What are the Impacts of COVID-19 on the Logistics Industry?

December 18, 2021by DATLA LOGISTICS0

Covid Pandemic has impacted almost all industries in the world; the logistics industry has no exception in this regard. It wouldn’t be wrong to say that the logistics and transportation industry is one of the most affected industries of the world by the pandemic. Logistics companies are involved in the movement, storage, and flow of cargo and goods, but due to the recent upsurge of the pandemic, the whole process of the supply chain is substantially disturbed. In this article, we’re going to analyze the impacts of the Covid pandemic on the Logistics Industry and how the logistics industry is responding to these impacts.

COVID-19 Impacts on the Logistics Industry

– Disruption in Supply Chain

Due to lockdown at a high level in many states, the supply chain is significantly disrupted. Shippers and manufacturers are facing severe difficulties in delivering their products to customers because of movement restrictions between different states of the country.

– Increase in Unemployment in the Logistics Industry

Logistics and trucking companies hire professional truck drivers and owner-operators to provide freight transportation services to a wide range of industries. However, due to the disruption in the supply chain, logistics companies are not getting enough loads to pay their employees and business expense resulting in a rise in unemployment in the industry.

– High Operating Costs of Transportation Services

To move freight according to SOPs issued by WHO (World Health Organization), to avoid the spread of the pandemic, logistics companies have to make expensive safety arrangements to carry out the transportation operation. For example, it is mandatory for trucking companies to sanitize their whole trucking equipment for making every shipment. This is increasing the operating costs of transportation services at a substantial level.

– Cargo Backlogging

Covid pandemic has imparted a factor of uncertainty in the process of shipment completion. Many times, the cargo gets backlogged at any point during shipment due to covid travel restrictions. Cargo backlogging is a very serious situation for the logistics industry because it can lead to a temporary shortage of truck drivers to pick up containers.

How is Logistics Industry Responding to these impacts?

– Adapting new safety protocols

The logistics industry is trying to get things back to normal by incorporating new safety protocols in its transportation operations. Some companies have introduced new protocols on social distancing at warehouses and disinfecting work areas to protect their staff’s health.

– Increased Air Cargo Capacity

Due to restrictions on traveling through roads, logistics companies are increasing their air cargo capacity to carry out their shipment process via air. However, it’s a highly expensive mode of transportation.

– Offering No-Contact Delivery Options

No-Contact delivery is a type of freight transportation service in which a truck driver delivers a load to its destination without touching it. The driver and logistics company staff don’t touch the freight literary. No-Contact Deliver is a great way to complete shipping of the cargo with minimum risk of pandemic spread. Many logistics companies are offering no-contact delivery options throughout the country.

– Delivering in-demand shipments

The logistics industry is trying to survive by delivering in-demand shipments on a priority basis. In-Demand shipments provide guaranteed loads and freight so the logistics companies can carry out their operations. For example, some logistics companies are delivering face masks and sanitizers or priority bases. It helps to deal with the lack of protective gear and keeps the logistics company on the road.

Conclusion

There’s no doubt in the fact that the COVID-19 pandemic has affected the logistics industry on a larger scale. However, the logistics industry is continuously learning how to evolve in this situation. It is pretty successful as well because most logistics companies are coming back on the road to carry out their normal operations while strictly adapting the new safety protocols.

Datla Logistics is a truck dispatching and freight shipping company. If you’re looking for truck dispatching services or freight shipping, contact us today!

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Founded in 2018, DATLA LOGISTICS is a veteran-owned dynamic logistics company specializing in providing reliable, dependable, state-of-the-art advanced technology-based Freight Shipping and Dispatching Services nationwide.
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