News

WILL THE OCEAN FREIGHT BE BACK TO NORMAL WHEN THE PANDEMIC LESSONS?

May it be good news to importers and exporters that there is a sight of demand for transportation shifting back to the ocean mode from last quarter this year. In the same period the previous year till June 2022, the cargo demand via air transportation was substantially high to catch the demand and the shortage of containers and port congestion, especially in EU and North America. A recent report by DHL shows a drop of 7.7% or about 477,000 tons of air cargo in the second quarter compared with the same last year.

Importers in these markets had to divert the traditional transportation mode from sea to air or road to get enough food and supplies in their warehouses for consumption. Fewer facilities and a shortage of manpower during the serious pandemic have made these alternatives as unavoidable choices regardless of high expenses or even some delays. However, the situation changes now that the Covid pandemic is under-controlled somehow and less serious, and the operation of ports along USEC or USWC has been improved a lot so the ocean freights have been reduced by around 6,000 USD/feu or 3-4 times lower than the pandemic. The demand for goods is also less urgent than before. More supply than before drawback cargo onto vessels instead of airplanes.

Vietnam importers and exporters are not out of this trend to save transportation costs to deliver goods to consumers at a better price. We, Voltrans Logistics, hope all enjoy the trade-up with fewer expenses in a safer world.

By Thomas
Voltrans Logistics – Your Ware Our Care