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The Impact of COVID-19 on Trucking and Logistics Sector

The COVID-19 outbreak has impacted almost every industry, and the logistics sector is no exception. The pandemic and the ensuing lockdown have severely limited the movement of trucks across the country critically affecting the transportation of goods and services. It will take much more than a positive outlook to bring back the logistics sector to its past glory. Even the best logistics companies seem to have faltered in this lockdown. So, let us check out the impact of COVID-19 pandemic on the logistics sector.

A bumpy road to go

The COVID-19 pandemic had a significant impact on the logistics sector. The most notable impact was observed after the announcement of the lockdown, which severely limited the movements of goods and trucks across the region. In some places, the trucking activity slumped by almost 95%, severely affecting the entire supply chain. 

With restrictions on the movement of trucks, the goods and commodities couldn’t reach their destination on time, resulting in significant losses for businesses. However, a slow yet steady recovery has been observed post the relaxation of this lockdown. But as containment zones and lockdowns continue to persist in some pockets, the seamless movement of trucks still seems like a distant dream.

The ride ahead is bumpy for the logistics sector as local governments continue to enforce lockdowns to check the spread of the disease. And there is an acute shortage of skilled labour due to the pandemic. Slowly and gradually, as the industries start to resume operations, the logistics and trucking sector is expected to resume normalcy. Till then, the sector has to wade through the hurdles caused by the pandemic.

The way forward for trucking

The pandemic has created several challenges for the logistics company in Egypt.

From the stakeholder’s point of view, lack of protection and security for the health of the driver is their major concern. Safety is the major reason why drivers are refusing trips. Furthermore, small fleet owners and small transporters are facing problems with cash flow as the economy is still on freeze mode despite the relaxation of the lockdown.

The other supply chain challenges are the acute shortage of labour due to the pandemic, a distributed supply chain, and uncertain and frequently changing regulations about the movement of goods and vehicles. These challenges have resulted in disproportionate freight rates and volumes, resulting in an imbalance among the supply and demand of goods. 

The government and the logistics industry should take an active step to solve these challenges and revive the logistics industry, which is key to the growth of the economy of the region. Things may seem uncertain, but there are signs of small yet resolute steps being taken to revive the logistics industry post the lockdown.

What is the immediate need?

As of now, the respective authorities have been proactive in attempting to contain the COVID-19 outbreak, and have found significant success. However, it needs to be seen how the outbreak shapes, as authorities are gradually lifting the restrictions on the movement of people. This relaxation of restrictions will greatly help the logistics sector recover.

However, certain initiatives have to be put in place by the authorities to ensure that the best logistics companies and the trucking industry hop back to normalcy:

  • Resume manufacturing activity: Resumption of manufacturing activity is required to solve the mismatch between demand and supply. This mismatch can be addressed or solved by providing full access to loads and trucks.
  • Financial relief: Truck owners, transport agencies, transporters, framers and distributors have incurred losses due to the pandemic and the lockdown. Despite the situation, they still need financial assistance to help restart their operations and revive the business post the lockdown.
  • Health security: Health security is the most important current requirement to ensure fast recovery of the logistics sector. Drivers and laborers would not be able to perform their duties properly amid health security fears. Necessary arrangements and resources should be provided to the logistics sector to keep the workforce protected from the pandemic.

Positive trends for the sector

As the trucking and logistics industry majorly works offline, three major structural shifts are observed in the transportation industry. They are:

● Most businesses are searching for a large resource of shippers and carriers because of the disarray induced by the pandemic in the fragmented logistics ecosystem. It is forcing businesses to opt for digital platforms to search for appropriate supply and demand channels.

● The fluctuations in the demand and supply figures have impacted the benchmark pricing. Now businesses prefer actionable insights backed by credible data to budget for their fleet accordingly.

● The payments and documentation were earlier handled manually, mostly requiring hard copies to release any kind of payment. After the COVID-19 outbreak, most shippers and logistics companies have moved successfully to digital payments and documentation. This trend continues to grow exponentially due to the latest social distancing practices to be followed while doing business.

The COVID-19 outbreak has affected many industries, including the logistics sector. However, as the government norms are easing gradually, the business is showing positive trends of a steady revival.

If you are searching for the best logistics company in Egypt, you must visit Trukker.com today.


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