The Effects of Barriers and Freight Vehicle Restrictions on Logistics Costs: A Comparison before and during the COVID-19 Pandemic in Brazil

Abstract

The COVID-19 pandemic exposed the fragility of the supply chains, in which the production, distribution, and transportation systems were disrupted, permanently or temporarily. Despite the enormous influences the pandemic had on transportation systems, no study has yet assessed the extent to which the freight restrictions and barriers influenced logistics costs after the start of the COVID-19 outbreak. However, understanding them is necessary to guide and stimulate public policies that intend to optimize the effects of freight restrictions on logistics costs. Thus, this paper assesses and compares the effects that such barriers in urban freight transport, and the restrictions imposed on freight vehicles, had on logistics costs before and during the pandemic. We surveyed more than 120 logistics professionals in Brazil in both 2018 and 2020/2021, making comparisons using models that were assessed using partial least squares structural equation modelling. The findings suggest that barriers and freight restrictions influenced the logistics costs positively, but such influences reduced during the pandemic. Being aware of the barriers and restrictions that influence logistics costs and of how the pandemic increased the effects of some restrictions is essential for managers to be able make timely and appropriate decisions and to plan and implement initiatives to prevent or reduce costs.