The government of Vietnam is planning to come up with rules to lower shipping charges and make shipping lines’ fees more transparent amid accusations of overcharging from shippers, according to local reports.
The Ministry of Transport (MOT) has asked the Prime Minister to arrange for a list of sea transport fees and port charges to be published to stop ship owners from over-charging, according to a report by VNS.
Deputy Minister of Transport Nguyen Van Cong, who is in charge of maritime activities, said shipping firms took advantage of the lack of printed information on transport fees. Publishing official sea freight fees and port charges is expected to help rectify the situation and create a basis for punishing violators.
Cong added that the main problem is that surcharges are not regulated by the government, and shipping lines collected surcharges from businesses without prior notice or on very short notice.
He also said his ministry is drafting a circular that will require shipping lines to declare their fees to state management agencies and register them for a certain time before they become applicable.
“This circular would allow traders to file complaints with state agencies about any surcharges they found unreasonable, and would compel shipping companies to clarify their fees,” Cong said, as quoted by VietnamNet Bridge.
According to the Viet Nam Leather and Footwear Association, it spends about $110 million or 1% of its import-export value a year on extra shipping fees. The fees sometime rise by 20% a year, affecting revenue.
Transport Ministry reports show that Vietnam has 32 container ships that operate mostly on inland waterways and routes within Southeast Asia. About 40 foreign sea transport firms also operate in Vietnam, carrying up to 88% of goods exported from and imported into the country.
Trinh The Cuong, head of the Maritime Transportation and Services Division under the ministry’s Viet Nam Maritime Department, said that ports usually imposed container service charges (CSC) of US$35 to $46 for a 20-foot container and $45 to $68 for a 40-foot container.
The CSC are additional costs on top of sea freight charged by shipping companies for the handling of containers at container terminals before being loaded on board a vessel.
However, when shipping companies billed their customers, they usually charged $90 to $110 in container service charges per 20-foot container and $120-$145 per 40-foot container, Cuong said.
Most shipping firms agreed that sea transport fees and port service charges needed to be more transparent.
The government has ordered the Vietnam Shippers’ Council to collaborate with relevant agencies to help its members switch to cheaper means of freight, while negotiating with shipping lines to scrap unreasonable surcharges.
The Vietnamese government’s move is also aimed at following state requirements on boosting exports, curtailing inflation, and protecting local enterprises.
Photo: HoangTuanAnh
