Corona: Current impact on transport logistics

We are all incredibly GRATEFUL for the work and sacrifice of our medical professionals. And we also want to THANK all of you amazing HEROES out there driving trucks, piloting airplanes, sailing ships, loading cargo and otherwise keeping our supply chain running. Share to add your thanks!

Orientation in uncertain times

Closed schools, canceled events – but full shelves in retail stores. At present, retail groups, transport service providers and freight forwarders are succeeding in fully ensuring supplies in practically all areas. Specific sold-out items do not represent a change in this situation. In principle, all goods are available in sufficient quantity and can be delivered.

The situation is, however, extremely dynamic. Political and administrative measures that were rejected one day are being enacted the next. Political leaders, businesses and society have no reliable facts and experience to rely on. Economic decisions are currently characterized by a high degree of uncertainty. This will continue to be the case for at least the next two weeks, but more likely the next four weeks.

Transporeon performs daily evaluations of the data from its cooperation network with more than 90,000 transport service providers and forwarders as well as 1,200 trade and industrial companies. The following answers are based primarily on the analysis of this data and discussions with market players.

Our goal is to provide our customers with frictionless support in this unique situation, ensure full platform operation and protect public health. Latest information can be found here.

Economy/regions

Economists and governments worldwide are lowering their forecasts.
Learn more

Air cargo

Tense calm in the air freight. However, there is still sufficient capacity available.
Learn more

Ocean freight

Traffic with Asia is severely impaired. What will follow for other regions?
Learn more

Land transport

Cross-border traffic in Europe suffers already. The first factories have to shut down.
See more

Findings and Recommendations

  • Over the past two decades, production in many industries has been concentrated in a few locations in order to achieve economies of scale. During the corona crisis, this is proving to be counterproductive. For this reason, the concept of "world factories" is already being questioned politically.
  • The success of the drastic measures taken in China, South Korea and Taiwan to stop the spread of the virus gives reason to hope that an economic recovery will also begin in Europe at the end of the second quarter. However, it will take approximately three months until production and transport routes are functioning normally again.
  • In general, we recommend that companies expand their carrier pool and do not pursue a single-source strategy for transport. We also advise companies to be prepared to tender for transport at short notice in order to react quickly to changes.
  • Particularly in the air transport sector, shippers confirm that solid partnerships with freight forwarders are a success factor for maintaining an efficient delivery capacity and a reasona-ble price level in the current situation. At the same time, it is important to be able to make quick changes if necessary and to remain flexible.
  • Flexibility is a matter of operational handling. For example, identifying new routes (other airports), using other modes of transport (rail instead of air, air instead of sea) and main-taining a pool of back-up carriers.
  • In the current crisis, starting to do ad hoc shopping around to try out different transport partners is expensive and creates service problems. Best practice is to proactively plan measures that offer several options in a crisis situation. Gathering broad information and using the relevant industry services is a mark of professionalism.

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Real-time overview: International traffic

Tracking currently provides important information on the movement of goods in Europe: Are there problems in cross-border traffic? What delays must shippers and forwarders be prepared for? Are there alternative routes that promise relief?

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