Do you truly understand VAT regulations and the conditions for applying the 0% VAT rate to on-the-spot import-export transactions?

Does the transaction genuinely satisfy the legal nature of an on-the-spot import-export transaction?

• Goods processed in Vietnam under a processing contract with a foreign trader, where the foreign trader sells or transfers those goods to an organization or individual in Vietnam.
• Goods bought, sold, leased, or borrowed between a Vietnamese enterprise and a foreign trader, where the foreign trader designates the delivery and receipt of the goods with another enterprise located in Vietnam.

“Upon the designation of a foreign trader”

Key Questions Businesses Should Answer

• Who is the seller?
• Who is the buyer?
• Who is the foreign trader involved?
• Which parties signed the contract?
• Who designated the delivery of the goods to the Vietnamese enterprise?
• Between which parties does the payment flow occur?
• Are the commercial, customs, and accounting documents fully consistent with one another?

Accordingly, transactions between domestic enterprises and EPEs, or between EPEs, that are carried out under the instruction of a foreign trader pursuant to commercial, processing, leasing, or lending contracts may qualify as on-the-spot import and export.

A domestic enterprise → directly selling goods to an EPE

without a transaction structure based on the instruction of a foreign trader, the transaction should be assessed as a standard export/import transaction rather than automatically being classified as on-the-spot import and export.

“Is there a three-party contract?”

“How is the legal relationship between the seller, the foreign trader, and the consignee reflected within this transaction?”

• ① Does my transaction genuinely fall within the scope of exported goods or on-the-spot import and export?
• ② Do I possess sufficient documentation proving that the transaction satisfies all conditions for applying the 0% VAT rate?
• ③ Are the contracts, delivery instructions, customs declarations, invoices, and payment documents fully consistent with one another?

“Has an on-the-spot customs declaration been filed?”

“Do the customs declaration, contract, delivery instruction, invoice, and payment documents consistently reflect the same underlying transaction?”

• Who signed the contract?
• Who issued the invoice?
• Who made the payment?
• Who delivered the goods?
• Who received the goods?
• Who designated the delivery location?

• Sales Contract;
• Purchase Order (PO);
• Contract Appendices;
• Delivery Terms;
• Payment Terms;
• Delivery Designation Clauses.

Do not determine whether a transaction is an on-the-spot import-export transaction solely because “the goods are delivered within Vietnam.”

Instead, determine it based on:

• Domestic enterprise Foreign enterprise;
• Domestic enterprise Export Processing Enterprise (EPE);
• EPE EPE;
• Goods delivered within Vietnam under the instruction of an overseas parent company or foreign customer;
• Or transactions currently applying the 0% VAT rate for goods delivered within Vietnam,

1. Does this transaction genuinely qualify as an on-the-spot import-export transaction?
2. Is there a foreign trader involved who officially instructs the delivery and receipt of the goods?
3. Does the current documentation provide sufficient legal basis to apply the 0% VAT rate?

THT Cargo Logistics supports businesses in reviewing transaction structures, on-the-spot import-export documentation, customs declaration codes, and VAT-related compliance issues.

The issue nobody talks about openly

Key principle to remember:

Material consumption norms should be established before mass production begins, supported by trial production records and technical reports. Whenever production processes change, businesses should prepare written explanations and officially update the revised consumption norms with Customs authorities.

• Errors voluntarily identified and amended before a Customs inspection: A penalty of 10% of the underpaid tax, plus late payment interest at 0.03% per day.
• Errors identified by Customs during a post-clearance audit: A penalty of 20% of the underpaid tax, plus late payment interest as prescribed by law.
• Late submission of the Customs Finalization Report without a valid reason: An administrative fine ranging from VND 2 million to VND 5 million.
• Cases involving fraudulent conduct: May be subject to criminal prosecution under the Criminal Code.

Key Takeaway

Even a minor production process improvement that is not reflected in the approved material consumption standards can create significant legal and financial risks for the business.

• Review all current Bills of Materials (BOMs) and compare them with the actual production process.
• Identify all machinery, raw material, or production process changes made since the previous customs finalization period.
• Prepare formal documentation recording any BOM changes, signed by both the technical department and management.
• Register updated BOMs with Customs whenever significant changes have occurred.

• Conduct a physical inventory count and reconcile it with accounting records.
• Verify that scrap and defective materials generated during production have been properly recorded and handled in accordance with regulations.
• Reconcile inventory management system records with actual warehouse issue slips on a monthly basis.
• Ensure that any raw materials borrowed from overseas business partners (if applicable) are tracked separately.

• Verify that all Production Orders have been properly retained and sequentially numbered.
• Confirm that each raw material issue slip clearly references its corresponding Production Order.
• Review periodic inventory count reports (at least once every three months) to ensure all required signatures are present.
• Check documentation related to defective goods, trial production, and non-conforming products.

• Confirm the submission deadline for the current fiscal year’s Customs Finalization Report (typically within 90 days after the fiscal year-end).
• Reconcile the total quantity of imported raw materials declared under E31 with exported finished products declared under E62 and ending inventory.
• Ensure that warehouse records, accounting records, and Customs records are fully consistent before submitting the report.
• Retain all supporting documentation and records for a minimum of five years.

• Review all transactions between Export Processing Enterprises (EPEs) under Circular 121/2025. From 01 February 2026, these transactions must follow standard import-export customs procedures.
• If the company sells goods into the domestic market (including scrap materials), confirm that all corresponding import procedures and tax obligations have been fully completed.
• Update the newly required Customs Office Codes (mandatory from 01 July 2026) across all customs declaration software currently in use.

Key Takeaway

Managing material consumption standards, production records, and Customs Finalization Reports should not be viewed merely as a compliance obligation. It is a practical strategy for protecting valuable import duty incentives while minimizing the risk of future tax reassessments.

Need Support Reviewing Your Export Manufacturing Records or Preparing Your Customs Finalization Report?

THT Cargo Logistics provides customs consulting and compliance solutions for FDI manufacturers operating in industrial parks throughout Southern Vietnam. We assist businesses in reviewing material consumption standards (BOMs), validating duty exemption documentation, reconciling customs and inventory records, preparing Customs Finalization Reports, and conducting compliance assessments before post-clearance audits.

If your company needs to review its raw material management system or prepare Customs Finalization documentation in accordance with current regulations, contact THT Cargo Logistics for practical, industry-specific consulting tailored to your manufacturing operations.

Import & Export Regulatory Update – Effective from July 1, 2026

Why Are FDI Manufacturers More Vulnerable Than Domestic Enterprises?

Many FDI manufacturers operate internal ERP systems (SAP, Oracle, or group-developed platforms) in which customs office codes are hardcoded and cannot automatically synchronize with updates issued by the General Department of Vietnam Customs. Updating these systems requires coordination with the IT department or software vendors and may take anywhere from several days to several weeks, depending on the system architecture. If this has not yet been completed, it should be treated as an urgent priority this week.

What You Should Do

Immediately verify whether your customs declaration system (whether an internal platform or one managed by your freight forwarder) has already been updated with the new customs office codes. If customs declarations are handled by a freight forwarder, obtain written confirmation that their system has been updated and that all declarations submitted from July 1 onward use the new customs office codes.

Practical Risk

Existing customs declaration templates may not contain sufficient data fields for all tax categories required under the new regulations. As a result, businesses may unintentionally omit required information and subsequently need to submit supplementary declarations. Such errors may be subject to administrative penalties under Decree 169/2026 on customs administrative violations.

What You Should Do

Review your standard customs declaration templates, particularly for imported goods subject to multiple taxes. If customs declarations are outsourced to a licensed customs broker or freight forwarder, confirm that they have already updated their declaration templates in accordance with Circular 86.

Key Impact on FDI Manufacturers

The most significant impact applies to FDI manufacturers importing duty-exempt machinery and equipment as fixed assets under investment projects. Inspections on the use of duty-exempt goods are now conducted through digital systems, enabling Customs authorities to access and cross-check data much more efficiently. Companies without a well-organized electronic archive for duty exemption documentation or the ability to retrieve supporting records quickly may face considerable challenges during Customs inspections.

In addition, Decree 252/2026 stipulates that tax refund applications subject to pre-refund inspection must be resolved within 10 working days from the date Customs issues its inspection conclusion. While this provides businesses with a clear processing timeline, companies must ensure that complete electronic documentation is submitted from the outset in order to benefit from this commitment.

Action Required

Review your company’s internal document management system. Verify whether all customs declarations, duty exemption documents, and tax refund files are stored electronically and can be submitted through the Customs electronic system.

If your company is still relying primarily on paper-based records, now is the time to digitize all documentation and establish a standardized electronic document management process during Q3/2026.

A New Enforcement Measure Introduced

More importantly, Decree 252 introduces a completely new tax enforcement mechanism for the first time. Authorities are now permitted to file a petition requesting bankruptcy proceedings against enterprises that continue to evade tax payment after other enforcement measures have failed to recover outstanding tax debts.

For FDI manufacturers, this means that prolonged customs tax liabilities—including import duty and import VAT—may no longer result only in late payment penalties. In extreme situations, they may ultimately lead to bankruptcy proceedings, creating serious legal and reputational consequences.

The Decree also clarifies the transfer of tax obligations when enterprises change their legal form and introduces mechanisms for reinstating tax liabilities that were previously cancelled but later restored pursuant to court decisions. FDI enterprises undergoing restructuring or changes to their operating model should seek legal advice before implementing such changes.

Action Required

Immediately review your company’s outstanding customs tax liabilities, including import duty, import VAT, and any applicable special taxes. Any overdue tax balances should be settled during July before the new enforcement mechanisms are fully implemented. Businesses should also verify their current tax debt status through the Vietnam Customs online information portal.

Highest-Risk Areas for FDI Manufacturers

The greatest exposure typically involves declarations containing complex HS classifications, customs valuation based on related-party transactions, or preferential Certificates of Origin (C/O). As discussed in previous analyses regarding post-clearance audits, these remain the three areas most frequently targeted by Customs authorities during inspections.

Action Required

Although this is not an action that must be completed within a single week, it should be incorporated into your Q3/2026 compliance plan. Conduct an internal review of customs documentation dating back to 2023, focusing on high-value declarations, newly classified HS codes, and shipments claiming preferential Certificates of Origin. Where discrepancies are identified, businesses should proactively submit amended declarations before Customs discovers the issues through an inspection, thereby benefiting from more favorable treatment under the applicable regulations.

Actions to Complete This Week

• Confirm that your customs declaration system (internal software or through your freight forwarder) has been updated with the new Customs authority codes. If declarations are submitted through a third party, request written confirmation from your freight forwarder or customs broker.
• Check your current customs tax debt status through the Vietnam Customs online information portal. If any overdue tax liabilities exist, settle them immediately this week.
• Notify the Accounting and Finance Department of the complete list of taxes required to be declared under Circular 86 to ensure internal invoice templates and supporting documentation comply with the new requirements.

Actions to Complete During July

• Review your standard customs declaration templates to ensure they contain sufficient information for all tax types required under Circular 86, particularly for products subject to multiple taxes simultaneously.
• Review your internal document management system to verify that customs declarations, duty exemption documents, and tax refund files are stored electronically and are ready for submission through the Customs electronic system.
• For manufacturers importing duty-exempt machinery and equipment as fixed assets, verify the list of duty-exempt assets, their actual usage status, and all supporting documentation.
• Seek legal advice if your company is undergoing restructuring or changing its business model, as the new provisions governing the transfer of tax obligations during corporate restructuring should be clearly understood before implementation.

Actions to Include in the Q3/2026 Compliance Plan

• Conduct an internal review of customs documentation covering the period from 2023–2026, focusing on high-value customs declarations, products with HS code classification risks, and declarations using preferential Certificates of Origin (C/O).
• Establish a standardized digital customs document management process if one is not already in place, prioritizing duty exemption and tax refund documentation.
• Closely monitor further guidance regarding the four enhanced monitoring taxpayer categories effective from 01/09/2026 in order to assess potential compliance risks and prepare accordingly.
• Update internal training materials for Import & Export personnel regarding the new regulations, particularly tax declaration requirements for each occurrence and the electronic submission procedures.

Need Support Updating Your Customs Compliance Process?

THT Cargo Logistics supports FDI manufacturers in reviewing customs declaration procedures under the latest regulations, verifying that declaration systems have been updated correctly and completely, and providing practical solutions for issues arising during the transition period.

If your factory would like a compliance assessment tailored to your import and export operations, contact THT Cargo Logistics for professional support.

Import-Export Regulatory Update – Effective from August 1, 2026

Download Official Circular and Appendices

• Register the appropriate Certificate of Origin issuing office (department) on the eCoSys system.
• Select the correct Certificate of Origin (C/O) form corresponding to the registered issuing authority.
• Review and verify all company information on the system before submitting any applications.

• ✓ Verify the appropriate Certificate of Origin issuing authority under Circular No. 26/2026/TT-BCT.
• ✓ Update the issuing authority registration on the eCoSys system.
• ✓ Select the correct Certificate of Origin (C/O) form.
• ✓ Review and verify all company information on the system.
• ✓ Complete all required actions before August 1, 2026 to avoid any interruption in Certificate of Origin issuance.

Need Support with Certificate of Origin Procedures or the Latest Regulatory Updates?

THT Cargo Logistics works closely with FDI enterprises by providing consultation on rules of origin, assisting with Certificate of Origin documentation, updating clients on the latest regulatory changes, and coordinating import-export procedures to ensure smooth customs clearance without disruption.

If your company requires guidance on implementing Circular No. 26/2026/TT-BCT or any Certificate of Origin-related procedures, contact THT Cargo Logistics and our team of specialists will be ready to assist you.

Opportunity 1: Competitive Advantage from the 20% Reciprocal Tariff

The 20% reciprocal tariff, reduced from the originally proposed 46% in April 2025, helps Vietnamese exports remain competitive in the U.S. market.

Compared with ASEAN competitors such as Thailand (36%), Malaysia (25%), and Cambodia (36%), Vietnam enjoys a clear advantage in sectors such as electronics, textiles, furniture, and seafood. For FDI manufacturers with well-prepared origin documentation and sufficiently flexible logistics operations to meet delivery deadlines, this creates an opportunity to maintain and expand market share in the United States during the second half of the year.

Opportunity 2: Northern Vietnam Port Infrastructure Is Improving Rapidly

In the first five months of 2026, the Lach Huyen Port area (Hai Phong) recorded throughput growth of 53.4% year-on-year, significantly outperforming the overall Hai Phong area growth rate of 11.8%, driven by the operation of Berths No. 3–4 and No. 5–6.

For FDI manufacturers in Northern Vietnam that have not yet shifted export cargo bound for the U.S. and Europe to direct services via Lach Huyen, this is an appropriate time to reassess their port strategy.

Opportunity 3: Continued Supply Chain Relocation from China to Vietnam

FDI exports are expected to remain the primary growth driver of Vietnam’s exports, supported by the strong recovery in global electronics demand, the ongoing relocation of global supply chains to Vietnam, and production expansion by multinational corporations. FDI manufacturers capable of increasing production capacity while maintaining sufficient logistics capability will directly benefit from this shift in export orders.

Review the Annual Logistics Budget Using Current Market Conditions

The annual budget was prepared using Q1 freight rates, fuel costs before the escalation around the Strait of Hormuz, and without Peak Season Surcharges (PSS). All three cost components have changed significantly. Manufacturers should update their logistics budget and report any required adjustments to management as early as possible rather than waiting until quarter-end invoices reveal budget overruns.

Book Ocean Freight 2–3 Weeks Earlier Than Normal for Q3–Q4 Shipments

This year’s peak season began earlier than expected in early June. For shipments planned between August and November, the optimal booking window is during July and August rather than waiting until cargo is nearly ready, when vessel availability becomes limited and freight rates are typically higher.

Update Customs Declaration Procedures in Accordance with Circular 86/2026 and New Regulations Effective July 1

As export volumes increase during the second half of the year, the number of customs declarations rises accordingly, along with the risk of system errors if procedures have not been updated. These changes should be completed before the peak shipping season rather than while handling urgent export shipments.

Establish Contingency Inland Transportation Plans for Q4 Export Shipments

The shortage of container truck drivers is a structural issue that is expected to become more severe during October and November when export demand peaks. Manufacturers should identify at least two inland transportation providers for each regular port route and schedule trucks at least 48–72 hours earlier than normal.

Review Origin Documentation for Goods Exported to the United States Before Peak Shipping Season

The end of the year is both the busiest export season to the U.S. and the period when the likelihood of U.S. Customs conducting random origin verification increases. Manufacturers that have already prepared comprehensive documentation demonstrating substantial transformation can usually respond within two to three days, whereas those without proper documentation may require two to three weeks, potentially missing customer delivery deadlines.

Preparing Your Logistics Strategy for the Second Half of 2026?

THT Cargo Logistics works alongside FDI manufacturers to review logistics strategies for the second half of 2026, including vessel booking planning aligned with production schedules, customs compliance under newly effective regulations, and contingency inland transportation solutions for the Q4 peak season.

If your company is looking to optimize logistics planning, strengthen supply chain resilience, or evaluate the most suitable transportation strategy for your production and export operations, contact THT Cargo Logistics to discuss the best solution with our logistics specialists.

Logistics Market Update – July 2026

Scenario 1: Manufacturers Importing Raw Materials under FOB Terms from China, Taiwan, or South Korea

This group is affected both directly and immediately because they bear the freight costs themselves.

As intra-Asia freight rates rise in line with broader market trends, every import container arriving during Q3 becomes more expensive than during Q1 and Q2.

For manufacturers importing 30–50 containers per month, even an increase of only USD 100–200 per container creates a significant variance in quarterly logistics budgets.

The more complicated issue is that most manufacturers established their annual logistics budgets at the beginning of the year and do not have mechanisms to review them when market conditions change suddenly. Logistics departments are therefore caught between two pressures: they cannot control market freight rates, yet they must explain why actual logistics costs exceed the approved annual budget.

Scenario 2: Manufacturers Importing under CIF Terms (Supplier Pays Freight)

At first glance, this group appears unaffected because freight costs are borne by the supplier.

However, there are two hidden risks that should be monitored closely.

The first risk is that, during periods of rising freight costs, suppliers may choose lower-cost carriers or indirect shipping routes to optimize their own expenses.

As a result, cargo may arrive 5–10 days later than usual because vessels call at multiple transshipment ports, disrupting factory production schedules even though the logistics department receives no early warning of these routing changes.

The second risk is that rollover probability increases significantly during freight surges because suppliers themselves struggle to secure confirmed bookings. FDI manufacturers purchasing under CIF terms have little visibility into the actual booking status of their shipments and often only learn about rollovers when suppliers provide revised ETAs—typically one to two weeks later than originally planned.

Scenario 3: Manufacturers Exporting Finished Goods to North America or Europe

For export-oriented FDI manufacturers—particularly those in electronics, garments, and footwear—a 66.6% month-over-month increase on the Asia–North America trade lane directly affects export shipment costs when contracts are based on FOB or EXW terms, where buyers pay for freight.

However, if shipments are sold under CIF or DAP terms, the manufacturer bears these higher freight costs directly and cannot easily pass them on to buyers in the short term because commercial contracts have already been signed.

PSS and GRI Announcements from Shipping Lines Serving Your Trade Lanes

In a rapidly rising freight market, major shipping lines often announce both Peak Season Surcharges (PSS) and General Rate Increases (GRI), typically taking effect at the beginning of the following month. These announcements are usually released 2–3 weeks in advance.

If your manufacturing plant has bookings scheduled for August and has not yet secured confirmed bookings, these announcements should be closely monitored and incorporated into the logistics budget before freight invoices are issued.

Rollover Rates on Intra-Asia Shipping Routes

When shipping lines prioritize vessel capacity for higher-yield trade lanes, rollover rates on intra-Asia services also increase, meaning cargo that has already been booked may be postponed to the next sailing without early notification.

Request your freight forwarder to provide actual booking status updates for each shipment instead of relying solely on ETA information from the tracking system.

U.S. Reciprocal Tariff Policy and Transshipment Risks

According to the dashboard data, products identified as being transshipped from China through Vietnam are currently subject to a 20% reciprocal tariff plus an additional 40% penalty.

This creates two major impacts on the shipping market:

• Demand for export shipments from Vietnam to the United States increases significantly as manufacturers seek to leverage production facilities in Vietnam, placing additional pressure on Asia–North America shipping capacity.
• FDI manufacturers in Vietnam must ensure that exported products fully comply with applicable rules of origin to avoid being classified as transshipped cargo and becoming subject to higher tariff rates.

Long-Term Rate Agreements (LRA) with Shipping Lines or Freight Forwarders

During periods of rapidly increasing freight rates, negotiating quarterly or annual Long-Term Rate Agreements (LRA) with fixed pricing remains one of the most effective ways to protect logistics budgets. Stable FDI manufacturers with predictable monthly shipment volumes are generally well positioned to negotiate favorable LRAs by committing a minimum container volume.

Price Protection Clauses in Booking Confirmations

At a more practical level, for every new shipment booking, companies should request written confirmation from their freight forwarder stating that the quoted freight rate is the final rate applicable to that shipment and that no additional surcharges will be imposed before vessel departure. Although this appears straightforward, many manufacturers still overlook this practice, resulting in freight invoices that exceed the original quotation without a contractual basis for dispute.

Diversify Shipping Lines Instead of Relying on a Single Carrier

Under normal market conditions, consolidating shipment volumes with a single carrier may provide better freight rates. However, when freight rates surge and vessel capacity becomes limited, dependence on one shipping line creates a double risk: reduced pricing competitiveness and limited alternatives when rollovers occur. Maintaining relationships with at least two shipping lines on each critical trade lane provides genuine negotiating leverage.

Recalculate Landed Costs Under Different Incoterms Based on Current Freight Rates

As discussed in our previous article on Incoterms, the most suitable delivery term depends on the actual freight cost environment at a given time. During periods of sharply rising freight rates, terms that previously favored buyers arranging transportation independently (FOB) may no longer be optimal compared with suppliers negotiating CIF rates through consolidated shipment volumes. Landed costs should therefore be recalculated using current freight market conditions rather than relying on assumptions established at the beginning of the year.

Budget and Financial Planning

• Review Q3 and Q4 logistics budgets based on current freight market conditions, identify variances from the original annual plan, and report them early to management so appropriate budget adjustments can be made.
• For export contracts under CIF or DAP terms that remain effective during Q3–Q4, calculate the impact of higher freight rates on profit margins and evaluate opportunities to renegotiate commercial terms with customers.
• Include PSS contingencies in the logistics budget for all shipments booked between July and September, allowing at least USD 200–400 per container depending on the trade lane, rather than treating these charges as unexpected expenses upon receipt of freight invoices.

Booking and Vessel Schedule Management

• Shorten the booking window to approximately 3–4 weeks before cargo readiness rather than making last-minute bookings under current market conditions.
• Request booking confirmations that clearly specify the vessel name, voyage number, and confirmed freight rate. Avoid accepting “booking tentative” or “rate subject to confirmation at time of shipment.”
• Monitor rollover frequency by shipment. If the same trade lane experiences two consecutive rollovers, proactively switch to an alternative shipping line instead of continuing with the same carrier.
• Identify critical raw material SKUs and prioritize confirmed bookings for these items to avoid production disruptions caused by rollovers affecting essential materials.

Negotiation with Shipping Lines and Freight Forwarders

• Review current transportation contracts to determine which shipments already have locked freight rates and which remain subject to spot market pricing. Prioritize converting strategic trade lanes to fixed-rate agreements whenever possible.
• If shipment volumes are sufficient, begin discussions with freight forwarders during July–August to negotiate Long-Term Rate Agreements (LRA) for Q4/2026 rather than waiting until rates increase further.
• For congested intra-Asia trade lanes, ask freight forwarders to recommend alternative carriers with better capacity availability, even if they are less well known. During periods of limited vessel capacity, these alternatives may provide more reliable solutions.

Production Planning and Inventory Management

• Coordinate with the planning department regarding temporarily increasing safety stock levels for critical raw materials to approximately 6–8 weeks of production during Q3, compared with the normal 3–4 weeks.
• Identify raw materials supplied under CIF terms and proactively request actual booking status updates from suppliers instead of passively monitoring ETA information.
• For export orders with fixed delivery deadlines during Q3–Q4, arrange freight bookings at least two weeks earlier than usual to reduce the risk of vessel shortages or further freight increases.

Origin Compliance

• Review procedures for demonstrating Vietnamese origin for exports to the United States, ensuring that local value-added requirements are fully satisfied and supported by appropriate documentation.
• For manufacturers heavily dependent on Chinese-origin raw materials, consult legal advisors or logistics partners experienced in origin compliance to evaluate the risk of products being classified as transshipped goods.
• Maintain complete documentation supporting actual manufacturing activities in Vietnam—including BOMs, production processes, utility invoices, and labor records—to ensure readiness if U.S. Customs authorities or overseas buyers request origin verification.

Need to Optimize Logistics Costs in a Volatile Ocean Freight Market?

THT Cargo Logistics continuously monitors developments in the global ocean freight market, helping FDI manufacturers review booking strategies, evaluate suitable rate agreement options based on actual shipment volumes, and respond quickly to rollovers, schedule changes, or freight fluctuations that could affect production and delivery plans.

If your company needs the latest freight market updates, support in planning logistics for Q3–Q4/2026, or advice on optimizing transportation solutions for your shipping routes and product portfolio, contact THT Cargo Logistics today. Our logistics specialists are ready to recommend the most suitable solution for your operations.

Logistics Market Update – July 16, 2026

Scenario 1: Cargo Has Cleared Customs, but No Truck Is Available on Time

This is the most common scenario and the one that most directly leads to detention charges.

Once cargo has been customs-cleared and is ready for pickup at the port, the freight forwarder contacts the domestic trucking company to arrange a tractor unit. However, the trucking company may report that no truck is available that day—or even the following day—because there are not enough qualified drivers.

During this waiting period, the detention clock continues running. With detention free time typically limited to only 3–5 days and daily charges escalating rapidly, a transportation delay of just two or three days can result in substantial additional costs, even though no single party clearly bears responsibility for the delay.

Scenario 2: Truck Availability Does Not Match the Plant’s Receiving Schedule

Even when a truck is eventually assigned, the driver shortage often prevents trucking companies from committing to an exact delivery time. Instead, they can only provide broad delivery windows—for example, “sometime in the afternoon.”

For FDI manufacturers operating warehouse appointment systems or limiting the number of trucks accepted simultaneously, this uncertainty disrupts unloading schedules and may force deliveries to be postponed until the following day if trucks arrive outside designated receiving hours.

Scenario 3: End-of-Month and End-of-Quarter Peak Periods

The truck shortage becomes most severe at the end of each month and quarter, when shipping demand across the market increases simultaneously. FDI manufacturers with export deadlines or urgent raw material requirements during these periods must compete with hundreds of other shipments for the same limited pool of available trucks. In practice, companies with long-term relationships and priority arrangements with trucking providers are generally the ones that secure transportation first.

Scenario 4: Shipments Requiring Specialized Transportation

For manufacturers importing chemicals, hazardous cargo, or shipments requiring specialized equipment—such as refrigerated trailers, tank trucks, or low-bed trailers for oversized cargo—the shortage is even more critical. Not every driver possesses the certifications and operational experience required for these specialized cargo types. Since the pool of qualified drivers has always been limited, the current shortage has become even more pronounced.

Book Trucking at Least 48 Hours in Advance

Under normal market conditions, booking a truck 24 hours in advance is usually sufficient. However, with approximately 25–30% of tractor units currently sitting idle due to driver shortages, this booking window should be extended to at least 48–72 hours. This requires freight forwarders to provide earlier ETA information, while the factory logistics team must also confirm warehouse receiving schedules earlier accordingly.

Request Confirmation of the Trucking Company and Assigned Driver Before Customs Clearance

Having this information allows the manufacturer to establish a direct point of contact if urgent issues arise and helps avoid situations where the freight forwarder simply reports that they are “still looking for a truck” without providing a concrete timeline.

Build a Backup Network of Inland Trucking Providers

For frequently used transportation routes (for example, Cat Lai Port to Bien Hoa Industrial Park or Cat Lai Port to VSIP Binh Duong Industrial Park), manufacturers should establish working relationships with at least two trucking companies that can be mobilized whenever the primary carrier cannot provide trucks. This backup list should be maintained based on actual business relationships rather than simply storing contact numbers without prior cooperation.

Separate Inland Transportation Risk from Customs Clearance Risk

Many manufacturers currently estimate cargo arrival using a simple formula: Vessel Arrival Date + Customs Clearance Time = Cargo Receipt Date. Under current market conditions, another step must be added: + Truck Dispatch and Inland Transportation Time, with at least one additional day of buffer to account for the possibility that trucks may not be available immediately.

Import Planning Stage

• Include truck availability risk in the production plan by adding a 1–2 day buffer between the estimated customs clearance date and the required warehouse arrival date, especially for shipments needed at the end of the month or end of the quarter.
• Confirm with the freight forwarder that trucking capacity is secured for the specific shipment before cargo departs from the supplier, rather than waiting until the cargo arrives at the port.
• For chemicals, dangerous goods, or cargo requiring specialized trucks, book transportation at least 72 hours in advance and confirm that the assigned driver holds all required certifications.

Cargo In-Transit Stage

• Require the freight forwarder to confirm the trucking company name and the assigned driver’s contact number at least 24 hours before customs clearance.
• Notify the warehouse team of the specific truck arrival time window instead of providing only a general estimated delivery date.
• Monitor the truck status through the freight forwarder on the scheduled delivery day instead of waiting until the end of the working day to request updates.

Building a Long-Term Transportation Management System

• Require freight forwarders to disclose the inland trucking companies they cooperate with, together with their actual trucking capacity (available tractor units and route coverage), and include this information as part of the annual freight forwarder evaluation criteria.
• Build a backup list of 2–3 inland trucking companies for each frequently used route, ensuring that each company has completed at least one successful shipment to verify its operational capability.
• Record all transportation delays caused by truck shortages in the monthly logistics report and analyze their frequency by route and by period of the month to improve future buffer planning.
• Discuss backup truck arrangements with the freight forwarder for urgent shipments. Some professional trucking companies can provide this service for a relatively small surcharge, yet it can deliver significant value when unexpected disruptions occur.

Need More Reliable Inland Transportation for Your FDI Factory?

THT Cargo Logistics works closely with a network of trusted inland trucking partners across Southern Vietnam, helping FDI manufacturers secure truck capacity in advance, monitor transportation status in real time, and respond quickly whenever vehicle shortages or delivery disruptions occur.

If your factory is looking for a more reliable inland transportation solution that aligns with your production and import schedules, contact THT Cargo Logistics to discuss the most suitable logistics plan for your operations.

Logistics Market Update – July 2026

FDI Manufacturers in Phu My Industrial Parks 1, 2, and 3 (Ba Ria – Vung Tau)

This group experiences the most direct operational impact due to its close proximity to the port complex.

Although container trucks travel only a few kilometers between Cai Mep Port and the Phu My Industrial Parks, they must pass through several major bottlenecks along National Highway 51. During periods of heavy congestion, inland transportation time from the port to the factory can easily double compared to the planned schedule, directly affecting cargo receiving operations and production planning.

For newly established manufacturing projects such as Tosoh Vietnam (MDI Chemicals) and BOE Phase 2 at Phu My Industrial Park 3, this transportation constraint should be incorporated into logistics process design from the very beginning, rather than becoming an operational issue after production has commenced.

FDI Manufacturers in Sonadezi Chau Duc, Long Thanh, and Nhon Trach Industrial Parks (Dong Nai)

These manufacturers rely on National Highway 51 as their primary transportation corridor for import and export cargo moving through Cai Mep via direct mother vessel services.

Compared to manufacturers located in Ba Ria – Vung Tau, transportation distances are longer and transit times are considerably less predictable. During severe congestion, a single truck journey may require 5–6 hours instead of the usual 2.5–3 hours, potentially resulting in detention charges if the truck fails to collect the container before the terminal gate closes.

FDI Manufacturers Utilizing Both Cai Mep and Cat Lai Ports

Many FDI manufacturers in Dong Nai and Ba Ria – Vung Tau operate dual logistics flows, importing raw materials through Cat Lai Port (Ho Chi Minh City) while exporting finished products through Cai Mep. During periods of severe congestion on National Highway 51, diverting export cargo to Cat Lai may appear to be an alternative solution. However, this usually increases ocean freight costs because Cat Lai does not offer direct mother vessel services and requires transshipment, extending transit time by approximately 5–7 additional days.

Waiting Time and After-Hours Transportation Costs

When container trucks are delayed on National Highway 51 and fail to enter the port before terminal closing time (typically between 5:00 PM and 6:00 PM at certain terminals), the shipment must wait until the following day.

This results in an additional day of detention charges for every container in the shipment. Multiplied by the number of occurrences each month, these costs become substantial, although invoices usually only show “detention fee” without identifying the actual cause.

Reduced Driver Productivity

When a truck driver spends 3–4 hours stuck on National Highway 51 during a single trip, they are only able to complete one trip instead of two that day. For trucking companies, this increases the actual transportation cost per container, which is eventually reflected in freight quotations during future contract renewals.

Production Chain Disruptions

For factories operating under tightly scheduled production plans, a raw material shipment arriving 6–8 hours later than planned may push the corresponding production shift to the following day. This results in overtime costs, production schedule adjustments, and, in more serious cases, missed export delivery deadlines for customers.

Option 1: Inland Waterway Transportation (Barges) via Inland ICDs

This is currently the most practical alternative and has already been adopted by many large manufacturers in the region.

Instead of transporting containers by truck along National Highway 51, containers are transferred from mother vessels at Cai Mep Port onto barges and moved through the Thi Vai – Long Tau – Dong Nai river system to inland ICDs such as Phuoc Long ICD, Tan Cang Long Binh ICD, and Transimex ICD in Dong Nai.

From the ICD, smaller trucks or container trailers transport the containers to factories using industrial park roads that are generally less congested than National Highway 51.

Advantages: Completely avoids National Highway 51, offers lower transportation costs than road transport for non-urgent cargo, and is suitable for bulk cargo and high-volume shipments.

Limitations: Transit time from Cai Mep Port to inland ICDs by barge typically ranges from 8–12 hours, making it unsuitable for urgent shipments or cargo with short detention free time.

Option 2: Schedule Cargo Pickups Outside Peak Traffic Hours

This is the simplest solution but also one of the least implemented because it requires coordination among multiple parties.

The heaviest congestion on National Highway 51 typically occurs between 6:00 AM–9:00 AM and 2:00 PM–6:00 PM.

If trucks collect containers outside these periods (for example between 9:00 AM–1:00 PM or after 6:00 PM at terminals with night operations), travel time along National Highway 51 can be significantly reduced.

Advantages: No additional transportation cost and can be implemented immediately.

Limitations: Requires flexibility from both trucking companies in driver scheduling and factories in warehouse receiving hours—two conditions that are often difficult to achieve simultaneously.

Option 3: Utilize the Bien Hoa – Vung Tau Expressway Upon Completion

This is a medium- to long-term solution.

The Bien Hoa – Vung Tau Expressway is currently under construction and, once completed, will provide a second transportation corridor parallel to National Highway 51, significantly reducing congestion on the existing route.

However, project completion and operational timelines remain subject to various factors. Until then, FDI manufacturers must continue developing logistics solutions based on the current transportation infrastructure.

Option 4: Divert Selected Import Shipments Through Cat Lai Port or Phuoc Long ICD

For FDI manufacturers located in Dong Nai, during periods of severe congestion on National Highway 51—or for shipments without special ocean freight requirements—importing cargo through Cat Lai Port (Ho Chi Minh City) instead of Cai Mep Port may be considered.

The transportation route from Cat Lai Port to Dong Nai via Hanoi Highway and the ring roads is generally less congested than National Highway 51 during peak hours, although urban traffic congestion within Ho Chi Minh City may still occur.

Planning Cargo Receiving Operations

• Estimate inland transportation lead time based on actual historical performance rather than theoretical transit times. For the Cai Mep – Phu My Industrial Park route: approximately 1.5–4 hours depending on traffic conditions. For the Cai Mep – Dong Nai Industrial Parks route: approximately 2.5–6 hours depending on traffic conditions.
• Add at least one additional day of buffer to the required warehouse receiving date when preparing production plans, especially for cargo arriving at the end of each month or quarter.
• Coordinate with your freight forwarder regarding optimal container pickup windows (avoiding 6:00–9:00 AM and 2:00–6:00 PM whenever possible) and adjust warehouse receiving schedules accordingly.

Alternative Transportation Options

• Identify and test at least one transportation alternative suitable for your factory location, such as barge transportation to inland ICDs or routing selected import shipments through Cat Lai Port instead of Cai Mep for cargo that does not require direct mother-vessel services.
• For shipments with short detention free time (approximately three days), prioritize off-peak truck scheduling or barge transportation to minimize the risk of delays that may lead to detention charges.
• Maintain an active working relationship with at least one barge service provider operating between Cai Mep Port and inland ICDs so transportation capacity can be mobilized quickly when required.

Monitoring and Reporting

• Record actual inland transportation time for every shipment—from the time the truck exits the port until it arrives at the factory—to build historical data for more accurate logistics planning.
• Monitor the construction progress of the Bien Hoa – Vung Tau Expressway and future National Highway 51 expansion projects in order to update medium-term logistics strategies as regional infrastructure improves.
• Report delays caused specifically by congestion on National Highway 51 as a separate KPI in monthly logistics reports, independent from customs clearance delays or port-related delays. This data provides valuable support when negotiating service performance with freight forwarders and trucking companies.

Need Practical Logistics Solutions for the Cai Mep – Southern Vietnam Corridor?

For FDI manufacturers currently operating or preparing to establish operations in Ba Ria – Vung Tau or Dong Nai, THT Cargo Logistics provides practical assessments of transportation solutions tailored to each factory location and cargo profile. Our consulting covers road transportation, inland waterway transport, and inland ICD solutions to help manufacturers optimize logistics operations throughout Southern Vietnam.

Contact THT Cargo Logistics to discuss the most suitable transportation strategy for your Cai Mep supply chain and manufacturing operations in Southern Vietnam.

Logistics Market Update – July 2026

• Geopolitical developments in the Middle East. Ongoing tensions remain the most significant factor affecting global shipping routes and freight rates. Any escalation or de-escalation is typically reflected in the Shanghai Containerized Freight Index (SCFI) within one to two weeks.
• Peak Season Surcharge (PSS) announcements. Most shipping lines announce PSS approximately two to four weeks before implementation. Bookings that are not confirmed before the surcharge becomes effective will generally be subject to additional costs. Companies should therefore incorporate expected PSS charges into their Q3 logistics budgets as early as possible.
• Road congestion around the Cai Mep – Thi Vai port complex. Infrastructure bottlenecks in Ba Ria – Vung Tau continue to affect cargo transportation between Cai Mep terminals and industrial zones across Southern Vietnam. Manufacturers using Cai Mep as their primary import gateway should include additional buffer time in their inland transportation plans following customs clearance.

Booking Planning & Import Schedule

• Review all planned import shipments for Q3 and identify cargo required within the next six weeks, then secure bookings earlier than usual.
• For production-critical shipments, request confirmed bookings showing the vessel name and voyage number. Avoid relying on tentative bookings under current market conditions.
• Reassess minimum safety stock levels for critical raw materials and consider temporarily increasing inventory by one to two additional weeks to provide sufficient supply chain buffer.

Freight Cost & Budget Management

• Update the Q3 freight budget based on current market conditions rather than freight rates negotiated before Q2/2026.
• Include a contingency budget for Peak Season Surcharges (PSS), typically around USD 200–300 per container, depending on the trade lane.
• Review internal air freight benchmarks if emergency shipments are frequently required, particularly in preparation for Q4/2026.

Transportation Risk Management

• Confirm contingency plans with your freight forwarder in case of vessel rollover, including alternative carriers, alternative sailing schedules or partial conversion to air freight for urgent cargo.
• For shipments arriving through Cai Mep Port, coordinate inland transportation schedules based on current traffic congestion rather than historical transit times.
• Monitor Peak Season Surcharge announcements from shipping lines and request freight rate protection clauses in booking confirmations whenever possible.

Need to Review Your Q3/2026 Import Strategy?

If your company is reassessing its Q3/2026 import schedule in response to current market conditions, or requires advice on booking strategies and alternative transportation routes, the THT Cargo Logistics team is ready to work directly with your logistics department to review shipment schedules, provide updated freight market information, and develop practical contingency plans tailored to your supply chain.

Contact THT Cargo Logistics today for route-specific logistics consultation and customized transportation solutions for your imported cargo.

When working with FDI manufacturers, one of the most common questions raised by logistics and supply chain teams is:
“Why are we constantly charged Detention & Demurrage (D&D) even though we try to handle shipments as quickly as possible?”

Demurrage

Demurrage is charged when a container remains at the port terminal (CY) after the shipping line’s free time has expired.

Free time normally ranges from 3 to 7 days, depending on the shipping line and port, starting from the vessel’s arrival date.

In simple terms, demurrage is the penalty for collecting cargo from the port too late.

Detention

Detention is charged when the container has already been picked up from the port but is not returned to the shipping line’s designated depot before the detention free time expires.

Detention free time is typically 3 to 5 days after the container leaves the port.

In simple terms, detention is the penalty for keeping the empty container at the warehouse or factory for too long.

• Real-time visibility of container status.
• Clearly defined internal Service Level Agreements (SLAs).
• The ability to escalate risks immediately when issues arise.

• Container number
• Vessel arrival date
• Demurrage free time expiry date
• Actual cargo pick-up date
• Detention free time expiry date
• Actual empty container return date

Before Cargo Arrival

• Confirm the Demurrage and Detention Free Time with your freight forwarder immediately upon booking. Do not rely on default assumptions—obtain written confirmation in the Booking Confirmation.
• For shipments that may be subject to specialized inspection, discuss possible Free Time extension options with the shipping line or freight forwarder before the cargo arrives.
• Prepare a complete customs documentation package before the vessel arrives, paying particular attention to the Invoice and Packing List to minimize the need for document amendments after cargo arrival.
• Notify the warehouse team of the vessel’s ETA in advance so that manpower, forklifts, and warehouse space can be prepared at least three days before arrival.

While the Cargo Is at the Port

• Monitor container status daily from the vessel’s arrival instead of relying solely on updates from the freight forwarder.
• Identify the Demurrage Free Time expiry date and set an internal alert at least two days in advance.
• If customs documentation issues arise, escalate them immediately and resolve them on the same day to avoid delays extending into the next business day or over the weekend.
• If an unexpected specialized inspection is required, immediately notify the shipping line and request a Free Time extension based on the fact that the inspection is a mandatory government procedure.

After Cargo Pickup from the Port

• Determine the Detention Free Time expiry date immediately after the container leaves the port.
• Prioritize unloading the cargo and returning the empty container within the Free Time period to avoid excessive container retention at the factory.
• If the empty container cannot be returned on time due to truck scheduling or depot congestion, proactively contact the shipping line to request a Free Time extension before the free period expires.
• Record the actual empty container return date and retain the Equipment Interchange Receipt (EIR) for verification when the Detention & Demurrage invoice is received.

When Receiving the Detention & Demurrage Invoice

• Verify the D&D invoice against internal tracking records, including vessel arrival date, Free Time, cargo pickup date, and empty container return date.
• If incorrect charges are identified (such as an incorrect charge commencement date, charges applied during exempted holidays, or incorrect tariff rates), submit a written claim immediately with supporting evidence.
• If D&D charges result from force majeure events or shipping line issues such as rollover, misrouting, or vessel delays beyond the ETA, prepare a waiver request package including a timeline of events, supporting documents, and a proposed resolution.
• Consolidate all D&D costs by shipment into a monthly report to analyze root causes and identify opportunities for process improvement.

• Establish KPIs to monitor the percentage of shipments incurring Detention & Demurrage each month and set continuous improvement targets.
• Develop internal SLAs for every step of the logistics process, including customs documentation completion before ETA, warehouse readiness confirmation, and cargo release approval timelines.
• Require freight forwarders to provide automated email or system alerts when containers have only two days of Free Time remaining. This should be considered one of the key service criteria when selecting logistics partners.

Need Support in Controlling Detention & Demurrage for Your FDI Factory?

THT Cargo Logistics helps FDI manufacturers monitor container status in real time, provides early warnings of Detention & Demurrage risks, coordinates with shipping lines to negotiate charge reductions or waivers when justified, and advises on building internal D&D control procedures tailored to each factory’s operational model and business scale.

If your company is looking for practical solutions to reduce unexpected logistics costs, improve container visibility, and minimize Detention & Demurrage charges, contact THT Cargo Logistics and let our experts help you develop the right strategy.