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Petrol prices are high, logistics businesses face many difficulties

The continuous increase in gasoline prices along with large fluctuations in shipping rates are putting pressure on logistics service businesses.

Petrol prices are high, logistics businesses face many difficulties

In 2022, many economic activities will open and adapt to the new situation, but the volume of goods passing through the seaport has not prospered. According to the Port Authority of Ho Chi Minh City, in January, the total number of ships entering the city's seaport waters. Ho Chi Minh City decreased, specifically 8,455 arrivals (equivalent to 93% over the same period last year). Through February, although there was a slight growth, it was still not commensurate with the potential.

 According to the Ho Chi Minh City Logistics Association (HLA), fuel costs account for about 30% - 35% of the operating costs of logistics enterprises. Therefore, the price of petrol and oil continuously set new peaks, which immediately had a great impacton logistics business.

Recently, businesses operating in the logisties field in Ho Chỉ Minh City in particular and the whole country, in general, have faced many difficulties due to the Covid-19 epidemic situation, which has "broken" the global supply chain. Not only difficulties due to the decrease in orders, but logistics enterprises also face a serious shortage of labor force. Surveying HLA members, there are times when businesses have a shortage of 20% - 30% of personnel.

Meanwhile, the cost to maintain the operation of logistics enterprises is constantly increasing when applying epidemic prevention measures "3 on the spot", "one road, two destinations". However, in businesses In the logistics industry, efforts are made to help smooth the flow of goods and minimize the impact of supply chain disruptions caused by the COVID-19 pandemic.

In addition, the Ho Chi Minh City Logistics Association also recommended specialized management agencies to strengthen supervision of supply, to ensure that there is no deliberate speculation that causes gasoline prices to increase.  Improve the capacity and efficiency of the Petroleum Stabilization Fund tool, in order to gradually control the price of petrol in the current market.

In order to reduce the pressure of increasing prices on logistics businesses and support production recovery, the Ho Chi Minh City Logistics Association proposed to exempt or reduce some taxes and fees such as road usage fees for means of transport.  business facilities, transportation business.  At the same time, Ho Chi Minh City also needs to consider postponing the collection of seaport infrastructure fees from April 1, 2022.  In addition, it is necessary to invest in infrastructure development, diversify forms of green supply to save fuel and protect the environment.  At the same time, petition the Government to review taxes and fees, because according to businesses currently, taxes and fees have accounted for 38-40% of the petrol price structure.

Source: Aloha International Logistics Company.