COVID-19 has caused massive shifts in 3PL operations, business, and life in general. Flexibility and communication have been key during these times to ensure that operations can continue on as normal. The biggest shifts in 3PL operations is due to the enormous market shifts, an increase in cargo theft and lastly, transitioning to a work from home schedule.
Massive Market Shifts
COVID-19 has completely changed the landscape of the supply chain. 3PL operations have been entirely altered due to massive shifts in supply and demand. Every industry’s supply chain has been hit in some way and at multiple levels throughout. This is due to declines in manufacturing and exports which has resulted in a decreased need for transportation. For the transportation market, this means that the demand has fallen, while the supply (the trucks available) has stayed the same. As a result, the prices for transporting freight has hit historic lows.
The Federal Motor Carrier Safety Administration (FMCSA) has been taking measures to protect carriers. However, the best thing for carriers will be the inevitable return to normalcy. According to DAT, we are slowly but surely getting there. We are nearing the bottom for dry-van prices and upcoming produce shipments should help put things back into motion.
Increase in Theft and Claims Amongst COVID-19
Comparing the first 15 weeks of 2019 and 2020, there has been a 35.11% increase in cargo theft claims. This jump is huge and it’s effecting all markets but especially the food and beverage industry which has seen a near 100% increase in cargo theft in the first 15 weeks. This unfortunate scenario has had companies reexamine their claims process to make sure they are doing what they can. The claims process is important to 3PL operations and offering a quality service.
In many cases, theft cannot be avoided, but there are ways to try to increase prevention. As a transportation provider, the best thing you can do is to remove any barriers to reporting theft. This should be a streamlined process so that the issue can be resolved immediately. Also, it is important to use the carriers and transportation providers that you trust.
For more information and insight on COVIDs impact on cargo theft check out CargoNet.
Continuing 3PL Operations While Working from Home
Hopefully, most of you out there have been able to establish a method of working from home. The world of business has been shifted massively in these past couple of months. At Becker Logistics, we have luckily been able to continue to offer our freight shipping service. However, it has been a challenge along the way. Some examples when transitioning from work to home is ensuring that the technology is set up and able to handle any additional stress. Additionally, we have worked to ensure that teams can continue to communicate and maintain a high level of dependability.
Culture comes into play and has come a long way in making sure that everyone in the company remains heard when they reach out with questions and concerns. We have done everything we can to ensure that communication stays open internally, as well as externally. By putting these measures in place our 3PL operations have continued without error.