Vietnamese businesses assail ‘unreasonable’ freight surcharges

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HCMCVietnam trade associations are calling on the government to intervene as they hit out against foreign shipping lines for allegedly imposing high freight surcharges that do not conform to national laws and international standards.

According to the Vietnam Association of Seafood Exporters and Producers, Vietnam Textile and Garment Association, and Vietnam Leather-Footwear-Handbag Association, at least 10 kinds of freight surcharges, such as terminal handling charge, container imbalance surcharge, and port congestion surcharge, are being levied on imports and exports,.

These freight fees are supposedly up to 30 percent higher than those of last year’s and implemented unannounced, the associations’ officials said, according to a report by VietnamNet Bridge.

The exporters and importers have brought their concerns before the Vietnam Competition Authority under the Ministry of Industry and Trade, saying the surcharges are unreasonable and absurd, and consequently causing their costs to balloon and making their products uncompetitive in the global market.

The enterprises are calling on the authorities to implement a state mechanism for supervising the collection of freight surcharges to ensure this meets the country’s regulations as well as global practices.

They pointed out that freight fees were raised or added previously due to port congestion issues that have now been resolved, but that the excess surcharges have remained in place.

Shipping companies have reacted by saying the surcharges they were levying complied with international rules.

In response to the firms’ request, the Vietnam Maritime Administration, an agency under the Ministry of Transport, has suggested establishing a joint task force to monitor surcharge collections.

It is also proposing to undertake a review, together with relevant government agencies and trade groups, of the current freight surcharge collection picture  before submitting its recommendations to the transport ministry.

Photo: Syromaniac