Mr. Pham Anh Tuan (U&I Logistics): "There is no battle without a battle plan, but..."

VLR: Mr. Tuan, looking at the current tensions and crises in the Red Sea, what opportunities does the air freight industry find in this crisis?

Mr. Pham Anh Tuan: According to the assessment of many people, the air freight industry will benefit greatly from the crisis in the Red Sea. I think, in theory, it seems correct, but to determine whether this opportunity brings little or much for global air freight, we need to consider factors such as the proportion of air and sea transport in global trade, types of goods that can be transported by air, urgency in terms of time; supply chain requirements, etc.

Certainly, issues related to geopolitical situations and escalated conflicts, such as those in Eastern Europe, the Middle East, and the recent crisis in the Red Sea, have undoubtedly had a negative impact, significantly affecting the global logistics and transportation industry.

It is not difficult to observe the increase in shipping rates, extended transportation times (due to vessels having to detour around the Cape of Good Hope), rising insurance fees, and a variety of other increased costs. All these factors have negatively affected freight transportation and supply chain operations, with broader implications for global trade and the world economy.

However, from a professional perspective, I believe that the recent events in the Red Sea have not reached a level of severity or a "peak" yet. With the recent escalation of attacks on cargo ships by Houthi forces, including the burning of cargo and naval vessels from countries protecting maritime traffic in the region, the situation has become more alarming. Despite numerous statements, meetings from various countries, and various proposals and solutions, the "heat" of this crisis has not shown signs of cooling down so far. The question remains: Will it continue to escalate? If the tension persists and intensifies, it will undoubtedly have further and more significant impacts on transportation operations, supply chains, and global trade.

VLR: Let's return to the situation in air freight. Sir, in the face of geopolitical conflicts, what are the "motivations and potentials" for the global air freight to benefit from this scenario?

Mr. Pham Anh Tuan: The objective opportunities and conditions for generating revenue and profit for air freight services exist but are not overly significant. In my view, the primary foundation for the growth of air freight at this time lies in the economic recovery of countries and the increasing global purchasing power, especially in major markets.

VLR: So, based on your experience and observation, what plans and solutions are needed for effective import and export operations of businesses in the current?

Mr. Pham Anh Tuan: 

There are many plans and solutions, but sometimes all plans are just... plans. The key is to have feasible plans and solutions that can be applied appropriately and adapted to each business environment, the practical circumstances of the market, and the enterprise itself. And in business, factors such as "... favorable geographic conditions and human factors" are also important.

I like Napoleon's saying: "There is no battle without a battle plan, but there is also no battle that unfolds exactly as planned".

Therefore, to ensure the supply chain of a business and the business operations of customers, parties involved may consider options such as: Reassessing the lead time of the production process, ensuring production while the supply chain is experiencing fluctuations as it is now, and limiting the risk of supply chain disruptions. Also, having plans to ensure safety stock; contingency plans for transportation; utilizing combined transportation methods, such as sea-air, air-sea, sea-rail, road-rail,… for freight forwarding.

VLR: Sincerely appreciate your insights in this conversation.