COVID-19 impact and new waves on logistics.
Logistics firms which are involved in the movement, storage and flow of goods have been directly affected by the COVID-19 pandemic. As an integral part of value chains, both within and across international borders, logistics firms facilitate trade and commerce and help businesses get their products to customers. Supply chain disruptions to the sector caused by the pandemic could, therefore, impact competitiveness, economic growth, and job creation.
Response to Crisis
For the most part, governments have responded to the crisis by designating ports, shipping, and trucking services as essential, and thereby exempt from lockdown measures. Although many airports around the world are closed to passenger flights, most are still open to cargo, which can be essential to the COVID-19 response (for example, to transport medical supplies). Closer collaboration between governments and third-party logistics companies has also been necessary to address supply chain bottlenecks and facilitate clearances.
• Third-party logistics companies have adopted a range of responses to these uncertainties.
• Alternative modes of transport
• Adapting service offerings to current demand and safety protocols
The recovery and long-term impact of the pandemic on logistics may be affected by adaptions and factors, as described below:
• Increased dedicated air cargo capacity
• Increased cargo inspections and cross border control protocols
• Technology and e-commerce rise
• Reconfiguration of global value chains
• Recovery prospects will vary by country and subsector: as logistics is a diverse sector, recovery prospects will vary depending on the length of lockdowns and the duration of the subsequent economic crisis. Large companies with a diversified business (such as multiple clients, and serving
different sectors in various countries/states) will be better placed to weather the storm.