Effect of Covid-19 on Logistics Industry

In past 20 years, Dubai saw major economic boost with the help of its economic diversification initiatives. There was a notable improvement in Dubai’s transportation and logistics industry with relatively lower logistical and operational costs. The government policies were extremely favourable, which attracted investors globally, the region became the gateway between Asia and Europe. It has been serving both the worlds, and has been providing apt trading conditions for the Emirate. A lot has been invested by Dubai constantly in the development of technology and infrastructure. This has led to an efficient and well integrated transport system and great logistics infrastructure.

Covid-19 outbreak brought several logistics companies on their knees.

There have been several issues since then till now. Constraints in supply chain and restrictions by government have led to suspension of several services in selective routes, mounting cost pressure etc. 

Carrier Schedule Reliability Issue

One of the major issues challenging our logistics world is carrier schedule reliability.

There are delays of weeks or more in ocean carrier vessels from Asia and there is no improvement in sight in near future. The global schedule reliability ratio is depressing to look at.

Analyst are predicting normalcy to return of some form in liner shipping probably by next year in the second half owing to massive port congestion, shortages of equipment and a lack of ships.

Some respite is expected with additional container stock, to diminish the impact of longer dwell times for boxes, and especially, the delivery of new tonnage in 2022/2023, across all sizes.

This will lead to the fallow period of new constructions which left the industry scrambling for ships, specifically smaller sizes.

An analytics solution company specializing in maritime transport highlights in a publication,

“Sea transportation is an important element in an organizations’ day to day delivery to their customers. Due to this, schedule reliability is an essential element for any organization’s service delivery. When there is a low degree of schedule reliability it can result in higher costs both for customers and shipping lines. It significantly reduces ability of a customer to hold a competitive edge within their respective industries.”

SLA Logistics is extending core shipping services to the global agency networks, affiliated associations and local merchants who are trusted patrons to our services.

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