The world has been going through a tough time due to the COVID-19 pandemic, and although we all expected that this thing would go away in a month or so, it’s still here.
We are still trying to adapt to a life with the new coronavirus around us. It is affecting our approach to value certain things in life more and adjust ourselves into a new world. We have been seeing that certain industries stayed strong and some of them collapsed during the COVID-19 pandemic. But some industries, such as e-commerce marketplaces, logistics/delivery, pharmaceuticals, and other essential service providers actually doubled their business.
The logistics industry stayed strong and I can say that it has been one of the winner industries during COVID-19.
I can’t say the same for all of transportation’s key elements, since passenger transportation such as airlines, trains and cruise ships completely stopped in certain countries. Thus, many companies went out of business or laid off a significant amount of employees during the pandemic. Besides passenger transportation, some other related industries such as tourism, oil and gas, and manufacturing saw a domino effect as these industries are connected to each other in some way.
The logistics industry is considered an essential business industry. However, the effect of the cargo flow for manufacturing was down as those factories were locked down. At the same time, essential products for human life gained more value than ever, so business owners in those industries increased their revenue strongly. E-commerce could not keep up with the increased amount of demand during this pandemic, so the companies who have been investing in e-Commerce and technology understood that they are on the right track to adapt themselves for the new business models in the future.
COVID-19 is having a major impact on the logistics industry and will continue to cause disruptions for some time.
Various industries are facing challenges along their supply chain, such as vendors’ low capacity and production, raw material shortages, lead time issues, and transport capacity constraints. Most of us managing our daily duties are working from home without reflecting any lack of service or unresponsiveness to their customers with the help of utilizing cloud-based software. After COVID-19, we will see that most companies will have a back-up solution for demanding less from employees and letting their customers to manage certain things online. But the one thing will never change is the need to “transport goods” until teleportation is developed in the transportation industry.