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Dec 06,2021

Vietnam began to compete with China for shipping and air transportation capacity!

It is reported that with the recovery of Vietnam's economy, the shortage of shipping space and air supply logistics capacity in Vietnam has become prominent. After months of blockade, Vietnam’s exports rebounded rapidly, which not only pushed up freight rates, but also caused a fierce battle for space between cargo owners and freight forwarders.

 

According to reports, Vietnam’s strict epidemic prevention and blockade measures ended in early October, and before that, Vietnam’s GDP in the third quarter had shrunk by 6.1%. Vietnamese business leaders warned that if the restrictions are not lifted, Vietnam will lose immeasurable orders and investment. 

 

For example, after many factories were forced to close, Vietnam’s exports of the apparel industry in September fell by 18.6% year-on-year.
However, after the lifting of the blockade, Vietnam’s export volume has shown amazing flexibility. The Ministry of Commerce and Trade of Vietnam predicts that Vietnam’s export volume will increase by 10% to 600 billion U.S. dollars.

 

air supply logistics

 

Jan Segers, general manager of Vietnam Nottam Logistics, said that Vietnam has performed well after the new crown epidemic.

 

"After the terrible GDP in the third quarter, the opening of the factory and the'new normal' are exciting."
"At the end of the year, coupled with the Spring Festival in Vietnam, Vietnam has a huge demand for air supply logistics."

 

Segues said that the result was insufficient container capacity and space, resulting in high freight rates.

 

He said: "Freights are still rising, and may continue until January next year."

 

It is reported that a 40-foot container from Ho Chi Minh City to Los Angeles costs approximately US$13,000 and US$16,000 to New York.

 

air supply shipping

 

Seggs added: “From Haiphong Island to Europe, the shipper has been unable to obtain a space at a fixed contract price of US$12,000 per 40 feet because the spot price has exceeded US$14,000.”

 

"I am not a prophet, but my guess is that freight rates may fall and stabilize to a new normal, but they will not remain at a very low level as before. It all depends on how the congestion problems in the United States and Europe are resolved in order to The container can return to Asia."

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