Question

Global Logistics

Question: The current global pandemic called Covid-19 outbreak is affecting global supply

chains and disrupting everyday manufacturing operations around the world. Required: Fully discuss

the impact of Covid-19 Impact on Global Logistics operations.

if you find a good source it will be great

Answer 1

Impact of COVID-19 ON Global Logistics Operations

International transport is the main linkage of trading and other activities. Shipping industry has been materially impacted direct and indirect business of global trade during this outbreak (COVID-19). COVID-19 have been affected all the aspects of logistics activities. Due to this outbreak the demand of all the products and raw materials are declined and pushed freight rates lower. Several shipping companies started warnings about reduced earning visibility and weak future earnings result. Travel industries are also suffered during this COVID-19. As a result, North America’s largest container, Trans-Pacific Maritime TPM2020, was cancelled at the beginning.

All the leaders in the countries were proclaimed that there were no ships allowed to port, and all these ships were remain under quarantine for weeks. Dry bulk and tanker vessels have been lower demand and lower the freight charges. There also heard that Very Large Containership Vessels were started to leave the Chinese ports with the 10% of their actual capacity. Because of lower demand the crude oil prices were reduced, it will result in the bad stating of offshore drilling industry. Ship building and ship repair activities are stopped because of much labor. Ship finance and ship brokerage were also affected during this time and led to low supply. Supply chains and logistics as affected as a whole, for instance the Chinese trucking industry was collapsed as the Prime Minister has imposed travel limitations. It also resulted in the exports. This will affect entire economy as a whole.

Container exports out of the Chinese ports were disrupted due to low staffs in the ports. Labor cost arbitrage and economies of scale should not be pursued blindly and at the expense of eliminating diversification and alternate plans. Due to COVID-19 outbreak the global logistics operations are negatively affected. It resulted in lowering the demand and freight rates. Supply chains are disrupted globally. There is only limited staffs and employees in all offices or ports, sometime there is little employees also. Thus we can say that COVID-19 were negatively affected he global logistics operations.