Shipping rates to the US and Canada skyrocket

Recently, freight rates for shipping goods from Vietnam to Canada and the US have increased significantly. This increase affects many sectors in the economy , especially Vietnam's key export products.

Shipping costs have increased due to tensions in the Red Sea. Photo: Internet.

Starting from January 2024, freight rates to the US, Canada and the EU will double compared to December 2023. In the agriculture, forestry and fishery sector, wood and seafood exports are the two industries most under pressure from this freight rate increase, as most of the products are exported to the US and European markets... In the face of this price increase, Ms. Phung Thi Kim Thu, an expert from the Vietnam Association of Seafood Exporters and Producers (VASEP), said that seafood exporting enterprises are currently "restless" because a series of shipping lines have announced increases in freight rates to the US, EU and other countries. According to VASEP, a series of major shipping lines such as Yang Ming Line, One, Evergreen Line, HMM, Maersk... have sent notices that they will collect additional surcharges due to having to change the route of Asia - Europe routes, avoiding going through the Suez Canal and the Red Sea area. For Vietnamese exporters, rising shipping costs can reduce profits, forcing them to consider adjusting their product prices to be more competitive. Increased shipping costs can lead to increased prices for imported products in Canada, affecting the purchasing power of consumers and the market in general. To enhance supply chain optimization: Enterprises need to evaluate and optimize their supply chains to minimize costs; research new shipping channels: Look for different types of transportation, such as rail, air or new shipping lines to have more reasonable shipping rates; negotiate flexible shipping contracts: Enterprises should renegotiate contracts with carriers to have reasonable prices, while ensuring flexibility in terms. The skyrocketing price of shipping goods from Vietnam to Canada and the US is a big challenge for exporters. However, with optimization strategies and flexible responses, businesses can overcome difficulties and maintain competitiveness in the global market./.

Thanh Tung