Logistics costs weigh heavily on import-export businesses

Import and export in 2022 is expected to continue to prosper when the world economy gradually recovers and free trade agreements with commitments on preferential tariffs that Vietnam participates in are more fully implemented. . There is also a tendency to shift investment to restructure the supply chain of foreign corporations, which also creates a driving force for import and export to develop strongly.

However, import and export activities are also facing great challenges such as the risk of supply chain disruption due to political tensions, escalating trade, which is pushing up the prices of imported goods and materials. Logistics costs also skyrocketed, reaching historic peaks due to high fuel prices.

According to Mr. Tran Thanh Hai - Deputy Director of the Import-Export Department, Ministry of Industry and Trade, under the impact of the Covid-19 epidemic, freight rates, especially sea transport, are being pushed up, increasing fees to about 4- 4. 6 times. The latest United Nations report also shows that freight rates can cause global import prices to increase by 11%. According to calculations by the Vietnam Logistics Association, in 2021 logistics costs account for about 16.8% of the value of goods. And it is forecast that sea freight rates cannot return to normal this year.

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Currently, logistics costs such as goods storage, warehousing, goods rotation, customs procedures, ... are accounting for a large proportion of the total value of finished products. The increase in these costs makes the price of goods also skyrocket. That causes many obstacles for import-export businesses.

The Vietnam Association of Seafood Exporters and Producers said: "This year's sea freight rates have set a new record, higher than the peak of 2021." Specifically:

• Freight to Thailand (Bangkok port, Laem Chabang): 1,600-2,500 USD/container

• Freight to Philippines (Davao, Cebu, General Santos): 4,000-5,300 USD/container

• Freight to US West Coast ports (Baltimore, Miami, New Orleans,...): 19,000-22,000 USD/container

According to forecast, along with sea freight, container shipping charges will also continue to be adjusted by shipping lines up to 20% even though they are already at a high price.

Therefore, in order to minimize the pressure on logistics costs, businesses need to promote business cooperation and investment in the industry to create an increasingly efficient supply chain of goods and services.