1. Types of Fees
In the process of importing and exporting goods, besides ocean freight, Vietnamese enterprises also have to pay various high-level fees to international shipping companies. These fees include:
- Terminal Handling Charge (THC): This fee covers the handling and unloading of cargo at the port and is calculated per container.
- Handling Fee (HLF): Imposed by the Forwarder to collect money from the Shipper and Consignee for transactions with their agents in other countries.
- Delivery Order Fee (DOF): Charged when the Consignee goes to the shipping company to obtain the delivery order upon receiving the Arrival Notice.
- Automated Manifest System (AMS) Fee: Mandatory fee required by customs in some countries like the U.S. and Canada, paid when declaring detailed cargo information before loading onto the ship.
- Documents Fee (DOC): Fee for sending documents by the shipping company on behalf of the shipper or consignee, including issuing B/L, D/O, customs declaration, and other related documents.
- Container Freight Station Fee (CFS): Fee for unloading and managing cargo at the port's container station, calculated based on the weight or volume of the goods.
- Container Imbalance Charge (CIC): Fee compensating for the cost of transporting empty containers to locations with less export demand; charged when Vietnam has fewer goods to export.
- Port Congestion Surcharge (PCS): Fee due to port congestion, charged when there are delays in loading and unloading cargo at the port.
- Other fees include security fees, fuel fees, change of delivery location fees, container storage fees, peak-season surcharges, low-season surcharges, risk surcharges, climate surcharges, packaging surcharges, insurance surcharges, special surcharges, and emergency surcharges.
According to a report from the Vietnam Freight Forwarders Association (VLA), logistics costs in Vietnam account for about 20-25% of GDP, significantly higher than other countries in the region and globally. Among these costs, maritime transport constitutes approximately 50-60% of total logistics expenses. The various fees imposed by shipping companies not only impact transportation costs but also increase the cost of Vietnamese goods, reducing their competitiveness in the international market.
2. Solutions
To alleviate the financial burden on import-export businesses, it is essential for both the government and stakeholders in the logistics industry to take action. Proposed solutions include:
- Strengthening negotiations with international shipping companies for reasonable, transparent, and fair fee structures. Shipping companies should provide clear justifications for imposing various fees, avoiding arbitrary charges that harm Vietnamese businesses.
- Establishing and enforcing regulations and standards regarding shipping companies' fees. Tight coordination is necessary among relevant ministries such as the Ministry of Transport, Ministry of Finance, Ministry of Industry and Trade, Ministry of Foreign Affairs, Customs General Department, VCCI, and business associations to monitor, inspect, and strictly handle violations.
- Developing the seaport system, improving road transport infrastructure connecting ports, enhancing cargo handling capacity and management at ports, and incorporating information technology in port management and operations. These measures aim to minimize port congestion, reduce warehousing and cargo transportation times, and subsequently lower logistics costs.
- Promoting the development of Vietnam's maritime transport industry, creating competition with international shipping companies, and leveraging the tax benefits of free trade agreements. Supportive policies to encourage maritime transport businesses, such as tax reductions, fee waivers, providing favorable loans, and training and developing high-quality human resources, are crucial.
- Strengthening collaboration and partnerships among businesses in the logistics industry to create interconnected supply chains, share information, experiences, and resources. Consensus and mutual understanding are needed to foster a cooperative environment among stakeholders.
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