The shipping and logistics industry provides one of the essential services in today's globalized and integrated world by offering various services such as multi-modal transportation, freight forwarding, warehousing, and inventory management. It is a trade and commerce auxiliary that enables businesses to distribute goods and services to final customers by enabling mobility across the supply chain.
A deadly COVID-19 virus has claimed many people's lives and directly affected the logistics sector. The pandemic has directly affected the logistics industry, with underlying impacts such as labor shortages, disrupted supply chains, poor infrastructure, and uncertainty about rules and regulations for goods mobility leading to a drop in logistics activity. According to estimates by Statista, the projected economic effect of COVID-19 on the global logistics sector is a 6.1% reduction in the logistics industry's gross value added. COVID-19's predicted impact on logistics markets varies by country, ranging from a 0.9% decline in China to an 18.1% decline in Italy.
However, the effect is unpredictable and uneven, as intra-regional e-commerce shipping has seen an upward change due to a rise in online sales. In contrast, those enabled by offline networks have suffered a setback. The effect felt by unorganized trucking companies lacks a formal roadmap to recovery. Small trucking logistics companies have failed due to a lack of technology and the strain of complying with protective measures.