Logistics firms report loss of earnings from COVID-19 outbreak
Logistics firms report loss of earnings from COVID-19 outbreak
Hit by the ongoing COVID-19 outbreak, around 15 per cent of logistics firms have experienced a 50 per cent decline in revenue against 2019, according to a survey by the Vietnam Logistics Association (VLA).
Around 15 per cent logistics firms experienced 50 per cent decline in revenue over the COVID-19 outbreak
|
Around 50 per cent of companies also reported a 10-30 per cent decline in logistics services in local and foreign markets against 2019. Logistics enterprises said that the difficulties come from shipping lines and airlines. Specifically, shipping lines such as ONE, HMM, and others are reducing connectivity to China, South Korea, and Japan, affecting delivery schedules and service quality.
Most imports to Vietnam also plummeted as other markets are strictly quarantined. In particular, the operations in Asian markets have been slower than usual.
Besides, the shipping lines also reduced trips because of the decrease in goods flow. The schedule of trips keeps changing without notice, hence affecting customers' business plans.
According to the VLA survey, many airlines have cancelled flights to China, South Korea, Hong Kong (China), and other infected areas. Also, the fares are increasing far higher than usual.
With regards to road transport, it is difficult to find logistics companies providing services to border lines. Reduced cargo volume leads to a 30 per cent reduction in road transport demand.
The VLA has made a number of recommendations and proposals to support logistics businesses and mitigate the damage wrought by COVID-19. Specifically, the association proposed relevant authorities to provide a 50 per cent reduction of corporate income tax for 2020 or preferential electricity price for cold storage businesses.
