Freight down but other difficulties persist: logistics firms

By Hong Chau   October 19, 2022 | 11:01 pm PT
Freight down but other difficulties persist: logistics firms
Cat Lai Terminal in Ho Chi Minh City in April 2021. Photo by VnExpress/Quynh Tran
While freight rates have fallen sharply, logistics companies still face high warehouse costs and human resource shortages.

At a business forum on Wednesday logistics firms said since August international freight has almost returned to normal pre-Covid levels though not domestic rates.

The cost of shipping a container from Vietnam to North America has decreased to US$2,000-5,000
from $18,000-26,000 and to China has to VND8-15 million ($333-625).

But storage costs remain high and warehousing supply is insufficient, and logistics companies continue to face labor shortages, Le Quang Trung, deputy general director of the Vietnam Maritime Corporation, said.

Le Thi Ngoc Diep, head of the trade department at SLP Vietnam Company, said high warehousing costs are pushing up transport costs, making it difficult for logistics firms in Vietnam to compete with others in the region.

Besides, seaports and warehouses in Vietnam are not well planned but are scattered, she said.

Only 30% of warehouses are in the northern region, adversely affecting cargo transport and management of domestic and international supply chains, she added.

Local logistics firms called for establishing a trading floor for booking and management of cargo more effectively, building smart ports and financially assisting in the development of logistics technologies.

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