Air freight takes flight on recovery

Several companies have either increased services or began new freight operations Photo: Le Toan

Responding to demands for additional air freight space, Europe’s biggest all-cargo airline Cargolux two weeks ago expanded its cargo services to Vietnam with the introduction of a second weekly flight to Ho Chi Minh City and four flights a week to Hanoi.

Cargolux, Europe’s biggest all-cargo airline, has served the Vietnamese market since 2007, starting with its first route to Ho Chi Minh City. The Luxembourg carrier explained the expansion was due to forecasted substantial increases in freight volume from customers for next year.

“Cargolux has a well-established network and presence Vietnam and its customers have indicated a positive outlook for 2015. Cargolux shares this prediction and remains well placed to provide the services required by both its present and future customers,” the carrier stated in an announcement.

In addition, Cargolux added it foresaw an increase in electronic shipments as Vietnam continues to boost its exports by air.

South Korea’s Samsung, the biggest foreign investor in Vietnam, is building up its Vietnamese production of LCD monitors during the first quarter of 2015 in Ho Chi Minh City. Samsung has operated factories in the northern province of Bac Ninh since 2009 and in the neighbouring province of Thai Nguyen since 2013.

Microsoft has, after it acquired Nokia, transferred production lines from China, Hungary and Mexico to Vietnam and will operate 39 smart phone production lines in Bac Ninh by 2015 with an estimated export volume of up to 50,000 tonnes annually.

LG Electronics is investing $1.5 billion in a new production complex for smart phones in the northern port city of Haiphong. The company already manufactures electronic home appliances such as televisions, refrigerators and air conditioning units in Vietnam.

Vietnam’s economic growth was forecasted at 5.9 per cent this year, while the country’s export turnover accelerated 13.7 per cent year-on-year in the year till the end of November. Meanwhile, the import turnover grew 12.6 per cent during this period.

According to Cargolux, approximately half of all exports from Hanoi are destined for Europe and the US, while a third are distributed in Asia. Ho Chi Minh City also exports half of its products to Europe and the US.

But Cargolux is not alone in the rush to take the advantage of Vietnam’s booming exports.

DHL, the world’s leading cross-border express services provider, last month launched a new DHL intra-Asia network flight, connecting Thailand, Vietnam and Hong Kong, as the latest enhancement to its Asia air network.

An industry first, the new route shortens the transit time for shipments on the DHL intra-Asia network to and from Hanoi to one day, allowing businesses and consumers to enjoy the earliest arrival time and latest departure time into and out of the city. The express service provider states that this flight is a response to the increased trade opportunities within Asia and its commitment to supporting customers who are keen to tap into these opportunities.

Etihad Cargo, a subsidiary of United Arab Emirates’ national airline Etihad Airways, began freighter flights between Abu Dhabi and Hanoi in July, using an Airbus A330-200F with the capacity of 60 tonnes. Etihad Cargo expected the new service to carry raw materials, consumer goods and perishables to Hanoi, with large quantities of electronics and textiles destined for the Gulf region, Europe, and Africa loaded for the return flight.

Even fledging low-cost carrier VietJetAir, the only operating private airline in Vietnam, also wants to exploit opportunities from Vietnam’s growing export and import market. Last month, VietJetAir launched an affiliate company, Vietjet Cargo, as part of the airline’s business development plan. With the establishment of Vietjet Cargo, the airline has formed a new business model in which air freight is independently and strategically operated based on VietjetAir’s ambition to be the very first Vietnamese air cargo service operating in Vietnam and Southeast Asia.

“Vietjet Cargo will provide national and international freight and air charter services. VietjetAir Cargo will partner with Interlines to enhance and further develop its freight network,” Do Xuan Quang, CEO of Vietjet Cargo, said.