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Vietnam's exports rebounded after the end of the blockade, and freight rates continued to rise

Time:2021-12-06 Publisher:Kevin Num:4535

It is understood that in early 2021, Vietnam was blocked for several months because of the pandemic. After the blockade ended in early October, Vietnam's exports rebounded rapidly.

This not only pushed up the freight, but also made the cargo owners and freight forwarding enterprises launch a fierce competition for shipping space.

During the blockade, Vietnam's GDL fell by 6.1% in the third quarter. Some experts pointed out that if the restrictive policy is not lifted, Vietnam's economy will continue to decline because it has lost a lot of orders and investment.

For example, during the blockade, a large number of factories were forced to close. Data show that the export of Vietnam's garment industry decreased by 18.6% year-on-year in September.

However, after lifting the blockade, Vietnam's export volume has rebounded surprisingly. According to the Vietnamese Ministry of Commerce and trade, Vietnam's exports will increase by 10% to US $600 billion.

Jan Segers, head of NOTAM logistics in Vietnam, said the reopening of the plant was exciting after poor GDP in the third quarter.

In addition, the Vietnamese spring festival is approaching at the end of the year. This makes Vietnam have a huge demand for freight.

Jan Segers believes that this will lead to the shortage of container capacity and shipping space, resulting in a high level of freight. He added: "this situation is likely to continue until January next year."

At present, a 40 foot container from Ho Chi Minh City to Los Angeles costs about $13000 and $16000 to New York.

Mark Gilliam, the boss of cargoteam, a freight forwarder in Ho Chi Minh City, said that shippers and freight forwarders were competing for containers and shipping space. The freight is about five times higher than the epidemic money.

"Shipping companies don't pay attention to contract freight," he said, adding that shipping companies rarely inject new capacity into the market because Vietnam is not their priority. "

At the same time, Vietnam's air cargo market is still tense.

"The plane was booked a few weeks in advance. We arranged six charter flights in five weeks to supply customers in the United States and Spain," Jan Segers said

He also pointed out that the price of air transportation from Vietnam to Chicago was as high as $20 per kilogram.

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