The transportation during the Covid-19 crisis.

In these days of confinement, the uncertainty is the only thing which the people are thinking in, the time which this emergency is going to take to be solved is not clear and both the investors and the people are getting panicked, as a citizen myself I have seen and heard so many of my friends telling me that they need to get stocked. More than a hundred countries the shelves are being empty due to the panic shopping, people are taking all the goods like if this situation was the end of the world. The truth is that neither the coronavirus is the apocalypse, nor the supermarkets are going to get out of stock, they are well prepared with lots of inventory and safety stock.

Personal conversation with a friend of mine, few hours after the announcement of the emergency state in Colombia

But the investors seem to be as shocked as the natural people, all over the world the economies are suffering a new crisis, the stock markets are falling, and the companies are losing either money or value. This scenario is hitting the global commerce as well, and by doing so, the transportation and logistics industry is getting affected too. At the beginning of the illness the situation seemed to be under control and the commerce continued working as usual, however once the pandemic moved the epicentre to Europe, the fallout started.

Port with stocked Merchandise

Across the world the borders are being closed and although there are certain exceptions for the truck drivers, they don’t really know which documents are going to be asked to them for trespassing the earth borders. They state that the supply is warrantied, but the governments are not clear when talking about the requisites for having free mobility. Internationally speaking, there are merchandises stocked in Chinese ports which were produced before the breakout of the virus, although the situation is getting controlled in the homeland of the pandemic the principal destiny of these ones is Europe, which right now is in maximal alert. There is a 30% decrease in the container’s terminal activities, according to the “Asociación Nacional de Empresas Estibadoras”.

Even though the principal target of the exportations of china are Europe, the third party logistic is being also affected because the scale vessels are not able to stop in the European ports in order to continue to their main destinations. “About 40% of goods from China are in transit to third countries, so the crisis is not only limited to direct trade flows, but also causes the cancellation of stopovers of complete ships, and also reduces trade with other countries” for example, in Barcelona and Valencia 9 scales have been cancelled.

British Airways airplanes in London airport

Another affected industry is the air transportation, most of the flights have been cancelled and both, the cargo and the passengers demand has decreased. The airlines have lost huge amounts of money these days and most of them have cancelled operations while the virus is overcome. They are facing the most challenging situation on his history and are asking for some government help.

One thought on “The transportation during the Covid-19 crisis.”

  1. David, thanks for sharing this information, I didn’t know much about the problems in the transportation field as I was thinking of Europe, but not outside. Following your article I have found a couple of interesting articles (in Spanish) about the food industry and its transport these days. The first one is about the protocols that the food industry is following in Europe and the second one is about the transport of food in Spain (and the increase in the last weeks).

    Hope you find them interesting.

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