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Emerging Trends in the Logistics Industry Due to COVID-19 Pandemic

As a result of the pandemic, sheltered, easy, contactless deliveries and pickups are preferred by many regions globally through utilising lockers and other storages.

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COVID-19 pandemic has caused direct or indirect effects on every industry. Many grappled their way through the lockdown and unlocking phases. Perhaps, the case before and post-COVID-19 has declared a pandemic was different globally. Logistic enterprises impacting movement, storage and flow of goods have been directly impacted by the pandemic. As a critical part of supply chain, disruptions in operations will impact competitiveness, economic growth and job creation alongside facilitating trade and commerce.

Thirty per cent of the product cost is held by the last mile hence optimizing it is necessary. Deliveries have become safe for agents and customers by creating contactless last-mile delivery arrangements post lockdown phases.

Sheltered, easy, contactless deliveries and pickups are preferred by many regions globally through utilizing lockers and other storages. Drones have become popular as a source to deliver but are dependent on adaptability and domestic laws.

As B2B suffered and came to a halt, B2C emerged as winners during the pandemic, up surging the online sales of commodities of daily use or costlier ones. Leading brands and small businesses to open seven days a week for the convenience of the population at large. As the demand changed, supply became heavy online as compared to retail causing the logistics market to change their techniques.

An upsurge for essential living supplies as compared to consumable merchandise has been visible during COVID times. Economies have felt virtually backward as supply chains experience a shift. Luxury and leisure supply between countries will be decreased for time to come to make up for the losses incurred during the pandemic. There has been a global demand for health and FMCG supplies like hospital supplies, gloves, sanitizers, vaccinations, perishable food items, especially in financially weak economies.

For buyers investing inland to create large warehouses, this is the time to reconsider the old ways. Instead of smaller and numerous warehouses and storage facilities will be required to strategically distribute and survive amongst the population if an area comes under a lockdown situation. There will not be a high investment in the logistics sector, in fact, more in the technology segment. As the situation mellows down there will be investment opportunities to completely utilize the potential of emerging trends.

“The pandemic has exposed the vulnerability of extended and complex value chains to production disruptions, particularly in the East Asia Pacific region. As a reaction, many of these supply chains may shorten or diversify through reliance on alternative partners (for example, near shoring) or intensified efforts to bring home (such as reshoring) strategic value chains. The shortening of supply chains may benefit countries with capable manufacturing sectors and beneficial exports’ policy (for example, Colombia, India, and Mexico) to partially substitute China over the medium term. There may also be a trend towards placing additional warehousing capacity or dry ports near demand centres to shorten the time to get goods to market.’’ Says the International Finance Corporation in its report on The Impact of COVID-19 on Logistics.

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.

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Rhitiman Majumder Logistics Industry Covid 19

Rhitiman Majumder

The author is Co-Founder and CEO of

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