Massive manufacturing slowdowns in Vietnam are taking place and this is a concern to many companies since Vietnam is a huge reliant for winterwear. This is causing many apparel and footwear companies to panic and switch from ocean to air. While the cost may be higher, they need the product in retail stores before the holiday season.

According to Freightwaves and the Vietnam Textile and Apparel Association , nearly 90% of the industry’s supply chain has been significantly impacted by the partial lockdowns, with up to 80% of garment and textile companies in the southern provinces completely halting production. Some workers are even leaving for their hometowns due to concerns of the virus spreading.

While many companies are resorting to air freight options, air cargo is also experiencing Covid related issues. Less people are traveling leading to less takeoffs with cargo. Charter flights exist but are limited, causing even more competition. As you can assume because of all these factors, air freight rates are skyrocketing. Freightwaves  gives this pricing stat, renting an entire cargo jet from Vietnam to Chicago, for example, now costs at least $1.1 million to $1.2 million, compared to several hundred thousand dollars in more stable periods.