Logistics in the time of Covid
Logistics is an integral part of any supply chain. Covid-19 has shown that most organizations have underestimated their exposure and ability to cope with logistical changes, and are still grappling with what that means in the short, medium and long term.
In this article, we will illustrate some of the logistical impacts generated by the health crisis by zooming in on the Shanghai (China) / Rotterdam (Netherlands) route, and list some questions to keep in mind to face them and find the direction.
Before Covid, logistics was a relatively balanced market from a supply and demand perspective, with peak periods for shipping and contracting around holiday periods.
Stable and reasonable fares were available on almost all routes and for all modes of transport.
Sea freight, in particular, had greatly increased its capacity due to continued demand for containers from China to the rest of the world.
Most multinational organizations had centralized (or were in the process of centralizing) the supply and management of their logistics needs by outsourcing them to freight forwarders or carriers.
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