Foreign Shipping Lines Slammed for Inflated Fees on Vietnamese Trade

Vietnamese businesses are facing a sharp increase in terminal handling charges (THC) imposed by foreign shipping lines. These fees are levied for cargo handling at ports and are linked to container type. With 90% of Vietnam's trade reliant on foreign shipping, businesses feel disadvantaged by the sudden and unexplained hikes.

"International standards typically allocate 80% of THC fees for port services. In Vietnam, only 40% is allocated, yet shipping companies have tripled their charges," states Pham Quoc Long, Deputy Chairman of the Association of Agents, Brokers, and Maritime Services.

Since early 2024, foreign shippers have repeatedly announced THC fee increases of 10-20% per container. Le Quang Trung, Deputy General Director of the Vietnam Maritime Corporation (VIMC), claims shipping lines cite reasons like the Suez Canal blockage disrupting schedules and commitments. However, the lack of transparency and justification for these increases has prompted calls for tighter legal controls.

Phan Thong, Secretary-General of the Vietnam Shippers' Association, urges the government to review regulations and mandate the declaration of THC surcharges.

Some shipping lines are responding. CU Lines representative Hoang Thi Hong states they consider Vietnam a top priority and will adhere to regulations while reconsidering their surcharges. Maersk Lines, notably, has not raised THC fees and has no plans to do so, citing a desire for market stability.

The Vietnam Shippers' Association has sent a letter to the Prime Minister outlining three proposals to better manage foreign shipping companies' surcharges.

First, they propose mandating the declaration of sea container surcharges, adding them to the list of declared items for improved oversight and prevention of arbitrary price hikes.

Second, the Association calls for shipping companies to provide detailed breakdowns of their THC fees. If excessive profits are uncovered, they suggest the possibility of applying special consumption taxes.

Finally, they recommend a review of collection mechanisms in line with both Vietnamese law and international practices to halt unreasonable fees. To strengthen regulation, the Association proposes learning from the experiences of neighboring countries in managing foreign shipping companies.

Vietnam Maritime Administration Director Le Do Muoi emphasizes Vietnam's status as a major regional trade hub and appeals to shipping lines to balance fees and support struggling businesses.