The COVID-19 pandemic has significantly impacted logistics firms involved in the movement, storage, and flow of goods. The widespread lockdowns and border closures restricted the movement of goods, while additional protocols such as social distancing created further bottlenecks in logistics and project forwarding services.

Challenges Faced by Logistics Companies:

Air Freight Forwarding Services:

  • Volume Declines: Air freight volumes fell by 30-50% in March 2020 due to a sharp reduction in passenger flights, which typically carry freight as belly cargo. With aircraft grounded and most flights canceled, the market faced severe supply shortages.
  • Health Inspections: Tightened health inspections led to more delays, complicating the situation further.

Ocean Freight Forwarding Services:

  • Delays and Rollovers: The ocean route, often the cheapest transport alternative, also felt the virus’s impact. Issues such as delayed bookings, high unexpected charges, and rollovers plagued shipping lines.
  • Reduced Imports from China: This situation put pressure on export inventory from India, and transit ports like Colombo and Singapore experienced significant embargos, leading to further shipment delays.
  • Suez Canal Incident: The blockage of the Suez Canal added to these difficulties, exacerbating delays.

Land Freight:

  • Partial Availability: Ground transportation services remained partially available, unlike air and ocean transport. However, reduced employee availability and increased demand for essential services like food and medical supply transportation created additional strain.
  • Workforce Shortages: Increased border health checkups and restrictions led to a shortage of drivers and transportation staff, further complicating logistics operations.

Business Impact:

  • Small Businesses: Small businesses were severely hit due to their lack of recovery plans, technology, and tools to follow health guidelines.
  • Large Companies: Companies with diversified operations and multiple clients in various regions managed better, but still faced significant challenges.

Role of Warehouses During the Pandemic:

  • Warehouses became increasingly crucial for storing critical goods like ventilators, sanitizers, and face masks. Logistics systems had to adapt to global shifts in consumption habits and delivery capabilities.

Strategies to Mitigate These Challenges:

  1. Airlines to Embrace Cargo:

    • Airlines began redesigning passenger planes as cargo planes to maintain profitability and provide employment to workers.

  2. Collaborative Efforts:

    • Suppliers and manufacturers started sharing storage costs during shipments, ensuring businesses and project forwarding services remained operational despite low work volumes.

  3. Emergency Strategies:

    • Logistics companies adopted “What if” strategies, focusing on emergency risk management to prepare for future disruptions.

  4. Efficient Use of Technology:

    • The pandemic accelerated the adoption of tech-driven solutions, including IoT, cloud computing, automation, and data analytics. Robotics, drones, and autonomous vehicles may play a significant role in logistics, particularly in scenarios involving workforce shortages.

  5. Safety Protocols:

    • Companies introduced safety measures like social distancing in warehouses and disinfecting work areas. Investing in PPE kits and protective gear helped maintain operations while ensuring staff safety.

New Globe Group’s Approach:

New Globe Group, a logistics company, offers a comprehensive range of services including project forwarding, air and ocean freight forwarding, customs brokerage, tracking, consolidation, and dangerous goods packaging. Despite the pandemic’s challenges, New Globe Group continues to provide effective and budget-friendly logistics solutions in Mumbai, ensuring compliance with industry guidelines and adapting to the evolving landscape.