Logistics and COVID-19

Logistics and COVID-19

COVID-19 has made governments, national and international authorities across the world to take unprecedented measures like the lockdown of cities and the restriction of movements of the people in a bid to control the spread of the coronavirus. This has however affected many businesses across the globe, including the supply chain business which has more or less become a standstill ever since the emergence of the pandemic.

Many countries of the world has restricted international flights and even sir travel which has consequently affected and slowed down the movement of goods. For this reason, the air freight capacity has been limited only to the available cargo aircraft and ferry passengers flights transporting mainly cargo.

In addition, in the shipping sector, lockdown is also been observed as all vessels are been quarantined for over a week before they are been slows into the ports thus, slowing down processes and operations. This is all in a bid to control and cushion the effect of the coronavirus. Majority of these shipping containers are held down at the ports while those in transit are stuck at state borders.

It’s impossible for raw materials and manufactured goods to get to the ports because of the global lockdown. Also, the demand for raw materials and manufactured goods has drastically reduced as most countries are concerned about medical supplies, medical equipment, pharmaceuticals, medicines etc. Which means that most shipping lines are running under loaded and thereby causing a disruption the balance of the ratio between revenue and operational or running costs.

The serious shortage of manpower at terminals, air cargo facilities, shipping ports etc due to the pandemic has disrupted the operation and movement of supply chain. Basically, only essential commodities are allowed to move while others such as apparel, electronics, fashion (non-essential commodities) are in less or no demand now during the lockdown.

Finally, the market conditions for the coming months cannot be easily predicted and the extent at which the growth rate of the logistics sector has been affected is not feasible mainly because of the uncertainty surrounding the spread of the pandemic. The growth rate was formerly at about CARG 10.5 percent and was targeted to reach about $24 billion by the year 2024. It’s now a believe and a certainty that this growth rate will reduce drastically in the coming months and reaching the target figures will be a very difficult thing and will as well take years to achieve. There’s a huge decline in the rate at which foods are been moved across countries which has led to a huge gap in demand and supply .

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