The challenge of shipping Vietnamese agricultural products to Europe: transportation costs.

VTV.vn - The conflict in the Middle East is putting additional pressure on the export of Vietnamese agricultural products to the European market.

In France, the supply chain from Vietnam remains uninterrupted. However, pressure is increasing regarding costs, shipping times, and risks associated with perishable goods. As soon as the container doors opened, crates of green pomelos from Ben Tre began to be unloaded at the Vmart import-export company's warehouse in France. This is one of the shipments being dispatched amidst the Middle East conflict, which is putting additional pressure on international logistics operations.

Besides fruits like pomelo, the supply of goods from Vietnam to Europe remains uninterrupted for the time being. Dry goods such as rice, vermicelli, and processed foods still maintain a relatively stable supply. However, pressure is mounting on upcoming shipments, as transportation costs and times are becoming more unpredictable.

From what we've observed, the biggest concern for businesses right now isn't the amount of inventory they currently have, but rather how subsequent orders will be impacted by rising costs, extended schedules, and increasing shipping risks.

This increase is still not as high as during the COVID-19 pandemic, when container freight costs reached around $12,000. However, for businesses, the current pressure is not just about freight costs. If the journey is longer, dry goods can be preserved for longer. But for fresh goods like pomelo, each additional day of delay means a greater risk to quality. And if they switch to air freight, costs will increase significantly due to rising airfares and fuel prices.

From the warehouses of importing businesses in France, it is clear that Vietnamese agricultural products continue to enter the European market. However, maintaining this flow of goods is the biggest challenge for businesses right now: the ability to proactively adapt to the increasing logistical pressures.

Source: https://vtv.vn/thach-thuc-chi-phi-van-chuyen-nong-san-viet-sang-chau-au-100260515102718754.htm