[HOT] Tan Cang Cat Lai Port Temporarily Suspends Receipt Some Of Specific Imported - Exported Goods To Solve Backlog

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[HOT] Tan Cang Cat Lai Port Temporarily Suspends Receipt Some Of Specific Imported - Exported Goods To Solve Backlog

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02/08/2021

Saigon Newport Corporation, on the afternoon of July 31, informed that it would temporarily stop receiving import and export goods at Tan Cang Cat Lai Port in Thu Duc City of Ho Chi Minh City.

Overall situation

After a period of lockdown, the volume of containers discharged at Cat Lai port yard still increased. Meanwhile, the volume of cleared containers gate-out from port continuously decreased compared to before lockdown, leading to an increase in the number of containers in Cat Lai.

The reason is that many factories and enterprises in the area have to reduce or even stop producing, so they don’t need to pick up import materials from the port. The high inventory leads to the risk that the port has to temporarily stop receiving vessels.

In 3 weeks of Ho Chi Minh City's implementation of the lockdown regulations, the number of vehicles entering and leaving Cat Lai port for delivery decreased by more than 3% in the first week, more than 10% in the 2nd week and more than 15.5% in the 3rd week.

Currently, the increase in the amount of imported goods has not shown any signs of stopping because many factories have had to reduce production or stop working for 14-21 days due to blockade or failure to ensure the "3 activities – 1 place" conditions, "2 points - 1 route".

Tan Cang Cat Lai Port temporarily suspends receipt of goods

Stating that in the past three weeks, the number of containers congested at the port had reached 100 percent of its capacity, while the direct handling force has been reduced by half, putting the port at risk of disrupting operations.

This fact forces Cat Lai Port to temporarily stop receiving imported goods for enterprises and customers who are suspending production and encouraging vessels loading export goods only. Items that occupy extra yard capacity, such as oversized or over-weighted cargoes, are also subject to a temporary suspension of receipt as of August 5. In-transit RF goods that need trans-load operations will also be temporarily stop until end of August 16, 2021.

According to calculations by Saigon Newport, the cargo handling plan of Tan Cang Cat Lai port will continue to be maintained until August 15, 2021 (reaching the highest level of 97.5% of inventory).

However, with the complicated situation of the covid pandemic, Ho Chi Minh City and neighboring provinces are imposing harder control method, factories and enterprises continue to have to reduce or stop production, import and export goods through Tan Cang Cat Lai port and other ports in the area will be seriously affected, shipping lines will have to adjust the schedule of vessels entering these ports of the region.

Conclusion

In addition to temporarily suspends receipt of goods as mentioned above, Saigon Newport has provided some suggestions for import-export businesses and shipping lines to adjust their plan in this period:

-          Shipping lines and freight forwarders proactively persuade customers to adjust the destination port - the place to receive goods directly - to Tan Cang - Cai Mep International Terminal (TCIT), Tan Cang - Cai Mep Thi Vai Terminal (TCTT) in Ba Ria - Vung Tau, and Tan Cang Hiep Phuoc (TCHP) Port in HCMC. The port will support shipping lines and customers to work with customs authorities to carry out procedures to quickly apply change of port of discharge (COD) procedure.

-          Shipping lines to provide 2-weeks forecast of import laden and empty containers for port to plan.

Depending on the level of container backlog and the specific situation, Tan Cang Cat Lai Port may apply the quota of imported goods on each service route. If the number of containers stockpiled at the port reaches the maximum capacity, Tan Cang Cat Lai Port will have to stop receiving vessels.

Contact us now for deeper advice on logistics solutions:
Ms.Cindy – cindy.sgn@vlc.com.vn
Ms.Kathy – kathy.sgn@vlc.com.vn

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