A3logics

The global economy got severely affected by the COVID-19 pandemic. Factories and businesses are temporarily closed due to a shortage of input materials from the suppliers, along with supporting the needs of their customers. Demand is also declining as most customers are staying and working from home and are facing a large-scale economic downturn. 

Even after this backdrop, the PMI i.e., the purchasing manager’s index for March 2020, slumped down severely in Europe and other parts of Southeast Asian countries. This confluence between the demand and supply eventually shocked the logistics sector so much. Many logistics companies are, however, threatened due to decreasing cargo volumes of the businesses. A host of operational challenges also increased during the pandemic and lockdown. 

Still, logistics are always needed, and the manufacturing and supply of essential products from food, medicine, test kits, to masks is facilitated with all possible measures. Experts even see logistics as one of the crucial recovery agents for the economy, and hence, the entire business sector is trying hard to keep the supply chains going on. 

Let us check in brief how logistics businesses worldwide are affecting the world during Coronavirus pandemic:

• The huge reduction is marked in the movements of raw materials and finished goods that are routed from the affected areas.
• Capacity limitations are experienced by regional hubs and global supply networks. Even if raw materials are available, they are being stuck. Finding alternative routes for supplies is difficult due to the global Coronavirus pandemic. 
• Illnesses and quarantine guidelines are leading to a shortage of white and blue-collar labor. 
• Customers are turning to online shopping due to being more cautious in purchasing non-essential items, as they fear they could expose to the potential virus. Hence, this is further burdening the logistics networks. 

The Coronavirus pandemic has brought a serious slowdown in the logistics sector. Though it cannot be said that it has gulped down the entire industry today, still, there should be some essential backup plans. Once the recovery would start, this sector will definitely experience the catching up demand when goods that will be delivered that has been stuck along the supply chain.