Recalculating prices and delivery timelines
Pham Quang Anh, general director of Dony Garment Co., said Jordan makes up almost 20% of his company’s exports, with most shipments passing through the Red Sea.
Containers are still rolling out on time with zero cancellations so far, but he is facing potential 15-to-20-day delays that could leave retailers high and dry during peak shopping seasons. If disruptions persist for months, the impact could extend to clients’ entire business cycle.
Mechanical and electrical material supplier Cat Van Loi has shipped its first load of gear and parts for a big thermal power plant in Saudi Arabia and is pushing ahead with the rest in stages. Even with phased contracts, the firm warned that sharp hikes in freight surcharges and longer shipping times are threatening to tank the whole project’s efficiency.
Should current orders proceed without major interruption, greater risks loom for contracts slated for signing in the second and third quarters. Numerous enterprises and industry associations said companies are panic-buying raw materials right now to avoid shortages or missing deadlines, which is sucking up huge amounts of working capital fast.
Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetables Association, noted that rerouting vessels away from the Red Sea has lengthened shipping times by many days, raising costs for refrigerated containers and cargo insurance.
Associations representing apparel, wood processing and food industries said they are tracking movements in freight and marine insurance rates. Prolonged high transport costs could erode the price competitiveness of Vietnamese exports.
Suspension of tours to several Middle Eastern destinations
On Monday, several travel companies in Ho Chi Minh City announced a temporary halt to tour packages to certain Middle Eastern spots. At the same time, they have deployed emergency measures for groups already there, including those transiting through Dubai.
The Middle East has been blowing up in popularity with Vietnamese vacationers lately, especially the Dubai-Abu Dhabi-Egypt combo routes. Amid rising tensions, loads of customers are begging to push trips back, cancel outright or get their money back. Tour operators are stuck trying to keep travelers safe while dealing with additional costs and contractual commitments arising from itinerary changes.
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