High air transport fees prove difficult for Vietnam
High air transport fees have made it difficult for Vietnamese fresh fruit exports this year. Vuong…High air transport fees have made it difficult for Vietnamese fresh fruit exports this year.
Vuong Dinh Khoat, general directer of HCM City-based Hugo Company, said that high shipping costs have caused problems. The company had plans to export longan and dragon fruits to the US, however, he would have to pay $3.40-$3.60 to ship a kilo of fruits by air. Last year the shipping fee was $4.50-$4.80, however this still is a big problem despite the decline.
Transport fees account for a high proportion of Vietnamese fruits' prices. It would cost $2.95 to carry a kilo of litchi's from Vietnam to Australia by air which is 42.2% of the selling price.
A lot of countries import Vietnamese fruits, however the high transport fees have made them less competitive in price comparison with other exporters.
Vietnam's fruit export turnover has been increasing over the last few years from $827 million in 2012, $1 billion in 2013 and £1.477 billion in 2014. They are hoping to get about $2 billion this year.