31OCT2019 - NEWS - Freight costs to surge 30% for Vietnam exporters in 2020, VASEP warns

The Vietnamese Association of Seafood Exporters and Producers (VASEP) has warned that there will be substantial increases in freight costs for Vietnamese traders in the new year, the body said in a release.

The trade group says it expects shipping costs to surge by 30% when new legislation on sulfur content in fuel take effect from Jan.1, 2020.

Exporters have begun receiving notices that freight costs will rise $135-$220 per container in the new year, with freight per container to Japan set to rise by as much as $240, VASEP predicted.

Under the International Convention for the Prevention of Pollution from Ships (MARPOL), a new cap of 0.5% has been introduced for sulfur content in shipping fuel, down from the current cap of 3.5%. VASEP estimates that most current marine fuels contain roughly 2.7%, so a substantial cost will be incurred to meet the new rules.