Cases of the COVID-19 Delta variant have spiked to above ten thousand cases per day in Ho Chi Minh City and the surrounding areas in Vietnam. Military and police have enforced strict lockdown and testing procedures, as the wave of cases proves to have a higher mortality rate. Cancellations and delays are rising from both shippers and factories that are struggling to cope with the current regulations.
“We are seeing major factories close their doors and business grind to a halt, as employers work quickly to implement plans approved by the Vietnamese government to allow them to stay open,” says Anthony Pagnotto, VP at Mohawk Global. “These plans include requiring employees to live locally at their factory compound, instead of commuting and testing workers every seven days.“
Below are updated details on the operations in Vietnam:
- Public transportation has been shut down and all buses from other cities and provinces have been refused entry
- All truck drivers must have a valid test certificate and temperature check upon arrival in Hanoi
- Quarantine protocols and rapid testing remains in place for all vessels and crews arriving to Haiphong Port
- Due to a vaccine shortage, there are limited Customs and terminal workers available to work in shifts
- Haiphong has temporarily stopped receiving all buses from Hanoi
- Space remains extremely tight and equipment shortages remain an issue
“Congestion in Vietnamese ports will likely create a ripple effect in carrier schedules like those seen with the Suez blockage and Yantian Port COVID-19 shutdown. While we expect the Vietnamese-caused ripple to be smaller, it will be reverberating through an ocean network that is already badly stressed from the last year’s volatility,” Pagnotto added.
- SGN has entered a complete lockdown as of August 23rd
- 50% of air shipments have been cancelled
- 70% of the factories in the surrounding provinces are closed until September 6th
- Airport staff are working in shifts to follow social distancing protocol
- Air freight rates continue to increase daily
Major footwear sellers contribute to the rapid spikes in rates when flights are available, as they continue to overtake airspace in an effort to keep store’s shelves stocked.
- Due to restrictions on the number of employees allowed at Customs, Customs clearance for all import, export and consolidation services will face heavy delays
- Clearance time may be extended by 3-4 days
We will continue to monitor the situation and provide updates accordingly. If you have shipments moving through Vietnam and have questions, please reach out to your Mohawk Global representative.
Source: M&R Spedag