As a result of the ongoing COVID-19 Pandemic, according to a recent trade report, the global logistics industry experienced an astonishing percentage increase in trade volume in the first quarter of 2020. Therefore, the negative consequences of a stagnant global economy have trickled down to the global supply chain as a result. When leading manufacturers and suppliers of consumer and industrial goods realized their losses, they took decisive steps to realign their supply chains.
The following are three of the biggest challenges a freight forwarder faces in a pandemic
Limitations on air and sea freight
The freight industry was the first to feel the effects of the Pandemic because the country was effectively shut down. For the vast majority of flights, most passenger planes carry only a small percentage of cargo in their under-carriers, which is common practice. However, because all aircraft have been grounded and the vast majority of flights have been canceled, the market has been forced to deal with supply shortages. Some may argue that the growth of the plane cargo business has been fueled by the rerouting of traffic through its channels. Even then, however, are unable to keep up with the demand of the market. Meanwhile, the tightened health inspections have only resulted in further delays and it created a challenging situation with freight forwarding in Brisbane.
Long before the invention of the automobile, ocean routes were used as a less expensive alternative mode of transportation, at the expense of timely delivery. However, even they have felt the effects of the virus, as the majority of suppliers have shut down their operations as a result of the virus. Even though there is little to transport, the ever-busy ports have now become docking ports for a large number of container ships.
Land transport is affected
Even after the goods have arrived in their final destination country, they are not going to magically reappear on the doorstep of the consumer. Due to the Pandemic, land transportation via truck drivers has also been affected, with truckers now required to obtain a permit in order to operate as an essential services provider. In addition, there has been an increase in the demand for locally produced goods such as groceries and medical supplies, which require transportation to be delivered.
Many logistics companies that look after gold coast freight forwarding have overworked their drivers in an attempt to meet the high demand that has been experienced. Furthermore, consumers will experience delays as a result of the increased number of state border health inspections. When the goods arrive at their destinations, the companies that rely on drivers signing for their deliveries will no longer be able to rely on those methods. This is due to the quarantine and social distancing regulations that have been implemented by the government in order to prevent the virus from spreading.
Manufacturers who deal with shipments of raw materials from countries deemed to be virus hotspots have been forced to shut down their operations completely. Even before the Pandemic, the trade-off with suppliers from countries such as China was a matter of debate and uncertainty. As politics becomes involved in the debate over where the virus originated, it is almost impossible to predict whether or not the situation will improve in the near future.
As a result, the vast majority of logistics companies such as One Global Logistics have severed all ties with the countries in question and closed their borders to international trade altogether. As a result, the majority of countries located between the trading routes are no longer able to benefit from the partnerships. A large number of them worked in the hospitality and tourism industries.