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Road, sea, and air transport costs rising, following the fuel price hike   2012-03-27 - TBKTSG

The fuel price increase commencing from mid March 2012, has triggered a new price wave. Road, sea air transport service providers all have announced the fee increases.


After enterprises raised the shipping fees, reasoning the fuel price increases, the orders from enterprises have decreased sharply.

Shipping fees skyrocket

Right at the beginning of January 2012, shipping firms announced the new GRI (general rate increase) at 400 dollars per TEU (20 feet container) applied to the cargoes to the US.

In February and March 2012, shipping firms raised the THC (terminal handling case), and then the fuel surcharges by 8 percent on average, mostly applied to the cargoes to Asian destinations. In April 2012, enterprises were informed that the goods from Vietnam to Europe would also bear the same GRI fee at 400 dollars per TEU, the same with the fee applied before to the cargoes to the US.

According to the representative of HL Cargo, a forwarding company, enterprises have to pay 2000 dollars in total for different kinds of fees and charges for every 20 feet container to the Europe. The freight has been double that in 2011.

Though Vietnamese enterprises mostly export products under the mode of FOB (free on board), which means that importers bear freight, insurance premiums and some other kinds of fee, they still have to pay different kinds of fees and surcharges, called “local charge”, including THC, customs declaration fee…

Road transport receive less orders

Road transport service providers have complained that the number of orders has dropped sharply in comparison with the time before the fuel price hike. Especially, the orders have decreased dramatically for the routes to the western provinces of the south region.

Trinh Chau Khanh, Director of the Kim Loi MInh Transport Company, has complained that his company has received fewer orders, especially the ones to carry cargo to the western provinces. He said that the HCM City – Trung Luong toll is overly high, therefore, goods owners do not sign transport contracts with the company any more.

Dang Duc Tiep, Director of the Dang Tien Transport Company, has also affirmed that since the day the local authorities collected toll on the HCM City – Trung Luong road, the number of orders to carry goods to the western provinces has dropped by 30 percent. After that, the transport cost increases, caused by the fuel price hike, has led to another 20 percent decrease in orders.

The sharp fall of the number of orders, the high toll and the expected road maintenance fee have all made private transport companies consider selling vehicles and dissolving their businesses.

Air carriers raise surcharges

The booking agents of some airlines and travel firms in HCM City have reported that some air carriers have raised the fuel surcharge on the international flights to and from Vietnam. The national flag air carrier Vietnam Airline is the one which has the highest number of air routes that see the surcharge increases.

Other air carriers: namely--Singapore Airlines, Malaysia Airlines, Turkish Airlines, Luffthansa Airlines and China Airlines have also raised the surcharges following the crude oil price fluctuations in the world market.

Vietnam Airlines raised the fuel surcharge on some international air routes since the beginning of February or March. Meanwhile, it has just announced that the new surcharges would be applied to some air routes, commencing from March 22 and April 1. With the new surcharges, it is expected that passengers would have to pay several dollars.

Meanwhile, All Nippon Airways has made a decision that surprised many people that the surcharge for the HCM City--Narita route has reduced from 99 dollars to 88 dollars.

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