Navigating Ocean Capacity Shortages and Price Spikes
Exporters in Vietnam are facing an unexpected surge in ocean freight rates. Mr. Nguyen Ly Truong An, Vice Director of SeaAir Global, analyzed the contributing factors.
The Root Causes of Port Congestion
The volatility is driven by two main operational bottlenecks:
- Red Sea Vessel Re-routing: Container vessels bypassing the Suez Canal must travel around Africa, adding 10-14 days to transit times and soaking up significant global fleet capacity.
- Singapore Port Blockage: The arrival delays have led to ship bunching and severe yard congestion at Singapore, causing transshipment delays of up to two weeks.
- Equipment Shortages: Containers are returning to Asia much slower, leading to localized container deficits at major exporting ports in Ho Chi Minh City and Hai Phong.
Strategic Mitigations
SeaAir Global recommends that shippers book container slots at least 4 weeks in advance and secure space allocations via long-term contracts (NQOs) rather than relying on volatile spot freight markets.
