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8 >> 7 Even accounting labor force


Issue 7 2020 - FBJNA


have passed v oc a ti o nal


training courses typically have wage rates that are at least 7% higher than the wage.


minimum for


that difference, companies are saving on labor costs by sourcing in Vietnam in comparison with China. In terms of production


expertise, while China leads the world in manufacturing, Vietnam’s


is


young, and the working population aged 15 to 39 currently accounts for about 40% of the total labor force in Vietnam. The government


is


also investing in training to introduce more skilled labor into the workforce. According to “Labor


Market Trends in Vietnam” by Koushan Das with Dezan, Shira & Associates, Vietnam is looking to provide vocational training to more than 2 million people per year. “As of February 2018,


there are more than 1,900 vocational training centers across Vietnam, including 395 colleges and 545 vocational schools, which offer programs in tourism, beauty services, IT, construction, fashion, garment and textiles, pharmaceuticals, precision mechanics and hotel management,” Das said. Of particular note, Vietnam’s


trade with the United States is on the rise. According to


an analysis by WorldCity U.S. Census Bureau data, the value of trade between the two countries rose to $46.43 billion through the first seven months of 2020, an increase of 11% over the same period in 2019. This year, top imports by


for road, rail and efficiency improving year over year. Vietnam has dozens of


seaports, and most are smaller in size and throughput. However, 44 ports carry a total combined capacity of 470-500 million tons per year, and the


around [Vietnam’s] ports remains


underdeveloped,


leading to increased costs,” says Das in the Vietnam briefing. “Due to the lack of a rail network connecting the various ports, freight currently must be transported by road adding to shipping rates.” Despite


inland


transportation challenges, the Vietnamese e-commerce market is growing 40% per year, which is spurring investments in logistics upgrades. In 2010, Vietnam became


Over the past five years, total TEUs shipped between Vietnam and Jacksonville, Florida have increased by 63%. (JAXPORT photo.)


tonnage from Vietnam through U.S. seaports have included furniture, electronics, tires, footwear, and coffee. Over the past five years, total TEUs shipped between Vietnam and Jacksonville, Florida have increased by 63%. In the 2019 Global


Competitiveness Index by the World Economic Forum Vietnam ranked 67th out of 141 economies. Its seaports ranked well for liner shipping connectivity, with scores


major ports include Hai Phong, Da Nang, Qui Nhon, and Ho Chi Minh City/Cai Mep. According


to the JOC.


com’s annual Top 50 Global Container Port rankings, Vietnam’s Port of Ho Chi Minh City reported the highest growth rate of any port in the top 50, increasing throughput 72.5 percent to 10.9 million TEU for the year. The country’s inland


infrastructure has been accommodating the increase in freight volumes over the past decade, but improvements are needed to increase efficiency, lower costs, and maintain the pace of growth. “The rail and road network


the primary supplier of Nike- branded footwear, accounting for 37 percent of production, while China remained a close second at 34 percent. Fast forward to 2018, and Vietnam had grown to 47% while China dropped to only 26 percent for the company. More businesses are looking establish


to operations in


Vietnam, as a part of a China Plus One policy or as a long- term shift in their supply chains. Apple has relocated production of its Air Pods to Vietnam, and Google shifted manufacturing of its Pixel phones from China to Vietnam. The furniture sector has


benefited as well. In fall of 2019, Furniture Today visited12 factories in Vietnam to get a first-hand perspective on sourcing there.


American adds more than 1,000 cargo-only flights in September


When American Airlines relaunched cargo-only flights in March, its Cargo team started with 20 strategic flights to two key destinations. This September, its cargo-only schedule totaled more than 1,000 flights serving 32 cities; a plan that began as an experiment has now grown exponentially over the last 6 months. By more than doubling its cargo-only flying compared to August, American Airlines Cargo is able to meet customer needs amidst a time of record demand. Since being reintroduced,


American’s cargo-only flights — which had not been operated in more than 35 years — have moved more than 45 million pounds of cargo around the world. But getting the first flight off the ground was nothing


short of a symphony, played by team members from across the company. American has changed


greatly since its last Boeing 747 freighter landed in 1984, so team members from the airline’s Cargo, Network Planning and Operations teams joined forces to write a new strategy. The plan would allow American Airlines Cargo to better serve its shippers despite a decreased passenger flight


schedule caused by


the coronavirus (COVID-19) pandemic. “We didn’t have a playbook.


We’d never done this before,” said Maulin Vakil, American’s director of cargo revenue at the time. “We began to explore how much cargo we could take if we couldn’t transport passengers.”


Aſter walking through dozens of what-if scenarios,


planning a cargo-only team


members discovered it would be possible to successfully fly regularly scheduled long haul service with nothing but cargo in the aircraſt’s belly. The first flight, however, would have to be planned with no stone unturned. The final push to plan


American’s resumption of cargo-only service came as the COVID-19 outbreak progressed and the vast majority of passenger air travel to Asia and Europe was suspended. On March 17, the team that had originally explored the possibility of cargo-only flying was called to put their plan in motion. Aſter


exploring their options, the group began flight


from Dallas-Fort Worth (DFW) to Frankfurt (FRA) scheduled to take off on Friday, March 20. While figuring out the safety,


logistics and economics of the flight was a challenge, team members were prepared for the test. Crews were briefed, safety procedures were established, and international rules were carefully followed. Four days aſter the team set


their plan into motion, American operated a Boeing 777-300 from DFW to FRA as its first cargo-only flight of the 21st century. With the flight to FRA a


success, American began operating cargo-only flights to Hong Kong (HKG) shortly aſter. A few weeks later, team members


9 >>


News Roundup


The U.S. Army Corps of Engineers coastal dredging contractor was in Coos Bay, Oregon, conducting dredging operations within the Charleston federal navigation channel during the last week of August. Recognizing an opportunity to realize significant cost savings associated with mobilization and demobilization to the south coast, the port entered into a contract with McAmis to remove up to 3,000 cubic yards of sand from a problematic area of shoaling at Point Adams.


CSafe Global, the innovation leader in temperature-controlled container solutions for the transport of life-enhancing pharmaceuticals, has once again expanded their global reach and local presence with the opening of a new hub operation in Taipei, Taiwan. This new addition to CSafe’s worldwide container operations facilities ensures Taiwan’s thriving biotech and pharmaceutical sectors have consistent, easy access for to the cold chain industry’s top performing containers.


As part of its ongoing digital transformation drive, Abu Dhabi Ports has launched the Smart Container Initiative that will house its digital solutions in a resilient, safe and optimized eco-friendly mobile environment. Powered by clean energy, the solar-paneled steel and aluminum smart container uses environmentally friendly technologies such as in-row cooling, renewable energy and efficient space allocation that will reduce Power Usage Effectiveness (PUE) by more than 20% and will slash carbon emissions by half. The prefabricated containerized data center runs a wide range of mission-critical applications, including port and terminal operation systems, visitor passes, and other digital customer services.


Port du Havre, France’s premier container port for foreign trade, has welcomed four of the world’s largest latest- generation gantries to the GMP - PortSynergy-operated Terminal de France. Over the space of a week, August 17-23, teams mobilized on site worked to unload the gantries: an exceptional operation organized by GMP. The effort is part of Port 2000.


The ECT Delta Terminal receives some of the largest container ships in the world. To ensure that in terms of nautical accessibility, it continues to meet the requirements of the next generation of container ships, a 500-meter stretch of the Amazonehaven port basin at Maasvlakte will be deepened from 16.65 meters to 17.45 meters. This project, commissioned by the Port of Rotterdam Authority in partnership with HYPERLINK “https://www.ect.nl/en/terminals/hutchison- ports-ect-delta” \t “_blank” Hutchison Ports ECT Rotterdam (ECT), is expected to be completed in the second half of November 2020.


DP World has acquired Transworld Group’s three business units - Transworld Feeders FZCO (Middle East focus feedering business), Avana Logistek Ltd (including its subsidiary Avana Global FZCO (NVOCC Middle East business) and Transworld Feeders Pvt Ltd (the containerized Indian coastal and EXIM feeder shipping operations of Shreyas Shipping and Logistics Ltd, excluding vessels and bulk operations). The deal was made via Unifeeder (through its Indian subcontinent Unifeeder ISC platform), a majority-owned subsidiary of DPW.


Kalmar, part of Cargotec, will supply additional 20 Kalmar Hybrid Shuttle Carriers to The Port of Virginia, a deep-water port in the U.S. East Coast. The order, booked in Cargotec’s Q3 2020 order intake, follows a similar order from the third quarter of 2019, demonstrating the strength of The Port of Virginia’s relationship with Kalmar and the company’s commitment to Kalmar equipment. The delivery of the machines is scheduled to be completed by the end of July 2021.


///NEWS Sea


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