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Supply chain disruption begins to worsen, says Logistics UK survey


As the economy continues to be rocked by the fallout from the COVID-19 pandemic and a second national lockdown begins in England, the logistics sector continues to experience significant disruption.

Logistics UK’s sixth Logistics Performance Tracker (LPT6) survey for October, reveals that disruption in the supply chain has begun to worsen compared to a month ago, specifically in terms of freight volumes. More than six out of ten respondents (60.8%) reported some disruption to their overall freight volumes, while more than four out of ten (40.4%) respondents reported disruption to the number of units in operation. However, less disruption to respondents’ cash flow and cash reserves was reported than a month earlier.

FOOD AND DRINK STABLE

Survey respondents transporting food and beverages by road experienced less supply chain disruption than the total number of respondents. A significant improvement in overall freight volumes was reported by respondents in this sector, with 57.6% experiencing normal performance, compared with only 27.3% in September. Offsetting this improvement, however, is the fact that more respondents in this sector are reporting extreme disruption, and more than one in four (26.7%) are experiencing issues with customers paying on time.

SEVERE DISRUPTION INCREASES

The level of severe and extreme supply chain disruption experienced during the lockdown began to ease in May and continued to fall for most indicators in September; however, disruption is now on the rise again.

BUSINESS OUTLOOK FALLS

Respondents’ outlook for the next six months fell slightly for the second consecutive month, but remained positive, with an average rating of six out of ten. Respondents reported that their financial health rose slightly in October compared to September, from 6.86 to 7.15. For the first time, the survey measured respondents’ confidence in preparedness for the end of the EU transition period. It was generally positive, with an average rating of 6.2.

HAVE YOUR SAY

With a new month-long national lockdown beginning in England today, the sector continues to struggle to recover from the effects of the COVID-19 pandemic. Logistics UK needs your responses. If you would like to take part in future Logistics Performance Tracker surveys, please visit the website link below.

*https://logistics.org.uk/lpt

 

Published On: 05/11/2020 14:03:53

 

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