MoIT rushes to clear 500 tea containers stranded in Pakistan

Nearly 500 tea containers stranded in Pakistan are causing heavy losses, prompting urgent the Ministry of Industry and Trade (MoIT) intervention.

Immediately following an urgent petition from the Vietnam Tea Association and exporters, the MoIT directed relevant units to take close action. The Asia-Africa Market Department and the Agency of Foreign Trade were assigned to coordinate with the Vietnam Trade Office in Pakistan to assess the situation, identify the causes, and propose solutions.

According to reports from the Vietnam Trade Office and the Vietnamese Embassy in Pakistan, the congestion stems primarily from a disruption in road transport between Pakistan and Afghanistan. Pakistan is currently implementing new control measures on transit cargo, while the majority of Vietnamese tea shipments are contracted for export to Afghanistan via transit through Karachi.

The MoIT urges tea exporters to proactively coordinate closely with the Vietnam Tea Association and the Vietnam Trade Office in Pakistan, providing full documentation related to their shipments.

The MoIT urges tea exporters to proactively coordinate closely with the Vietnam Tea Association and the Vietnam Trade Office in Pakistan, providing full documentation related to their shipments.

Notably, the congestion at Karachi Port is not limited to Vietnamese goods but represents a widespread force majeure situation, severely impacting Pakistan’s own import, export, and transit operations.

According to updates from Pakistan, approximately 11,000 transit containers bound for Afghanistan are currently stranded at the port. Additionally, about 25,000 import containers and 15,000 export containers belonging to Pakistan remain uncleared. This deadlock stems from Pakistani transport associations suspending operations to protest new policies regarding vehicle and driver penalties, effectively paralyzing the domestic supply chain.

The prolonged congestion has burdened Vietnamese tea exporters with exorbitant demurrage and storage costs, posing risks of quality degradation while severely impacting cash flow, bank repayment ability, and the livelihoods of tea growers.

To protect the legitimate interests of Vietnamese businesses, the MoIT has directed the Vietnam Trade Office in Pakistan to proactively and continuously engage with Pakistani authorities - including port authorities, customs, and relevant stakeholders to request special relief measures for Vietnamese tea shipments.

Concurrently, the MoIT is coordinating with the Ministry of Foreign Affairs and the Vietnamese Embassy in Pakistan to send official diplomatic notes to Pakistani authorities. These communications request favorable and flexible conditions for processing the stranded Vietnamese tea shipments, reflecting the spirit of friendship and economic-commercial cooperation between the two nations.

The Vietnamese Embassy in Pakistan has worked directly with the leadership of Pakistan’s Ministry of Commerce, including the Additional Secretary in charge of Afghanistan and Central Asia and the Minister of Commerce. The Embassy requested specific consideration for Vietnamese goods, urging against the rigid application of transit suspension measures.

Vietnam is actively discussing relief measures with Pakistan, including: allowing the transit of stranded tea containers from Karachi to Afghanistan once security and transport conditions permit; considering re-export to a third market if transit remains impossible; or, as a last resort, authorizing the return of goods to Vietnam to minimize business losses.

The MoIT will continue to closely monitor the situation and maintain regular contact with Pakistani counterparts. The Ministry has directed the Trade Office to provide daily updates and proactively propose the most suitable and feasible solutions to safeguard the legitimate interests of Vietnamese enterprises.

Tea exporters are urged to proactively coordinate closely with the Vietnam Tea Association and the Vietnam Trade Office in Pakistan by providing full documentation related to their shipments. Businesses must review contract terms, alternative logistics plans, and financial capacity to work with state agencies in identifying the optimal resolution.

Moving forward, companies are advised to strengthen market risk assessment, diversify transport routes and delivery terms, and minimize reliance on high-risk transit routes.

The MoIT emphasized that resolving export bottlenecks, particularly for key agricultural staples like tea, remains a top priority. The Ministry is committed to working proactively and decisively with relevant stakeholders to expedite cargo clearance and minimize losses for businesses and farmers.

Khanh Ly
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