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Exports get delayed due to dearth in containers
Jul '10
Domestic firms witness losses, as dearth in containers leads to delayed deliveries of export orders to overseas partners.

In order to avoid delay in shipments, many exporters have pre-registered their firms with shipping companies, two or three weeks in advance to reserve their containers

Although, dearth in containers commenced in March, but off late the problem has adversely increased. As per a member of a wood export firm in HCM city, this is luckily not the peak season.

The most affected, owing to dearth of containers, are those firms that, export bulk volumes of goods to key transport routes such as the US and EU.

However, till now companies with constant volumes have not been affected as much as those with unpredictable or irregular contracts or orders. For instance, Secoin Building Materials in HCM City, regularly exports with constant volume figures, therefore, it has come across lesser problems with respect to dearth in containers.

More so, the shortage in containers was partly due to the rise in the number of export contracts, inked by different Vietnamese firms.

Le Quoc An, Chairman, Viet Nam Textile and Apparel Association, too confirmed the aforesaid details, further adding that, they export orders signed are more as against last year's figures.

Firms involved in apparels, handicrafts, leather footwear, coffee and furniture exports are adversely affected due to dearth in containers.

But still, the textile and apparel segment, attained net export turnover of US $4.8 billion, within the initial six months of the year, witnessing a year-on-year rise of 17.2 percent.

Viet Nam Timber and Forest product Association too informed that, member firms inked more contracts with US this fiscal, which has lead to rise in exports by 5 percent.

Export turnover of farm produce, seafood and forest goods too rose by 13.5 percent year-on-year to $8.6 billion in the first half of 2010, informed the Ministry of Agriculture and Rural Development.

Industry exports opine that, despite experiencing recovery in economic, investment in containers, as always, was at a lower level.

Fibre2Fashion News Desk - India

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