2 Changes In Logistics After Covid-19

The past few years have been turbulent ones for the logistics industry. In 2020, freight logistics and supply chain resilience was tested again and again.

The pandemic interrupted many global supply chains, which were forced into stops and starts over the past year. Shippers and carriers had to continuously change plans as the means of logistics they relied on strained and sometimes broke.

After the sluggish pandemic economy of 2020, government stimulus, low-interest rates, and increased consumer spending are spurring growth in 2021.

As a result of this unpredictable, pandemic-driven year, U.S. business logistics costs fell 4.0% to $1.56 trillion, or 7.4% of 2020’s $20.94 trillion U.S. gross domestic product (GDP), according to the 32nd Annual Council of Supply Chain Management Professionals (CSCMP) State of Logistics Report.

Motor carrier costs dropped 0.6% in 2020. While full truckload carriers dropped 1.6% last year and less-than-truckload carrier costs were down 5%, private and dedicated fleets saw a 1.5% increase in costs during 2020. Parcel delivery costs jumped 24.4% last year, driven by the surge in ecommerce and changes in consumer behavior.

As consumer behavior changes global and domestic supply chains, fleets are forced to adapt to the ongoing pandemic and other disruptions continuously. Supply chains are being reset and reconfigured as manufacturers shift their sources and consumers shift their spending habits.

Logisticians proved themselves capable of quickly abandoning old plans, solving new problems, and handling disruptions. This ability to adapt will serve logistics professionals well in the future, as the report predicts that the pandemic’s aftereffects and “new surprises” will force logistics professionals to continually change their plans.

Growth + Change = Opportunity!