October 25, 2019

OOCL Logistics in Ho Chi Minh, Vietnam is closely monitoring a port disruption that began on October 19. An accident occurred near the Cai Mep deep water seaport impacting cargo in/out Ho Chi Minh.  An 8,000 ton (300 TEU) domestic vessel – the Vietsun Integrity sunk in the Long Tau channel on October 19. No casualties were recorded.

The Long Tau channel is the main route for vessel/barge navigation between Ho Chi Minh and the Cai Mep terminal. The Vietnamese Government has isolated this area for investigation and salvage. The completion of this operation is uncertain, but at least a month is indicated.

The Soai Rap channel (which is not as deep as Long Tau channel) will be utilized as replacement but the depth of the channel will limit vessel size. Therefore, cargo in/out Ho Chi Minh ports (Cat Lai, ICDs, etc.) will be affected. The situation also poses a risk for Cat Lai terminal congestion.

OOCL Logistics Vietnam has received information that some carriers have started applying the actions below for Intra-Asia Trade:

1.    Reductions of cargo acceptance until further notice

2.    Limits on the weight of containers, especially for 20’ for both inbound/outbound

3.    Possible plans to apply changes or a Long Tau Channel Congestion Surcharge for the Inter-Asia Trade both inbound and outbound cargo

We have not received notice from carriers nor any booking rejections for Asia to Europe or Trans-Pacific Trades. OOCL Logistics Vietnam has however recorded some feeder vessel delays which may cause tight or missed connections to trunk vessels.

Any OOCL Logistics customers with active shipments that may be or are currently impacted by this situation will be contacted directly by their OOCL Logistics International Supply Chain Specialists regarding specific details, options and solutions.

OOCL Logistics will inform you of any important developments regarding this situation. For more information, please contact your International Supply Chain Specialist or Sales Representative. Thank you for your continued support of OOCL Logistics.