Thousands of containers are stranded at Vietnam’s major ports, causing logistical nightmares and financial strain for port authorities.
The image above illustrates the issue, with stacked containers occupying valuable space, while port businesses incur significant lease costs annually.
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A staggering 5,800 containers are stranded in Ho Chi Minh City’s port area, with 1,500 in Hai Phong, 186 in Da Nang, and 120 in Vung Tau.
Of these, 3,100 have been stranded for over three years, 1,240 for 1-3 years, and 3,200 for less than a year. The contents vary, with 1,000 containing scrap, 450 refrigerated goods, and the rest a mix of other products.
Cumbersome procedures and a lack of coordination between agencies have hindered efforts to clear the backlog. The Vietnam Maritime Administration attributes the problem to various factors, including shipping company bankruptcies, owners refusing to claim cargo, and lost contact with consignees.
Additionally, challenges arise in inspecting and inventorying the goods. While some containers have undergone auction procedures, buyers have refused due to inflated valuations. The lengthy process, from auction to potential destruction, coupled with limited personnel for management and supervision, further complicates matters.
The situation is exacerbated by locked containers under the jurisdiction of customs or investigative agencies, awaiting further instructions for handling. The Maritime Administration highlights the financial burden of dealing with stranded cargo, compounded by irregular funding and unclear reimbursement procedures, leading to a halt in processing.
The prolonged occupation of port space hinders operational efficiency and competitiveness, especially during peak periods. Furthermore, unclaimed refrigerated containers continue to consume electricity, resulting in significant energy waste and unrecovered costs for the ports.
To alleviate the issue, the Maritime Administration has repeatedly urged the customs sector to expedite the clearance of containers stranded for over 90 days. They have also proposed amendments to Circular No. 203/2014/TT-BTC, advocating for streamlined procedures and reduced processing times to facilitate quicker resolution of port congestion.
Over 260 tons of goods pass through the Bac Luan II border gate during the Tet holiday
On February 15th, Ms. Tran Bich Ngoc, Head of the Management Board of Mong Cai International Border Gate (Quang Ninh province), announced that during the first 5 days of the Lunar New Year in 2024 (from February 10th to February 14th, equivalent to the first to fifth day of Tet), the total volume of goods exported and imported through the Bac Luan II border gate reached 264 tons.
Positive Signs of Goods Export Recovery Starting from Early 2024
According to the Ministry of Industry and Trade, the export turnover of goods in January 2024 is estimated to reach $33.57 billion, representing a 6.7% increase compared to the previous month. Compared to the same period last year, the export turnover of goods in January 2024 has increased by a staggering 42%.