NV shipping companies prepare to meet high demand

This decision has helped to further motivate national shipping companies to invest in new cargo ships and renovate old ones to meet certain high demand routes, both domestically and internationally.

In August, the International Gas Product Shipping JSC (GSP) purchased a 20,000 dwt tanker worth $14.3 million. He should receive another in September. The company had offered to sell 20 million shares to its existing shareholders with a view to increasing its share capital to VND560 billion ($24.3 million) from VND360 billion ($15.6 million), guaranteeing a capital investment to buy another tanker.

Last month, Hai An Transport and Unloading Joint Stock Company (HAH) signed a contract to build an 1,800 TEU container ship. In April this year, HAH purchased two more container ships. They are now in service on international and domestic routes.

Additionally, the company has invested in more containers, and the first batch was put into operation at the end of May this year. Purchasing containers provides more options for shipping companies facing shortages due to the impacts of the pandemic.

The company also sold off its old ships and bought new ones to meet growing shipping demand.

In April, Gemadept Joint Stock Company (GMD) launched a 248 TEU barge. It is one of five barges that Gemadept purchased from SSMI Shipbuilding Company. The new investment has helped increase transportation capacity, reduce costs and reduce shipping times while meeting customer demand. Gemandept has also purchased six rubber-type gantry cranes (RTGs) to maximize the loading and loading capacity of cargo at Cai Mep seaport.

Hoa Phat Shipping Joint Stock Company, a member of Hoa Phat Group, also finalized the purchase of two 90,000 TEU vessels in the first quarter of this year for the transport of coal and iron ore. In doing so, Hoa Phat has been proactive in its raw material import plans for its steel production plants and is minimizing risk after the sudden rise in shipping costs.

The Hoa Phat Group also plans to purchase more vessels to serve the construction of the Hoa Phat Dung Quat 2 steel plant project in Quang Ngai province. The project is expected to be built over the next three years and become operational in 2024.

The COVID-19 outbreak is causing massive disruption to global supply chains and shipping costs have skyrocketed around the world. The pandemic has prolonged the cycle of unpacking and turning containers, while the recent increase in cargo exports to Europe or the United States has caused a shortage of empty containers.

Some shipping companies said the number of shipments leaving Vietnam for other countries has not decreased, and has even increased on some routes, but freight prices have been higher due to the lack of containers.

A recent report by Rong Viet Securities Joint Stock Company (VDSC) showed that container port congestion and lack of empty containers have spread around the world and led to an 80% increase in shipping costs since the beginning of 2021.

Vietnam’s shipping industry has also been affected by container shortages, leading to price hikes for container rental fees and shipping costs.

Industry insiders said the purchase of new vessels and the disposal of old vessels should make Vietnam’s maritime industry more competitive and minimize rising shipping costs for local exporters in the remaining months of This year.

In recent years, the total container traffic of national shipping lines has increased rapidly. The total volume of goods passing through Vietnam’s seaports increased from 442 million tons in 2017 to 689 million tons in 2020.

Deep water port systems have always played an important role in the shipping industry, as deeper draft and longer berths are an indispensable trend in maritime economies.

Experts from Rong Viet Securities said the total volume of goods passing through Vietnam’s port system will increase as the vaccination rate increases nationwide and Vietnam still attracts a wave of investors from other countries.
Source: Vietnam News