IMPACT OF COVID ON LOGISTICS

Hi there everybody! 

As we all know, COVID 19 pandemic struck us in 2019 November, starting its spread from the Republic of China and eventually affecting the world's largest economies and leaving behind several parts of our society "lifeless" whether we call it a human, properties and all other assets. Without expanding this, we all know millions have lost homes, money, jobs, and many lost lives. It affected not only the living things around us like of course us, but it also affected several businesses making them again a scratch to think upon. Winding up in a line, it severely affected us and our assets.

Talking about the assets the world depends upon the service industry for all the international trade and commerce. Therefore it can be called the largest asset that the world possesses. So, it will be interesting to take a look at the impact of COVID on it. That is what we are discussing today. We will look only at 'logistics', a mere part of the service industry.

Logistics, a part of the service industry can be called the very backbone of international trade and commerce, in the absence of which whole efforts of anything will visit the corridor of darkness. The importance of the same can be understood as it is the very bridge that links the markets to the firms providing the services, transportation, warehousing, and inventory management. Just for the sake of example, Apple's famous iPhone receives its components from 200 different suppliers spread across 43 different countries. This, in absence of logistics, is nearly impossible. 

So what basically happened that many countries across the world, applied the method of LOCKDOWN to have a check on the COVID cases. And this lockdown situation ramified in the absence of several workers at the ports, at the roads severely affecting the logistic industry. The Lockdown situation pushed many workers out of the Factories, out of the ports, and logistic centres. Thus creating a manpower shortage in the industry. This situation somewhat created a halt in the industry. A halt that eventually leads to recession.

Having well acquainted with the topic, let us move on to analyze the individual effects on the three pillars of logistics, which are viz. ocean freight, Airfreight, Land freight. Alone in china where the pandemic first attacked the data shows a 10.1% decrease in the total freight from the ocean. The ships were stuck at the ports due to slow processes because of less manpower. Another reason for the same was the Container conundrum. For which we will later make an article. 

Moving on to the next, the Airfreight received a massive shock as well. Alone in china, the total volumes received a downfall by 19%. The situations were similarly critical in every part of the world. Similarly, Land Freight received a massive shock and possibly the worst as it was in mid of the people. Several restrictions on the cargo and truck movements posed a serious threat to the land logistics services. Given below are some photos from India where the city blockades during the lockdown left the trucks in several mile-long queues. 

India was not alone, similar queues were seen in the European Union as well. A 37-mile long truck line was formed on the A4 highway after the Poland border was closed. 

HOW WE TACKLED IT 

In most part of the world, the governments reacted to this pandemic and its effect on logistics by declaring the ports, shipping and trucking industry as key workers. Indian government excluded the transportation of essential goods from the Lockdown restrictions. although many airports were closed and were not thus operating any passenger flights but the cargo transportations using airlines were continued in most part of the World. There have been discussions over some of the measures that can be used to increase efficiency and at the same time tackle the logistics. Some of them are listed below:-

• The Companies involved in the Logistics have updated their safety protocols so that it help in overall performance at the logistic centres. Most of these includes the social distancing norms and other medical practices like thermal screening and regular COVID tests.
• These tough times have also encouraged the companies to look up into the alternatives means of transports like using vacant railway tracks and passenger planes for the cargo transfer admist the lockdown periods. This surely a good move which ensure the continuous transfer and employment to the workers as well who were not able to earn their livelihood in the lockdown periods.

GOING DOWN THE HILL

The World has seen a lot in such a small period in the time of COVID. Different nations were affected differently but when it comes to the core, every nation has lost many assets and lives. As the saying goes, Every tunnel has some light in the end, world will eventually find the peace and health again. When it comes to future aspects it can be said that some of the factors are common in each country. Some of them are :-

• Increase in cargo checks and security at each terminals and stages of transfer. There have been many updations in the past and even some are going at the present as well. 
• Use of more Technologies and digitalisation in the field. 

With the technologies and researchers standing up to present their views, we will surely find a way out from the epidemic. 

"Optimism is the faith that leads to achievement. Nothing can be done without hope and confidence" 

                                                                                                                                              - Helen Keller