Covid-19 has affected the entire world in a wide range of ways. Specifically, the logistics sector has been impacted as well. However, no two organizations have been affected the same way, and all experiences vary. Logistics companies have needed to adapt to successfully transport all their cargo. Below are just a few challenges created by lockdowns.
Fluctuating Demand from Different Industries
The biggest impact on the logistics industry has been the constant changing of logistical needs of businesses. While many businesses needed to close their doors entirely, others had a greater need for supplies than ever before. For example, grocery retail had a much greater need because of the giant spike in demand at the start of the pandemic. E-commerce, online subscription services, and home delivery have seen a continual increase. The noticeable declines have been in event planning, non-food retail, and construction. While some of these are starting to see a recovery, others are not.
Key Covid-19 prevention measures across logistics businesses are split into hygiene procedures and personal contact avoidance. Hygiene procedures were quickly implemented by more than 95% of companies in early April. That right there is proof that the industry is not only quick to respond, but quick to adapt. The ability for the industry to continually operate throughout the lockdown and into present-day would not have been possible without its ability to successfully adapt.
Pandemic-related supply issues include trouble with sourcing new vehicles, parts, and machinery. This is likely because of the stop in manufacturing and the reduced levels of international freight. Nevertheless, the industry was able to navigate these issues as well and create strategies to overcome similar challenges in the future.
We will continue to keep track of the adaptation of the logistics industry as the pandemic continues.