Logistics UK assesses pandemic trends in supply chain

After an initial sharp drop in demand for logistics services in March 2020, Logistics UK has shown how its members have managed to meet demand through the pandemic. This has been shown in its COVID-19 Logistics Report 1 that provides a detailed overview of how the pandemic has affected the industry and the steps it has taken to overcome those challenges.

“Despite facing significant operational and financial disruption since March 2020, the logistics industry has stepped up to ensure it continues to supply the nation with the goods it needs, including food supplies and PPE,” said Elizabeth de Jong, the organisation’s Director of Policy. “The COVID-19 crisis has highlighted how critical our industry and its people are to the success of the economy; Logistics UK is proud of the way in which its member businesses, and the wider industry, have worked together to service the needs of the nation during this critical time.

“To deal with the COVID-19 crisis, logistics businesses managed risk by scaling back operations, taking work back in-house and reducing their reliance on third-party services; many also focused activity on their core fleet of vehicles to save costs.”

When the first UK lockdown occurred in March 20, 85% of respondents to the Logistics UK survey reported a downturn in business. This recovered to 60% of businesses by the end of May with supply chain disruption further easing. In addition, delivery times have improved due to a reduction in congestion thanks to fewer cars being on the road by comparison to a non-pandemic ‘normal’.