Why Are Logistics Costs “Eroding” Coffee Export Profits?

Coffee is one of Vietnam’s key export commodities, characterized by large shipment volumes and frequent container movements. However, profit margins in the coffee trade are relatively thin, while logistics costs continue to rise—significantly reducing exporters’ actual returns.

Rising Logistics Costs That Are Hard to Control

Coffee exports rely heavily on containerized transport. Even a small increase in logistics cost per container can materially impact the profitability of an entire shipment. During peak export periods, exporters often face:

• Shortages of empty containers, leading to delays in stuffing

• Off-route container movements that increase inland transport costs

• Long waiting times at depots and terminals

• Storage charges and unplanned surcharges

These costs tend to occur incrementally and are not always visible in initial quotations, but when accumulated, they directly erode export margins.

Logistics Is No Longer a Secondary Cost

In a volatile coffee market, many exporters focus primarily on selling prices while underestimating the importance of end-to-end logistics optimization. Inefficient container pickup, transshipment, and delivery planning can quietly increase costs without improving operational performance.

As a result, logistics has become a key factor in determining whether coffee exporters can preserve their margins.

A Practical Transshipment Perspective

Rather than reacting to cost overruns after they occur, exporters need to be more proactive in selecting efficient transshipment points that help shorten transport distances, reduce waiting time, and limit additional charges.

Phuoc An Depot is increasingly considered a practical transshipment solution, offering:

• Convenient access to empty containers

• Reduced transport time and inland logistics costs

• Lower risk of storage charges and unexpected surcharges

In today’s cost-sensitive environment, optimizing the transshipment stage is a practical way for coffee exporters to protect their margins.