Shipping costs on the rise, hurting exporters’ profit margin

Shipping fees for major routes from Vietnam to the EU and the US have surged significantly, cutting into exporters' profits as they have had to spend thousands of dollars in additional cost, said industry insiders and experts. In recent weeks, prices have increased sharply with the cost to transport a container to Europe reaching 4,000-5,000 USD, more than double what it was during the same period last year. Similarly, shipping costs to the US have increased to 6,000-7,000 USD for a container. Meanwhile, transport costs per container to closer destinations including China, Japan, the Republic of Korea and Southeast Asia have also increased by an additional 1,000-2,000 USD. With shipping costs mounting, exporters have raised concerns over the shrinking profit margin and how it will hurt their ability to compete in the international market. Source: Vietnam News Agency