CARGOCONNECT-JANUARY 2021 - Flipbook - Page 12
This has also ensured sufficient supplies of food and other daily needs products. E-groceries continue to meet the
increasing demand for daily supplies
required by consumers.
The progress of these new and upcoming sectors has a direct impact on
the growth of the Indian logistics industry’s inventory management and effective transportation and warehousing
solutions for the retail industry.
The transport industry correspondingly will also move to the new-normal
– characterised by some consolidation,
rationalised assets in terms of the number of trucks, rationalised pricing for
customers, exiting of several unorganised players that were over-leveraged
and were barely surviving in the preCOVID times too.
Amidst all these, the good news is that
imports have picked up, giving an overall
push to trade in and out of India. While
the trends inspire optimism, business is
not back to the same levels as pre-COVID.
12 | CargoConnect jANUARY 2021
Companies continue to steer through
foggy conditions and expect the business
to be somewhat back to normalcy in the
first half of 2021. A lot of it depends on
several external factors, first being the
vaccine against COVID, its efficacy and
its global distribution.
Innovate, improve, and
Although the pandemic impacted international trade, and transport of cargo,
the domestic supply chain for essential
goods, powered by an aggressive e-commerce growth, kept the country’s logistics sector afloat.
Roadways were relatively less affected by COVID-19’s impact on the logistics sector when compared with Airways
and Waterways, while Railways brought
sigh of relief transforming itself to carry
goods across the country, a trend that
was initially seen amongst the aviation
industry as passenger flights turned to
stand-in freighters and PAX aircrafts.
Amidst the pandemic, as air cargo
became critical to transport essential
shipments such as relief materials and
controlled room temperature medicines
extra planning was put to ensure market
capacity demand levels, while providing
compliant storage, transit and customs
clearance to help products move quickly
and retain their efficacy. Considering
domestic air cargo, the need was again
felt for more customs-bonded warehouses that play a key role in faster shipment of export consignments or clearance of imported goods.
From the cargo handling point of
view, Indian airports have seen significant progress in Mumbai, Delhi, Hyderabad and Bengaluru. Kolkata and Chennai are also coming up but at a slower
pace, while rest of the airports remains
under-utilised. The dwell time on export
has come down to 12-24 hours and import
is around 72-48 hours with 100 per cent
cargo being cleared within 72 hours.
In a country like India, trucking is
seen as a critical mode of transport and
amid the pandemic, its relevance grew
more than ever, while air and sea modes
were struggling with capacity constraints. However, the primary concern
faced by the road transport segment is
driver shortage and ensuring the health
and safety of the available drivers as
well as their infrastructure. Being the
preferred mode of transport for essential
goods, road transport is relied upon
heavily for the continued supply of food,
medicine, and other essential products.
As we talk about increased efficiency
and safety measures, it is noteworthy to
mention that with the internet revolution
gaining momentum and companies digitising their operations, third party logistics players, i.e. logistics aggregators are
ramping up their service offerings.
With increased automation and technology-driven solutions to meet the demand and boost business, logistics players are also looking to optimise costs.