Navigating the Post-COVID Logistics Landscape: Challenges and Solutions

Introduction: The Lingering Impact of COVID-19 on Global Logistics

While the world is gradually moving beyond the acute phase of the COVID-19 pandemic, its effects continue to reverberate throughout the global logistics industry. As a Digital Logistics Platform, we at FreightAmigo understand the frustration many businesses face when dealing with ongoing disruptions. In this article, we'll delve into the current state of international shipping, exploring how the pandemic has reshaped the logistics landscape and offering insights on how to navigate these challenges effectively.

Recent data paints a clear picture of the pandemic's lasting impact:

• Air freight rates have seen a significant increase, with current prices hovering around US$12.00/kg, up from pre-pandemic rates of US$4.50-7.00/kg.
• Ocean freight, while less drastically affected, has also experienced notable price hikes.
• Delivery times across all shipping modes have been extended due to ongoing disruptions at ports and reduced flight frequencies.

The New Normal in Shipping Rates

One of the most striking changes in the post-COVID logistics world is the dramatic shift in shipping rates. Let's break down the changes we've observed:

Air Freight Rates

Pre-COVID air freight rates typically ranged from:

• US$4.50/kg during slow seasons
• US$7.00/kg during peak seasons

At the height of the pandemic, rates skyrocketed to nearly US$20.00/kg. While we've seen some stabilization since then, current rates are still significantly higher than pre-pandemic levels:

• Average current rate: Approximately US$12.00/kg
• Variations based on delivery time and inclusion of taxes and duties

Ocean Freight Rates

While ocean freight didn't see as extreme an increase as air freight, it has not been immune to the effects of the pandemic:

• Significant price increases compared to pre-COVID levels
• More stable than air freight, but still elevated

These rate increases reflect the ongoing challenges in the logistics industry, including reduced capacity, port congestion, and increased demand for certain goods. As a Digital Logistics Solution provider, we at FreightAmigo are committed to helping our clients navigate these new pricing realities by offering transparent, competitive rates across multiple shipping options.

Extended Delivery Times: The New Reality

Another significant change in the post-COVID logistics landscape is the extension of delivery times across all shipping modes. Let's examine the current timelines for various shipping channels:

Traditional Air Freight

• Overall range: 10-20 days
• Fast channels: 10-15 days
• Slow channels: 15-20 days

Express Courier

• Range: 5-12 days
• Varies by provider

Traditional Ocean Freight

• Range: 25-70 days
• Varies based on the number of stops

These extended delivery times are a result of various factors, including reduced flight frequencies, port congestion, and increased safety protocols. As a Digital Logistics Platform, FreightAmigo offers real-time tracking and updates to help our clients manage these extended timelines effectively.

Global Reach: Shipping from China to the World

Despite the challenges posed by the pandemic, global trade continues to thrive, with China remaining a key player in international shipping. At FreightAmigo, we specialize in routes shipping out of China, serving customers worldwide. Our most popular destinations include:

• United States
• Canada
• Europe
• Australia

We offer a range of shipping options to these destinations and others, including:

• Ocean freight
• Air freight
• Express courier services

Our Digital Logistics Platform allows clients to obtain instant quotes for these various routes and methods, enabling informed decision-making in this complex shipping environment.

eCommerce Integration: Shipping to Amazon FBA

The eCommerce boom that accelerated during the pandemic has continued, with platforms like Amazon seeing sustained growth. Recognizing this trend, FreightAmigo has adapted its services to cater to eCommerce sellers, particularly those using Amazon's Fulfillment by Amazon (FBA) program.

For businesses selling through Amazon FBA, we offer:

• Direct shipping from factories to FBA warehouses
• Instant rate quotes for Amazon FBA warehouse destinations
• Coordination with manufacturers for efficient bulk shipping

This integration of our Digital Logistics Solution with eCommerce fulfillment needs helps our clients streamline their supply chains and maintain competitive edges in the fast-paced world of online retail.

Strategic Shipping: Choosing Between Air and Ocean Freight

In the current logistics landscape, choosing the right shipping method is more crucial than ever. The decision between air and ocean freight depends on various factors:

When to Choose Ocean Freight:

• Price sensitivity is high
• Longer lead times are acceptable
• Shipping large volumes of goods

When to Choose Air Freight:

• Time is of the essence
• Willing to pay a premium for speed
• Shipping smaller volumes or high-value goods

In some cases, a hybrid approach can be the most effective strategy. For instance, businesses might:

• Ship a small volume by air to ensure immediate inventory availability
• Simultaneously send a larger ocean shipment to replenish stock in the longer term

As a comprehensive Digital Logistics Platform, FreightAmigo offers both air and ocean freight options, allowing our clients to create flexible, tailored shipping strategies that balance cost and speed effectively.

FreightAmigo: Your Partner in Navigating Post-COVID Logistics

As we continue to adapt to the evolving logistics landscape, FreightAmigo remains committed to providing innovative solutions to meet our clients' shipping needs. Our Digital Logistics Platform offers several key advantages in these challenging times:

• Real-time rate comparisons across multiple shipping methods and carriers
• Door-to-door freight quotes for international courier, airfreight, sea freight, rail freight, and trucking solutions
• Online booking capabilities for seamless shipping arrangements
• Shipment tracking connecting over 1000+ reputable airlines and shipping lines
• One-stop solutions for customs clearance, cargo insurance, and trade finance
• Automated shipment document generation
• 24/7 support from logistics experts

By leveraging our Digital Logistics Solution, businesses can navigate the complexities of post-COVID shipping with greater ease and efficiency. Whether you're an eCommerce seller looking to optimize your Amazon FBA shipments or a manufacturer seeking the most cost-effective way to ship globally, FreightAmigo has the tools and expertise to support your logistics needs.

Conclusion: Adapting to the New Logistics Normal

The COVID-19 pandemic has undoubtedly reshaped the global logistics landscape, presenting both challenges and opportunities. While increased rates and extended delivery times have become the new normal, businesses that adapt quickly and strategically can still thrive in this environment.

At FreightAmigo, we're committed to helping our clients navigate these changes through our comprehensive Digital Logistics Platform. By offering transparent pricing, flexible shipping options, and cutting-edge technology, we empower businesses to make informed decisions and optimize their supply chains in these uncertain times.

As we look to the future, one thing is clear: the ability to adapt and leverage digital solutions will be key to success in the world of international shipping. With FreightAmigo as your logistics partner, you'll be well-equipped to face whatever challenges the future may bring.

Ready to streamline your shipping process and tackle post-COVID logistics head-on? Explore FreightAmigo's Digital Logistics Platform today and discover how we can help transform your shipping experience.