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Impact of Covid-19 on the Logistics Industry

effect of covid 19

The Novel Corona Virus has hit the world like a storm. The issues that it has caused is not unknown to anyone. Authorities everywhere are scrambling to get the situation under control without any results.  One of the lesser spoken of, impacts is that on the economy. Everyone is aware of it, but with the dire condition of the situation, there is not much to be done. The sector that is really feeling the brunt of the situation is the Logistics Sector.

With restrictions on movement all over the country, transport has come to a complete halt. Whether it is private transport or industrial. The logistics sector has come to standstill because of this. Road, ports, and air transport has been severely restricted. Transporting goods has thus, completely stopped. Warehouses are laying either empty or fully stocked with goods not being able to get out.  

 

  • 50% + of India’s (organized long haul) trucking fleet is stranded without drivers
  • Local (short-haul) transport, though less impacted, is working with reduced capacities
  • Trucks (including those carrying essentials) are still stuck for reasons including want of labor to load/ unload, check-posts etc.
  • Railways is stepping up and can serve a few sectors, but the gap is large, with first mile and last mile being a challenge

Impact of Covid-19 on the Logistics Industry and Warehousing

effect of covid 19

Mass panic also breeds mass consumption. The increase in demand for certain goods has increased the net profit for transportation companies, as well. There is an unprecedented increase in demand for truck drivers transporting essential goods. There is almost a 60% increase in cargo being moved into grocery store warehouses. However, this surge is expected to plateau and then dip as the lockdown in the country continues. Many commercial airlines are adapting by turning themselves into flights carrying goods. The only industry staying afloat is the essential goods industry and its associates. Logistics firms are changing their transport plans according to the need of the situation.

The Coronavirus’s Impact on Logistics Sector

Being in the Logistics sector is unenviable given the circumstances. There is a severe shortage of labour where there is demand and where there are labourers, demand is lacking. The impact of Coronavirus on transport and thus logistics industries is going to be long-term. Even once the lockdown is lifted, people are going to be paranoid. It’s going to take time for people to get back in the flow of things and they’ll continue avoiding contact. Demand is then going to plateau before it picks up. The transportation and logistics sector that employs millions, will have to adapt to consumer needs post lockdown.

 

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