Staying up-to-date is crucial at times like what we live now, as the pandemic unfolds on the planet. Therefore, knowing what the Coronavirus impacts on logistics is essential to have an effective and not much expensive merchandise distribution chain.
That’s why analyzing different ways to transport your products is important to choose the best option for your business. Having up-to-date and exclusive data is one of the ways to contour the economic impact of Coronavirus you may suffer.
In order for you to learn more about the matter, Polyexcel prepared this article on Coronavirus impacts on logistics and how it affects other sectors of industry and what is Coronavirus impact on supply chain.
Coronavirus and air logistics
The data gathered by the study “Think Plastic Together” of Group V. Santos, an international reference in the logistics sector, points to losses and remains on the delivery of products and goods as some of the effects of coronavirus.
That’s due to the paralysis of about 66% of the global aircraft fleet, which because of the pandemic stayed on the ground. The decrease made the space used for transport in the commercial fleet prioritize the delivery of inputs for the fight of Coronavirus.
With fewer aircraft available and with the new priority, one of the effects of Coronavirus on logistics was the increase in the price of shipping goods, which remained about three times higher. But, with the price increase, the sector had a loss of about $300 billion.
Production control and sea deliveries
Within logistics in general, the maritime sector also suffered the economic effects of Coronavirus. When the disease began in Asia, many cargo ships had to contribute on that continent, unable to deliver.
Others Coronavirus impacts on logistics include closure of some ports, which created the lack of container reefer and longer booking confirmation time. But with the impacts of the Covid-19, navigation presented lower shipping values compared to that for aircraft shipping.
The customs sector and the impacts of Coronavirus
Coronavirus impacts of logistics also impacted exports and imports. As in air deliveries, the V. Santos study indicated that the Brazilian customs sector also prioritized the entry of products to combat Coronavirus.
However, even with the need to bring these inputs, one of the points that makes imports difficult for the country is the price of the dollar, which is high.
The impacts of Covid-19 on the supply chain
The dollar high is one of the main ones, if not the main Coronavirus impact on the economy as it makes imported goods expensive. But the same high of the import-damaging dollar facilitates exports, as products become more competitive in the market.
However, there is a cycle of uncertainty happening, as the current global moment is fragile, both for politics and for health. That creates an unfavorable atmosphere for purchases, which see profitability falling, creating instability in the negotiations.
Read more about Coronavirus impacts on logistics!
Take a look at other information about the effects of Coronavirus logistics and supply chain in our blog. Take advantage of the exclusive information that only Polyexcel can bring you and stay informed.