State of Logistics: June 1, 2020

Patrick O'Loughlin Jun 1

Coronavirus by the Numbers

Total Cases

  • United States – 1.83 Million+
  • Worldwide – 6.2 Million+


  • United States – 106,000+
  • Worldwide – 372,000+

Financial Trouble with the Shipping Lines

Some of the largest shipping lines in the world have struggled greatly since the beginning of the Covid-19 crisis. The shipping and logistics industry has taken a hit during this time, as have many industries, due to reduced shipping activity and less shipping demand. Many shipping operators have had to idle ships during this time and an idle ship makes no money, it actually is a great cost.

A few shipping lines have turned to State support to try to weather the storm during these times. CMA-CGM, which is one of the largest shipping operators in the world, has received over $1 Billion in loans that have been greatly guaranteed by the French government. There were questions raised whether this guaranteed loan violated a rule by the European Commission which says that companies in financial peril may not receive State support but has since been ruled as not violating that rule.

South Korean shipping line, HMM (Hyundai Merchant Marine), got over half a Billion dollars in April from the South Korean government. It is important to note that HMM has received over $5 Billion in State support over the last 2 years in order for HMM to have some very large ships built to increase capacity.

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How COVID-19 Has Affected Everyone Else

In turn, the damage done to the shipping lines has also been felt in other places. I believe that anyone who is involved in the shipping of international goods, such as Regiment Logistics and our customers, have felt some kind of impact during this situation.

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I have listed some of the following effects below for some of our shippers:

  • Loss of regular business activity
  • Closing of factories which manufacture their goods
  • Reduced shipping capacity on important lanes
  • Complete disruption of supply chains in some cases

And here I have listed some effects on consumers:

  • Lack of inventory for many products
  • Long shipping times for products already purchased
  • Decreased disposable income to buy products
  • If not laid off, many people work from home and no longer commute to work

It will take time for companies and individuals to recover from the effects of COVID-19. In some cases, it will take intervention from outside forces such as the Government, to help guide recovery and hopefully accelerate it.