Logistics costs have "cooled down", to what extent?

According to business, logistics costs have decreased by an average of 5-7% compared to the beginning of the year and about 30-40% compared to the peak in 2021.

About 5-7% decrease compared to the beginning of the year

Currently, after 5 consecutive declines, the price of gasoline from a record high of 32,870 VND/liter has decreased by nearly 10,000 VND to more than 23,000 VND/liter and the price of oil is also keeping a downward trend for the past 2 months, businesses said. logistics costs have also decreased.

Talking to PV Traffic Newspaper, a representative of Vietnam Star Logistics Co., Ltd said that currently, logistics costs for domestic and international routes have decreased by an average of 5-7% compared to the beginning of the year and decreased by about 30 years. -40% from the peak price in 2021.

For example, for the domestic route by road from Hanoi to Ho Chi Minh City, the rental price for a 40-foot container has decreased from 50 million VND/trip to about 35-45 million VND/carriage. If going by rail, this fee is about 2-3 million VND/container lower.

Prices for sea, road and rail transport all fell.

As for a 40-foot container from Vietnam to Europe, the price dropped to only $5,000-8,000/container, instead of the price of about 9,000-10,000 compared to last year's peak.

Similarly, the cost from Vietnam to the US has also decreased to $8,000-11,000/40-foot container, from $18,000-21,000 in 2021.

Truong Phat Logistics Company also told Traffic Newspaper, that the cost of sea transportation from China to Vietnam has also decreased sharply, at least 50%. Currently, the freight rate is down to about 700-800 USD/40 feet container, from 1,500-2,000 USD….

In general, logistics businesses say that logistics costs have decreased by a maximum of 10% after the price of gasoline has decreased continuously over the past time, there are also routes that do not decrease, most of which are odd contracts, short distances ...

How much less?

However, Mr. Nguyen Tuong, senior advisor of the Vietnam Logistics Business Association, assessed that logistics costs are still much higher than before the epidemic.

According to Mr. Tuong, most of Vietnam's exports go by sea, so high freight rates will put pressure on businesses in the second half of the year when the peak of transportation usually falls around September.

Moreover, the evolution of freight rates depends a lot on the world situation, in the context of the epidemic is still complicated and the Russia-Ukraine conflict has not ended, it is difficult for the downward momentum to return to the old mark, or it can also be turned increase again.

Some businesses also expect that, with the fear of a global recession, maybe the end of the year and the following years will be an opportunity for Vietnam to join the international shipping fleet, thereby gradually helping stabilize logistics costs.

This is an opportunity for Vietnamese enterprises to build an international fleet, however, in the immediate future, focus on intra-Asia routes

A representative of PetroVietnam Transportation Corporation (PVTrans) said that the Russia-Ukraine conflict and China's blockade have affected the supply chain. This makes the travel of ships more.

Meanwhile, high steel prices in many countries make them limit shipbuilding and focus on making containers.

"The world supply of ships has decreased, this is an opportunity for Vietnamese enterprises to build an international fleet," the representative emphasized.

The Vietnam Maritime Administration (Ministry of Transport) is also proposing to develop Vietnam's international shipping fleet in two phases.

In the context that Vietnam's import and export goods transport is almost entirely dependent on foreign shipping lines, the Vietnam Maritime Administration believes that the development of an international shipping fleet is an important goal. Currently.

In the draft project on developing Vietnam's international shipping fleet, the Vietnam Maritime Administration said that it is difficult for Vietnam to develop a fleet of container ships to exploit long distances in the coming period. can start with strengthening the establishment of intra-Asian routes to attract goods to Vietnam's major seaports for export to Europe and the US.

The agency also said that the development of the international shipping fleet should be divided into two phases. In which, the immediate period (2022-2026), it is necessary to reform the mechanism and reform administrative procedures in the field of shipping, as well as apply science and technology to administrative procedures.

Phi Hung