C.H. Robinson, a leading global third party logistics provider is advising businesses to explore new solutions to ensure their supply chains are protected during the global COVID-19 pandemic.
Business has come under a variety of threats as a result of the COVID-19 pandemic including the closure of borders, increased screening and security measures and the greater frequency of cyber security attacks. Currently, all Australian states and territories consider freight and logistics to be essential services, exempting them from the interstate travel bans and quarantine requirements.
Forward planning has become imperative to ensure business continuity plans are effective. The need for a recommencement plan for businesses who have temporarily closed and a diversified supply chain for those who operate as essential services is paramount for ensuring business survival and success in the future.
The situation in New Zealand has highlighted some different challenges, should Australia follow suit with a level 4 lockdown. The Port of Tauranga announced it is prioritising the unpacking of essential goods, resulting in a delay of packing and processing goods considered non-essential.
C.H. Robinson advises that businesses immediately start considering if their goods would be considered essential in the event of a complete lockdown, and work with their strategic partner to understand if their goods could be subject to such delays.
If a business finds it cannot be considered essential, or it is not viable to remain open, it is essential to prepare a recommencement plan to ensure operations can return to full capacity once this pandemic is over.
There are different tactics that could be used to help goods get where they’re needed. Andrew Coldrey, Vice President of C.H. Robinson Oceania, wants businesses to consider all transport modes in light of this uncertain time.
“With the continued uncertainty that the COVID-19 pandemic brings to businesses, it is more important than ever to explore a variety of transport methods to keep supply chains moving,” said Andrew
“The air freight market is fluid and changing daily, therefore it may be beneficial for international goods to be transported using both air freight and shipping rather than purely using air freight.
“Due to the pressures on the rail and road market, we have seen more than a 20% increase for the quarter year-on-year of businesses, especially food and beverage suppliers, using C.H. Robinson’s Domestic Coastal Shipping Service. This service provides a saving of up to 60% over rail and road services.
“Alternatively, businesses may consider using Less than Container Loads (LCL) if they require certain goods for essential service production, as it is more cost effective than their standard full product shipment in a Full Container Load (FCL). Our role at C.H. Robinson is to help businesses navigate these uncertain times and find the most suitable solution.” said Andrew.
As businesses struggle to meet the demands of this new normal, C.H. Robinson’s trusted advisors around the globe are continually looking for the best solutions to keep your supply chain moving.
On 30th April PASA Connect is hosting a virtual roundtable on The top six issues in managing the logistics and freight category in 2020. You can find more information on becoming a PASA Connect member here.
