On March 11, 2020, the World Health Organization (WHO) has declared COVID- 19 a worldwide pandemic. 1.3 billion in India alone are under lockdown to contain the spread of the virus. Many countries have closed their borders and imposed curfews — leading to sharp reductions in transport demand also on the regional and continental levels.
COVID-19 is in decline in China. There are now more new cases a day in Europe than there have been in China at the epidemic’s peak and Italy has surpassed it because of the country with the foremost deaths from the virus. It took 67 days to succeed in the primary 100,000 confirmed cases worldwide, 11 days for this to extend to 200,000 and just four to succeed in 300,000 confirmed cases — a figure now exceeded.
Impact of COVID -19 on Indian Economy:
India’s GDP has been on a uniform decline after peaking out at 7.9 in Q4 of FY 2018 to 4.5 in Q2 of FY 2020. Before the pandemic, Banking, and Financial services were facing massive problems with the collapse of IL&FS, DHFL, and Yes Bank fiasco. Private Banks, NBFCs, and even Micro Finance Institutions which were aggressively building their retail loan book may come under severe pressure if businesses across the board witness massive layoffs.
The transportation sector has been one of the first victims of COVID-19. India's overall energy demand fell by 11% in March 2020. There is a surge in demand for truck drivers in the transportation of essential goods. As an example, there's a 40% to 60% increase of products being moved into grocery stores and warehouses in the US, since, COVID spread started. Since February, the web food orders have dropped by 20% whereas online grocery orders are overflowing.
Even after things normalize, the perception of risk related to crowd areas could lead to a shift in preferences towards personal travel modes. That is, people may avoid using conveyance modes to avoid crowds.
People can also avoid shared mobility modes like auto-rickshaws, micro-transit vans, e-rickshaws, etc. Many players within the transportation sector are adapting to those changing demands. As an example, American Airlines, and a few of its peers have converted many of the passenger flights to hold goods. Indian Railways have simultaneously canceled passenger trains and ramped up parcel services, and other freight services for essential commodities. At present, the industry employs over 22 million people in India.
Considering the main contribution of transportation and logistics in the economic process 14% (nearly) of the GDP (Gross Domestic Product) is spent on the transport and logistics industry in India as compared to eight -10%.
Indian Scenario –Transport and & LogisticsOGISTICS.
In the year 2017-18, the logistics Industry profits account for US$ 160 Billion, and it's expected to succeed in US$ 215 Billion by the year 2020. The Indian government has announced that it's performing at the policy to develop the new logistics plan in India. The aim is to develop the foremost economical thanks to transport goods by 2035.
The Indian industry deploys quite 8 million drivers and 12 million helpers. As a baseline, 30 million people are directly employed by the industry, and quite 150 million people depend upon it for his or her bread and butter.
The findings by the tech-based ecosystem with a fleet of 4 lakh trucks reveal that on a scale of 1 to five, 5 being the very best, Covid-19 has impacted the lives of the fleet owner to the extent of 4.115. The impact has been so severe that 62.50% of fleet owners preferred to prevent all work for the security of their drivers or thanks to less demand within the market, notes the platform’s survey.
Jobs lost due to COVID-19:
52% of firms except for job loss thanks to COVID-19 Majority of the CEOs surveyed see revenues of firms falling by around 10% within the previous and current quarters. During this lockdown, a majority of the businesses engaging in the production of essential products and provide ancillary goods face operational constraints. On the roles front, about 52 percent of the businesses surveyed foresee job losses, in their respective sectors. While the proportion of jobs that are expected to be cut is quite staggered, 47 percent expect but 15 percent job loss, and 32 percent of the businesses expect to shed 15-30 percent of jobs once the lockdown ends.
Post COVID-19 Scenario:
A decades-long specialize in supply chain optimization to attenuate costs, reduce inventories, and approach asset utilization has removed buffers and adaptability to soak up disruptions and COVID-19 illustrates that a lot of companies aren't fully conscious of the vulnerability of their supply chains relationships to global shocks. Fortunately, new supply chain technologies are emerging that dramatically improve visibility across the end-to-end supply chain, and support the company's ability to resist such shocks. The normal linear supply chain model is transforming into digital supply networks (DSNs), where functional silos are weakened and organizations become connected to their complete supply network to enable end-to-end visibility, collaboration, agility, and optimization.