Import-export businesses 'accuse' shipping lines of arbitrarily increasing fees

The Vietnam Shippers Association - a representative of import-export enterprises - said that shipping lines arbitrarily increased port loading and unloading fees by 10-20%, causing more difficulties in the context of the escalating Red Sea situation.

The information was stated by the Vietnam Shippers Association in a petition sent to authorities in response to the situation where foreign shipping lines simultaneously increased port handling surcharges (THC) from February.

Mr. Phan Thong, General Secretary of the Association, said that for many years now, foreign shipping lines have arbitrarily collected dozens of different types of fees and surcharges on goods of Vietnamese export enterprises. This price increase is not based on any regulations of the management agency and is much higher than the loading and unloading fees that shipping lines pay back to Vietnamese seaports.

This adjustment took place after Circular 39 - deciding to change prices for pilotage services, wharf use, and container loading and unloading - was issued by the Ministry of Transport at the end of 2023, effective from February 15.

Accordingly, the THC fee was increased by 10-20% by the carriers, from 180-190 USD to 200-210 USD for a 40-foot standard container. The new price for a 40-foot refrigerated container is 255-265 USD. This level is 3 times higher than the adjusted container loading and unloading price of Vietnamese seaports.

The Vietnam Shippers Association said that this fee increase only applies to Vietnam, and other countries in the region have not made any adjustments. In particular, in absolute terms, the 10-20% increase in THC fees of shipping lines is 3 times higher than the adjustment of container loading and unloading prices at Vietnamese seaports.

"Foreign shipping lines list price changes 15 days before the adjustment date and do not have to go through inspection, explanation of fee and surcharge components or any reports or obligations from authorities," the Association said, and acknowledged that "this adjustment behavior is not the first time".

Transporting goods at Tan Vu port, Hai Phong, July 2023. Photo: Giang Huy — Transporting goods at Tan Vu port, Hai Phong , July 2023. Photo: *Giang Huy*

In addition to THC fees, the Vietnam Association of Maritime Agents, Brokers and Services (VISABA) reported that shipping lines are collecting 10 other types of surcharges, including document surcharges, fuel surcharges, container cleaning surcharges, sulfur emission reduction fees, container balancing fees, etc. The additional fee is 9-100 USD per type for goods at the port.

"Vietnamese shippers are not the ones negotiating and signing the shipping contract, so in order to get the goods, they are forced to accept the surcharge terms set by the shipping line," said Mr. Pham Quoc Long, Chairman of VISABA.

Leaders of VISABA and the Vietnam Shippers Association both believe that the arbitrary increase of fees and surcharges by shipping lines affects the interests of domestic export and logistics enterprises.

On the other hand, currently 100% of Vietnam's import and export volume is handled by foreign shipping lines. However, they enter and exit ports and open routes without reporting because current laws do not stipulate this. This, according to Mr. Pham Quoc Long, also increases logistics costs and reduces the competitiveness of Vietnamese goods with other countries.

Previously, at a meeting to discuss solutions to overcome difficulties for exports on February 6, many businesses expressed concern that shipping lines were taking advantage of price increases and imposing additional surcharges in the context of the tense Red Sea. Ms. Hoang Thi Lien, President of the Vietnam Pepper Association (VPA), said that the surcharges applied by shipping lines, such as loading and unloading at THC port, lead sealing, etc., made them more difficult.

On the shipping line side, they explained that the surcharges and increased freight rates were due to the ships having to take a detour when tensions in the Red Sea escalated. This caused the voyage to be extended by 7-10 days, increasing costs. Representatives of some shipping lines such as HMM and ONE said that the additional charges were reasonable and were negotiated and announced to customers in advance.

"Freight and fees have started to decrease since the beginning of February. But the overall situation is still difficult because prices depend on the market," said a representative of Yangming shipping company.

To prevent shipping lines from arbitrarily increasing fees, the two associations proposed that authorities take measures to control the adjustment behavior of shipping lines. "Shipping lines need to report the fee structure. In case these surcharges are super profitable, authorities should impose special consumption tax," the association suggested.

The authorities need to add surcharges outside the price of container shipping services by sea to the list of goods and services subject to declaration under the Law on Prices. This is to avoid shipping lines arbitrarily increasing and overcharging, affecting the interests of import and export owners.

At the same time, Vietnam will soon review and issue a management mechanism for collecting surcharges from foreign shipping lines, in comparison with domestic regulations and international practices.

Duc Minh - Phuong Dung

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