According to the Vietnam Logistics Business Association (VLA), the end of the year is usually the peak of empty container scarcity, especially in 2020 due to the impact of the Covid-19 epidemic that changes the balance of exports and imports, the more making the shortage of containers more complicated.
The empty container shortage recurs in the year-end season when import and export are in the peak season
According to the Vietnam Logistics Business Association (VLA), the end of the year is usually the peak of empty container scarcity, especially in 2020 due to the impact of the Covid-19 epidemic that changes the balance of exports and imports, the more making the shortage of containers more complicated.
According to a survey by VLA in logistics service enterprises about empty containers, up to 40% of enterprises stated difficulties due to depot (the place of container gathering – also known as ICD); 43% of businesses said it was due to the reservation department with shipping lines; 17% of businesses questioned answered by the sales department.
The surveyed enterprises said that the problem of the shortage of empty containers for importing and exporting goods occurred for all shipping routes, of which the shipping routes to the US accounted for the majority.
The reason for the shortage of empty containers is that the year-end is the peak season for exports. In addition, the shipping line’s control of empty containers and poor depots has caused a shortage of containers in Vietnam.
Le Kim Cuong, deputy director of Tan Cang Logistics Service Center (SNPL), said that the main cause of the shortage of empty containers was the outbreak of the Covid-19 epidemic, especially the peak period in May. and last September. In terms of capacity, the empty receiving capacity of deep-water ports transferred to ICD ports is limited. Specifically, in Ho Chi Minh City, Dong Nai, and Binh Duong, there are now about 50 empty depots, but only about 20% can receive empty containers from deep water ports.
To overcome the above situation, Mr. Cuong said that the SNPL side focuses on investing in infrastructure, improving resources to enhance the quality of container shipping services, and shorten the container turnaround time.
SNPL accelerates the transport of empty containers between Cai Mep port and ICD Tan Cang Long Binh, as well as at other ICDs such as Song Than, Nhon Trach, Hiep Phuoc.
At the online seminar on solutions to overcome the lack of empty containers held by VLA on November 3, the representative of Smartlog Supply Chain Solutions Joint Stock Company proposed to link importers and exporters wishing to use them. container to reuse the container.
Besides, the units need to flexibly use empty containers, in which regions they actively take containers in that region to avoid congestion and shortages when focusing on only one place. At the same time, businesses need to strengthen the mechanism to promote forwarding and reward and penalty mechanism in using containers.
Source: Saigon Times