Impact of COVID 19 on international transport and logistics

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The Covid 19 pandemic has seriously shaken and threatened the economy around the world so it is quite understandable that its impact on the transport and logistics sector is likewise tremendous. There is a huge disturbance in the supply chain especially at the international level. Of special importance are the supply chains of food products, hygiene products, medicine products and medical equipment, which should deliver products in a fast and flexible way. This is where road traffic plays the biggest role.

We are witnessing the worsening of the situation and the growing number of infected people in the world. Unfortunately, even in our country, at the striking of the hour, statistics shows increasing figures. More and more countries are introducing more and more restrictions. In addition to human casualties this pandemic causes serious difficulties for all branches of the economy including freight transport but it does not make it completely impossible.

Transport is vital for the functioning of a society and since it is one of the most threatened industries due to coronavirus the supply-demand relation has changed all year long. On one side, the need for the transport of goods, which is of key importance in emergency situations, has grown, but overall there has been a decline in the demand for transport.

About the international road transport in Europe temporary border controls have been reimposed at most of the EU’s internal borders. This is designed to partially or completely stop passenger traffic. These measures do not affect the transport of goods so much although the constituted regulations do not always make a difference between transit workers and other passengers, so it seems that the quarantine rules also apply to drivers.

It is true that when it comes to the economy the virus creates opportunities for some a challenge for others and a complete collapse for the rest. On the one hand, as a result of the Covid 19 pandemic crisis, e-retail logistics, on-demand and last-mile delivery sectors are the fastest growing. On the other hand, for example the automotive, the construction, tourism and hospitality sectors have fallen aggressively. The recovery of these branches of the economy will be slow and painful.

Experts predict that in this difficult situation additional costs may emerge in connection with the accomplishing of transport tasks and that part of these costs will have to be settled by customers. That is why it is very important that companies that perform transport and logistics talk as much as possible with their customers about various options that would optimize those costs and lead to the best joint solution.

The transport and logistics sector is extremely vulnerable to economic shock. With about 80% of the world’s trade volume transported by commercial carriers, companies are making efforts to meet demand and rebalance their set of investments. More diverse logistics companies have the opportunity to redistribute resources from one business sector to another. However, despite such a rebalance and the expected increase in demand for logistics services after the coronavirus crisis begins to fade, transport activity is expected to decline by 20-25%.

Considering the flow of basic necessities, especially medicines and food, must not be interrupted, the International Transport Community, which consists of the EU and the countries of the region, proposes that “green corridors” be established in the Western Balkans for their unhindered transport.

There is a plausible fear that the disruption of freight traffic due to the Covid 19 pandemic could lead to deficits that would affect the lives of millions of citizens in the region and the goal of the proposed measures in this fight is for no one to find themselves in such a situation.

Categories: International transport