Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 3

Title: Examine the impact of covid 19 on supply chains

In 2020, there was a dramatic decrease in global GDP from 87 trillion in 2019 to 84
trillion in 2020 because of the outbreak of COVID-19.. To restrict the spread of
COVID-19, travel limitation and strict lockdown measures were enacted by
governments. Meanwhile, to protect against the disease, masks and personal
protective equipment were under increased demand and this changed the supply chain
globally. This essay aims to discuss the impacts of COVID-19 in three different
products and services, such as the interruption of aviation,
The first impact of the COVID-19 is the interruption of the international logistics
because of the shutdown of the commercial aviation industry. According to Institute
of Electrical and Electronics Engineers (2020) ,commercial aviation companies limit
their air cargo thus rendering the export and import of medical equipment to other
countries difficult. According to the US Department Of Transportation Security
Administration, the frequency of passenger flights passenger decreased by 95%
compared with the previous year and the baggage hold of the passenger plane
conveyed only 50%-60% of the usual air cargo load, the air cargo occupy 35% of the
value of world trade and as stated in International Air Transport Association (2020),
the international Cargo Tonne Kilometres decreased 10.6% compared with 2019.
Additionally, the are over 30% of the container capacity exited the market and the
suspension rate of the Trans-Pacific trade is 45%. Therefore, international logistics
has been affected immensely.
The second challenge is COVID-19 causes the people has a panic for the health and
decreased the supply of various products such as the agriculture and the electronic
industries. The government of various countries in the world accounced a strict
measure to quarantine the people and there are some experts cannot go to another
countries. According to the Nature Human Behaviour (2020), the COVID-19 strictly
control the business activities and there are a strictly 2 months lockdown in China
and China provides electronic, chemical and gold product to various cooperations in
the world so the Chinese electronic industry of the gobal value decreased 27.3%.
Moreover, the production of the fresh food is a labor-intensive activities, , but the
limited space and the COVID-19 will infect with each other easily and causes the
workers cannot densely work together. Hence, the world third largest rice exporting
country, Vietnam planned to decreased 40% of export quota to other countries and
there will be a decrease for the agricultural products.
References
Institute of Electrical and Electronics Engineers. (2020). Impacts of COVID-19 on
Global Supply Chains: Facts and Perspectives.
https://ieeexplore.ieee.org/abstract/document/9174793/authors

International Air Transport Association. (2020). A ir Cargo Market Analysis.


https://www.iata.org/en/iata-repository/publications/economic-reports/air-freight-
monthly-analysis---december-2020/

Nature. (2020).

You might also like