Shipping lines prioritize transporting empty containers to China

According to the Vietnam Maritime Administration, based on reports from shipping lines, the Chinese market currently needs a large number of containers to serve the export of goods to the US before August 1.

The trend of shipping lines carrying empty containers to the Chinese market may affect the empty container balance, but the units still predict that this situation will end.

Meanwhile, the Vietnam Maritime Administration worked with representatives of major shipping lines providing container shipping services to Europe and the US to confirm that there is no shortage of containers. For now, shipping lines are still ensuring that they can meet the demand for import and export of goods for the Vietnamese market.

Faced with the situation of sharp increase in sea container freight rates to Asia and the US due to port congestion at some ports in Asia, the Vietnam Maritime Administration organized direct working sessions with container port businesses and shipping lines in June 2024.

Because the price of container shipping services from Asia to Europe and America in May 2024 continued to increase rapidly, the price was 17% higher than in January 2024, equal to 45% compared to the peak price during the pandemic period in September 2021.

According to Drewry's container shipping price index, container freight rates from Asia to Europe and the US have the largest increase, however, from America, Europe to Asia and intra-Asian shipping routes have not fluctuated much.

Container shipping rates are regulated according to the international market, fluctuating according to market supply and demand. Vietnam is a link in the global supply chain of goods, so Vietnam's shipping rates are also adjusted according to the general price of the world market.

Shipping goods from Singapore port to Vietnam

Seaports are getting ready to welcome a sharp increase in output. A representative of Gemalink Port said the port has prepared a plan to welcome increased cargo output in the coming time due to congestion at Singapore Port, shipping lines will shift to neighboring markets, including Vietnam due to the advantage of deep-water ports.

Regarding transportation routes, there has also been remarkable growth. In Hai Phong area, there are 7 transportation routes to America; in Cai Mep - Thi Vai port area, there are over 35 transportation routes to Europe, America and intra-Asia.

To meet the demand for cargo output that is expected to increase in the coming time due to the trend of shifting goods from Singapore port to Vietnam, the Vietnam Maritime Administration has directed maritime port authorities and seaport enterprises to speed up the clearance of goods at ports, reduce administrative procedures and create favorable conditions for cargo ships and boats passing through seaports.

In the long term, the Vietnam Maritime Administration will continue to coordinate with relevant authorities (customs) to speed up the clearance of goods that have been stuck for a long time at seaports; supplement regulations on the allocation of funding sources for dredging routes to enhance the responsibility of relevant agencies; supplement mechanisms to encourage businesses to apply the green port model and participate in green transport corridors to have more advantages in attracting goods and expanding transport routes.