Covid-19 has given humanity a harsh wakeup call about the lethal impact infectious diseases can have. The World health organization (WHO) declared covid 19 pandemic in early 2020. most of the countries shut down their borders and limited transportation.thus international supply chain disrupted, due to shipping and logistic industries hampered in many ways. therefore impact on competitiveness , job creation and economic growth. logistics companies connect firms to market by providing various services like multi model transportation, freight forwarding, warehousing and inventory management. due to pandemic global supply chain distruped as result flow of goods between and within countries third party logistic solution termite and economic market growth disrupted.
Impact on logistic industry
Logistic solutions enable goods delivery to trade and e-commerce industries that facilitate consumer supply chain.COVID -19 outbreak impact on supply chain with various factors such as labour shortage ,fragmented supply lines , weak infrastructure, ambiguity of rules and regulation of goods mobility. early stage of covid -19 China is most affected country where manufacturing hub and exporting goods distrepted , China declined to import or export goods.cargo ports , loading , unloading and carriers were docked for contegien halted.
The heat of the pandemic led to more restrictions on logistic solutions such as travel restriction, warehouse protection , social distancing, flow of goods etc. due to this many countries hold globe transportation. The health ministry is limited on supply items, moreover medical equipment and necessary items have been shipped with many protection and regulation.
Land logistics remain an essential supply such as medicine. that also depends on the trucking sector. volume of demand they failed to transport due to manufacturers not able to meet the supply demand. The freight rate increases due to the volume of demand. railway transport demand feverable to fulfill needs. logistic industry leaving profit margin and protecting reputational damage in order to maintain operation.
Challenges encountered by logistic industry
Air freight forwarding:
Demand volume fell by 30-50% due to lockdown, and all grounded aircraft cancelled as a result the market had to deal with supply shortage.
Ocean freight forwarding
Ocean transportation mode is cheapest and most effective has also been affected with covid-19. Shipping lines had increased the price of freight rate , delayed booking , inventory issues occurred unexpectedly from all over the world at port and maritime industry. Drastically reduced the import and export goods at major ports.
Land Freight
Land transportation has been operational except when severe lockdown. due to lockdown reduced employee availability and increased essential items demand such as foods, medicine.other manufacturing industry restricted due to pandemic.
Warehouses role during pandemic
Warehouse requirements develop gradually. storage used for essential items such as medicine , ventilators , face masks, sanitizers etc. the logistic system has developed a huge capability of storage for vital deliveries.
supply chain has led to disruption of unorganized trucking business, deliveries , traffics, surge prices etc. the effect of pandemic downfall economic growth.
Strategies to turn down some problem
Airline enfold the cargo way
To deal with pandemic airlines redesigned their passenger plan to act as cargo plan, so it keeps their loss low.
Collaborative effort
manufacturers and suppliers decided to share their cost on container shipments. This solution helps both businesses to win- win situations, even with low volume transportation.
Evolve risk management team
To constraint facing issues, all over the world most of the companies develop their risk management team to find out ways to tackle stations in future such as "what if".
Safety protocols
To prevent the spread virus ,imposed safety protocols like social distancing at warehouses , disinfecting work areas etc. some of them invested in ppe kit to protect supply chain members. Obviously it is a higher financial cost but it can sustain business.
The supply chain industry is facing a huge issue due to covid - 19 pandemic. human beings are resilient to work toward the circumstance. The Logistics industry resolve byself once circumstances change or they have to evolve more with technology and ideas. To operate freight forwarding services is the most effective way to collaborate and innovate in their own way.
To prevent the ‘what if’ condition, the shipping and logistics industry is looking for tech driven technology. all over the world logistic industry investing in the internet of things , cloud computing, digitalization. so they can long run while 'what if' circumstances occur. These revolutionary things emerged in the logistic industry to keep moving.
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