COVID-19 has indeed greatly affected the world. It has not only taken the lives of people but also seriously impaired the economy. And while we are busy surviving, let’s take a look at how the pandemic affected the logistics industry.
Lockdowns have been implemented to make sure that people are on top of their health and to control the spread of the virus – and It has not only restricted people’s movement locally and internationally but also manufacturing and logistics activities, which resulted in decreased demand and supply of products that led to less-to-no operation at all.
The impact on logistics:
Restricted travel – There are vessels with parcels placed under quarantine for weeks before continuing its operation or parcels that can’t enter its destination because of the closed borders, thus causing delayed packages.
Disruption in revenue – The need is focused on medicines, medical supplies, and equipment while manufactured goods barely or even cannot reach the ports due to the lockdown. Because of this, shipping lines have underloaded goods, making the correlation between earnings and business expenses imbalanced.
Workforce shortage – Some areas are on lockdown, and people are forced to stay at home, and employees are not allowed to work. Work is piling up, and parcels just sit there waiting to be dispatched while the receiver doesn’t have any choice but to wait until the lockdown is eased. Thus, an increase in delayed shipments and parcels.
Weakened consumer confidence – It is challenging to retain jobs during the pandemic. While others are lucky to still have their jobs, others have become unemployed as companies started to lay off employees due to a decrease in revenue. Consumers begin to save more and spend less money than usual, resulting in a lower demand for goods.
Decline in land transport ETA – Even if the goods reach the destination, they aren’t appearing in a snap at the consumer’s doorsteps as usual. Courier drivers have to follow processes such as social distancing and mandatory quarantine. Thus, longer ETA on the consumer’s side as parcel delivery is being delayed. Drivers also need to acquire specific requirements to continue their delivery, and because not everyone is granted the permit, drivers are being overworked to meet the said ETA.