The Three Biggest Impacts of the Corona Pandemic on Global Logistics!

Rail freight, Truck freight, Container transport, Pallet transport, Sea freight, Air freight

The Corona Pandemic has the world under control and the step back to normality or a new normal is still too big. Logistics was also hit hard. Now, the task of the logistics industry is to work through the omissions that have arisen over the years, in order to get back on its feet soon and perhaps to prosper even more in the future.
But what are the biggest consequences of the Corona pandemic and what solutions are available for logisticians?

We at Freightfinders have found a solution for this, which you can use free of charge

Content Overview:

Slower Trade in Goods

In order to curb Covid-19, borders were closed, and strict controls were introduced. This leads to considerable waiting times, which has a direct impact on the entire movement of goods. The infrastructure for e.g. drivers of trucks is also disturbed. Sleep and food facilities must be guaranteed for them.

Here is what you can do: Planning is the be-all and end-all. Make sure that goods are ordered early enough and plan some extra transport time. Warehouse operations should also be optimised so that there are enough goods on site which can be used during waiting time.

Impairment of the Supply Chain

The slowdown in trade in goods also has a direct impact on the supply chain. But it's not the only consequence. A very serious one is also the closure of shops and businesses. As a result, companies are less or no longer supplied, thus disrupting the supply chain immensely.

Here is what you can do: In order to guarantee delivery, close contact with suppliers must be maintained. If necessary, other options should also be kept in mind in order to secure the supply chain. In addition, you should always stay up-to-date and inform yourself daily about the internal regulations and thus keep an eye on the traffic of goods. Does the industry remain open or does short-time work influence the factory’s supply? All of this needs to be taken into account so that you can ensure that you receive the goods you need for your supply chain on time.

Higher Costs

Closed factories, supply chain outages, delays in the movement of goods result in higher costs. Sea freight is highly affected, as less freight is shipped or more goods are stuck in the terminals, resulting in higher storage costs. It is also a major blow for the air freight industry, as you can, for example, rely on less belly capacity due to the lack of passenger aircraft. These costs are usually passed on to companies.

Here is what you can do: Check your contracts. Who will bear the costs of damage caused by force majeure? Discuss with your partners, how damage containment can be achieved. The Federal Association of Freight Forwarding and Logistics (DSLV) recommends that freight forwarders who have agreed on the ADSp (General German Forwarding Regulations) in the contract should invoke force majeure. Costs which the freight forwarder cannot avoid and which are due to the pandemic must be borne by the contracted company.

Future After Covid-19: Back to Normality or Advancement

How Can You Benefit From the Corona Pandemic?

It is not possible to say, whether there will be a way back to the familiar normality after the corona pandemic. However, we can look at the consequences and learn something from them in order to be able to run an even more stable and modern company in the future. But what steps could be considered for this?

Possible Steps

  • Holistic Solutions
  • Logistics Partners
  • Simplify Logistics Processes
  • Optimise Supply Chain

Holistic Solutions:

When there is a stalling in one area of the company, more are usually affected. Therefore, find holistic solutions and try to include even the smallest area.

Logistics Partners:

Are all partners pulling together? In these times, it is not only in private life that it is important to stick together. Stay in close contact and see, if even working with companies from other industries could be an advantage for you. Stay open and creative!

Simplify Logistics Processes:

By simplifying processes in production and logistics, it will be possible to react more quickly and easily to external influences in the future. Tasks should be clearly distributed, and the overall process simplified. The transparency and digitization of such processes, e.g. by AI, will be the solution to such problems in the future.

Optimise the Supply Chain:

Digitization should also be used in the supply chain. Digital solutions accelerate processes, reduce workload, and create important transparency. An example of such digitization is the automated retrieval of freight rates via transport search tools.

Find an reliable partner for your transports during the Covid pandemic with our Major Customer Platform!