Is the Logistics Industry Under Significant Threat Due to COVID-19? Challenges and Solutions

Logistics Industry

Human beings are resilient creatures and always known to raise to challenges no matter what nature throws at them. According to a recent report published by Symbol, the trade volume growth of the global logistics industry in 2021 has seen a staggering increase. The reason for that obviously is COVID-19 pandemic that has made the global economy pretty much stagnant. As a result, the effects of this deteriorating global economy have impact the supply chains in a huge way. 

Due to huge financial and business losses, logistics and supply chain businesses have been losing customers rapidly. Not only that, upon significant revenue losses, top manufacturing organizations and consumer-based firms have taken some dramatic decisions to rethink their supply chain strategies. 

Let us discuss here some of the pressing challenges faced by logistics industry due to the global pandemic of COVID-19 and how you can solve them if you are running a logistics business in the United Kingdom. 

Sea Freight and Air Restrictions 

With lots of official’s lockdowns in all major cities and suburbs of the UK, the freight industry has taken a significant effect of this global pandemic. For example, as compared to previous years, in 2020, most passenger planes have been allowed to carry relatively small percentage of cargo in their carriers. In addition to small volume of cargo, thousands of flights got cancelled that resulted in the shortage of supply chain. 

Some people may argue that the plane cargo business has soared in the middle of this pandemic. But the obvious truth is, these companies have not been able to meet the demands of customers with limitations and restrictions. The strict health inspections of passengers on the airports and possible quarantine periods at hotels in the UK have led to more losses than profits. And sea freight industry has also been affected. Let us show how? 

For a period of centuries, sea and ocean routes have been used by businesses as a cheaper alternative to deliver their goods to another place in a timely manner. Since most suppliers have felt the impact of virus, most ocean routes have also been closed down. With barely any goods to transport from the UK to other countries, the busiest ports in the UK are presenting a picture of docking ports for several cargo liners. 

Land Transportation System Has Been Hampered 

Land transportation services are popular for providing same day courier UK services to customers.  Multi Drop Courier, Next Day Courier UK, European Delivery & Pickup. For instance, logistics companies across Europe have been using truck services and drivers who have seriously felt the negative impact of the pandemic. Many truck drivers have lost their lives and have been hospitalized that has reduced the logistics efficiency. In addition, truckers nowadays are needed to take a permit first to operate their businesses in the logistics sectors. That has hampered the efficiency of an economy parcel delivery service significantly. 

 In addition to a huge increase in the demand of groceries and online medicine/drug accessories, door to door courier UK services have gained manifold importance due to the pandemic. More and more people are demanding weekly parcel delivery UK services that require truck and other modes of transports for successful delivery. This has resulted in overworking of many truck and logistics companies drivers. 

In addition, state border health checkups of consumers have also put them through a lot of hassle and pain upon reaching the United Kingdom. Social distancing and quarantine have become a new normal in London, Leeds, Manchester, and Wales. This has also caused the shortage of available workforce for logistics companies. 

Possible Solutions 

Now the time has come when we should discuss the possible solutions and strategies to help logistics companies solve these distressing problems.

1. Airlines Must Embrace the Cargo 

Airline companies in the UK must design a strategy for passengers to avail the facility of cargo planes during the pandemic. This will allow customers to take their goods with them and travel with ease. It will also give more employment to workers. Cargo planes must also introduce services that cater to small and medium freight forwarders. 

2. Suppliers Must Collaborate With Each Other’s 

Since there is an acute shortage of suppliers, suppliers must join forces and share costs together. This system can work if manufacturers share the storage costs on containers. That step will keep the operations going on even when the work volume is low. 

3. More Robust Mitigation Strategies are needed 

The companies must follow “What if” strategy due to the limitations on the distribution of goods in the UK. That implies that many production firms can restore dual sourcing of raw materials. 

4. Technology must be embraced 

Technology can come as savior for many in these turbulent times; logistics industry is the first one to benefit from the Internet of Things (Iota). Moreover, logistics companies UK must also embrace the use of robotics and artificial intelligence to manage their customers and goods efficiently. This strategy can also help food and agricultural logistics industry of the country.