The Covid-19 pandemic has wreaked havoc around the world, pushing almost all business sectors, including logistics, into a revolution in their work practices. Logistics has played an important role in this pandemic, whether by transporting medical supplies or by facilitating trade and commerce. In this article, we shall explore the impacts brought by Covid-19 to the logistics sector and how it endures the storm.

Disrupted Supply Chain and Transport

Due to the various lockdowns and border closures imposed, the process of transporting goods often faced obstacles. For instance, during the start of the Covid-19 outbreak, Cargo was backlogged at numerous ports in China (DHL, 2020). As sea freights were canceled and as blank sailings’ frequency soared, operations of import and exports were distressed, and the circulation of empty containers were impeded. This has led to a global shortage of containers.

Similarly, long ship queues were also exacerbated by the shortage of truck drivers. Indeed, in September 2021, following a shortage of truck drivers and the influx of imported goods, the ports of Los Angeles and the Long Beach experienced congestion, with the number of container ships waiting to unload commodities reaching its peak (Anguiano, 2021). Similarly, in India, amidst lockdown measures, its trucking capacity also nosedived, resulting in the accumulation of over 50,000 containers in the ports of Chennai, Kamajarar, and Kattupalli (Rajasimhan, 2020). The drastic increase of commodities left at the port have also led logistics to compete for scarce warehousing spaces.

The interconnectivity within the transport sector, the turbulent shipping schedules, coupled with the low operational capabilities by the port have certainly given rise to delivery delays – all during a time where resources are highest in demand.

Accelerated Digitalization

According to McKinsey, the pandemic has expedited the rate by which companies were able to shift into remote working by 40 times (McKinsey & Company, 2020). In other words, many logistics enterprises have taken the step to adopt technologies in their internal operations.

Similarly, McKinsey has also pointed out that companies were found to have developed digital or digitally enhanced offerings 20-25 times quicker than they expected before the pandemic (McKinsey & Company, 2020). In recognition of the vulnerability of global supply chains amidst the pandemic, enterprises responded by developing digital tracking systems, providing clients with information ranging from vessel locations, schedule delays, rerouting plans and updates on compliance paperwork for bills. Some have even initiated digital systems that permit self-service transactions, track charter services and cargo shipment. Indeed, a UK-based logistics startup called Beacon, has designed an online dashboard that allows the tracking and booking of cargoes and price comparison of different carriers
(GEP, 2020).

Ultimately, logistics have seeked to digitize their services and ease tracking processes whilst anticipating delays and searching for alternative routes.

Despite this period of hardship, Forin Logistics is committed to provide customers and fellow business partners the best logistics service. With our newly installed tracking system and the governance of the ISO 9001 certification, we are bound to provide you with the best carrier and schedule options.

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References:

‌Anguiano, D. (2021). A record number of cargo ships are stuck outside LA. What’s happening? [online] the Guardian. Available at: https://www.theguardian.com/us-news/2021/sep/22/cargo-ships-traffic-jam-los-angeles-california [Accessed 18 Apr. 2022].

DHL (2020). COVID-19 OUTBREAK: GLOBAL RIPPLE EFFECTS ON SUPPLY CHAINS Resilience360 Special Report. [online] Available at: https://www.dhl.com/content/dam/dhl/global/dhl-global-forwarding/documents/pdf/dhl-dgf-covid19-global-ripple-effects-on-supply-chains.pdf. [Accessed 18 Apr. 2022].

‌GEP (2020). Real-Time Container Tracking Solutions for Post-COVID World | GEP. [online] Gep.com. Available at: https://www.gep.com/blog/mind/real-time-container-tracking-in-post-covid-world [Accessed 18 Apr. 2022].

McKinsey & Company. (2020). How COVID-19 has pushed companies over the technology tipping point—and transformed business forever. [online] Available at: https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/how-covid-19-has-pushed-companies-over-the-technology-tipping-point-and-transformed-business-forever [Accessed 18 Apr. 2022].

‌TE Rajasimhan (2020). Over 50,000 containers stuck at 3 major ports in Chennai. [online] Thehindubusinessline.com. Available at: https://www.thehindubusinessline.com/economy/logistics/over-50000-containers-stuck-at-3-major-ports-in-chennai/article31263262.ece [Accessed 18 Apr. 2022].