Congestion at ports in southern Vietnam is worsening as the country grapples with the latest outbreak of the COVID-19 outbreak. Theloadstar.com page recorded as mentioned on July 21, 2021.
A representative of Saigon Newport Company-Saigon Newport (SNP), the company that operates the inner-city river terminal at Tan Cang Cat Lai in Ho Chi Minh City, told customers on the morning of July 21 that the COVID-19 outbreak has severely disrupted production activities. At the same time, it creates negative impacts on operations at Tan Cang Cat Lai port and high risk of backlog due to slow receipt and unloading of imported containers.
The SNP called on carriers and shippers to urgently pick up imported containers to ease congestion at the yard and help Cat Lai Newport “normally receive and process incoming freight trains.”
This situation also warns that the transport capacity between Cat Lai and Cai Mep, a deep-sea port complex near Vung Tau, is reduced.
Seko Logistic explains that social distancing affects drivers traveling between provinces/cities as they have to present negative COVID-19 test results within three to seven days, while Maersk Group reported that the storage time at Cai Mep port was reduced to 72 hours. This is reducing available truck capacity.
As noted by Vietnam MD for French 3PL FM Logistic, representative Hamza Harti said that the increasing inventory and available warehouse space are “very scarce in the most important industrial zones.” In addition, the latest social distancing directive has caused a “scarcity of human resources in some cases” as warehouses have to keep staff on site or provide specialized accommodation near ports.
Meanwhile, director of Noatum Logistics in Vietnam, Jan Segers confirmed that warehouses are “overcrowded” and the congestion at the port is caused by shippers waiting for lower freight rates, not the impact of the COVID-19 outbreak.
Jan Segers told The Loadstar that there is no port congestion in Vietnam due to COVID-19 restrictions. Mr. Jan Segers emphasized that it is important to note that all port personnel have been vaccinated or strictly controlled in movement and testing.
The director of Noatum Logistics in Vietnam thinks that congestion in southern Vietnam’s ports will persist in the coming months.