Examining the effects of COVID-19 on logistics and supply chain networks in Oman
DOI:
https://doi.org/10.5055/jem.0721Keywords:
COVID-19, lockdown, logistics, supply chain, operations, economic impact, OmanAbstract
Our study analyzes the economic impact of COVID-19 and its subsequent border closure and the lockdown on the logistics, transportation services, and supply chain networks, most notably the closure of industrial complexes, commercial centers, and loss of jobs and businesses. As the pandemic disruption of the global supply chains reached its peak in the Middle East region, with approximately 22 percent decline in turnover of goods transport companies in 2020, we empirically assess the impact of this decline on the revenue, demand of services, operation, wages, and employments in the logistics companies in the Sultanate of Oman. Methodologically, we employ the Kolmogorov–Smirnov test, McNemar’s test, and Wilcoxon Signed- Ranks test to analyze the primary data collected from 61 survey questionnaire responses and 20 interviews of senior executives of these companies. Our results reveal unfavorable pandemic externalities on the surveyed companies’ balance sheet, demand for services, operational capacity, wage payments, and employee layoffs. We also observed strong correlations between the timely goods delivery and customs clearance and material shortages, and between customs clearance and material shortages. Our findings have practical implications for company executives to lessen the effects of the pandemic on the reduction of company income, service demand, operational capacity, salary payments, and employee layoffs. Policymakers must develop appropriate policy measures to enhance port competitiveness and improve customs procedures and service delivery.
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