Logistics business sees sharp decline

30 June 2020

Logistics sector is one of the most important areas of economic growth of a nation and most of the logistics in the domestic market are transported by the containers. Therefore, container trucking is the essential part of the holistic growth of the nation. So far containers are the most effective means for transporting the goods across the country. As Yangon is the commercial city in Myanmar, it has emerging business market of container in Yangon. Yangon port and Thilawa are the two most important ports so far. However with the outbreak of COVID-19, this container and truck sector sees a sharp decline during this period according to the report by U Aung Moe, the chairman of Myanmar Container Trucking Association.

 

Speaking to MI Radio, U Aung Moe said, “There is a huge difference before and after the outbreak of COVID-19, before COVID-19, we usually transported more than 100,000 containers across Myanmar, but it has now gone down to one-third of the total number. And it has higher possibility of declining further in the coming months because the orders placed before COVID-19 arrived in the middle of April and till last month we were still unloading the goods. We are seeing the decline of the business and it will not recover soon for sure.”

But on the other hand, the decline of the business during monsoon season is not the unusual case for container trucking business and rainy season is the time when this business sees the down flow of the goods.

Speaking on what are the goods which are transported the most by this containers U Aung Moe also said, “Some of the most exported goods are bean, maize and rice along with vegetables including fruits. For the import, it includes food for animals, other household products, construction materials and other chemical products for the factory use.”

According to U Aung Moe, after the restriction put forward by the government not to go out at night, the container trucking work became quite easier and faster inside Yangon as the traffic jam was reduced at night.

The issue this container trucking business facing is, there are some container drivers who are driving the containers with expired driving license and in response to this remark, U Aung Moe said that the reason for some of the drivers who drive improperly is, there are truck drivers who expired driving license but as the license office were closed for months, they were not able to renew their licenses but this container trucking association is hoping to deal with this issue soon.

U Tin Myo Win is one of the businesspersons who runs container trucking business and he also spoke to MI Radio and he said, “As we transport the imported goods and products to the local market across Myanmar, we also transport the local goods and products to some of the main ports in Yangon for export. We also have border gate exporting such as Muse and Myawady, so we use container trucking for this border pass business as well. Every place has their own specific need, for example, Kachin state has demand of machine related products, other places have demand of iron and metal, some places are in need of agricultural implements. For variety of consumers demand all over Myanmar, container trucking is the main distributor in this sector.”

The impact of COVID-19 is affecting both the transporting the goods and exporting the goods and it is an unexpected challenge of COVID-19 facing us. Therefore, Myanmar Container Trucking Association said that the association must be prepared for any other challenges in the coming years on how to look after one another and maintain the business without going panic.

Willinson