Prevent Shutdown... Distribution Industry Logistics Centers Implement 'Ironclad Quarantine'

Increased Online Orders Due to Social Distancing Upgrade
Logistics Chaos Even with One Day Closure
SSG.com Doubles Safety Management Staff
Market Kurly and Other Retailers Expand Disinfection and Thermal Scanners

Market Kurly Jangji-dong Seoul Complex Logistics Center Refrigerated Center.
[Image source=Yonhap News]

[Asia Economy Reporter Seungjin Lee] Amid the surge in demand for online grocery shopping such as 'dawn delivery' due to the spread of the novel coronavirus infection (COVID-19), logistics centers of various distribution companies are on high alert for quarantine. Sporadic cases of employees testing positive for COVID-19 have emerged across logistics centers nationwide, heightening fears of a 'shutdown.'

According to the distribution industry on the 18th, logistics centers are on high alert as major dawn delivery and e-commerce companies have consecutively reported confirmed COVID-19 cases, close contacts, and suspected patients. On the 5th, an employee working at Coupang's Bucheon 2 logistics center tested positive for COVID-19, leading to the closure of the center. On the 27th of last month, an employee at Market Kurly's refrigerated center in Jangji-dong, Seoul, was confirmed positive.

In the case of CU, on the 13th, a logistics driver at the Jeju logistics center tested positive, forcing a 24-hour suspension of operations at the center in accordance with quarantine authorities' guidelines. Deliveries were supported from the Seogwipo logistics center located in Seogwipo to ensure store operations were not disrupted, but the situation risked causing a logistics crisis.

As logistics center employees have recently tested positive for COVID-19 in various locations, distribution companies are on high alert. With the social distancing level raised, online order volumes have surged, and even a one-day closure of a logistics center can cause significant delivery disruptions. Some companies are expanding the hiring of daily workers due to labor shortages, but since these workers often work at multiple logistics centers simultaneously, there is a risk of a chain shutdown of logistics centers.

In response, each company has launched an all-out quarantine effort. SSG.com, which had to suspend operations once at the 'Neo003' logistics center in Gimpo, Gyeonggi Province, in August due to an employee's COVID-19 confirmation, has doubled the number of dedicated safety management personnel responsible for logistics center quarantine and installed thermal imaging cameras on each floor, raising quarantine management guidelines to the highest level.

Although SSG.com's dawn delivery order completion rate reaches 97%, and logistics centers operate at nearly 100% capacity, the company reportedly has no plans to hire additional daily workers or increase delivery volumes due to concerns about potential quarantine breaches. For wide-area logistics centers like SSG.com's 'Neo,' even a one-day operational halt can be fatal.

Market Kurly, which experienced multiple confirmed cases from May through August, October, and November, is also focusing all efforts on quarantine. They have installed full-body disinfectant machines and thermal cameras at logistics center entrances and strengthened disinfection measures. In case of confirmed cases, the logistics center will be completely closed, and products that cannot be disinfected will be entirely discarded to minimize customer anxiety.

A distribution industry official explained, "As the number of confirmed COVID-19 cases recently exceeded 1,000, the risk of exposure for logistics center employees has increased, so we are closely monitoring the situation," adding, "We are doing our best to ensure the safety of both customers and employees."