Demonetisation hits cargo movers' mood, outlook

SICAL Logistics has taken a 15% revenue hit in the past 50 days

Demonetisation has worsened the business mood for domestic shipping and logistics companies, already struggling with volatile freight rates.

With cargo-owners not ready to commit for the usual quarterly, annual or bi-annual contracts in the year ahead, uncertainty in terms of revenue visibility is setting into domestic logistics companies.

“There is a fear of the unknown among cargo owners. First came demonetisation, then was remonetisation (issue of new currency notes) and we do not know what comes next. Due to this, cargo owners are not ready to commit for longer contracts. They all want vessel-to-vessel basis contracts,” said a top official with SICAL