Cambodia’s Logistics Sector Continues to Face Rising Shipping Costs in 2022
The Cambodian Logistics Association says that Cambodia’s transport sector will continue to be affected in 2022, as shipping costs remain high while global issues continue to adversely impact.
Sin Chanthy, President of the Cambodian Logistics Association, told Cambodia Investment Review that rising fuel prices were adding to Cambodia’s transport sector woes after the COVID-19 crisis shipping costs were still continuing to rise.
He added that the transport sector seems to continue to suffer as before, until the global market situation, trade trends and global crises are resolved, the Cambodian transport market can not return to normal.
“We have been affected since mid-2021,” he said. The problems we face are rising shipping costs and a shortage of containers due to congestion in major markets such as the United States.
Now, although the situation of COVID-19 has greatly improved in Cambodia, especially in many countries in the world, but the cost of transport continues to rise. “Rising prices are due to rising global gas prices,” he continued.
“In 2022, the Cambodian transport sector has not been able to find a good balance yet, because a global crisis always occurs. “During the first four months of 2022, the situation in the transport sector continues to be affected by the cost of transport,” he added.
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According to the Cambodian Logistics Association, the cost of shipping Cambodia to international markets is between 10% and 20% of the set price. Shipping volumes were further reduced due to congestion at some international ports.
Shipping costs to the United States and Europe per container increased from around $2,000 to 5,000 before the outbreak and from $8,000 to 10,000 during the COVID-19 crisis and rising fuel prices. Prices for special shipping can be as high as $15,000 for a single container.