Naveen Associates

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Adverse Impact of Coronavirus on Logistic Industry : 2020-2022

In the current situation all around the world, it is very challenging to send or receive courier, parcels, online medicines, Amazon products and many daily use items and it is the only due to adverse impact of Coronavirus on logistic industry.

The impact of the virus is such that every facet of the on-demand industry has been affected including logistic, Courier, pharmacy, retail, e-commerce, parcel apps etc.

As per Harvard University, millions of people across the globe, currently have been affected by the virus, with no signs of stopping down until and unless there is an antidote or medicine gets discovered to rid of this pandemic.

The biggest hurdle with logistic industry is the fact that people got their demanded items very next day to their doorstep and now people are not ready to digest delay in orders.

It’s obvious since customers tend to have a strong connection with on-demand apps for their day to day lives routine needs and an app not able to suffice that on time can be a big blunder. The best services providers are also facing their services issue in this lockdown period all around the world.

On-demand services are manned by logistic partners and lockdown has hammered supply chain management. As we all know, impact of coronavirus worldwide, it has pose a big problem to all logistic services.

Impact of Coronavirus So Far

Corona Virus (COVID 19) has taken life of millions and had badly affected our planet. We have approx 8 billions of population worldwide and due to this pandemic, we have lost precious life of more than 2,65,000 persons so fare. In this awkward situation, we have closed our self behind the doors. History of such virus are repeating in 100 years

In 1918, Spanish Flu influenza pandemic or H1N1 virus, was the most severe pandemic in 1918-19. It spread worldwide including United States. It was first identified in military personnel in 1918. There is an estimated that about 500 million people infected with H1N1 virus.

With COVID 19, the situation is still worsening. This had lead to a lockdown period on the lives and has adversely impacted on businesses as well either directly or indirectly.

So, does it mean businesses should shut down in this critical time? Of course not! If we shall close a thing happens, entire economy of a nation would go for a toss.

There are some simple and precautionary steps to be taken by logistic and courier services in order to tackle the virus and prevent the business from suffering. Firstly, let’s have a glance at the industries in despair and their impact by the outbreak of COVID19.

Impact of Coronavirus on Global Economy

  1. Impact of coronavirus on global economy is a sharp decline in consumer spending around the world and have reduced imports of consumer goods from developing countries.
  2. Impact of coronavirus has total shutdown global industries and crude oil demand got at all time low. Due to this impact crude oil rates dive to minus rates.
  3. Transportation sector has gone to only 5% of the industry. Pharma products and essential goods were on sale. Transportation industry never see such closure around the world.
  4. Services sector has got hammered. Total lockdown around the world closed services sector. IT/ITES service industry is working @ one fourth of previous speed.
  5. Travel, Fashion brand, hotel, aviation, railway, automobiles etc were totally closed due to impact of coronavirus.

Present Challenges of Logistic Industry

The main industry that has seen a major impact is courier services and logistic industry. I am writing a few challenges which our industry is facing in now a days:-

  1. Lot of loads are laying idle at Courier Hubs due to lockdown worldwide.
  2. Much staff is out of the office locations/home, and a few employees are not able to handle such big consignments.
  3. Except essential services, Police / Forces, are not allowing roaming around.
  4. Many locations have changed to containment zone, and security personnel are not allowing anyone to enter into the zones.
  5. People are not ready to take parcels, unless important as they consider that the courier might have the impact of coronavirus coming up in transit.
  6. People are willing to sign the Delivery Run Sheet (DRS) or Proof of Delivery (POD) to enable us to update online records due to Corona threat.
  7. Many state borders are still close and interstate logistic vehicles are in queue at state borders.
  8. International courier services are still closed due to flight ban.
  9. Customs clearance offices are also closed and receiving/sending of consignment goods at originator and recipients customs location are also not available.
  10. International borders are closed due to Corona Pandemic.

The senders are avoiding sending parcels as they concern about the safety of their own and the receivers. Moreover, the delivery staffs refrain to deliver susceptive parcels to susceptive places.

Safety Instruction While on Work in Corona Time

  • We should wash our hands with soap and water for at least 20 seconds in case you have been in a public place, or after blowing your nose, coughing, or sneezing.
  • In case, soap and water are not available, use a hand sanitizer that contains 60% alcohol. We should cover all surfaces of our hands and rub them together until they feel dry.
  • Avoid touching our nose, eyes, and mouth with unwashed hands.
  • The welfare of employees is at most important for every services and hence they should be given proper equipment such as masks, gloves, and sanitizers to safeguard themselves from the virus while also keeping the customers safe that they come in contact with.
  • The goods delivered in any industry go through a lot of transit and hand handled so the chances of infection are more. So logistic firms / companies should disinfectants properly by spraying. Delivery people at the time of doorstep delivery should take all such steps before delivery’s attempt.
  • Regular health checkup of logistic staff should be conducted by the employers to ensure that they are absolutely fit and fine to work with.
  • The packaging, loading and unloading premises should be maintained clean with phenyl, or disinfectants sprayed at least thrice a day to avoid contamination spread specially door handles, main gate, loading and unloading equipment’s, water tapes etc.
  • Strict implementation of safety norms, use of mask and gloves throughout the working hours and also use sanitizer whenever required in between.
  • Educate the staff to use of tissue papers / personal cloth / hankie while sneezing or coughing and throw used tissue papers in trash.
  • Do not gather in groups of people, avoid crowds places and never attend mass gathering places.
  • It is also very important to stay quiet and cool during the entire delivery time right from taking consignment from the customers to delivering them.

The impact of coronavirus pandemic has slow down logistic and transportation industry. It’s too early to say about its impact on production and supply chain management, but devising backup plans is also compulsory. I am sure that good planning will allow businesses to be flexible and keep operations moving in times of crisis.

The world is fight with COVID 19 since from Jan 2020 and it may take months or this full year of 2020 or more, we should ensure our daily safety measures. Fighting with this virus, is not a day’s task that would get over soon. It is all about the patience and teamwork that would help courier and logistic services to have their business go running smoothly.