COVID19 impact on Logistics processes

Coronavirus has brought enormous losses to the global economy as a whole and to almost all industries in particular. The transport and logistics sector was the one of the first fields to feel he loses. First of all, most logistics providers were affected, especially the ones who worked with export and import to / from China.

“Air cargo to China makes up 38% of our company’s total exports. In imports, this figure is 40%, – says Stefan Haltmeier, CEO of German Quick Cargo Service. – Up to 90% of our exports to China are paid in this country. Due to the unplanned long holidays, many banks are closed, and payments from China are delayed. We must continue to make advance payments, as the CASS IATA (cargo agents settlement system) billing system charges us for the previous transportation costs. It also negatively affected the cash flow of our company. ”

“The biggest problem for us today is that due to the late resumption of the factories in China, many batches of products must be delivered to the consumer as soon as possible. This forces us to change the vector of work, reducing the number of multimodal transportations in favor of increasing aviation, ” says Ken Hui, CEO of Chinese FANS TRANS.

Due to the fact that many airlines have suspended or reduced the number of flights to China and other countries (both passenger and cargo), the total carrying capacity of air transport in this direction has decreased, and there has been a disbalance between the supply and the demand, which “drives the Chinese market crazy.” Airlines increase tariffs every two to three days, and the waiting time for consignments can reach up to 7 days officially, and up to unlimited period as a reality.

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