipowners’ Association, the Vietnam Association of Agents, Brokers, and Maritime Services to enhance capacity, gather member enterprises to jointly develop production and business plans, transportation plans, and import-export plans as a basis for signing long-term contracts with shipping lines, minimizing the impact of freight rates, surcharges in the current highly volatile and unpredictable international market.

(2) Diversion of goods and alternative routes

Besides the current sea route, import-export enterprises with Europe can consider alternative routes, including multimodal transport routes, by sea to ports in the Middle East, then by air, rail, or road to Europe.

(3) Enhancing the utilization of FTA incentives

Export and import industry associations cooperate with the Ministry of Industry and Trade, the Vietnam Chamber of Commerce and Industry, and related agencies to increase awareness among import-export enterprises about the regulations of free trade agreements (FTA) to facilitate trade and enhance the utilization rate of incentives from these agreements.

(4) Resolving backlogged import and export goods

Import-export enterprises cooperate with customs authorities and port operators to expedite the processing of backlogged goods at ports, contributing to promoting cargo flow and enhancing cargo handling capacity at ports.

(5) Supporting training and enhancing negotiation capacity for small and medium enterprises' sales contracts and insurance contracts

Industry associations cooperate with the Vietnam Chamber of Commerce and Industry to intensify propaganda and enhance the capacity of small and medium import-export enterprises in negotiating and signing foreign trade contracts and insurance contracts to protect enterprises against risks and losses when incidents occur, particularly for sea freight through routes with a high risk level.

(6) Developing preventive and rapid response plans

Associations and import-export enterprises proactively develop preventive and response plans to minimize the risks, losses from similar complicated and unpredictable incidents in the future.

Current container handling service prices at seaports in Vietnam

Article 10 of Circular 12/2024/TT-BGTVT stipulates the container handling service prices at seaports as follows:

- The handling service price for oversized, overweight cargo containers, hazardous cargo containers, containers requiring special handling, stacking, and preservation that incurs additional costs shall not exceed 150% of the price frame decided by the Minister of Transport. In cases where the seaport enterprise has to arrange additional specialized equipment to support the handling of goods, the service price for the equipment arising shall be mutually agreed upon by both parties.

- Ship (Barge) ↔ Barge, automobile, railway wagon services at the pier are only performed when the cargo has met the customs supervision, weight check, and other regulations before loading or unloading goods on the ship.

- For new container routes at the terminals in Area II and terminals in the Mekong Delta area, port enterprises are allowed to apply a container handling service price frame of 80% of the price frame decided by the Minister of Transport (Hanoi, Vietnam) for 03 years from the date of the official opening of the new route.

Nguyen Ngoc Que Anh

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