The impact of COVID-19 on the transportation and logistics industry

Abstract

In this present age of globalization, the logistics and transportation industry has become an integral part of most businesses/firms as it is aimed at ensuring the effective movement of people, distribution of goods and services from one location to another on time. Therefore, this paper aims to analyze the impact of COVID-19 on the logistics and transportation sectors. The qualitative research approach was adopted using analysis and synthesis of scientific literature, data from news reports, organizational sites, and a case study of data contents. The paper presented the analysis of negative and positive effects of COVID-19 on the logistics and transportation industry. The study also discusses possible strategies and further steps for improvement of the logistics and transportation sector, including the automation and introduction of other technologies, a sustainable and flexible transportation system, cooperation of logistics and transportation business. Findings regarding the positive implications of COVID-19 show noticeable advancements in the logistics and transportation sector, such as the rise of e-commerce businesses with efficient delivery options, and the development of 3rd party logistics services as more companies outsource supply chain operations. The study revealed the importance of strategic planning with a joint effort from the research centers, public sector, private sector, and educational institutions as one of the proposed solutions for the logistics and transportation industry.

How did COVID-19 affect logistics and supply chain processes? Immediate, short and medium-term evidence from some industrial fields of Italy

“…Finally, outcomes of this study show that the L&T field is somehow unique compared to the remaining sectors. Results from the current literature show that Covid-19 impacted on L&T, with some companies experiencing a negative impact and others being relatively less affected by the pandemic ( Ketudat and Jeenanunta, 2021 ; Perkumiene et al, 2021 ). However, the analysis of different time horizons and the multi-sectorial perspective allows this study to provide additional findings.…”

“…Overall, these considerations suggest that the consumer's behavior and purchasing pattern, relating variations, and demand shocks ( Chowdhury et al, 2021 ; Nandi et al, 2021 ) have played an important role in determining changes (either positive or negative) in the volumes handled by the SCs. Evidence in literature suggests that this could also be the case for the logistics sector, for which, indeed, the available empirical studies report controversial effects of Covid-19 on volumes ( Ketudat and Jeenanunta, 2021 ; Perkumiene et al, 2021 ).…”

“…Sharma et al (2020) have argued that digital tools could be somehow useful to companies for maintaining a satisfactory service level, in terms of on-time order fulfilment, as they allow enhancing collaboration mechanisms between SC players. The rise of the e-commerce and electronic payment are good examples of digitalization involved by the Covid-19 pandemic ( Perkumiene et al, 2021 ); at the same time, e-commerce causes high demand for logistics service, being in direct contact with the customer.…”

Logistics performance system and their impact on economic corridors: a developing economy perspective

“…Despite having these large wetlands and a canal irrigation system that is 57,000 km long (Qureshi et al, 2008), the use of IWT for freight transport is almost negligible as current infrastructure does not support IWT as a mode of cargo transportation. Despite, IWT is a building block of the whole logistics industry (Perkumiene et al, 2021), the vast investments required to establish an inland transportation system make it infeasible for the private sector alone and a potential solution could be a robust public-private partnership (Kuteyi and Winkler, 2022). The findings about issues in the use of inland waterways as a mode of transportation are shown in Figure 3.…”

“…The crucial elements to achieve logistic performance are efficiency, effectiveness and differentiation (Kuteyi and Winkler, 2022) and productivity enhancement of raw materials and finished goods supply chain (Tang and Abosedra, 2019). In the era of the “new normal” (Demir et al ., 2022; Perkumiene et al ., 2021), logistic systems using blockchain and big data (Silva et al ., 2021. ), digitalization and industry 4.0 (Bayarçelik and Bumin Doyduk, 2020; Egorov et al ., 2021) serve as the key factors.…”