What to expect from post-pandemic international logistics?
2020 was a year of many changes around the world, and international logistics was no different. This is because the effects of the coronavirus pandemic reflected in the adoption of new strategies in many sectors.
Now, as science and health advance in the search for solutions to combat Covid-19, experts share their views on what we can expect for the post-pandemic scenario.
In international logistics, for example, much is said about the new market perspectives. They are influenced by behavioral and economic changes recorded around the world. In addition, it is observed how each modal has been impacted and how they will function after the containment of the disease.
Thinking about this, we list here the main observations and shared trends on the post-pandemic scenario. In this way, we hope to help you anticipate and maintain foreign trade operations with high efficiency and assertiveness.
So, keep reading and get the information that will help your business keep international logistics strategies ahead of the scenarios!
What has changed in international logistics due to the pandemic?
In December 2019, the first case of Covid-19 was recorded in Wuhan, China. This information was remembered by “Isto É Dinheiro” in a publication about the year after the first case and the evolution of the disease. Since then, the world has faced a “race against time” to contain contagion, and many countries are already facing the second wave.
In this sense, there have been lockdowns, restrictions on social activities and social isolation, among other strategies. They directly impact businesses in various sectors, including international logistics activities.
What were the main changes?
As discussed in a webinar in the Arab Chamber, shared by the Brazil-Arab News Agency, early on in the arrival of the coronavirus in Brazil, transport and ports adapted in an agile manner.
Participants observed, for example, that the crisis contributed to the acceleration of the use of digital tools in logistics. Even Radar Siscomex (Foreign Trade Systems) adopted digitization in favor of simplifying foreign trade operations, as we published here on the blog.
In addition, other strategies were adopted to supply countries. Ports and rail, road and air transport adapted their systems, for example.
In the webinar, the transport development coordinator of CNT (National Transport Confederation), Fernanda Rezende, recalled the container crisis, for example. They were detained in several ports due to the strict control of the disease. There was also a ban on the exchange of ships’ crews in maritime mode.
It is also worth remembering that the pandemic also affected air transport, since border closure and other traffic restrictions directly impacted the functioning of airports, including passenger transport.
As a result, many airlines used passenger aircraft to move essential international cargo.
Check out 3 trends in post-pandemic international logistics
Much has changed in international logistics operations due to the pandemic, and many more must change in the course of fighting the disease. However, you need to prepare now for when it is overcome. Be prepared to deal with this new scenario after the crisis.
Therefore, we list here the main information shared by industry experts, which aim to guide their activities and maintain competitiveness when all this passes.
After all, as noted in an article by Abracomex (Brazilian Association of Foreign Trade Consulting and Assistance), strategic planning offers possibilities for new partnerships and markets.
Therefore, managers’ choices for international logistics will be fundamental in stabilizing the economy in the post-pandemic scenario.
Increase in foreign trade activities
Still as shared by Abracomex, companies are expected to export more with resumption and stabilization in the post-pandemic.
The association considers that the devaluation of the real will compensate buyers, as the products will be at reduced costs. In this sense, it is important not only to maintain customer loyalty during the pandemic scenario, even with the fall in negotiations.
This is because, ahead, for the recovery of the economy, there may be acceleration of activities and intensification in various sectors.
Diversification of the production site and inputs
Many businesses have learned from the pandemic that they must diversify the places where they seek their inputs, giving greater value to solutions from nearby regions, for example, because this adds more speed and security.
This trend in the distribution and supply of raw materials will directly impact international logistics strategies, as noted in the content of the publication LogWeb, on the five trends in logistics catalyzed by the pandemic.
It is also noteworthy that the diversification of production sites should also occur to reduce dependence on a single country or supplier.
As a result, supply chains will be divided into smaller structures. However, they are more agile to better adapt to complex scenarios such as the pandemic. Thus, they will anticipate unpredictability like this.
More technologies in operations
Above, we said that the use of technologies in international logistics operations has been accelerated. And this trend should continue in the post-pandemic. In an article in “Supply Chain Magazine” on post-pandemic logistics, it is observed that digital tools will contribute to increase the efficiency of operations.
Therefore, automations through logistics technologies will reflect on delivery operations, warehouse management, among other activities. With this, it will be possible to have greater control in tracking assets, assets and capacity in real time.
Thus, investing today in technological solutions and partners that value the use of innovations in processes is a way to anticipate the trend and maintain high competitiveness.
That’s why DC Logistics Brasil works with technological solutions that reflect the efficient and differentiated international logistics that you can trust for your company.
Want to learn more about how our team is ready to adapt to your needs in various scenarios? Contact us and ask for your quote with no obligation!