The recent trade reports show that there is a tremendous fall in the growth percentage of trade volume due to the COVID pandemic. The economy has become stagnant which has taken down the worldwide supply chain. Many logistics companies that are involved in the storage, movement, and transportation of goods and services have shut down because of unrealized losses and the remaining ones are facing several challenges. This article explains the latest challenges faced by the logistics industry and how this industry adapted to the listed challenges.

What challenges logistics industry is facing?

Land transportation takes a hit: Truck transportation is hitting hard due to the pandemic. Now truck rental companies have to obtain a special permit for providing essential services. Due to the increased demand for local goods, many logistics companies have ended up overworking the truck drivers. There is a delay in the delivery of goods due to increased state border health checkups.

Borders closed to the trade: Now shipment of raw materials from the other countries is not so easy because of closed borders. The shipment cost has been increased. Due to several restrictions, many logistics companies have cut down their communication with their partner countries. Thus, now industries, especially hotel and accommodation industries can’t avail the benefit from the partnerships.

Limited freight via air and sea: the best state to state movers associated with Pricing Evan Lines explain that the pandemic changed everything. Our country went on lockdown and due to it, the freight percentage via air and sea dropped significantly. Most of the flights got canceled and the market dealt with supply shortages. Ocean freight used to be 90% of the global trade volume but pandemics curtailed the supply of manufactured goods across the entire world.

Shortage of workforce and labor: Many employees lost their lives in the pandemic and the remaining ones have decided to stay at home due to the COVID situation which has led to the shortage of workforce in the logistics industry. The employees who were lucky to retain their jobs are pressurized to work at odd hours to meet the work standards.

Fluctuations in demand for the goods and services: Pandemic has resulted in the closing of the shopping complex. Due to this very reason, buyers shifted to online shopping. From the previous year, e-commerce sales have seen a major rise. The demand for goods is increasing but because of several regulations set by the government logistics companies are facing difficulty in delivering the goods to the customers on time. The drivers of the truck have to go for COVID checkups if goods and services are to be delivered across the states.

How logistics industry is solving the above-mentioned challenges?

Redesigning passenger planes into cargo planes: To cope up with low freight percentages and low profits, many airline companies are now embracing the cargo way. These companies are redesigning their passenger aircraft to act as cargo aircraft. Also, ocean cargo can be shifted to air cargo. This way profits can be increased and employment can be provided to their workers.

Collaboration of suppliers: Due to the shortage of logistics suppliers, now the remaining ones are joining hands so that logistics costs can be shared. The logistics companies are sharing the rent of warehouses and shipment costs. The collaborative effort of the suppliers has retained them still in the market even with low volumes of work.

Inventory management: Online increase in the demand for goods and services has led to the emergence of affordable product delivery services that can deliver the goods timely to the customers. Among the various solutions, one is alternative inventory storage. More warehouses or storage-house should be established close to the market so that customers can be provided with fast delivery services. Logistics companies can use improved visibility tools and advanced data analytics tools to monitor the inventory.

Enforcement of emergency and contingency strategies: The hurdles faced by the logistics companies in the distribution of goods and services have now led to the pre-planning of contingency strategies. Companies want to be prepared for any unimaginable situation so that their business remains unaffected. Moving companies have started to dual-source the packing materials, containers, and storage places.

Adapting the latest innovations and technologies: Pandemic has shifted physical business to online business. To cope with these sudden changes, many logistics companies have now adapted to the latest innovations and technologies. For example, Artificial Intelligence-powered techniques are used by moving and packing companies. These companies now provide online estimates to their clients to reduce physical contact with them.


The logistics industry is severely impacted by the pandemic but with every problem there comes the solution. The companies just need to focus on their contingency planning and adapt themselves to the change. Usage of the latest innovations and techniques can help the logistics industry to cut down the business costs and provide cost-effective services to the customers. To survive the modern-day challenges, logistics organizations can also collaborate with other companies.

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