The Vietnam Shippers Association recently sent a petition to the Ministry of Transport, Ministry of Finance, Ministry of Industry and Trade, Price Management Department (Ministry of Finance) and Vietnam Maritime Administration on strengthening the management of foreign shipping line surcharges.

According to the Vietnam Shippers Association, for many years now, foreign shipping lines have arbitrarily collected dozens of different types of fees and surcharges on goods of Vietnamese import-export enterprises. Not only that, shipping lines have also continuously increased these fees and surcharges without basis or basis, as well as without complying with regulations of state management agencies. The increases are mostly much higher than the container loading and unloading fees that shipping lines pay back to Vietnamese seaports.

According to the latest update, when Circular 39/2023/TT-BGTVT of the Ministry of Transport decided to adjust the prices of pilotage services, use of bridges, wharves, mooring buoys, container loading and unloading, and towing, which was issued on December 25, 2023, effective from February 15, 2024, from the beginning of February 2024, foreign shipping lines simultaneously announced a 10-20% increase in THC (Terminal Handling Charge - port loading and unloading surcharge) for each type of container service in Vietnam. It is worth noting that this fee increase only applies to Vietnam, while other countries in the region have not yet made any increase. In particular, if considered in absolute value, the 10-20% increase in THC fees of shipping lines is 3 times higher than the adjustment of container loading and unloading prices at Vietnamese seaports.

Import-export businesses cry for help because shipping lines arbitrarily increase freight rates and surcharges (Illustration photo)

“The issuance of Circular 39 has been carefully studied by ministries, departments and branches after more than 5 years without adjusting any service prices. However, foreign shipping lines, in less than 1 month since Circular 39 was issued, immediately gave themselves the right to adjust the THC fee applicable specifically to Vietnam. Foreign shipping lines only need to list price changes 15 days before the adjustment and do not have to go through inspection, explanation of fee and surcharge components or any reports or constraints from regulations of competent authorities,” the Vietnam Shippers Association emphasized in the petition.

The Vietnam Shippers Association also added that this is not the first time THC has been adjusted. Therefore, this poses a huge challenge for the country in managing foreign shipping lines and protecting the legitimate interests of domestic import-export enterprises, seaports, and logistics services.

With the above concerns, the Shippers Association recommends that relevant agencies take strong and resolute measures to control the adjustment of THC fees and surcharges by foreign shipping lines.

Specifically, adding surcharges outside the price of container shipping services by sea to the list of goods and services subject to price declaration to perfect the mechanism for managing prices and surcharges for goods at seaports, avoiding cases where shipping lines arbitrarily increase prices and overcharge, affecting the interests of import and export owners.

Shipping lines need to report on THC fee structure, in case these surcharges are super profitable, the authorities need to apply special consumption tax collection policies.

Promptly review and promulgate a mechanism for managing the collection of surcharges, comparing it with the provisions of Vietnamese law and international practices; request ship owners to immediately stop collecting unreasonable fees; at the same time, recommend that the Prime Minister promptly promulgate a suitable mechanism for managing the collection of fees by foreign shipping lines operating in Vietnam.