The effects of container imbalance and COVID-19 in logistics firms are significant and can be remedied. CO VID stands for “Cost of Goods Lost or Saved”. It is a calculation that evaluates the cost of merchandise lost or saved through the use of containers, less any cost of shipping. The imbalance refers to the excessive loading of containers in shipping yards or outside storage facilities, which forces goods into areas where they compete for space with other goods, resulting in diminished profits for the shipping company.
The main cause behind this imbalance is poor communication between shipping companies and their clients. Sometimes, this can result from a lack of accurate information on goods that are eligible for transportation by freight forwarders. Other times, it can be caused by a long-standing policy of holding inventory at the maximum allowed weight. When a shipping company receives an order for goods that exceed the maximum allowed weight limit, it should contact its customer to determine whether the order is allowable. If it is not, the shipping company should decline the order or resubmit the order to state the order is authorized. This allows the shipping company to assess whether it should continue to hold the excess stock or allow it to be sold to a carrier that will take delivery of the product.