The Ministry of Industry and Trade requested associations and businesses to coordinate in implementing 06 solutions to promote import and export in the context of rising sea freight rates.

The Ministry of Industry and Trade has just issued Official Dispatch No. 5178/BCT-XNK dated July 19, 2024 to the Import and Export Industry Associations; Logistics sector associations; 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 rising shipping rates.

The Ministry of Industry and Trade stated 06 solutions to promote import and export in the context of current high sea freight rates.

The Ministry of Industry and Trade said that in recent times, increases in shipping rates, local congestion at some Asian ports, and lack of empty containers have had an impact on import and export activities. Therefore, the Ministry requests associations and businesses to coordinate in implementing 6 solutions.

Firstly, coordination between import-export businesses and logistics service businesses. Import-export industry associations work with logistics industry associations, Vietnam Shippers Association, Vietnam Shipowners Association, Vietnam Association of Agents, Brokers and Maritime Services; to improve capacity and gather member businesses to jointly develop production and business plans and transportation plans; Goods import and export plan is the basis for signing long-term contracts with shipping lines, minimizing the impact of freight rates and surcharges in the current period of complex and unpredictable developments in the international market.

Second, freight routing and alternative routes. Besides the current sea route, businesses importing and exporting to Europe can consider alternative routes; including a combined multimodal transport route, going by sea to ports in the Middle East, then by air, rail or road to Europe.

Third, increase the use of incentives from free trade agreements (FTAs). Import-export industry associations coordinate with the Ministry of Industry and Trade, the Vietnam Federation of Commerce and Industry and relevant agencies to increase dissemination to import-export businesses about the regulations of FTAs; to facilitate trade and increase the rate of preferential utilization from these agreements.

Fourth, resolve backlog of import and export goods. Import-export enterprises coordinate with customs authorities and port operators to speed up the process of handling backlogged goods at ports; contributing to promoting the flow of goods and improving cargo handling capacity at the port.

Fifth, support training and improve capacity to negotiate sales contracts and insurance contracts for small and medium-sized enterprises. Industry associations coordinate with the Vietnam Federation of Trade and Industry to strengthen propaganda and improve the capacity of small and medium-sized import-export enterprises in negotiating and signing foreign trade contracts; and insurance contracts to protect businesses against risks and losses in the event of an incident, especially for seaborne goods passing through high-risk routes.

Sixth, develop a prevention and rapid response plan. Associations and import-export businesses proactively develop prevention and response plans to minimize risks, risks, and losses from similar complex and unpredictable incidents in the future.

Recently, the increase in shipping rates, congestion at some Asian ports and lack of empty containers have had an impact on imported and exported goods in general and Vietnam in particular. Notably, seaport congestion in Singapore has now spread to other seaports in Asia and is forecast to last until the end of August this year. Besides, there are other challenges facing the global supply chain.Faced with that situation, on July 12, 2024, Minister of Industry and Trade Nguyen Hong Dien sent a letter to Mr. Turgut Erkeskin - Chairman of the International Federation of Freight Forwarders Associations (FIATA) to discuss; promote cooperation and propose some content related to this issue.The Minister hopes that, with an important bridging role to contribute to promoting cooperation in logistics and facilitating trade activities between countries, the President of FIATA and FIATA can support; There are practical measures to help Vietnamese businesses overcome difficulties caused by the current increase in shipping rates, port congestion and lack of empty containers.At the same time, we asked the Chairman and FIATA to share the experiences and solutions that countries and FIATA member associations have been applying, especially for the handling of fees other than fees collected at ports. . Within its scope of influence with other international organizations in the fields of import-export, logistics and supply chain management; emphasizing Vietnam's position in the global value chain to have appropriate priorities for vehicles and equipment to transport import and export goods for the Vietnamese market. At the same time, support the Vietnamese Government in its strategy of positioning Vietnam as a goods production center and a new international transit location in Asia in the community of global logistics businesses."On the side of the Ministry of Industry and Trade, we will also direct export industry associations; associations and businesses in the field of logistics to connect and cooperate closely to have timely response plans to minimize risks, risks and losses from complex developments in the future," the Minister said.

Source: VASEP