Rise in logistics costs is hurting Vietnamese exporters

Logistics experts and businesses in Vietnam are forecasting logistics cost to skyrocket with limited supply to aid rising demand. It is certain that demand will climb due to increased stockpiling while new?ships won't be entering service until 2023-24. The potential emergence of new COVID-19 variants could also disrupt supply chain further.

The last few years have seen logistics cost triple, even quadruple compared to pre-pandemic levels. Vietnamese exporters have been told there is no end in sight to the situation. Many firms have set new records over logistics costs, and admit that these costs are the main perpetrators over their reduced profit. The result is many Vietnamese exporters are losing out on potential contracts or even existing clients as they are unable to deliver their products.

According to the Vietnam Maritime Administration (VMA), the maritime transport industry has recorded at least three separate price hikes since the end of 2020. The cost has risen across the board for most routes and commodities from $1,000-$5,000 to $7,000-$8,000. The cost for special shipments can reach as high as $10,000 for a container.

Source: Viet Nam News.