AJ Global Logistics | Pandemic on Logistics and Shipping 2020/2021
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Pandemic on Logistics and Shipping 2020/2021

Pandemic on Logistics and Shipping 2020/2021

Just to share, apart from the excerpts from our management herein, we provided some quotes from our regular U.S.A. partners with regards to the current situations impacted by the pandemic too.


In addition to the regular shipments, we are also pleased to share some of the ongoing and previous small projects that we are handing.

Since the start of the pandemic, the supply of freight carriage have being hampered by 3 main situations due to lack of workers (ship crew and porters) causing the followings:
•Not as many vessels are put back into services;

•Lack of ship crew due to testing and safe distancing;

•Lack of port workers due to testing and safe distancing notwithstanding those who are put on SHN/quarantine or tested positive;


In view of the above, apart ship supply shortages, vessels are held back for a long time at most of the base ports around the world. In turn, the freight rates have being increasing gradually on a monthly basis at a rate of about 10% to 20%. For example, the current average freight cost to Australia or U.S.A. is 400% higher than pre-covid level.


The situations were made worst during Q1 2021 because of the huge surge with China exports. They imported 1 container but exported 2 containers (ratio 1:2). However, not to mention the trade spat with U.S.A., their situations have improved or more balanced now with regards to their tangible trade differences i.e. they import 2 containers and export about 3 containers (ratio 2:3).

Moving forward, in the light of the current virus developments (covid 19 has evolved into various variants or developed/formed “brothers and sisters”), not many of us will think these situations will go away. However, Iet’s hope it will subside, albeit, it will not be the same as the pre-covid level i.e. things will get more expensive starting probably from consumable to capital products in times to come.

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