IMPACTS OF EMPTY CONTAINER SHORTAGE ON VIETNAM’S

EXPORTATION

• The shortage has significantly increased the rental fee of empty containers
for exportation. Specifically, the Vietnam Association of Seafood Exporters and
Producers (VASEP) informed that the container rental fee to the UK in October
was listed at US$1,420 per 20-feet container, then rose to $5,420 in November,
$7,200 in December, and US$10,550 in January. Similarly, the container rental fee
from Vietnam to Los Angeles before October stood at $700-1,000 per container
and now is listed at nearly $6,000.
• Products that mainly based on sea freight transportation, especially
agricultural will face up many difficulties to export. In fact, in the first half of
January, coffee had shown a sharp decline of 46% year-on-year in volume, rice (-
44%), and vegetables (-33%).
• Moreover, no empty container also means that exporting commodities have
to wait at the port, this will not only incurring an additional fee but also reducing
the quality as well as the demand of the product, especially agricultural, seasonal,
trend-based, or technology goods. This will substantially cut down on Vietnam
exportation activities.
• The increased rental fee of containers also creates significant impacts on the
business performance of the company due to the export price signed, now the
sudden increase in this fee caused many shipments to lose out.
http://hanoitimes.vn/vietnam-faces-risks-of-shipping-container-shortage-at-year-
end-316148.html
https://vietnamnews.vn/economy/822970/vn-exporters-hit-by-container-
shortage.html