The Impact On Shipping Infrastructures From The Pandemic

by Michael Kotendzhi | Logistics

The spiking pressures on both local and foreign shipping patterns have been peremptory since the pandemic abrupt the whole globe incontrovertibly. The leading logistics providers scramble to rehabilitate and manage stabilities, even it means to raise the rates and maintain the wholesome change upon the overall infrastructure. Let us review the total impacts in the year 2020 and what it has led to the pattern of shipping culture and responsibility.

To conclude of the year 2020, the unprecedented epidemic has brought in over eight hundred billion dollars by remote shopping, posing a major boost of over forty-four percent from the previous year. Many major courier companies evidently re-establish a wider groundwork to meet the increased demand for local pickups and shipping in the North American continent. The first repercussion by the businesses is the raising transportation costs as they expand the shipping areas and capacities and may also choose to outsource the logistics aspect during the peak periods. Online shopping brings a new norm to what people are used to shopping and certainly is forcing a new paradigm to enact.

Large corporations such as Walmart and Amazon have reacted to maintain the level of essential products and services while people are establishing their new norm. However, the other large retailers may not be so fortuitous to cultivate along with the pandemic and to endure the negative impacts. On a formula based on volume-scaled rates, it may be in a disadvantage position to negotiate for a better rate.

It is a challenge to determine to change 3PL (Third Party Logistics) providers. You must consider comprehensively and pay attention to each step. We are 18 Wheels Logistics locates in Vancouver B.C, western Canada. We have been working on build a comprehensive worldwide distribution channel year of years.

Contact us to review your current 3PL situation and we will provide thorough analysis on what the change of 3PL will bring to your business, how 18 Wheels Logistics would help you to realize your goal.

Michael Kotendzhi is President of Operations & Transportation and a partner at 18 Wheels. Michael has over 15 years of experience and is equipped with a degree in Logistics from the University of British Columbia Sauder School of Business. As well as a background in logistics from XPO Logistics (formally Kelron Logistics), North America's largest contract warehousing provider.

Michael's experience includes supply chain management, reverse logistics, & domestic transportation. He has developed 18 Wheels' trucking solutions, effectively utilizing the sister company's vehicle fleet and building a transportation supply-chain network across North America.