11/07/2021
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Hoa Phat Corporation speeds up constrution of Container factory in IDICO Phu My 2 Expansion industriap park

Container shipping fee increases nearly 6 times compared to the beginning of 2020   

According to information from the Association of Seafood Exporters and Producers (VASEP), from the end of November 2020, the container rental fee from Vietnam will be increased by double compared to the previous month and nearly 6 times higher than the price at the beginning of 2020. Specifically:

The fee for transporting refrigerated containers from Vietnam to Southampton Port (UK) in early 2020 is 1,600 USD/container; By December of 2020 it is $5,000/container and by May it is $9,100/container which is increased 5.7 times compared to the beginning of 2020.

The fee for transporting refrigerated containers from Vietnam to Los Angeles Port (USA) in early 2020 is 1,800 USD/container, by December of 2020 it is 4,000 USD/container and in May, the fee is 8,000 USD/container which is increased 4. 5 times compared to the beginning of 2020;

The shipping fee for dry cargo containers from Vietnam to Israel in October 2020 is 2,300 USD/container. In March of this year, the freight rate increased to 6,300-7,000 USD/container, specially, the shipping company also reported the freight rate up to 11,000 USD/container.

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* Due to the lack of containers, enterprises can only export 60% of their capacity.

According to reflections from seafood exporters in recent times, shipping lines have announced to increase freight rates from 2 to 10 times (the specific rate depends on the route and carrier). Meanwhile, it is still difficult or impossible for businesses to book containers for many important routes. Other commodity exporters are also in the same situation.

Currently, Vietnam is lacking in containers seriously. Empty containers are located in countries that own large ships, so their export activities are also more favorable. The number of containers ordered can only meet 60% of export demand. The amount of goods that cannot be exported by Vietnamese enterprises may be replaced by goods from other countries because of unfavorable shipping conditions. Many businesses, even though they accept high prices, are still unable to deliver bulk cargoes because of the difficulty of ship chartering.

Hoa Phat is the pioneer solving the problem of lack of containers.

In the context of lack of container, Hoa Phat Group is rushing to build a dry cargo container manufactory according to international standards in Phu My II Expansion Industrial Zone of IDICO. Currently, IDICO has supported for Investment Registration Certificate and Enterprise establishment procedure with free of charge; Hoa Phat Container Manufacturing Joint Stock Company speeds up completing the design, Environmental Impact Assessment Report, Fire prevention and fighting approval to apply for a construction permit. IDICO also actively supports Hoa Phat to hand over the Site early, so that Hoa Phat can conduct survey drilling, designing and  implementing some ancillary items… in order to speed up the construction progress of the project. The factory is expected to go into operation and supply dry cargo containers according to international standards in January 2023.

Source: ndh.vn