Vietnam fuel surcharges rise again, pushing up delivery costs
Vietnam's leading postal firm Viettel Post Joint Stock Corporation has raised its fuel surcharge to 10 percent on Monday, after cutting it to 5 percent in early July, adding to delivery costs for online sellers.
Higher fuel-linked delivery fees are adding to costs for online retailers and consumers in Vietnam. Photo: Viettel Post
The higher surcharge is forcing online shops to decide whether to absorb the additional cost or pass part of it on to customers.
Viettel Post now charges a fuel surcharge equal to 10 percent of the delivery fees for standard orders.
The surcharge is 12 percent for customers using special-rate services for heavy goods.
An order with a VND30,000 (US$1.14) shipping fee will incur an additional VND3,000 ($0.11), while a VND50,000 ($1.90) shipping fee will increase by VND5,000 ($0.19).
The increase may be small for individual orders but can become a significant expense for shops delivering hundreds or thousands of orders a month.
Viettel Post's fee schedule shows that the fuel surcharge for standard delivery services has fluctuated sharply in recent months.
The surcharge was 10 percent in mid-March before Viettel Post raised it to 15 percent in early April, the highest level during the period, amid volatility in global energy markets.
The company cut the surcharge to five percent in early July after domestic fuel prices declined through several price adjustments.
But the five percent rate did not last long.
Viettel Post raised the surcharge twice from late July through August, bringing it back to 10 percent for standard delivery services.
The surcharge has therefore moved from 10 percent to 15 percent, then down to five percent and back to 10 percent in about five months.
The surcharge is currently 12 percent for special services and heavy goods, including agricultural products, ornamental plants, and bulky consolidated shipments.
Viettel Post said it adjusts the fuel surcharge based on retail fuel prices.
The company reviews the surcharge when fuel prices fall and reduces it accordingly.
Higher fuel prices elevate the costs of operating delivery vehicles, transporting shipments between hubs, and making deliveries, it said.
Other delivery companies also alter fuel surcharges based on fuel price movements.
Giao Hang Tiet Kiem Join Stock Company said it adjusts its surcharge after fuel price reviews to reflect changes in input costs.
The company has charged a five percent fuel surcharge on shipping fees for its Express/Xfast and BBS services since June 20.
The surcharge is displayed directly on orders when customers create shipments.
Delivery companies say fuel surcharges will be adjusted in line with fuel price movements in Vietnam. Photo: Giao Hang Tiet Kiem
Higher shipping costs put online sellers under pressure
Higher delivery fees are putting pressure on online shops, particularly those selling low-value products.
An increase of several thousand Vietnamese dong in shipping costs can prompt customers to combine orders, reduce purchases or abandon their shopping carts.
Online sellers can either absorb the additional cost to retain customers or pass part of it on through higher delivery fees.
For a shop shipping 1,000 orders a month, an increase of several thousand Vietnamese dong per order can result in several million Vietnamese dong in additional costs.
Sellers can reduce costs by distributing orders among several delivery companies based on individual routes.
They can also negotiate lower shipping rates when order volumes are high.
Encouraging customers to combine orders can help reduce the number of shipments.
Reducing returned orders can also help lower logistics costs.
Logistics companies can reduce expenses by optimizing delivery routes and increasing the number of orders carried on each trip.
They can also lower empty vehicle mileage and improve first-attempt delivery rates.
As consumers become more sensitive to the total amount they pay, higher fuel prices can affect costs beyond the fuel market.
The cost pressure can move from delivery companies to online sellers and eventually appear in shipping fees paid by consumers.
The Ky - Cong Trung / Tuoi Tre News
Link nội dung: https://news.tuoitre.vn/vietnam-fuel-surcharges-rise-again-pushing-up-delivery-costs-103260824190804074.htm