In light of the e-commerce boom, international couriers are increasing flights and upgrading freight capacity to tackle the surge in demand for air cargo shipping to and fro Vietnam.
|International couriers DHL and UPS are both increasing flights to Vietnam to capitalise on rising e-commerce |
DHL Express has dedicated an Airbus A330 to move shipments directly from its Central Asia Hub in Hong Kong to Ho Chi Minh City six times a week. The A330 aircraft will offer an air cargo load of up to 62 tonnes per flight, carrying shipments such as fashion apparel, garments accessories and materials, and electronics.
In addition, DHL Express will also upgrade the air connection between Hanoi and Hong Kong from a Boeing 737-400 to Boeing 737-800, which will offer greater capacity as exports from Vietnam continue on their growth trajectory.
DHL Express Vietnam’s country manager Bernardo Bautista said, “The stakes are high for Vietnamese companies wanting to capitalise on the growth of e-commerce. Many consumers have altered their habits and consider speed an essential part of the customer experience. An expanded capacity will allow Vietnamese companies to meet these expectations and tap into the global e-commerce market.”
In September, UPS also launched “Browntail” flights to Hanoi and Ho Chi Minh City. The flights in Ho Chi Minh City start and end their journey at Shenzhen city, China. They run four days a week, linking Vietnam to the main gates in Asia, the US, and the EU. The flights towards Hanoi take off each Saturday under the US-Asia route. Their storage capacity has also been increased significantly to better serve the demand of customers who wish to connect from Asia to the US.
Indeed, many Vietnamese airlines have boosted their cargo delivery businesses to compensate for the losses during the pandemic. However, Vietnam has yet to have its own cargo airline.
Most recently, billionaire Johnathan Hanh Nguyen proposed developing IPP Air Cargo airline with a total investment of VND2.4 trillion ($100 million). As planned, in the first year of operation, IPP Air Cargo will operate five cargo aircraft. By the second year, the number of aircraft will be increased to seven, then to 10 in the third year.
In addition, IPP Air Cargo plans to transport about 115,000 tonnes of cargo, with a revenue of $71 million in the first year and is expected to begin making profit from the fourth year since the first flight is operated.