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Carriers look to tap booming Vietnam market
American Shipper
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Container carrier partnerships in the eastbound trans-Pacific are responding to Vietnam’s growing export and import markets by adding new direct links between the country and the US West Coast.

Cosco Shipping, Pacific International Lines (PIL), Wan Hai, and new slot-taker APL in late April will add a call to Haiphong in northern Vietnam to an existing joint service connecting China with Long Beach and Oakland, and PIL in late April will purchasing space on a second service linking Cai Mep in southern Vietnam with Los Angeles and Oakland.

“Vietnam is seen as a booming market, with lots of manufacturing,” Ernie Kuo, senior vice president of PIL USA Agency Services, told As manufacturing wages in coastal China increase and reciprocal tariffs dampen US-China trade, production is migrating to Vietnam. US exports of manufacturing inputs, such as cotton for the production of apparel, offer backhaul potential for carriers, Kuo said.

The Haiphong call is being added to the South China 3 (SC3) string, as it is called by APL, or AC5, which is PIL’s name for the service. The revised port rotation is Haiphong, Nansha, Hong Kong, Yantian, Long Beach, Oakland, Yantian, and Haiphong. PIL is deploying three new 11,900-TEU vessels on the loop, with Cosco and Wan Hai operating two ships each, also in the 11,000-TEU-plus range.

“Having a direct Haiphong call on the service gives a competitive advantage in a fast-growing market, and reduces feedering/transhipment cost expenses,” an APL spokesperson said.

PIL has also entered into a slot-ter arrangement on the Ocean Alliance’s dedicated Vietnam-US West Coast, which has a full port rotation of Cai Mep, Los Angeles, Oakland, and Cai Mep.

One of the early movers into Vietnam, the footwear manufacturing industry began to expand in southern Vietnam early in this decade. Since 2012, US footwear imports from Southeast Asia, primarily Vietnam, have increased more than 30 percent, while US footwear imports from Northeast Asia, primarily China, have grown about 13 percent, according to PIERS, a sister product of within IHS Markit.

APL also announced this week that ning in late April it will take slots on an existing service linking Central China with the US West Coast. The Central China 3 (CC3) service, also operated by Cosco, PIL, and Wan Hai with 11,000-TEU vessels, has a port rotation of Lianyungang, Shanghai, Ningbo, Long Beach, Seattle, and Lianyungang.

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