Vietnam expansion helps Flexport clients navigate regional infrastructure constraints

As more businesses move to diversify supply chains, they are seeking strategic locations to better serve them. In response, Flexport is expanding its global cross-dock network. Working in partnership with ITL Corporation (ITL), Flexport will now offer dedicated space to its clients in a state-of-the-art warehouse located in Thu Dau Mot City, just outside of Ho Chi Minh City. The container freight station (CFS) is an integral part of Flexport’s global network and will serve as a vital hub for operations in Southeast Asia.

Strategically Located to Navigate Infrastructure Challenges

One ripple effect of the US-China trade war has been a shift of manufacturing and production of goods from mainland China to Southeast Asia. In fact, freight volumes from January to September 2019 show absolute volumes grew by 32% from Vietnam, according to US Customs manifest data provided by Import Genius.

Southeast Asia has proven to be an attractive location for many Flexport customers that have diversified their supply chains to include new suppliers throughout that region. But challenges still abound. Many countries in the region don’t have the physical infrastructure or labor market necessary to support manufacturing on the scale that China historically has. This means shippers are encountering port and road congestion, as well as restricted trucking areas in cities such as Ho Chi Minh City, leading to delays in their supply chain.

Flexport’s dedicated space in the facility will help minimize such challenges with its strategic location in Thu Dau Mot City, outside of Ho Chi Minh City. For customers that source in the region, it’s an ideal location, at the epicenter of garment and footwear manufacturing in South Vietnam as well as in close proximity to inland container depots (ICDs).

State-of-the-Art Facility

Working with ITL’s on-the-ground staff, Flexport will ensure customers have end-to-end visibility of their cargo. ITL staff will provide real-time updates in the Flexport app, including cargo-in and cargo-out milestones, as well as cargo receipts.

The design of this multi-purpose facility supports CFS, bonded, general, and distribution warehouse operations. In addition, it allows Flexport to provide greater supply chain solutions as well as higher-quality cargo handling. Flexport’s warehouse spaces have industry-standard security and visibility, and provide customers with a high level of service and care—ensuring cargo moves quickly and safely.

The new facility currently supports the following Flexport businesses, and will continue to expand to meet the growing needs of our customers:

• HCM - Los Angeles Weekly Consol Box
• HCM - New York Weekly Consol Box
• HCM - Rotterdam Weekly Consol Box
• Buyers Consol Shipments

As Vietnam continues to grow as a major production hub, and congestion continues to increase, this new CFS solution will help businesses navigate the challenges of the region.

How will this Impact Flexport Clients?

Flexport’s strategically located CFS facility will help customers and suppliers navigate some of Vietnam's biggest infrastructure constraints. This will prove especially true as many have found moving supply chains to Vietnam to avoid the US-China tariffs easier said than done. At a time when there is infinite global uncertainty and shippers are looking for “creative solutions” to keep their supply chains fluid, the new CFS facility is critical.

About ITL

ITL is one of the largest logistics and supply chain companies in Vietnam and one of VNR’s TOP 50 Best companies and TOP 500 Biggest companies in Vietnam for the 12th consecutive year. ITL is a leading regional logistics solutions provider of Aviation, Integrated Logistics, Warehousing, Freight Management, Customs, Transport and Distribution services in Indochina. ITL is also a leader in international and domestic eCommerce and express logistics solutions in Vietnam.