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

Contact bans, company bankruptcies and supply bottlenecks - the corona pandemic is hitting the economy and society. The consequences are unmistakable: Throughout Europe, production and logistics have collapsed dramatically. Even large airlines such as AirFrance-KLM and Lufthansa will only be able to survive with strong government support, the same applies to the large airlines in the USA. Meanwhile, Latin America is becoming the next hotspot of the pandemic.

But there is light at the end of the tunnel: In Europe, the number of new infections is stagnating or declining. In Italy and Spain, the very strict restrictions are being eased tentatively, while in Austria and Germany the return to normality is happening somewhat more quickly. Great Britain and Russia, on the other hand, still suffer from high numbers of new cases - despite all the restrictions.

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.
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Air cargo

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

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

Webcast Serie: Mastering Pandemic Challenges

Watch our latest Webcast Recordings

8th, May 2020

Webcast Recording:

Update on air & ocean freight - Mastering Pandemic Challenges

6th, May 2020

Webcast Recording:

Update on road transportation - Mastering Pandemic Challenges

27th, April 2020

Webcast Recording:

Q&As about Mastering Pandemic Challenges in Logistics Networks

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?

Get a real-time overview on the international traffic at the European borders

The Transport Market Monitor (TMM) supports you during this unprecedented time: To supply you with the latest information, we refresh the data in the TMM twice a month. Subscribe to the TMM for free and view the updated indices and reports which include the currently available figures.