The Shipping Reality of a Post-COVID World

The Shipping Reality of a Post-COVID World

The following is an excerpt from an article written by Hannah Testani, COO of Intelligent Audit

We’re living in unprecedented times and I hope that you are staying healthy and (somewhat) sane during these difficult months. I know it can be a struggle.

At IA, we have been focused on two things. First, making sure all of our employees are safe and healthy, and second, providing our customers with the tools and insights necessary to help navigate the changing tides that COVID-19 has brought to global supply chains.

Transportation and logistics have witnessed some dramatic changes over the past several years. Just last week, UPS released its first-quarter earnings and the report was eye-opening. While the impact of COVID-19 was front and center, the real story – from my perspective – was the read-through related to the underlying trends in logistics. The unprecedented measures taken around the world to arrest the current pandemic has provided us with a rare opportunity to gauge the potential impact of the longer-term paradigm shifts in consumer behavior. The increasing share of home delivery and B2C will be with us long after the pandemic subsides and with this quarter’s results, we can see just how problematic this shift could be for carriers, and, in turn, shippers.


Let’s take a look at some of the numbers and then highlight what it might mean for shippers going forward…

What immediately jumps out to me is that while UPS saw revenue increase by nearly $1 billion compared to last year – profitability was down.

Obviously coronavirus had a direct and disruptive impact on carriers’ business. For UPS, home deliveries increased at a rate of 70% compared to 54% the year prior. This change pushed down profitability…


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