COVID-19 and transport costs: An impact on supply chain risk and companies’ performance

Abstract

The aim of this work is to assess the risk of the COVID-19 pandemic on supply chains, with particular reference to Italy and China relations, and taking into consideration issues related to logistics and transports which can harm the survival of companies. First, this thesis provides an overview of trade relations between Italy and China, in order to examine the evolution of the supply chains between these two countries. Import-export flows from 2010 to 2020 are analyzed, with a brief outlook on their changes due to COVID-19. The evolution of international supply chains and the dependence on other countries for the procurement of goods and raw material and for the export of finished products, lead companies to be exposed to greater risk situations. The second chapter focuses on supply chain risks and supply chain risk management and provides an explanation of the main risks affecting international supply chains, according to the main studies of SCRM. The third chapter deals with the assessment of the risks that COVID-19 has caused to supply chains, analyzing issues related to logistics and transport. The focus is primarily on maritime transport, air transport, and the cost of raw material. Having investigated the major threats, the last chapter focuses on the assessment of their effects on the economic and financial performances of companies through a case simulation. Finally, possible solutions for preventing supply chain breakdown and fostering resilience are presented.