Vietnam's air freight wanes in January-February amid weakening global demand

0 Comment(s)Print E-mail Xinhua, March 6, 2023
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HANOI, March 6 (Xinhua) -- Vietnam reported freight volumes through its airports fell 28.2 percent to 168,000 tons in the first two months of this year compared with the same period last year amid growing economic uncertainty, mainly fuelled by high inflation and the Ukraine-Russia conflict, local media VnExpress reported on Monday, quoting cargo carriers as saying.

Meanwhile, air cargo volumes handled by local carriers, both passenger planes and freighter aircraft, were down 14.2 percent year-on-year to 42,500 tons during January and February, suggesting a fresh challenge to an air freight market that was already hit by the COVID-19 pandemic, according to data released by the Civil Aviation Authority of Vietnam.

The air freight, which are sensitive to changes in manufacturing and supply chains, weakened as new orders showed signs of softening, a dedicated cargo carrier said, giving an example that its new orders from Vietnam to Japan slumped 20 percent in the period.

An executive from budget carrier Vietjet Air predicted tough outlook for both international and domestic air freight due to supply chain disruptions.

Even though freight rates have softened and more capacity is being added to the market, experts said, declining demand amid slowing economic growth and other uncertainties have taken a toll on air freight.

Statistics showed local freighters are currently using 50-67 percent of their full annual capacity of 1.5-2 million tons. The busiest air cargo route in the country, between the capital city Hanoi and southern business hub Ho Chi Minh City, has seen a modest growth as the tonnage stood at a third of the capacity.

Vietnam targets its air freight market to grow about 8.5 percent annually to 4 million tons by 2030, nearly tripling the pre-pandemic level of 1.53 million tons in 2019, according to the Ministry of Transport. Enditem

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