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Retailers Eye More Air Cargo as COVID Lockdowns Intensify in Vietnam

Friday, August 20, 2021 at 08:30 PM ET

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Airfreight rates from the Vietnam are rapidly escalating because of the spike in demand for all-cargo charter capacity. Adobe Stock

Key Takeaways:

COVID-19 lockdowns in Vietnam are severely disrupting factory production, especially for apparel and footwear, forcing retailers to switch from ocean freight to air cargo to ensure timely delivery for holiday shoppers.
This shift has led to a dramatic increase in airfreight rates and intense competition for limited air cargo capacity, exacerbated by reduced flights and operational restrictions in Vietnam.
The crisis significantly impacts major brands reliant on Vietnam for critical goods, prompting industry leaders to appeal for accelerated vaccine aid to help restore production and stabilize global supply chains.

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Editor’s Note: This article originally appeared on FreightWaves.com.

Eric is the Air Cargo Market Editor at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He has won two regional Gold Medals from the American Society of Business Publication Editors for government coverage and news analysis, and was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. Eric is based in Portland, Oregon. He can be reached for comments and tips at ekulisch@freightwaves.com