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Port logistics which are involved in the movement of products throughout the country have been directly affected by the Covid-19 pandemic. Around the world disrupted supply chains have been affecting competitiveness, economic growth, and job creation. The pandemic has also spurred weak demand causing small businesses to get hurt in the process. According to a report by the international finance corporation (ifc.org), the pandemic has affected three key global transportation segments in logistics, ocean freight, land freight, and air freight.


Ocean Freight
The lockdown in Wuhan has created Chinese ports to drop 10.1 percent in volume over the first few months of 2020 creating constraints to ocean freight around the world and impacting key exporters like China, India, the EU & the USA.

Land Freight
Trucking & rail demand is strained due to additional demand for food & medical supplies. The reduced employee availability due to Covid-19 restrictions has also caused major lockdowns in several areas throughout the US. As a result land freight has been severely reduced to support the country’s needs for PPE.

Air Freight
Volume has fallen over 19% in March 2020 due to reduced passenger flights (which is also used to transport freight as belly cargo). Although the pandemic had a slight uptick in Mid-April due to the increased need for shippers needing air cargo it doesn’t account for the overall loss that occurred in March.


Covid-19 has disrupted supply chains through delivery delays, congestion, and higher freight rates. Moving forward the recovery and long-term impact of the pandemic has affected the way logistics supply chains work. Increased cargo inspections and cross border control protocols have been placed in response to the pandemic causing delays in imports. Because of this BestPack has had to readjust the way we import products to our facilities by ordering larger quantities and thinking 3-6 months ahead in terms of demand.

BestPack has been able to maintain a full stock of tape and equipment to serve our customer base and prepare for the upcoming recovery. We stock all of our machines in our California location and our tape in facilities throughout the US. BestPack products are in stock and ready to ship! Looking for something in particular? Contact Us.


Sources:
https://www.ifc.org/wps/wcm/connect/2d6ec419-41df-46c9-8b7b-96384cd36ab3/IFC-Covid19-Logistics-final_web.pdf?MOD=AJPERES&CVID=naqOED5

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