Volume of goods through seaports increased during US tariff pause

Volume of goods through seaports increased during US tariff pause

In the second quarter of this year, Vietnamese seaports witnessed a container volume boom as exporters rushed to ship goods during a 90-day pause on US reciprocal tariffs.

The Cái Mép-Thị Vải port in Bà Rịa-Vũng Tàu Province. — Photo vietnamnet.vn

There's been a surge at Vietnamese container ports as businesses speed up deliveries during the 90-day pause on US reciprocal tariffs.

According to a VCBS (Vietcombank Securities), in April and May, container volume rose 13 per cent year-on-year, with Cái Mép-Thị Vải ports up 22 per cent, Lạch Huyện up 32 per cent and HCM City ports up 8 per cent.

In total, over 10 million TEUs were handled in the first four months of this year, a 6 per cent increase. Bà Rịa-Vũng Tàu contributed a 19 per cent growth.

Export turnover reflected a clear ‘front-loading’ trend, with shipments to the US increasing 34-36 per cent, nearly double the growth rate in the first quarter.

VCBS estimates that port operators recorded strong earnings on the back of rising cargo volumes.

Gemadept posted Q1 revenue of VNĐ1.27 trillion (US$48.9 million), up 27 per cent, with a gross margin of 44 per cent, though net profit dipped slightly due to the absence of extraordinary income.

Nam Đình Vũ Port saw a 29 per cent increase in volume and operated at 119 per cent utilisation, while Gemalink handled 440,000 TEUs, up 25 per cent.

The Port of Hai Phong Joint Stock Company reported VNĐ577 billion in revenue and VNĐ145 billion in profit, with its Lạch Huyện terminals 3 and 4 officially beginning operations on May 13, lifting total capacity to 3.2 million TEUs.

Saigon Port saw post-tax profits rise 120 per cent to VNĐ111 billion, driven by its CMIT and SSIT joint ventures. The average container throughput increased by 40 per cent, with CMIT up 43.6 per cent and SSIT up 42.2 per cent.

Viconship posted a 16 per cent increase in revenue and 80 per cent profit growth, processing 281,000 TEUs, up 15 per cent.

A major threat to growth in the second half of this year stems from a global oversupply of container vessels. By the end of 2024, the international fleet had exceeded 6,500 ships with a combined capacity of around 32 million TEUs.

VCBS forecasts this could grow to 37.5 million TEUs by end-2027, with 1.6 million TEUs of new ships to be delivered by the end of 2025.

Domestically, port capacity is also set to expand significantly. Nam Đình Vũ  Phase 3 (800,000 TEUs) is scheduled to open by the end of 2025. Gemalink Phase 2A (over 600,000 TEUs) is under review. A new series of terminals at Lạch Huyện could add another 3 million TEUs over the next two years.

This expansion poses a risk of overcapacity, potentially compressing profit margins as ports compete for cargo volumes and are forced to raise service incentives to attract shipping lines.

A key policy risk also clouds the outlook. If US reciprocal tariffs rise 10-15 per cent above regional averages after July 9, Vietnamese exports to this country, which currently account for about 30 per cent of container export volume, could shrink significantly.

To navigate these headwinds, port operators are urged to diversify into value-added services, optimise operating costs, carefully time the activation of new capacity to avoid internal competition and closely monitor Việt Nam-US trade negotiations to minimise exposure to policy risks. 

Bizhub