FedEx (NYSE: FDX) reports that shipping delays in Vietnam have eased this month, following an operational meltdown triggered by a bungled switch to a different ground delivery provider and the introduction of new technology, which caused widespread customer complaints about difficulty retrieving inbound goods from warehouses, according to FreightWaves.
Root Cause of the Disruption
The problems began on April 26 when FedEx switched from its long-time national delivery partner Song Binh to Viettel Post for pickup and last-mile delivery after customs clearance, according to the Vietnamese newspaper Thanh Nien, as reported by FreightWaves. The freight transportation giant attributed the shipment delays and cargo congestion to challenges associated with transitioning to a new contract courier and the introduction of new technology and workflows designed to match global operating standards. In a May 29 service bulletin on FedEx’s Vietnam website, the company stated that “the complexity of simultaneously implementing new systems, processes and teams created transition challenges.”
“We fully recognize the service disruption experienced by our customers in Vietnam and the impact to their operations,” said Masamichi Ujiie, president of FedEx North and South Pacific, in the bulletin. “We are treating this with the highest urgency and focus.”
Affected Trade Lanes and Operational Impact
The delays primarily affected inbound shipments booked with FedEx prior to the April 26 cutover, with cargo stranded at warehouses in Hanoi and Ho Chi Minh City for several days. International traders and logistics companies flooded social media with complaints about stranded shipments, unreachable FedEx hotlines, and a lack of clear points of contact for status reports. Businesses also reported having to cancel and resubmit customs declarations due to mismatches related to the new transport provider, while storage fees mounted for stuck goods.
Specific cases include:
- A garment company unable to collect fabric samples from its international client, urgently needed to meet production deadlines. The shipment sat in a Hanoi warehouse for days, putting the company at risk of order cancellation and penalties.
- A cold storage shipment that languished at the airport cargo terminal and likely spoiled because it could not be processed by customs authorities.
- Multiple companies that halted production lines due to missing raw materials from overseas.
Recovery Efforts and Current Status
FedEx said it has implemented contingency plans, including increased sorting capacity, enhanced customer service, and additional clearance support, to accelerate recovery and minimize customer impact. In a statement to FreightWaves last week, the company said: “FedEx has implemented a more integrated operating model to strengthen our long-term capabilities in Vietnam. We are actively executing contingency plans … to accelerate recovery, restore normal operations, and minimize impact for our customers.” A follow-up statement added that the initial transition temporarily impacted pickup, delivery, and import clearance processing due to higher-than-usual shipment volumes following public holidays. Recovery actions are yielding positive results, including normalized clearance and local delivery operations, with consistent progress improving service consistency across the Vietnam network.
| Impact Area | Before Recovery | Current Status |
|---|---|---|
| Clearance processing | Delayed, requiring resubmissions | Normalized |
| Local delivery | Stranded cargo at warehouses | Restored |
| Customer service hotline | Unreachable | Enhanced with additional personnel |
Shipper and Operator Implications
Freight forwarders and logistics managers with inbound shipments to Vietnam should verify that their shipments are being handled under the new Viettel Post contract and ensure customs documentation aligns with the new transport provider to avoid clearance delays. Companies with cold chain or time-sensitive materials should prioritize tracking and consider alternative carriers until FedEx fully stabilizes operations. The incident highlights the risks of abrupt carrier transitions and the importance of contingency planning for last-mile delivery changes in critical markets like Vietnam.
Watch List
- Continued stabilization: FedEx expects further improvement in service consistency as recovery actions continue.
- Public holiday effects: Higher-than-usual volumes after holidays contributed to the congestion; similar periods could trigger renewed delays.
- Customer feedback: Social media and trade forums will indicate whether remaining bottlenecks are resolved.
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