The COVID-19 pandemic hit the transportation industry at a critical moment – a juncture at which it was also being impacted by existing countervailing positive and negative dynamics. Boeing’s 737 Max aircraft was grounded, while many airline customers were achieving record revenues and profits. The results of leading global logistics firms such as FedEx and AP Moller-Maersk had been hampered by ongoing global trade tensions. Parcel delivery firms were experiencing growth driven by the rise of e-commerce but were also contending with the entry of potential competitors, including Amazon. As the coronavirus pandemic has progressed and slowed the global economy, Third Bridge Forum has conducted Interviews to share key insights into the immediate and expected long-term impacts of the crisis on the transportation industries that are economic engines.
They have identified companies and industries that are well-positioned for the current challenging environment. For example, in “Land”, certain parcel delivery segments are expected to benefit from people staying at home, while the rise of e-commerce automation is profoundly impacting logistics growth in Indonesia. In “Sea”, the container shipping industry was dynamically managing the crisis by slow steaming, rerouting and acting like a “warehouse on the water.” In “Air”, we discuss how quickly the air cargo market tightened as commercial flights were grounded, shifting some volumes to ocean freight.
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