THE IMPACT OF CORONAVIRUS ON CAR TRANSPORT SERVICE

Aug 31, 2020
Share

The coronavirus has marked us.

At the end of 2019, the Wuhan Municipal Health Commission (China) reported to World Health Organization the presence, in the area, of some cases of pneumonia of unknown etiology. Less than two months later, in some areas of Northern Italy there are 325 similar cases. On 11 March 2020, the WHO declares a state of pandemic and the Italian people are already in national lockdown. The coronavirus thus makes its entrance into collective memory and, even today, remains there, although the discovery and spread of vaccines have led, globally, to significant improvements in the management of the infection.

The memories of those who have been direct spectators and the history books written for future generations do not, however, represent the only evidence of the traces left by the coronavirus. Especially in its initial phase, the health crisis has, in fact, had devastating effects on the organization and functioning of various economic and social sectors, leading to a series of more or less radical changes that today push anyone who talks about it to do so in terms of 'before' and 'after' the pandemic.

 

 

The impact of pandemic on the societies
In addition to the economy of the states, the pandemic has strongly influenced the habits and psyche of the world population.

 

Among the economic sectors involved, that of logistics, a fundamental strategic asset for the new macroeconomic scenarios, is one of the most affected, especially as regards the car transport segment directly.

Let's examine, in detail, the main implications of the first prevention measures and the related data, with particular attention to the new scenarios generated by the pandemic, from physical retail to e-commerce, for companies that deal with the transfer of vehicles from a place to another of the world.

 

THE INFLUENCE OF THE PANDEMIC ON THE LOGISTICS SECTOR

At the beginning of the Coronavirus emergency, the economic and social impacts of the crisis depended, to a large extent, on the obligation of social distancing which, although it allowed the contagion to be contained, on the other hand, led to a series of negative consequences both on supply and on demand.

Below, the two main scenarios in Italy, in the case of logistics:

  • Sudden increase in demand. The increase concerned the demand for health and basic necessities (such as food, hydroalcoholic gel, masks and toilet paper). Their transport was, in fact, immediately included among the permitted activities, as they were considered essential by the Prime Minister's Decree of 22 March 2020. In particular, fear of contagion and restrictions have contributed to increasing the number of online purchases. This has forced companies to reorganize warehouses and logistics hubs to accelerate shipping activities, to efficiently respond to growing demands. In some cases, the increase in demand has, however, entailed considerable difficulties in the prompt shipment of the products.
  • Block of supply chains and drop in consumption. In all other cases, the transport of goods was initially suspended, unless strictly necessary. Only after the production shutdown of numerous plants, and after the decisive protests of the road hauliers, was the interest of the competent ministries obtained, with the consequent resumption of activities and with a substantial easing of the pressure on prices that had characterized the previous phases.

We consider, below, some of the data relating to the performance of the Italian logistics sector before and after the pandemic. Recalling them will be useful to understand the actual impact that mobility restrictions have had on the work of a category of professionals who, due to the nature of the services provided, need to travel continuously.

 

Freight transport before and after Coronavirus: the data

To get a general idea of the functioning of the logistics sector in Italy before the advent of the coronavirus, it is possible to consult the Logistics Performance Index (LPI), compiled for the last time in 2018. It is an aggregate index that evaluates logistics of the individual states.

In the last edition, Germany was in first place (followed by Sweden and Belgium), while Italy was in the nineteenth. The ranking is drawn up every two years based on factors that include:

  • efficiency of the goods customs clearance process;
  • quality of the infrastructures used for transport;
  • competitiveness of shipping prices;
  • the quality of tracking services;
  • the punctuality of the arrival of the goods with respect to the estimated date.

 

The post-coronavirus global competition
The state of emergency constituted an element of strategic competition between companies and between the States themselves committed to promoting the sector.

 

However, the LPI ranking does not provide data on turnover, which is perhaps the most immediate yardstick for understanding the extent of the influence of the coronavirus on supply and demand in the logistics field.

A press release published on April 15, 2022 by the FNC (National Foundation of Accountants) released a research document relating to the financial statements of transport and logistics companies for the year 2020. The study, conducted through an analysis work on a sample of 20.147 companies, shows a drop in turnover equal to 4,2%. Added to this is a drop in production value (reduced by 3,3%) and in value added (decreased by 1,5%).

This is the decrease in turnover by territorial macro-areas:

  • 5,1% for the north-east
  • 3,3% for the north-west
  • 4,5% for the center-south

In addition to storage and support activities for transport, air transport, maritime and inland waters and land transport of passengers, the sector of land transport of goods is also included in the sample examined. These, of course, also include cars.

 

FOCUS ON CAR TRANSPORT: THE EFFECTS OF CORONAVIRUS

In 2020, the IRU (International Road Transport Union) recorded a loss of several billion euros in the area of road transport for passengers and goods.

Even in the specific case of car transport, in fact, the preventive measures, from the Coronavirus, adopted by governments first interrupted and then significantly slowed down all operations related to the provision of the service.

 

The response of logistics to changes in the scenario
The logistics sector has pledged to adapt quickly to the changes in the scenario caused by the pandemic.

 

The main obstacles to the work of transporters

These are some of the main obstacles, due to coronavirus, to the paths taken by the carriers that, every day, travel to guarantee the customer a qualified service:

  • Temperature control and self-certification for travel. The obligation to continuously undergo body temperature monitoring has certainly affected delivery times. On the other hand, the need to fill in a document justifying each move has hindered the distribution of the goods in cases where the geographical areas concerned were subject to restrictions. In addition to this, as evidenced by the first guidelines issued by the Ministry of Infrastructure and Transport, there is also the obligation to sanitize and sanitize premises, means of transport and means of work. This constraint has further slowed down the work of the transporters.
  • Partial blocking of borders. A document (updated to March 20, 2020) released by the Padua Chamber of Commerce, provides an infographic on the closures of the borders of the various European countries. With regard to road freight transport, some states (Bulgaria, Croatia, Romania, Hungary, Serbia, Malta, Lithuania and Turkey) have prohibited or strongly restricted the entry of Italian drivers. The conditions imposed on transporters include:
    • the obligation to leave the destination immediately after delivery
    • to remain in the vehicle cabin for the entire time of stay
    • self-isolation in case of contact with Covid-19 patients
    • being equipped with personal protective equipment
    • the possibility of crossing the border only in the case of strictly necessary deliveries.
  • Closing of dealerships. In the first phase of the pandemic, even car sales activities were deemed inessential and, for this reason, closed to the public. In addition to damaging the dealers themselves, this measure deprived the companies, which offered the car transport service with car transporters to medium-large dealers, of a considerable slice of the market.

The response of the governments of most European states to the inconvenience caused by the measures was anything but immediate. Two months after the spread of the coronavirus, most of them had not yet provided adequate support for the road transport industry.

 

Solutions adopted by the car transport companies

The affected companies have worked hard to adapt quickly to the new scenarios. In the absence of a concrete aid, and in the face of the evident inadequacy of some of the tools used up to that moment, employees in the transport sector have focused on the digitization of processes, safety of operators, organizational flexibility and simplification of logistic flows.

 

Coronavirus contributed to digitization
Participation in the digital transformation and the increase in Industry 4.0 have given a strong impetus to the recovery of companies.

 

These measures had as their primary purpose the optimization of resources for the continuation of activities, in accordance with the principle of rationalization of processes. Here are some examples:

  • Smart working for planning. Working remotely, during the preliminary organization of the activities, was possible thanks to the adoption of technologies and software in cloud. These tools ensured the success of remote meetings, which allowed the parties involved to coordinate in total safety. Smart working is undoubtedly part of the choice to join the digital transformation;
  • Digitization of the supply chain. Not obvious, but essential step not to lose competitiveness in an increasingly global market. In fact, in addition to smart working, the dematerialization of any potential vehicle of contagion (such as the transport document) falls within the broad digitization process. The digitization process has also been a valuable ally in response to the lack of staff. This shortage was inevitable, during the pandemic, given the effects of a virus that prevented many workers from physically going to the workplace;
  • Adequate distribution of personal protective equipment and compliance with safety standards. If, on the one hand, the obligation to apply security measures has slowed down the work processes, on the other hand, an appropriate implementation of the same has certainly allowed companies to gradually resume suspended activities. The use of gloves and masks, together with the constant sanitation of places and surfaces, has ensured that the activities are carried out in total safety. In some cases, the procedures provided by the government have been supplemented by staff efficiency operations, to facilitate the application of safety protocols and adaptation to new work paces;

 

The restart of the transport sector
The limits imposed on mobility, due to the pandemic state of emergency, have led to significant inefficiencies.

 

  • Reduction of order fragmentation. The preference for group transport (which means several vehicles at the same time, always possible with the car transporter) made it possible to reduce the frequency of trips. This is a type of service already widespread which, to the already known economic and organizational advantages, adds, in the constant pandemic, the reduction of the risk of contagion
  • More attention to the traceability service. Due to social distancing, the limits imposed on mobility have led to significant inefficiencies. An optimal tracking service has allowed companies to make up for the impossibility or difficulty for customers to physically go to the office to request information on the status of the transfer of their vehicle. Having the traceability service, by recording all the steps taken by the transported goods, it has been possible for customers, at any time, to identify the shipment and monitor the transport in real time
  • Development of road-water-air intermodality. The choice of integrating road transport with sea and air transport also proved to be a winning strategy, especially on international routes. To overcome the previously reported blockages envisaged by various European countries, several companies have decided to take advantage of the safety and reliability that distinguish naval and air transport. It is a closed and easily traceable system, which allows to increase the number of cars transported but considerably reduces the movement of drivers from one state to another and, consequently, the risk of contagion

In summary, therefore, the spread of the coronavirus has forced companies that deal with freight transport to adapt quickly to the new needs of the territories, supply chains and consumers.

 

Intermodal transport between territories, supply chains and consumers
The choice to rely on intermodal transport has contributed to improving the efficiency of logistics, especially on international routes.

 

The data show that experimenting with new collaborative and organizational models, focused on digital transformation and the choice of flexible solutions, has proved to be very effective.

In a report drawn up in early 2022, the Ministry of Sustainable Infrastructure and Mobility records a clear recovery for the freight transport sector which, according to the information gathered, would have returned to pre-pandemic levels. In addition to showing the effective effectiveness of the mobility regulation policies and the vaccination campaign, the growth highlighted is undoubtedly an indication of the success of the measures implemented by the companies involved.

Trasauto Logistica is among these.

 

CORONAVIRUS AND TRANSPORT: THE RESPONSE OF TRASAUTO LOGISTICA

Trasauto Logistica has shared, with other companies, the need to respond to the health emergency by experimenting with new solutions. In particular, the management firmly believes in the potential of digital transformation. For this reason, in addition to having already equipped itself with the most advanced technologies, the development of a software for the optimization of logistics processes is underway.

The goal is to guarantee the customer an even faster, more efficient service in line with the needs presented by the different territorial contexts.

Our contribution to digital transformation: a software for logistics planning

  • Our idea is to create a multi-modular application that is able to:
  • analyze the environmental variables and their impact on operating costs;
  • guarantee an automated quotation of tariffs;
  • facilitate the integration of the information flow;
  • ensure the enhancement of the order management and payment control functionalities;
  • predict delivery times, based on the multiple and variable dynamics, in real time.

A software with similar functions will allow the Trasauto Logistica team to adopt a totally data-driven approach, which will allow it to offer the customer means and combinations of transport perfectly in line with the type of request.

 

Future perspectives and long-term benefits

Nowadays, adopting advanced technologies means preparing, in a proactive way, towards a real improvement of all the characteristics that distinguish our integrated services.

The operational use of advanced systems, for the optimization of each of the logistics phases, will make it possible to achieve considerable advantages in terms of eliminating waste and inefficiencies, of an effective decrease in the discrepancies between the formulated quote and the real expectations of the final consumer, of improvement of the effectiveness and timeliness in the scheduling of deliveries and for everything concerning the B2B and B2C contractual procedures.

 

The restart after coronavirus
The experimentation of new collaborative and organizational models will also have positive effects in the long term.

 

These measures are, in the current state of management complexity, increasingly necessary due to the evolution of post-pandemic markets, and the consequent quantitative and qualitative growth of customers. And they constitute our goal with a view to modernizing the logistics offer.

An offer that cannot be separated from a substantial expansion of partnership agreements or from an organizational strengthening of the current company structure, suitable for anticipating the latent and diversified needs of demand and satisfying them.

Deciding to rely on Trasauto Logistica for the transport of your car means sharing our goals, our values, taking advantage of the good things we have done over the last fourty years to make our service more and more effective and qualified.

If you need to transport your car, just fill in our contact form. The staff will quickly draw up a detailed quote that will determine the amount you will have to spend, so that the transport is completed safely and with maximum efficiency.

------------------------

Or, for personalized assistance, you can call the offices in Italy at: +39 (0)828 1818150

or request more information also by e-mail: info@trasauto.com

Articles

Related

Subscribe

Newsletter

Subscribe to our newsletter to stay in touch.