As the epidemic worsens, Ho Chi Minh Port suspends some operations, and Maersk launches the first special train from Vietnam to Europe

One month after the number of new crown pneumonia cases in Vietnam continued to rise, the port company was forced to suspend part of the operation of the largest international terminal in Ho Chi Minh City, and stated that if the dock cannot be cleared and the cargo backlog can be reduced, it will completely stop receiving cargo ships.

Saigon Newport Corporation said that these measures were taken because the container yard is close to being saturated, and due to the surge in confirmed cases in July, terminal staff have been reduced by half, and forklift and truck drivers are also facing shortages.

Due to the prevention and control of the epidemic, most areas in southern Vietnam have been blocked for nearly a month, port productivity has declined, and a large number of ships are waiting in line at berths south of Vung Tau Port.
 
"The new crown epidemic is a force majeure event. Saigon Newport Company is still working hard to maintain the ship-receiving, delivery and receiving operations of Cat Lai Port (Cat Lai) warehouses and yards." Saigon Newport Company spokesperson said.

Vietnam has added about 300 low-level cases every day for several months, but in early July, the number of confirmed cases in the country suddenly rose sharply. At present, an average of 8,000 cases are reported every day across the country. The government has taken preventive and control measures, big cities have been blocked, and the epidemic is still affecting Ho Chi Minh City, which is under lockdown.

According to Reuters, the Ho Chi Minh City Government said in a statement: “Due to the rapid and unpredictable nature of the Delta variant, in order to protect the people and minimize deaths, the city government has decided to strengthen a series of measures to control the epidemic.” However, The number of new cases continues to rise and has reached a high level.

Saigon Newport said that after three weeks of operations during the virus surge, the number of employees in the Port of Gloria (Cat Lai) in Ho Chi Minh City has been cut in half to only 250. The epidemic has caused a shortage of port staff and forklift drivers, as well as a shortage of truck drivers entering the port to transport containers. Due to lack of workers, the ships were forced to wait on the berth.

 
At present, Port Gloria has stopped receiving refrigerated goods until the middle of this month. From August 1st, the terminal plans to suspend the handling of transshipment and transshipment cargo until the 16th. And from the 5th of this month, the terminal will also suspend the transportation of over-long, over-weight, over-sized, and over-loaded cargo.

Port operators encourage carriers and their customers to adjust their schedules to transfer goods from Ho Chi Minh Port to other ports.

In the next two weeks, the port will require all incoming ships to inform the estimated number of imported containers and empty containers on board in advance. With this information, they can arrange the yard to handle the freight in advance. However, if the terminals still cannot reduce the yard backlog, they may have to impose quotas on imports or stop receiving cargo ships.

Saigon Newport Company also asked Vietnamese customs officials to allow them to move containers that have been waiting in the port for more than 90 days to make room. They suggested that the container should be transported to an inland warehouse and stated that they would ensure that the seals on the container and the cargo remain intact.

The chaotic port situation is also spreading northward. Last week, the Vietnamese government decided to block the port of Quy Nhon in the central part of the country, where a larger outbreak has been detected. The foreign anchorage in Haiphong in the north of the country is also very busy.

▎Instead of shipping options, Maersk launches intercontinental train service

In a period of turbulence and pressure in the traditional transportation market, a good alternative solution emerged.
 
Maersk's first full-special train from Vietnam to Europe began its first transportation, starting from Hanoi, Vietnam, to Zhengzhou, China, and then from Zhengzhou to Liege, Belgium.

This train carries 23 40-foot-long containers, prepared for its customer Decathlon. Decathlon is one of the largest sporting goods retailers in the world. At the end of August 2021, these goods will be transported by road from Liege, Belgium to warehouses in Durge and Rouvigny, France.

Maersk said that despite the challenges posed by the new crown pneumonia epidemic, the sportswear industry is still booming, consumers are spending more and more time outdoors for exercise, and home exercise is becoming more and more popular. The goods of sportswear manufacturers in Southeast Asia, including Vietnam, are accumulating, which has led to a shortage of storage space and capacity.

Philippe Dunand, Global Account Director of Maersk Decathlon, said: "Decathlon's first full dedicated train from Vietnam to Europe will not only achieve reliable delivery, but will also provide our customers with better visibility. This service has also promoted many The synergy between intermodal transportation and rail transportation has increased the flexibility and great value of Decathlon’s supply chain.

Diep Nguyen, Logistics Director of Decathlon Vietnam, also said that Maersk's reliability and their familiarity with our products and needs proved to be invaluable. With all-dedicated trains, we have obtained a brand-new transportation solution that is efficient, reliable, and has less impact on the environment.