COVID19 Changed Logistics & 3PL Industry

Jaap Bruining the Head of Europe Coyote Bruining says that in many places like Europe and around the world the term ‘3pl’ which means third party logistics can provide a wide range of services and also shipping solutions. The solutions which are included like the Less Than Truckload (LTL) and intermodal, transportation management, freight forwarding, warehousing and final mile. It also helps to provide a wide range of businesses .i.e. both large and small business. There are 3PLs that also offer shippers and carriers solutions. Bruining also explains that the global freight market is in large fragments and complex while working with the 3PL providers,  carriers gain access to thousands of shippers whenever and wherever they need them. Shippers can get access to the carrying capacity which they need. 3Pls is also very helpful to fill up the gaps, and it also provides flexibility. 3PL also helps in quick connections with the shipment to a carrier looking to move a load on that lane irrespective of that where they need goods to be picked up or from where they need them to be delivered. By looking up this entire booking and shipping process and offering support throughout 3Pl providers provides shippers time back to focus on the different parts of the business. Many 3Pl also provide different multimodal solutions like trucks,  lorry,  refrigerated van, and many more. This process leads to cost efficiencies.

Bruining also says that it is difficult to current trends and the technological trends within the standard and third-party logistics space. Through technological evinces,  the trends that are not centered on the tech product can be made possible. Covid 19 have made drastic changes in the world and in the life of the people. It affected supply chains all over the world. The shock to international supply chains from the pandemic broke out which had been unparalleled.  In the month of April, the capacity of global air freight was down to 38.7% year on year as the passenger’s flights were taken out of commission, which causes air freight rates to surge. When compared to last year the world is able to see the double-digit air cargo capacity decline. Charter rates are running four to six times higher than normal. Though people can expect rates to come down as passenger air capacity recovers some ground in the coming months. 

 

Bruining describes the phases which Europe had experienced. Europe has experienced two phases. In the first phase which occurred in the month of March. In this phase facilitates were closed and also the trucks felt difficult while crossing the border. In this phase many difficulties occurred like confusion, uncertainty, and conditions from the people, driving the trucks was also very tough. Now,  Europe is in the second phase. In this phase, most of the uncertainty to cross the border has been resolved. There are many facilitates which are still closed. This resulted in a sharp drop in demand. It is estimated to be around 30% across Europe. Carriers are also suffering in this phase but with the gradual opening up of the facilities the demand is recovering. There should be some industry which helps to handle the situations dynamically. 

 

The pandemic has certainly been testing,  global supply chain and also it highlights the need of having innovation. The crisis is throwing open up a new world of challenges and possibilities. Companies that are involved in innovation,  now they have to maximize their chances of emerging from the pandemic in good shape. There is a lot of development in robotic process automation. Due to covid – 19 old ways of living and doing things have ended. Now the people have to do social distancing and stay at home orders. These things have created a deep impact on logistics and distribution. There are many warehouses that use robots which will be beneficial when the workers get sick. In this pandemic situation, there is an acceleration in digitalization by the consumer and also by the companies. In the carrier side, the people have become much more interested in digital freight brokers like the coyote logistics. On the customer side the meet through online chatting, video conferencing, and EDI integrations. 

Now people are accepting digital platforms and PODs. This is a really very difficult time for supply chain and logistics in the entire history. As the industry is far away from the full recovery but it has begun to climb upward.