The Associations proposed to prioritize adjusting loading and unloading prices in two areas
Cai Mep - Thi Vai deep water port and Lach Huyen port. Illustration
Losing billions of dollars in revenue each year because seaport container handling prices are too low - this is the assertion of several associations in a petition sent to the Prime Minister proposing to increase seaport service prices.
Priority is given to deep-water port areas
Four associations including the Vietnam Seaport Association, the Vietnam Shipowners Association, the Vietnam Association of Agents, Brokers and Maritime Services, and the Vietnam Logistics Services Business Association have just sent a petition to the relevant Prime Minister. to the price of container loading and unloading services at Vietnamese seaports.
In particular, the associations proposed to adjust the price frame of container loading and unloading services to quickly approach the average price of the region and THC (cargo handling fee at the port) of the shipping line; Change the form of issuance of documents from Circular to Decision according to relevant regulations in the legal system on prices, so that new price adjustments for loading and unloading services can be issued immediately according to market reality. .
According to the Vietnam Maritime Administration, Vietnam's seaport service prices are much lower than those in the region, creating a disadvantage for seaport businesses in particular, and a disadvantage for Vietnam's maritime economy in general.
Meanwhile, Vietnam's seaport system is in dire need of large financial resources to continue to reinvest and build larger, more modern ports to improve exploitation productivity and Vietnam's position in the chain. global shipping, while attracting regional transshipment goods.
If ports receive high prices, it will bring financial resources for businesses to continue reinvesting in seaport construction, contributing to achieving planned goals.
Specifically, the associations propose a minimum adjustment of 15-20%/year, a minimum continuous 3-year roadmap, starting from mid-2023, with priority given to Vietnam's deep-water ports.
According to calculations, with an average adjustment rate of 15% - 20% per year, loading and unloading prices in Vietnam's deep water area will take at least 4-5 years to reach the average price of the region.
According to associations, calculations by the General Statistics Office of container loading and unloading service prices expected to be adjusted according to the draft amendment to Circular 54 show that the adjustment of loading and unloading prices has an insignificant impact on the consumer price index. use country.
At the same time, to compensate for the 5-year price slippage from 2019 to present as well as rising costs in the past period, Vietnam's container loading and unloading prices need to be adjusted to at least 15%.
Regarding this proposal, talking to Traffic Newspaper, Mr. Pham Quoc Long, Chairman of the Vietnam Association of Agents, Brokers and Maritime Services, said that the proposed increase is based on specific calculations.
“When building ports, many ports determine a loading and unloading price of about 75 - 80 USD per 20-foot container to break even. At the same time, Vietnam's container loading and unloading price is currently only equal to 40-50% in the region, while the level of port investment is almost equivalent.
However, the proposed price is only the price for loading and unloading containers from ships to the port, and does not adjust the price for lifting and lowering containers/vehicles at the port because this price is not regulated by Circular 54/2018," Mr. Long said. Currently, Lach Huyen and Cai Mep ports are using ceiling prices, but they are still lower than the world's and not enough for the ports to make a profit.
Loss of revenue is about 1 billion USD/year
According to associations, in recent times, Vietnam's seaport system has been invested and upgraded with modern equipment, meeting the needs of shipping lines. In particular, during the two years of the Covid-19 pandemic, when all ports around the world were congested, only Vietnam's port system maintained normal operations. In May 2022, Cai Mep port cluster was ranked 11/370 best container ports globally by the World Bank and S&P Global Market Intelligence.
With the loading and unloading price only equal to 40-50% compared to the region, associations calculate that if the container output through Vietnam's port system is about 25 million Teus/year, Vietnam will lose about 1 billion USD/year. .
In addition, the shipping line charges import and export customers a THC surcharge (yard operating fee) at 114 USD/20-foot container but only pays the port 33 USD for the Hai Phong area, 40 USD for the HCM area and 52 USD. for Cai Mep and Lach Huyen deep-water port areas.
While according to international practice and conventions of the Council of European and Japanese National Shipowners Associations (CENSA), the 80% THC fees that foreign shipping lines collect from import-export (import-export) cargo owners need to be returned to the port to offset costs directly related to loading/unloading containers at the port. With this practical practice, appropriate loading and unloading prices in the area need to range from 80-100 USD/20-foot container.
The associations affirmed that the adjustment of loading and unloading rates does not affect transportation rates, as well as Vietnam's import and export goods. Because in essence, the price of loading and unloading seaport containers is a component of the general package price that foreign shipping lines offer to Vietnamese import and export goods owners. With the current practice of buying CIF/selling FOB, foreign shippers will pay shipping lines and shipping lines will pay loading and unloading fees to the port according to the contract.
At the same time, this adjustment is considered urgent given the specific characteristics of the Cai Mep deep-water port area. This is an area with more than 90% of output transported by barge to HCM - Binh Duong - Dong Nai with a very low barge/yard loading price of 6 USD/20-foot container.
With 2 loading and unloading times, the freight rate will be 52 USD + 6 USD = 58 USD, so for each loading and unloading time, the actual price obtained by the port is only 29 USD/20-foot container. Currently, in this area, some ports still have accumulated losses after more than 10 years of operation because loading and unloading unit prices are below cost.
According to associations, the early adjustment for deep-water port areas with decisions from the Ministry of Transport is consistent with current regulations and meets the needs of businesses.
Previously, at a meeting with Vietnam Maritime Corporation (VIMC), regarding the proposal to amend Circular 54/2018 of the Ministry of Transport on the price framework for pilotage services and services for using bridges and wharves, mooring buoys, container loading and unloading services and towing services at Vietnamese seaports, Minister Nguyen Van Thang requested businesses to coordinate with relevant units to specifically assess the impacts of price and fee increases. seaports to CPI, to domestic and foreign businesses. At the same time, Minister Nguyen Van Thang also assigned the Vietnam Maritime Administration to soon carry out research and amendments to Circular 54.
Source: Traffic Newspaper
