Impact of the post-COVID era on Global Logistics

The COVID-19 pandemic has impacted many businesses and brought the world to a standstill. In addition, the global supply chains faced high disruptions due to lockdowns and border closures that prevented the supply and movement of goods. International trade came to a halt, which then impacted the economic growth, competitiveness and job creation in many industrial sectors around the globe. 

Now, as the journey to recovery slowly begins, many companies have realised that to engender greater resilience, their supply chains must be diversified.

Keeping that in mind, the logistics industry in the post-COVID world will surely look different. So, what would be the long-term impact of the pandemic on international shipping?
 

1. Rise of online e-commerce 

One of the most significant benefactors of this pandemic has been the e-commerce sector. With social-distancing regulations around the globe at large, those companies having a robust digital presence swiftly pivoted to online purchase and delivery models. Businesses with fleet and in-house delivery infrastructure were suddenly at a big advantage, as they could scale up to meet the soaring demand for door to door deliveries in various e-commerce categories.

Customers started making impulse purchases with quick delivery timelines, making the last-mile service an important factor for any business’s success. In Germany, DHL witnessed an increase in parcel shipments from 5.3 to 9.0 million parcels per day. This change in buying behaviour is here to stay and it implies that if businesses have to stay competitive in the post-COVID era, they will have to continue to match their customers’ last-mile delivery service expectations.

2. Green logistics 

The other benefactor of this pandemic has been the environment. Several studies indicate that the pandemic situation significantly improved air quality, reduced emission, and pollution levels in different cities across the world. The pandemic has also led to an increasing customer preference for sustainable products and services. 

Both buyers and sellers are phasing into an eco-friendly world, signaling their fidelity towards preserving the environment. Businesses too therefore want to evaluate their supply chains and service providers for environmental impact. With that in mind, many logistics service providers such as DHL Express are moving towards driving green logistics.

Being a pioneer of green logistics, DHL has continuously strived to reduce carbon emissions without compromising on its services. With a clear goal in mind, our company, freight carriers, as well as infrastructure providers, are all aligned in reducing carbon emissions, thus making our supply chains more sustainable. Keeping the environmental impact in mind, it is our mission to achieve zero emissions by 2050 and become the industry standard for all ethical business operations.

3. Diverse global supply chains

Having a diverse and resilient supply chain is important to sustain and smoothly operate even during such disruptions. Having alternate suppliers from different countries, holding an emergency stock of your goods, or managing a better inventory are some ways to beef up your supply chain in case of unforeseen circumstances. 

In addition, businesses have to grow agile and build flexibility in order to gain an upper hand over their competitors. Having an independent logistics network works wonders, as it will eliminate the dependency on internal infrastructure, making international business operations seamless and hassle-free.

How is DHL Express aligned with the post-COVID changes?

Being a leading global logistics company in Singapore, DHL Express has been providing businesses with direct and quick door-to-door access to many international markets even during the pandemic. Our deep rooted expertise in international e-commerce logistics, makes it easier for businesses to pivot to online models swiftly.

Our focus on green logistics through investments in electric fleet and sustainable solutions make us a preferred service provider among businesses and end consumers. Our robust infrastructure of aircrafts, ground fleet, shipment processing centers, transportation hubs spanning across 220 countries and territories ensures that businesses like yours, stay resilient even in the midst of a pandemic.

To know more about our e-commerce, green logistics, or other services, contact our customer service team today!