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The typical value of transport a container from Vietnam to the U.S. East Coast has surged 3.4 instances to $16,333 since January final 12 months, based on the Vietnam Logistics Affiliation (VLA).
A VLA report additionally mentioned costs to the West Coast have surged by the identical ratio to $13,667.
Worse nonetheless, there are occasions when costs are above $20,000, practically equal the worth of the container’s contents.
“There have been instances when a container of wooden is valued at $25,000, however transportation costs to the East Coast was nearly that a lot,” Vo Thi Phuong Lan, head of transport and supply at VLA, mentioned at a discussion board Thursday.
The U.S. is Vietnam’s largest export marketplace for wooden and picket merchandise, accounting for practically 60 % of Vietnam’s complete wooden exports worth of $14.8 billion final 12 months.
Exports to the U.S. alone rose 22 % to $8.78 billion final 12 months.
After two years of Covid-19, Vietnamese wooden exporters are on the restoration monitor, with many firms having secured contracts till the tip of the third quarter, based on the Handicraft and Wooden Business Affiliation of Ho Chi Minh Metropolis (HAWA).
The wooden export goal of $16.5 billion this 12 months is a possible one, it added.
However excessive logistics prices are hitting exporters onerous.
Tracy Tran, a consultant of Mitchell Gold and Bob Williams, a purchaser for American furnishings retail chains, mentioned that many lower-priced containers ($9,000-10,000) are used up attributable to excessive demand, and due to this fact exporters have to make use of the premium containers priced at over $20,000.
One other problem is rising gasoline costs, which account for 40 % of home transportation prices.
Oil costs surged 52 % year-on-year within the first quarter, which was “past the estimation of each logistics and manufacturing companies,” mentioned Lan.
Some logistics business insiders have proposed that wooden exporters use ships as a substitute of vans to hold their containers to a global port.
An organization within the southern province of Binh Duong, for instance, can ship its container to the Cai Mep Terminal in Ba Ria–Vung Tau Province, which might value 20-30 % lower than utilizing roads.
Different transport routes to Cai Mep may additionally reduce prices by 10 %, she added.
One other issue that would cut back exporters’ revenue this 12 months that wooden costs have risen by 28 % to 40 %.
“With the Russia-Ukraine tensions exhibiting no signal of easing and container shortages nonetheless occurring, materials costs are more likely to hold rising,” mentioned Vo Quoc Loi, a member of the management board at HAWA.
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