The Ministry of Industry and Trade recommends solutions for import and export to cope with "escalating" sea freight rates

25/07/2024 09:53

Recently, the increase in sea freight rates, local congestion at some ports in Asia, and the shortage of empty containers have had an impact on import and export activities.

Facing that situation, the Ministry of Industry and Trade has sent an official letter to import and export industry associations; associations in the field of logistics; Vietnam Shipowners Association; Vietnam Shippers Association; Vietnam Association of Agents, Brokers and Maritime Services on solutions to promote import and export in the context of high sea freight rates.

The Ministry of Industry and Trade noted that associations and enterprises should increase coordination and gather member enterprises to develop production and business plans, transportation, import and export plans for goods as a basis for signing long-term contracts with shipping lines. Thereby, minimizing the impact of freight rates and surcharges in the current complicated and unpredictable international market period.

At the same time, the flow of goods and alternative routes. In addition to the current sea route, import-export enterprises with Europe can consider alternative routes, including a combined multilateral transport route, taking the sea to ports in the Middle East, then taking air, rail or road to Europe.

Along with that, increase the use of incentives of FTAs. Import-export industry associations shall coordinate with the Ministry of Industry and Trade, the Vietnam Confederation of Commerce and Industry (VCCI) and relevant agencies to increase the dissemination to import-export enterprises about the provisions of free trade agreements (FTAs) in order to facilitate trade,  improve the rate of taking advantage of incentives from these agreements.

Import-export enterprises shall coordinate with customs offices and port operators to accelerate the progress of handling goods backlogged at ports, contributing to promoting the flow of goods in circulation and improving the capacity of handling goods at ports.

Supporting training and improving the capacity to negotiate purchase and sale contracts and insurance contracts for small and medium-sized enterprises. Industry associations coordinate with VCCI to strengthen propaganda and improve the capacity of small and medium-sized import-export enterprises in negotiating and signing foreign trade purchase contracts and insurance contracts to protect businesses against risks and losses when incidents occur. Especially for sea goods passing through the route with a high level of risk.

In particular, import and export associations and enterprises proactively develop prevention and response plans to minimize risks, risks and losses from similar complex and unpredictable incidents in the future.

Source: logistics.gov.vn