Covid-19 Impact on the Logistics industry

Published: 10 December 2020 | By Lorryz.com

Countries around the world have been taking appropriate measures to deal with Covid-19 in order to cater to safe transportation of goods.


For logistic firms it has been a challenge of sorts as transportation of cargo, load and goods involve a lot of human work and the virus can be easily transmitted if the chain of networks are not properly vetted for safe practices.


Covid-19 has directly impacted the value chains be it both international borders or locally. Businesses have been majorly affected due to this reason as an integral part of most of these firms that are available online involve a good deal of shipping the products to their customers, they facilitate trade and build the overall GDP for the country they are operational in. It is evident that the economies of the world have been severely impacted during this time. A positive approach and taking the necessary precautions will build towards a better step in enabling transportation of goods while also maintaining current jobs and creating further opportunities for the people affected during this time.


Ocean, air and land freight have been affected considering different countries. There are several constraints that have been reported in the logistics processes for countries like China, India, Mexico and Brazil where exporters have faced weak demands especially considering air and ocean freight, where the challenges are expected to continue for a longer period of time. 


Road freight has relatively faced fewer adversities as they continue to be operational globally and locally, exceptions for countries that have been facing total lockdowns. In Pakistan, the major food chains had been closed during the first wave and gradually they picked up the pace and started deliveries when it was allowed by the government. Similarly, 3PL services had also been operational during this time and online shopping services started seeing better days as deliveries had been made possible via road freight. Online shopping companies are still facing lesser demands if compared to pre covid times but they are operational and are seeing moderate sales. There is, however, a reduction in the number of employees available for these deliveries, which has also been a factor greatly affecting the logistics space. Another reason why road freight is also the considered mode of transportation is because of the rising air freight rates where companies are opting for cheaper and functional alternatives. Demand for rail services has also grown since the effects of Covid-19.


As per multiple reports, the full effect that Covid-19 has had on the industry can’t be enumerated, the economic recession has definitely shocked the world and global supply chains. IMF has predicted a 3% contraction keeping in consideration the global economy and the number can change anytime keeping in consideration the second round of lockdowns this year. This will definitely have an impact on the logistics and trade companies. Demand and supply rates are to fluctuate further with this. Small businesses have either shut down or are facing severe losses while established logistics companies are experiencing a strong impact due to these unexpected circumstances.


The overall response to this crisis from logistics companies has been to adopt safety protocols where companies need to protect and prioritize their staff health by maintaining social distancing and adhere to relevant safety precautions.


Lorryz has been actively working towards protecting its truck drivers, employees and clients by adopting the required measures. Such as keeping a safe distance, adopting work from home for employees, providing safety kits and protective gear to riders, disinfecting trucks and doing regular safety checks when performing quality checks on trucks. We’ve actively been helping deliver medical equipment for pharmaceuticals along with successfully helping grocers with transporting the load to shops safely. 


Logistics has surely been in the midst of this tech-driven revolution, it goes on to express how technology and online platforms are the ones that are conquering and making the little profits possible for businesses during this time.