Container handling surcharges in Vietnam up 50% in 10 years

THC fees for cargo handled at Vietnamese ports were around $90 for a 20-foot container and $140 for a 40-foot container in 2013. By 2023, these figures had risen to nearly $125 and $195 respectively.

THC is a surcharge applied by shipping lines to offset the cost of cargo handling at ports, including the cost of moving containers between the staging yard and the wharf.

While this surcharge is standard practice globally, recent data reveals a notable discrepancy in proportion of the THC paid to ports in Vietnam compared to neighbouring countries.

VISABA said shipping lines operating in Vietnam pay local seaports loading and unloading fees amounting to just 40 per cent of the THC they collect. On an average, while cargo owners are charged $173 per container, ports receive only about $69.

In contrast, at regional ports in Thailand and the Philippines, shipping lines pay a higher proportion of THC to the ports, around 72 per cent and 73 per cent, respectively. Even in Singapore, where operational costs are typically higher, the figure is still 58 per cent.

Industry experts are concerned about this gap, according to a domestic news outlet. With over 90 per cent of the country’s import and export cargo moved by foreign shipping lines, primarily the top 10 global carriers, these surcharges have become a substantial source of profit for international operators.

VISABA feels that foreign carriers raised surcharges without clear justification, particularly during periods of market fluctuation, due to a lack of oversight. There have been instances in which THC charges were raised by 10-20 per cent.

In some cases, when global freight rates dropped sharply, even turning negative, shipping lines maintained high surcharge levels to compensate for lost revenue.

Alongside THC, cargo owners also face numerous other surcharges, including fees for container imbalance, fuel price adjustments and cleaning.

Therefore, VISABA has called for more coordinated regulatory oversight, urging Vietnamese authorities to consider engaging international consultants to audit and regulate THC and other surcharges imposed by foreign carriers.

ALCHEMPro News Desk (DS)