What solutions to optimize for dangerous goods importers and exporters?

At the beginning of June 2024, Cat Lai port sent a notice of Regulations on delivery of import/export hazardous goods containers at Tan Cang - Cat Lai port

(You can refer to the Link: https://s.net.vn/UvKd)

Recently, on June 25, 2024, Tan Cang - Cat Lai port had a guidance session on the implementation of changes according to the announced Regulations on delivery of import/export hazardous goods containers at Tan Cang - Cat Lai port. It also answers some frequently asked questions after the announcement.

(Link: https://drive.google.com/file/d/15z9oVNX79quS31fNkNqLzOjGoZlA0jIg/view)

However, businesses had to wave and respond to the new regulations within 1 month. Tan Cang - Cat Lai Port is a port with a high proportion of cargo container delivery capacity in ports in Ho Chi Minh City and neighboring provinces due to the convenient geographical location for pulling down and moving import and export containers to provinces. When there are new regulations, businesses need to look for solutions to change the location of the delivery port in the most appropriate and effective way. However, such a change increases the transportation cost for each shipment from 1,500,000 to 7,000,000 VND depending on the port of delivery and the unloading location of the enterprise.

Changing the destination port not only increases the cost of forwarding but also raises many other problems:

• The process of carrying out cargo delivery procedures will be difficult for new businesses, businesses that do not have much experience in new destination ports. They are struggling to adapt at the beginning, will prolong the time for delivery as well as related procedures so that businesses can unload goods according to the previous schedule and ensure the production schedule that the company has planned.
• Sea freight rates increase while cargo shipped to Cat Lai will not incur any additional costs. However, if businesses choose ports other than the 2 ports that Tan Cang - Cat Lai port supports free transportation, namely ICD, Tan Cang Nhon Trach, Tan Cang Hiep Phuoc to suit their needs, save transportation costs, and new incurred costs, the cost of hauling and unloading goods must be added extra amount in addition to the cost of sea freight as before to Cat Lai. For example, recently, KMTC shipping line has sent a detailed fee schedule for destination ports such as Cat Lai – VICT route: 5,055,000 VND/trip/20' container; Cat Lai – SP-ITC: 3,180,000 VND/trip/20' container; ... - transported by truck. This cost is the cost of transportation from the discharging port, Cat Lai Port, to the destination ports, at first glance, the business has to pay quite a lot for 1 shipment of imported goods.

Not only the announcement of changes of Cat Lai port, businesses are also facing a terrible "nightmare" about the lack of empty containers that will push up sea freight rates rapidly. The shortage arises from "shipping lines having to redirect container ships to longer shipping routes to avoid the Red Sea since Houthi rebels launched attacks on commercial ships. This also means that containers are stuck in the oceans for longer periods of time, leaving a shortage of empty containers available at ports for packing. The shortage of empty containers is exacerbated by bad weather affecting ports in China, Malaysia and Singapore." 

(quoted from the source https://trungtamwto.vn/chuyen-de/26403-container-rong-bat-ngo-thieu-hut-day-gia-cuoc-van-tai-bien-tang-vot)

In addition to the above "nightmare" is the congestion at the world's 2nd largest container port - Singapore Port. This congestion is more serious than when the COVID-19 epidemic broke out. According to the industry and trade magazine, "The reason is believed to be due to the chain impact of the maritime crisis in the Red Sea region over the past time, forcing container shipping lines to change schedules. Moreover, many shippers are also rushing to transport goods to the US due to concerns about the risk of a strike in September 2024 when negotiations on the wages of seaport workers in the East Coast region of the US do not go smoothly. These factors have created a phenomenon of "vessel rushing" with too many vessels arriving at the port at the same time unexpectedly.

Data from the Maritime and Seaport Authority of Singapore (MPA) shows that in the first 4 months of this year, throughput through Singapore ports increased by nearly 9% over the same period last year, reaching 13.36 million TEUs.

According to data from market research firm S&P Global Commodity Insights, in just the first 20 days of May 2024, the Port of Singapore has received 999 cargo vessels, a 56% jump compared to April 2024. The MPA said vessels now need to wait an average of 2-3 days to dock at Singapore ports. However, some shipping lines said they had to wait up to 7 days for their turn to dock."

https://tapchicongthuong.vn/tac-nghen-cang-bien-lan-rong-tai-chau-a--gia-cuoc-container-du-kien-neo-cao-den-quy-3-2024-122137.htm

With the fluctuations, enterprises trading in dangerous goods in particular and enterprises participating in import and export field in general are confronting continuous changes affecting businesses. In order to be able to adapt quickly and avoid affecting many business activities, port businesses must accelerate adaptation and come up with the most suitable quick solutions.

Source: Comprehensive & Logistic Vietnam