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2 September2009

Vietnam to ship goods straight to US

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Vietnamese goods can now be shipped directly to the US instead of having to go through other regional ports, saving time for exporters and avoiding late deliveries, reported

Four foreign shipping companies - Hanjin from the Republic of Korea (RoK), MOL and K’Line from Japan and APL from Singapore - have recently launched direct container freight services to the US from the new SP-PSA international port and Tan Cang-Cai Mep deepwater port near Vung Tau City .

According to APL Vietnam business executive Nguyen Phan Anh and the Head of K-Line Vietnam Business Division, Nguyen Duc Anh, their firms are able to reduce delivery times by two days, from 17 days to 15.

SP-PSA port receives K-Line and APL mother ships twice a week. These ships carry commodities directly to the east and west coasts of the US instead of the cargos having to be routed through Singapore or Hong Kong as they did previously.

Thanks to the new service, the freight costs from Vietnam to the US has become more competitive in comparison with that offered by other regional countries, said Nguyen Phan Anh of APL.

Vietnamese exporters now have more choice, helping them minimise the risk of their goods being delivered late, Anh added.

However, many exporters are sticking to the old sea route and are reluctant to use the new service.

A garments export company in Ba Ria-Vung Tau admitted that it is still moving its products to Cat Lai port in HCM City for export rather than shipping them from SP-PSA or the local ports of Tan Cang and Cai Mep, even though the traffic on the road to Cat Lai port is terrible.

Meanwhile, several enterprises cited the small size of their export contracts as the reason for their reluctance to use the new sea route. Others said they are exporting goods under the FOB (Free On Board) system, meaning that the importers rather than themselves, have the right to choose the shipping firms.


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