Technically Speaking: COVID-19’s impact on global logistics

As stay-at-home orders due to the coronavirus pandemic have stressed supply chains, businesses across all segments have been forced to quickly adapt. That issue was addressed in a May 21 webinar put on by the Washington International Trade Association (WITA), of which the Specialty Soya and Grains Alliance (SSGA) is a member. SSGA Technical Adviser for North Asia, Alyson Segawa, attended the presentation.

During the webinar, entitled “COVID-19 & Trade: Ports, Logistics, and Global Supply Chains,” the panel discussed the impact of COVID-19 on global logistics, how companies have reacted and the opportunities which have arisen as a result.

There has been a decrease tonnage in maritime shipping, leading to blank sailings, and an increase in air freight volume despite rising costs due to lower accessibility. What the panel believes this highlights is the need for more diversified, transparent supply chains, with strong channels of communication between all stakeholders.

Although overall volume has decreased in the short term, the panel sees this as an opportunity to invest in infrastructure, as the demand will return. With the availability of relatively inexpensive capital, they would like to see investment now to build a more robust supply chain moving forward. This investment would include such aspects as roads and bridges, shipping infrastructure, continued investment in clean technology and investment in backend technology such as blockchain, allowing consumers more access to the shipping process.

Despite the current limitations and challenges, the panel remains optimistic that supply chains will recover. COVID-19 has highlighted the necessity of agility and versatility and has presented opportunities to improve supply chain resiliency in the long term.

Technically Speaking includes news and information from SSGA’s technical advisers for North Asia, Southeast Asia and Europe.