The Impact of COVID 19 on Logistics and Freight Management

The Impact of COVID-19 on Logistics

Logistics companies connect businesses to markets by providing various services, including transportation, freight forwarding, cross-docking, warehousing, and inventory management. With the continuous demand for goods, there is no room for any mistakes let alone a break in the supply chain. Everything had been on track and then arrived the Global Pandemic that changed the lives of millions of people.

Global manufacturing is a complex and multilocational process involving components and supplies crossing international borders. As a result, today’s global value chains require more flexibility and faculty in the flow of goods within borders. These can be achieved by outsourcing logistics functions to third-party logistics service providers, especially those with multifarious, end-to-end solutions capabilities.

During the initial stages of the lockdown, air and ocean transport had to face too much of National Restrictions which led to a complete stoppage in the Supply Chain. However, land transportation was somewhat available due to eased restrictions by several State and Federal Governments. During these trying times, Trucking Industry played a significant role in ensuring that there is no break in the Supply Chain. This facilitated the conveyance of medical supplies and other vital resources to the people in need. Other economic sectors that required land transport, such as manufacturing, were not at full capacity because of operational restrictions.

Supply chain interruptions and lockdowns have already affected logistics companies. Operational limitations caused further delays in delivery, cargo congestion, and higher shipping rates.

Overall, the uncertainty amidst the pandemic will exert downward pressure on revenues. The impact is severe for small trucking businesses as they are being severely hit because they tend not to have any backup in the form of services or funding. They might not have a recovery plan or an alternate action plan. Lack of know-how in technology, as well as tools to follow the latest measures, compliances, or health guidelines further hinder their activities.

 

/ Cross-Docking