Port jam in China, pay attention to export control

Seafood enterprises are advised to control the production stage. Photo: T.H

Difficulties at the port

According to the Vietnam Association of Seafood Exporters and Producers, currently, the cost of transportation to the Chinese market has doubled compared to the end of 2021, but the booking of ships is very difficult.

The reason is that seaports in China are still tightening pandemic control, leading to a large number of containers stuck.

The rotation of empty containers is blocked, which means that there are exported goods but no goods, ship owners have to wait, so short-term booking is still difficult.

Regarding import-export cargo ships from Vietnam to China, recently, Saigon Newport Corporation also notified businesses.

A representative of this company said that according to market information, the government of Shanghai and a number of other Chinese cities implemented a blockade to control the Covid-19 pandemic. These pandemic control regulations are expected to affect the volume of goods through ports in Shanghai and other ports in China.

In order to minimize the impact on the operation of port facilities of Saigon Newport Corporation as well as the general operation of shipping lines, Saigon Newport Corporation recommends shipping lines and agents regularly take the initiative in obtaining information related to the operation of Shanghai port and neighboring ports on the ability to receive goods; sharing and updating information on vessel operation schedules when there is a change in arrival time at the port facilities of Saigon Newport Corporation; ensure goods are loaded onto the ship according to the plan, especially cold, oversized and dangerous goods.

According to Ho Quoc Luc, Chairman of the Board of Directors of Sao Ta Seafood Joint Stock Company, China's 'Zero Covid' policy can cause a local shortage of human resources in Chinese ports as in the past two years. As a result, the train schedule is flexible, causing congestion of empty containers and local shortages, shipping lines will have an excuse to continue to increase freight rates.

'Zero Covid' will cause many more shipments to China to be infected with Covid-19 and many exporters to China will be stopped for the short-term like many Ecuadorian shrimp companies have been in recent years.

Strictly control the quality of exported goods

According to Le Hang, Deputy Director of VASEP.PRO Center, China's insistence on the 'Zero Covid' policy, strengthening quarantine for frozen seafood is a common difficulty of all seafood export markets, not only Vietnam.

However, the blockade and quarantine in China did not have much impact on seafood exports because businesses have gotten used to and adapted to this over the past two years.

According to the General Department of Customs, in March, seafood exports to China reached US$182 million, an increase of 2.2 times compared to February. In the first quarter of 2022, seafood exports to China reached US$326 million, double the same period in 2021.

Thus, although China has just experienced a wave of Covid-19 with a sudden increase in the number of new infections, blocking many seafood capitals such as Guangdong and Shanghai, tightening the food import process, but exports of Vietnamese products to this market still grew well.

According to an analysis by BIDV Securities Company, two weeks after China announced the blockade of many cities, seafood exports, including pangasius products, remained stable.

In the first quarter of 2022, pangasius exports to China reached about 65,000 tons, equivalent to US$165 million, up 87% in volume and 2.6 times in value over the same period in 2021. BSC said that China will gradually move towards reopening and then its pangasius consumption will be on par with the US.

Although China's regulations and barriers are still strict, especially given the time when China's Customs authorities are tightening supervision of imported food products during the Covid-19 pandemic.

The biggest problem is that Vietnamese businesses need to strictly control hygiene and sterilization, especially in the loading and unloading stage to minimize shipments that may have indicators related to Covid-19.

Recently, the Agro-Forestry-Fisheries Quality Assurance Department (NAFIQAD) has asked seafood processing enterprises exporting to China to strictly comply with regulations.

In particular, it is required that business leaders seriously realize the importance of Covid-19 control and prevention in the process of producing and exporting seafood to China; closely directing relevant departments to fully implement Covid-19 prevention measures under the direction of the Government, the Ministry of Health, and the guidance of FAO and WHO.

At the same time, businesses focus on a number of control measures, such as requiring people to participate in the packaging, loading and unloading stages of finished products, entering and leaving the warehouse, loading and unloading containers to wear masks, regularly disinfecting hands and periodically being screened.