Icra revises outlook on logistics sector to 'negative' from 'stable'

With gradual easing of lockdown curbs, E-way bill generation has revived to about 70%, while railway and seaway freight volumes have revived to 85-90% of pre-Covid levels in June

Icra has revised the outlook on the logistics sector from ‘stable’ to ‘negative’ given the prevailing circumstances and its near impact on the industry metrics.

The rapid rise of Covid-19 pandemic and subsequent restrictive measures implemented by the central and state governments to contain the disease has adversely impacted the prospects of the Indian logistics sector, especially the road freight transportation movement.

The implementation of the 40-day nationwide lockdown aggravated the prevailing softness in the Indian economic activity, resulting in a decline in freight availability during Q4 FY2020, which further contracted sharply in Q1 FY2020.

“The implementation of nationwide lockdown to contain the