Logistics Industry Doing Well Amidst Pandemic
As individuals around the world do their best to avoid crowds to lessen their risk of contracting Covid-19, the logistics industry is also doing its best to protect itself from the virus' economic impact. A total of 100 million cases have been recorded in the past year, leading to lockdowns and travel bans - policies that resulted in a disruption of the international supply chain. Its effects, according to the International Finance Corporation (IFC), was first felt in the People's Republic of China, the home of manufacturing giants. The organization adds that disruptions in this part of Asia rippled throughout the world in the second quarter of 2020. But there is light at the end of the tunnel, as highlighted by an IFC report, and it will help the sector keep itself afloat.
More Opportunities For Shipping Companies
Shipping during Coronavirus experienced a surge in March when lockdowns began, as those who were mandated to stay home opted to get everything delivered to their doorsteps. This included essentials such as grocery items, as well as appliances and everything in between. The trend has continued into 2021, and the world will likely be in the same situation in the coming months. Delivery services have their hands full, and these companies say that they will be happy to help businesses that need additional delivery capacity. This includes companies that distribute medical supplies, pharmaceutical items, personal care products, consumer electronics, and food.
The International Finance Corporation says that land transport is not as affected as other segments of the industry, as roads have remained open except in places where total lockdowns are still in place. The organization writes in its Covid-19 report that trucking capacity is actually strained due to the demand for shipping services. With a large demand that needs to be met, shipping companies are finding ways to fulfill supply chain requirements, and while it is challenging, it is seen as a means for the industry to bounce back. In fact, it has kept shipping companies busy, and the only way forward is for them to keep adapting to the new normal.
Moving Forward No Matter What
It will take time for the logistics sector to recover from the blows of the pandemic, but the World Bank says that it needs to be resilient, as it is key to achieving economic recovery. In a post in April 2020, the World Bank wrote that the logistics industry makes up an estimated 11% of the world's GDP. While this is small compared to other industries, the sector is the backbone of other industries, and they will not be able to survive if they cannot deliver their products. The logistics sector is doing what it can though, and new safety protocols are now being practiced to ensure that their workers are protected against outbreaks. They are also adjusting operations to adapt to the sudden surge in demand.
Although the pandemic has presented challenging times, the logistics industry has a positive outlook for 2021 and the years to come. The sector is adapting fast, not only because it needs to, but because the world needs it - and that in itself is already a good forecast for sustainable growth.