Vietnamese Ports Announce Temporary Suspension of Scrap Plastic Imports

SEATTLE (Scrap Monster): Following significant increase in shipments of scrap plastic containers and associated backups and delays in clearing, major Vietnamese shipping terminals have decided to temporarily suspend imports of scrap plastic.

The decision is likely to have major impact on global plastics recycling industry, as Vietnam has been the major destination of scrap plastic exports by many countries, following stricter import rules by China. As per estimates, the U.S. shipments of recovered plastics had exceeded 40 million pounds during the first quarter of 2018. The shipments were valued at $5.8 million. The Vietnamese imports of PE and PET have surged higher significantly when compared with the first quarter of 2017.

The letter issued by Saigon Newport Corporation, the volume of import laden containers of paper and plastic scrap at the Tan Cang-Cat Lai terminal has increased significantly to over 8,000 Twenty-Foot Equivalent Units (TEUs) by May 21st, 2018. This has led to temporary overcapacity at the terminal, thereby seriously impacting the port operations. The smaller Tan Cang-Cai Mep terminal has already stacked up over 1,100 TEUs that can’t be moved to the larger terminal due to excess load.

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According to the letter, the larger Tan Cang-Cat Lai terminal has already stopped accepting scrap material loads. Also, Tan Cang-Cai Mep terminal will stop accepting scrap plastic containers with effect from June 25th for a period of nearly four months. Further, the terminals are planning to implement more thorough documentation procedures for all scrap loads arriving from June 15th onwards. The shipments must have valid import permits issued by competent authorities and a written commitment of the required time for buyer to pick up the container.

The Institute of Scrap Recycling Industries (ISRI) noted that the letter by the port confirms the rumors that Vietnamese ports had no more room to accommodate more imported materials.