Impact of COVID 19 on Logistics Industry: Logistics firms, which are involved in the movement, storage, and flow of goods, have been directly affected by the COVID-19 pandemic. The devastating COVID-19 crisis in US has turned many sectors of the local economy upside down, including the country’s storied logistics industry. As an integral part of value chains, both within and across international borders, logistics firms facilitate trade and commerce and help businesses get their products to customers. Supply chain disruptions to the sector caused by the pandemic could, therefore, impact competitiveness, economic growth, and job creation.
United States is the leading nations known for its uniqueness in hospitality sector, transportation sector and tourism. It is a major destination for many international goods transportation, creating several employment opportunities and generating enormous taxes. The impact of covid-19 on logistics industry can be divided into three major segments, such as (i) impact of covid-19 on logistics systems and disruptions in food supply chain (ii) negative impact of covid-19 on transportation and (iii) impact of covid-19 on warehouse operations
Covid19 Pandemic:
By the second quarter of 2020, our lives as we knew them had changed significantly. As of October 10, 2020, more than 7.7 million people across every state in the United States and its four territories had tested positive for COVID-19. The lockdowns that were so rampant last year have lifted, and restaurants, movie theaters and gyms have largely reopened. But many of those in-person businesses are facing staffing shortages while children are still out of school (whether by parent preference or school mandate).
On this page we have come up with the the impact of covid-19 on logistics pdf and how its affected its related sectors like impact of covid-19 on logistics systems and disruptions in food supply chain, negative impact of covid-19 on transportation, impact of covid-19 on warehouse operations and impact of covid-19 on freight forwarding.
The Impact of COVID 19 on Logistics Industry
The recent coronavirus (COVID-19) has triggered a concern worldwide in early January 2020, and by the end of March 2020, the outbreak has infected several people globally. Logistics and supply chain management businesses are profoundly affected by COVID-19 that has been declared as pandemic on 12th March 2020. Due to the COVID-19 pandemic, the International parcel service industry’s employment loss is predicted to be 100.08 Million worldwide.
The pressure on Logistics industry during this covid19 pandemic has shifted from moving citizens to keeping a core transportation system operational with a skeleton workforce to ensure freight and key essential workers can continue to move. A secondary effect of this shift is the sudden change in sources of revenue for transportation operators, with many experiencing an unexpected shortfall in their finances.
Impact on movement of goods
Logistics is a major source of revenue and employment in many countries. It is a generator for employment, income, tax collections and foreign exchange earnings. The Logistics industry became highly competitive; hence, accurate tourism demand forecasting is important to make an appropriate strategic and operational decision. Strategic decisions are planning for opening attractions, modes of transport, accommodation, and supply change management for which colossal investment is required. But profoundly movement of goods affected by COVID-19 that has been declared as pandemic on 12th March 2020.
Negative impact of covid-19 on transportation
Transportation organizations will need to ensure that transportation networks can continue to operate throughout the lockdown measures, striking a balance between reduced operations and providing enough capacity for key workers to be able to practice social distancing.
Great Resignation
Great Resignation or Big Quit, these terms have been popularized with the impact of COVID-19. Employees who are working mainly in Logistics and Retail services are seeking out new career opportunities by voluntarily resign from their jobs. Employee Resignation rates dropped in the initial stages of the COVID-19 pandemic, but now began reaching record numbers from April 2021. Not only Logistics, all other industrial sectors getting affected by the Great Resignation.
How To Address the COVID19 impact on the Logistics and Transportation industry?
Logistics firms will need to plan ahead to ensure that the transportation network will be ready for a return to normal operations when the coronavirus pandemic lockdown measures are lifted. Financial investments may need to be replanned and reprioritized in light of decreased revenue. Also, Employers should come up with revised Employee benefits for the upcoming year.