Logistics in a pandemic 2.0

Since 2020, the logistics industry has already experienced more than one shock. Initially, like the entire economy, having experienced a shock in March 2020, logistics quickly adapted to new conditions and continued to work taking into account the changed circumstances.
Undoubtedly, the fall in demand and the restructuring of the entire global consumption market at the beginning of the journey increased competition, which led to job cuts and an increase in the number of bankruptcies. It was especially difficult for small and micro-enterprises, which initially had limited profitability.

Foreman control loading Containers box to truck for Logistic Import Export Background, Business logistic concept, import and export concept.

How the logistics industry has changed in 2021
The pandemic has sharply pushed the entire global logistics to the speedy digitalization and strengthening of innovation processes in general. Due to the unstable epidemiological situation, cargo at customs crossings accumulated and delayed, borders were closed, opened and then closed again. As a result, customers demanded access to tracking their shipments – electronic tracking of cargo has already begun to concern not only security issues, but the profitability of the work as a whole. Those carriers that were the first to introduce the latest technologies were among the leaders.

Today, SCV – real-time supply chain management is becoming almost a necessary condition for survival in the market. For most cargo owners, having real-time information about cargo has become the norm.

Customer demand for contactless delivery surged at the start of the pandemic. But even today, the winners are those companies that offer the opportunity for customers to receive goods without visiting crowded places.

Of course, 2021 is not over yet, but the dynamics of the logistics market are already visible today. Analysts note that the average cost of cargo transportation in the Russian market increased by 20%. At the same time, there are areas in which growth has reached 50% or more. If we talk about road transport in Europe, the rates have been rising for the fifth quarter in a row.

Business Logistics concept, Global business connection technology interface global partner connection of Container Cargo freight ship for Logistic Import Export background, internet of things

At the same time, the level of economic activity is high enough to support the growth of tariffs in the future, at least in the short term. To date, there is a shortage of drivers and cars, their replenishment will most likely be carried out due to the growth of the remaining players, and not due to the emergence of new firms.

Among the key trends of the current year that determine the development of cargo logistics in the Russian Federation, the following areas can be distinguished:

consolidation of carriers on digital logistics platforms,
structural change in cargo types,
development of electronic sales,
ridding the market of unscrupulous carriers,
expansion of retail chains to the regions,
cost reduction due to groupage cargo.

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