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Crowdfunding campaigns—launched by individuals or organizations—play a vital role in supporting communities, alleviating hardship, and helping people overcome economic and social challenges.
However, the COVID-19 pandemic heavily disrupted this sector due to its direct connection with global supply chains. Congestion at major ports and the imbalance between supply and demand caused a sharp rise in shipping costs, which ultimately affected crowdfunding initiatives around the world.
What Are Crowdfunding Campaigns?
Crowdfunding is a social and economic activity aimed at easing the struggles of individuals or communities by collecting financial or in-kind donations.
Most crowdfunding efforts take place online through dedicated platforms and serve various purposes, such as:
- Helping individuals pursue education or launch projects
- Supporting communities affected by natural disasters
- Providing emergency relief for people facing sudden crises
Why Shipping Costs Increased
Three main factors contributed to supply chain disruptions and the surge in global shipping prices:
1. Repeated Lockdowns
During COVID-19, recurring lockdowns disrupted the global supply chain, causing major difficulties in restoring operational balance.
Shipping and transportation networks suffered near-complete standstills, preventing goods from moving smoothly from production sites to global markets.
2. Overcrowded Ports
The pandemic led to severe congestion at ports worldwide.
Thousands of container ships were forced to remain offshore for days or even weeks, unable to dock. As a result:
- Some ports became overloaded with export-ready containers
- Other ports experienced a severe shortage of containers
- Air cargo operations were almost completely halted, except for medical supplies and PPE
This imbalance contributed to record-high shipping prices.
3. Limited Capacity in Land Transportation
As sea and air freight slowed down, global trade turned to land transportation—trucks and railways—creating intense pressure on this sector.
However, land freight cannot fully replace sea or air shipping due to its limited capacity and geographic constraints.
Why Crowdfunding Campaigns Were Delayed
Crowdfunding campaigns rely heavily on shipping, especially when distributing goods or aid. Rising freight costs and supply chain disruptions caused several challenges:
- Delays in shipment delivery due to partial or complete shutdowns of supply chain routes
- Higher expenses because campaigns increasingly had to use express shipping, which is significantly more costly
- Custom shipping requirements, which introduced additional expenses and logistical complexity
Constraints Faced by Crowdfunding Campaign Managers
Campaign organizers encountered several obstacles due to the global shipping crisis:
• Mandatory booking
High demand and limited capacity made it difficult to secure quick shipping slots, forcing managers to book in advance and wait for available space.
• Additional shipping restrictions
Many carriers imposed new limitations—such as refusing to ship lithium batteries—to streamline customs clearance and reduce processing time.
• Cancellation fees
Shipping companies began charging fees for cancelled reservations to manage capacity more efficiently.
• Reduced carrying capacity
Due to fewer available routes and fewer container shipments, carriers could send only 1–3 containers per week, causing large delays or staggered deliveries—especially for bulk aid shipments.
Alternative Solutions for Crowdfunding Campaigns
To overcome these challenges, campaign organizers needed to adopt more adaptive and strategic approaches, such as:
1. Early Booking
Managers should reserve shipping space weeks ahead to avoid bottlenecks and prevent last-minute delays.
2. Considering Land Freight
Although not a full replacement for sea or air freight, land shipping may serve as a practical alternative for some regions.
3. Maintaining Flexibility
Campaigns must explore alternative ports, airports, and shipping routes when primary options face congestion or delays.
Conclusion
The success of any crowdfunding campaign depends heavily on strategic, well-planned logistics. Because these campaigns are deeply tied to supply chain operations, managers must adapt to global shipping fluctuations and navigate disruptions with flexibility and foresight.
Understanding the challenges of rising shipping costs—and planning accordingly—ensures that aid reaches beneficiaries efficiently, maintains donor trust, and protects the integrity of the campaign’s mission.