“Commodity output has fallen sharply in both ends of Vietnam and India. While the freight rates are low, businesses are badly affected, so they have to find other exploitation options, "said the representative.
Also according to a representative of the East Sea shipping company, the shipping company and port enterprises had regular exchanges, but still could not maintain the shipping route. Accordingly, compared to the time of opening the route about a year ago, the freight rate from Vietnam to India has now decreased by 60-70%.
Previously, the ship route was a sea route connecting the North Central region of Vietnam and Kolkatar (India) and was expected to create a premise for the opening of more international shipping routes directly from the central seaport.
The opening of the route also helps import-export businesses in the region have more service routes close to them for transportation, saving logistics costs instead of having to ship goods to Hai Phong for export, shortening time and being more proactive compared to other services goods must be transported through the transshipment port.
However, after opening the route, the shipping line maintains about 1 trip/month. According to leaders of Nghe Tinh Port, localities such as Thanh Hoa, Nghe An, Ha Tinh... still face many difficulties and the market is worse than the northern - southern provinces. Therefore, ships traveling on international routes do not have enough cargo for regular transportation.
Businesses waiting for support policies
Recently, it is known that the volume of goods through Cua Lo port has continuously decreased. Container cargo in and out of the port is assessed as small, unstable, accounting for 30-40% of the total cargo through the port and tends to decrease (from 1.63 million tons in 2020 to 1.30 million tons in 2020). 2022) and imbalance between outgoing and incoming cargo, leading to the ability of shipping lines to exploit 2-way cargo to reduce costs and maintain regular operations facing many difficulties.
Therefore, businesses want to be partially supported by the locality like some localities such as Thua Thien Hue, Thanh Hoa, Ha Tinh to contribute to reducing the burden on ship owners, creating leverage to attract airlines. Ships and enterprises import and export through Cua Lo port.
Notably, the suspension of the cruise line was in the context of the Southeast Economic Zone Authority's recent review of the draft resolution regulating policies to support shipping lines to open container shipping routes and support shipping enterprises whose goods are transported by container through Cua Lo port (Nghe An province).
The draft proposes to apply policies to shipping lines opening container shipping routes and businesses with goods transported by containers through Cua Lo port, except for goods temporarily imported for re-export and goods in transit.
In which, shipping lines are licensed to operate container shipping business according to regulations and deliver goods or load goods at Cua Lo port along the route with a minimum frequency of 2 trips/month with a support of VND 200 million/port visit.
Enterprises with goods transported by container through Cua Lo port have a minimum frequency of 2 times per month with the rate for 20-foot containers is 600,000 VND/container, 40 feet or more containers are 1 million VND/container.
Shipping lines and businesses eligible to benefit from the policy can choose to receive support funds monthly or once (12 months).