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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:

Intensified COVID-19 lockdowns in Vietnam are severely disrupting manufacturing, particularly apparel and footwear, leading to significant production delays.
Major retailers are increasingly switching from ocean to air transport to mitigate delays and ensure seasonal products arrive on time for holiday shoppers, despite soaring airfreight rates.
This surge in air cargo demand from Vietnam, coupled with reduced air capacity and operational challenges due to lockdowns, has led to skyrocketing charter costs and difficulties in securing space.
Given Vietnam's crucial role in global supply chains for key products, major U.S. brands are petitioning the government for accelerated vaccine aid to help restore industrial production.

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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