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Scarcity of empty containers due to Covid-19 and trade surplus

(HQ Online) - The end of the year is usually the peak of the shortage of empty containers. Especially in 2020, due to the impact of the Covid-19 epidemic, which changed the balance of imports and exports, the shortage of containers became more complicated.


Not only due to the influence of container delivery at the depot, but also the lack of good control of empty containers by the depot shipping line has also caused a shortage of containers in Vietnam.  Photo: T.Binh
Not only due to the influence of container delivery at the depot, but also the lack of good control of empty containers by the depot shipping line has also caused a shortage of containers in Vietnam. Photo: T.Binh

High demand from trade surplus

The last months of the year are the peak export season, but it is also the time when shipping lines lack empty containers to deliver to exporters for packing, as well as shippers unable to register cargo ships.

Statistics of survey results of the Vietnam Logistics Business Association (VLA) recently showed the difficulties of enterprises about the shortage of empty containers at each link in their operations with shipping lines. Through the survey, up to 40% of enterprises said that they had difficulties in delivering and receiving empty containers at container gathering places, when the goods owner came to receive the new report that they did not have them. 43% said it was because the booking department with the shipping line leased empty containers in excess of the allowed number and 17% because the sales department had not been able to access empty containers from the shipping line. The problem of shortage of empty containers occurs on all shipping routes, in which the route to the United States accounts for the majority.

For more reasons for the above situation, according to VLA, part of the reason is that Vietnam is a trade surplus country. In particular, in the last 3rd quarter, export turnover increased by 11% compared to the same period of 2019. In addition, due to the influence of weather, the transportation of empty containers from the US, Japan, China ... encountered many problems. difficult. Not only due to the influence of container delivery at the depot, but also the lack of good control of empty containers by the depot shipping line has also caused a shortage of containers in Vietnam.

Le Kim Cuong, Deputy Director of Tan Cang Logistics Service Center (SNPL), said that the main reason for the shortage of empty containers was the outbreak of the Covid-19 pandemic, especially during the peak period in May. and last September. In addition, due to the influence of storms and fog, the export of goods to China, Japan and Korea must "sleep".

According to Mr. Cuong, the capacity of receiving empty deep-water ports to ICD ports is still limited, specifically in Ho Chi Minh City, Dong Nai and Binh Duong, currently there are about 50 empty depots, but only about 20%. among them in the ICD has the ability to directly receive hollows from deep water ports.

Reuse empty containers

In order to solve the current difficulties, SNPL has had specific and timely solutions in the past time. Tan Cang has focused on investing in infrastructure, improving resources to enhance the quality of container shipping services, shortening container turnaround time. Also in the past year, SNPL successfully implemented the renovation process of ICD Long Binh port, from October 2019 to now, SNPL has transshipped more than 3,000 import and export containers through ICD Long Binh to Cai Mep Port. In the coming time, SNPL will continue to actively promote the attraction and transportation of empty goods between Cai Mep Port and Tan Cang Long Binh ICD, as well as at other ICDs such as Song Than, Nhon Trach, and Hiep Phuoc.

VLA representative said that in order to solve the above situation, it is necessary to strengthen the authorization of empty container repair work for depots to effectively meet the quality of empty containers and reduce waiting time. In addition, shipping lines need to notify the exact location of empty containers so that forwarders can reduce costs and travel time and move empty containers effectively, avoiding local shortages.

Shippers (especially VIP factory shippers) need to effectively use empty containers to return them to the depot for other shippers and improve the efficiency of empty container management to ensure distribution to shippers and transport companies. Standard quality empty containers as ordered.

In particular, it is necessary to increase the use of new facilities, in any area, take the initiative to take the container in that area to avoid congestion and shortages when focusing on only one place. At the same time, businesses need to strengthen the mechanism to promote delivery and reward and punishment in the use of containers.

Another solution to solve the shortage of empty containers in the past time is the application of "Optimize use of container" technology of Smartlogs Company, which is also considered as one of the solutions that businesses can participate in. research, especially in the context of digital transformation is taking place strongly.

According to Mr. Duy Hong, Deputy General Director of Smartlog Supply Chain Solutions Joint Stock Company, in order to overcome the above difficulties, the company has come up with a number of solutions such as reusing containers to link importers and exporters with needs. demand for use

container to reuse the container. The emptying and unloading solution increases the efficiency of using the container by allowing flexibility in changing the position of emptying/receiving.

Xuan Thao