The global Covid – 19 pandemic has thrown everything off balance. Nearly every type of business in the world was affected by the consequences. Four Winds Saudi Arabia is no exception to this. Even though there have been problems, the performances varied greatly, even within the same countries and industries. Shipping and logistics companies are the ones that have suffered the most, due to many countries locking down. The losses they suffered are worth a lot of money worldwide. But not only do businesses suffer, but the customers also did. People who are used to fast shipping now had to wait. And it often was waiting for something that never arrived. But with the situation slowly getting better, shippers can make up for lost time in 2021 in different ways. If this is something that interests you, we encourage you to keep on reading.
How did the pandemic affect businesses on a global level?
- The sales dropped by 50% for one forth of businesses. That results in an average drop of 27%, which is still a lot. Cargo transport company is one that that suffered a big sales decline, due to countries locking down.
- Only 11% of companies had to release their workers. 65% adjusted to the situation by reducing hours, payments and granting leaves
- On a worldwide level, 34% of businesses have increased their online presence via social media and digital platforms
As we can see, there were a lot of changes on the market since the pandemic started. Some industries and companies adjusted successfully, while some didn’t.
How shippers can make up for lost time in 2021?
Responding to their customer’s needs in the right way
Shippers can make up for lost time in 2021 by properly responding to their customer’s ever-changing needs. That means adapting to different things for different customers. The challenge here is acknowledging what a certain type of customer needs. Logistics companies in Jeddah see this as a good way to make up for the lost time. The success rate of this tactic depends on how the businesses were doing during the pandemic peak. Some were in pure survival mode, only earning the pure minimum to avoid bankruptcy. Others have exceeded expectations and managed to bloom when the whole world was withering. But truth be told, there is a small number of those examples.
Use a recovery loan scheme
Companies have the opportunity to access support in the form of a loan scheme. The initially planned scheme was extended and expanded so that businesses that had a turnover of less than $250 million can apply for loans. The amount is up to $5 million with terms up to 10 years. Another plus is historically low rates. The former problem with this scheme was a narrow group of businesses that could apply for this aid. The criteria were that the business got a JobKeeper during the first quarter of the year or that it was affected by floods. The new expanded scheme allows a bigger number of companies to apply for support.
How shippers can make up for lost time in 2021 – conclusion
The pandemic has caused a lot of problems, but the human population has always found ways to keep moving forward. Logistics companies in Middle East, like many others, will find ways to defeat the troubles. Shippers can make up for lost time in 2021 and they will succeed to do it. All they need is determination and time.