Export firms cancel orders due to rising logistics costs
Many export firms have had to cancel some orders due to increased logistical costs following the sharp rise in petrol prices.
Banana Brother Farm Company faces more difficulties exporting their goods due to increased logistical costs.
CEO of Banana Brother Farm Company, Le Thi My Hanh, said that they are facing more difficulties exporting their goods after the Lunar New Year.
"We've been unable to properly prepare for the accelerating logistics costs after continuous petrol price hikes," Hanh said.
Adding to the fuel price challenges is the closure of border gates with China.
"The sudden closure of many northern border gates due to Covid-19 prevention measures issued by Chinese authorities has resulted in great losses for Vietnamese farm produce exporters like us," Hanh said. "Our banana containers ran from the southern province of Dong Nai to the northern border gates but had to return due to the sudden closure. We then had to transport our goods to ports in Haiphong and Ho Chi Minh City for sea shipment."
The CEO said that they've incurred big losses as their goods were spoiled following long-time shipment and the transportation costs soared.
"Shipment costs to China have increased from VND 170 million to VND 200 million per container," she said. “We’ve had to cancel many orders due to rising costs. We planned to send 40 containers this February but only sent 12 so far. This has affected our reputation but we’ve no other choice. I hope that local authorities will help us reduce logistics costs.
CEO of Ameii Vietnam Company, Ngo Thi Hong Thu, also said that logistical costs have become too high for them to make a profit.
"We have received many orders for our cabbages from South Korea, Europe, Australia, and the US since the beginning of 2022 but we have had to cancel orders with long-distance shipping due to rising costs," she said. "With these high logistics costs, farmers are also facing losses."
Truong Dinh Hoe - General Secretary of Vietnam Association of Seafood Exporters and Producers (VASEP) said that the rising logistics costs over the past months had affected international trade activities in Vietnam.
“We've sent letters to the government asking for help to solve this situation," he said. "If not, many seafood companies won’t be able to recover this year."
Leave your comment on this story