Local containers rejected for fear of explosion

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Báo Tuổi Trẻ English - 37 month(s) ago 3 readings

Local containers rejected for fear of explosion

Many foreign shipping firms have refused to transport Vietnamese frozen containers to the US and EU because of some recent container explosions, putting local seafood exporters in great difficulties.

container Photo: SGTT



According to Sai Gon Tiep Thi Newspaper, certain shipping firms including Hyundai, Yangming, Mitsui, Hapag Lloyd, Evergreen, OOCL, MSC, and Wanhai have said they would not receive new Vietnamese frozen containers.

Earlier in April, two Vietnamese containers exploded at the Cat Lai Port in Ho Chi Minh City, killing one and injuring four.

In October, another Vietnamese container exploded in a Brazilian port.

These blowups are now taking their toll on the hundreds of exporters in the southern central province of Khanh Hoa who are waiting to ship their products to North America.

Phuoc Tho Co, for instance, said it often exported one to two frozen containers to the US and Canada every month.

But this month, the North American shipping company said they would not receive Phuoc Tho’s container, the company’s representative Nguyen Quoc Bao Anh said.

Anh said the goods had to be stored in cold storage, raising costs for the company.

“Our company thus cannot ship the products on time, which will hurt our reputation,” Anh said.

Earlier this month the Cat Lai Port held a meeting with the foreign shipping firms following their announcements to stop receiving frozen containers from Vietnam.

The shipping firms agreed on the solution of asking a trusted foreign assessing company to identify the causes of the container explosions.

At present, some firms such as APL, MSL, and CMA are still willing to ship Vietnamese frozen containers for an additional fee of US$500 per container.

Nguyen Hung, Deputy General Secretary of the Vietnam Freight Forwarders Association, said while the causes of the explosions were yet to be identified, the shipping firms should not take advantage of the situation to ask for higher fees.

Some ports in the US and other countries still allow frozen containers from Vietnam, he said.

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