Page 2 - Logistics Sector

Experts cite logistical, Red Sea crisis as issues impacting India's exports

The Red sea crisis and logistical challenges have severely impacted the country's exports in August, which contracted 9.3 per cent, according to exporters and experts. Think tank GTRI said the contraction of petroleum product exports' by 37.56 per cent to USD 5.95 billion in August is linked to the ongoing disruptions in the Red Sea. These exports were USD 9.54 billion in August 2023. "This dramatic decline has significantly impacted India's overall merchandise trade, leading to a 9.33 per cent reduction in August 2024 compared to the previous year," Global Trade Research Initiative (GTRI) Founder Ajay Srivastava said. Interestingly, he said, crude oil prices remained relatively stable between these two periods, suggesting that the drop in petroleum product exports is "linked to ongoing disruptions" in the Red Sea. The yearlong ongoing disruptions have forced shipping routes to take longer paths around the Horn of Africa and the Cape of Good Hope, rendering exports to Europe less

Automation, emerging technology help Indian ports to scale up capacity

India has committed to invest Rs 80 trn for port development. It has built a digital platform called Ulip that allows industry to access logistics datasets on govt systems

Western Carriers collects Rs 148 cr from anchor investors ahead of IPO

Out of the total allocation of 8.597 mn equity shares to anchor investors, 3.993 mn equity shares were allocated to 4 domestic mutual funds, which have applied through a total of 6 schemes

Allcargo Logistics Q1 results: Net profit down 97% at Rs 3.36 crore

Allcargo Logistics standalone net profit nosedived 97 per cent to Rs 3.36 crore in the June quarter of the current fiscal. The company's net profit was Rs 198.26 crore in the corresponding period of last year, according to a regulatory filing. Income from operations for the quarter under review, however, rose 46 per cent year-on-year to Rs 526.47 crore from Rs 360.26 crore in Q1 FY24, as per the filing. Global events coupled with high demand across trade lanes during the second quarter of 2024 (calendar year) have led to improved volumes and increased freight rates, the company said. The demand is expected to continue through the peak season until the end of the year, the company said in a statement. The LCL (less-than-container load) volume for the June quarter stood similar to the same quarter last year at 2.25 million CBM (cubic meter) while FCL (full container load) volume stood at 1,56,000 TEUs, up 9 per cent on a y-o-y basis, it said. The company said its contract logistics

Logistics operator Blue Dart expands direct reach to over 300 pin codes

Logistics operator Blue Dart on Tuesday said it has expanded its direct reach to over 300 pin codes, which represents a significant increase in the company's direct coverage capabilities. By leveraging Blue Dart's connectivity to these additional pin codes, businesses can enhance their supply efficiency through faster, safer, and more cost-effective movements, the company said. Besides, the customers will also benefit from improved transit times, reliability, and access to a broader network. "By expanding our direct reach to more pin codes, we enhance accessibility and empower SMEs and MSMEs to connect and expand their business to both domestic and international markets," said Balfour Manuel, Managing Director at Blue Dart. Blue Dart offers an extensive service network covering over 56,000 locations nationwide. ***** *IHCL inks pact for greenfield resort in Rajasthan Indian Hotels Company (IHCL) on Tuesday announced the signing of a 200-key greenfield resort in Sawai Madhopur, .

Global Distriparks Ltd results: Net profit declines 23% to Rs 49 cr

Logistics operator Global Distriparks Ltd (GDL) on Thursday said its net profit declined 23 per cent to Rs 49 crore during the June quarter over the corresponding quarter of last year. The company had posted a profit of Rs 63.72 crore in the first quarter of FY 24, GDL said. According to the company, total revenue for the quarter under review stood at Rs 357.65 crore, down 4.59 per cent from Rs 374.85 crore in Q1FY24, it said. Revenue from rail vertical dropped 2.86 per cent year-on-year to Rs 289.90 crore while CFS (container freight stations) revenue slipped 11.32 per cent year-on-year at Rs 67.75 crore, the company stated. CFS revenue includes an adjustment of reduction of Rs 8.42 crore on account of a change in accounting method for Q1FY25, the company said. During the June quarter, GDL said, it handled a total container traffic of 171425 TEUs, which was 4.71 per cent lower compared to 170897 TEUs handled in the same quarter of last year. The rail vertical traffic stood at 82

Logistics cost will be below 9% of GDP by April next year, says Gadkari

India's logistics cost will come down to 9 per cent of GDP by April next year, Union Minister Nitin Gadkari said on Thursday. Addressing an event here, Gadkari further said the country's exports will also increase when the logistics cost comes down to single digit. "Our logistics cost now is 16 per cent...It will come down to 9 per cent by April next year," he said. However, according to quick estimates of economic think tank National Council of Applied Economic Research (NCAER), the logistics cost in India ranged from 7.8 per cent to 8.9 per cent of GDP in 2021-22. The road transport and highways minister noted that Indian economy needs to create more jobs. While noting that earlier governments did not give enough attention to rural sector, he said that the Prime Minister Narendra Modi-led government is giving more priority to the agriculture sector. "We need to increase our agriculture growth...We need to increase per capita income in rural areas," Gadkari said. The minister n

Monumental stride in positioning India as logistics powerhouse: Industry

The Union Budget for 2024-25 has taken a "monumental stride" towards positioning India as a global logistics powerhouse as it focuses on infrastructure development, leveraging technology and supporting MSMEs, logistic and shipping industry executives said on Tuesday. "The Union Budget is a monumental stride towards positioning India as a global logistics powerhouse," Gregory Goba Ble, UPS Managing Director in India, said. "This budget has hit all the right notes - focusing on infrastructure development, leveraging technology and supporting MSMEs including traditional artisans through innovative measures such as e-commerce export hubs," He said the initiatives for infrastructure development, particularly the announcement of new economic corridors, along with strategic investments in roads and airports, are poised to streamline logistics operations, reduce costs and enhance connectivity across key regions, charting a clear path towards a more robust, efficient and globally competitive

Navigating the lanes of logistics with Chander Agarwal

Indian family offices change startup bets after funding peaked in 2021

Consumer, retail and transportation and logistics technology startups have been the largest beneficiaries

Budget 2024 expected to boost infra, and logistics with increased capex

Even as the industry wants a 25% increase in capex allocation in the Budget for FY 2024-25 over revised estimates for FY24, experts feel there may be limited capacity to spend on projects

ULIP offers huge opportunity for states to enhance logistics sector: DPIIT

The Unified Logistics Interface Platform (ULIP) offers huge opportunities for states to enhance their logistics frameworks, a top government official said on Monday. Department for Promotion of Industry and Internal Trade (DPIIT) Secretary Rajesh Kumar Singh encouraged all states to actively leverage ULIP and drive forward a seamless, efficient and inclusive logistics sector across India. The platform was launched on September 17, 2022, as part of the national logistics policy. It is a digital gateway that allows industry players to access logistics-related data sets from various government systems through API-based integration. Currently, the platform integrates with 37 systems from 10 ministries via 118 APIs, covering over 1,800 data fields. Private sector participation in the ULIP has been instrumental in amplifying its impact, with over 900 companies registered on its portal. Additionally, these companies have developed over 90 applications, leading to more than 35 crore API .

Cost, speed top priority for logistics sector: Last-mile trends report 2024

Cost and speed has now become the top priority of the firms engaged in logistics business for the last-mile delivery of goods and growth of the sector, a report has said. According to the Last-Mile Trends Report 2024, earlier the top priority was cost and satisfaction. "In last-mile delivery now top priority is cost and speed. The needle has shifted from cost and satisfaction to cost and speed," it said. The report was unveiled during 'The Last Mile Leaders Event" organised by technology platform FarEye in collaboration with Microsoft this week. Kushal Nahata, Co-founder and CEO of FarEye, said that within the next five years, autonomous drones will handle 30 per cent of urban deliveries, reducing delivery times and costs dramatically. The report was based on insights gathered from over 300 leaders across five continents, representing companies with a combined revenue exceeding USD 100 billion. Out of 300 participants, over 50 per cent stated that they deliver the goods same day/

Indian road logistics industry revenues to grow at 3-6% in FY25: ICRA

The Indian road logistics industry's revenue will remain range-bound and grow at a slower pace of 3-6 per cent in the current financial year, rating agency ICRA said on Monday. The rating agency further said it expects softening in the government capex during the elections (given the Model Code of Conduct requirements) and moderation in consumer demand sentiments amid high inflation and interest rates. ICRA said operating profit margins are expected to remain range-bound at 10.5-12.5 per cent in FY2025 as concerns on cost inflation persist. The outlook for the sector continues to be stable, fuelled by sustained momentum in economic activities, enhanced traction of organised trade and continued support from varied segments like e-commerce, FMCG, retail, pharmaceuticals, and industrial goods. It said e-way monthly volumes remained largely stable in the last four months at above 85 million, post reporting all-time high volumes of 100 million in October 2023, signifying resilient domes

Eastern Railway earned highest freight revenue of Rs 7,774 cr in FY24

The Eastern Railway has earned its best-ever freight revenue of Rs 7,774.62 crore in the financial year 2023-24, an increase of 19.47 per cent over the previous fiscal, an official said here on Monday. The Kolkata-headquartered zonal railway recorded a growth of 8.91 per cent in passenger revenue, earning Rs 3,573.31 crore in 2023-24, he said. It achieved a freight loading of 86.87 metric tonnes in 2023-24, which is nine per cent more than the previous fiscal. Eastern Railway received Rs 7,774.62 from freight revenue in 2023-24, recording a 19.47 per cent increase over the previous fiscal 2022-23, the official said. It also achieved a best-ever scrap sale revenue of Rs 479.98 crore in the just concluded financial year, he said, adding that this demonstrates effective resource management and revenue optimisation strategies by the zonal railway.

Need to focus more on security aspects related to air cargo: Home secy

Home Secretary Ajay Kumar Bhalla on Monday said the country's civil aviation sector is witnessing rapid growth that will also bring different kinds of challenges, and highlighted the need to look more at security aspects related to air cargo. Speaking at the function to mark the 38th Raising Day of the Bureau of Civil Aviation Security (BCAS) in the national capital, he emphasised the need for using cutting-edge technologies in various areas, including surveillance. The country's aviation sector is seeing rapid growth and records are likely to be set in 2024. In the years to come, it will be much more, Bhalla said. However, he also said challenges of different kinds are also going to come. One area of concern is about air cargo, Bhalla said, underlining the need to look more at the security aspects in this regard, especially the "safety and security of multi-modal transport". While stressing that all have to put their efforts together, Bhalla said new technologies are creating mor

All-Indian crew on container ship that collided with Baltimore bridge

The entire 22-member crew of the cargo ship that struck a major bridge in Baltimore early Tuesday, causing it to snap and plunge into the river below are Indians, the company said. The Singalpore-flagged container ship "Dali" collided with one of the pillars of the Francis Scott Key Bridge in Baltimore at approximately 1:30 am local time. According to the vessel information provided by the Synergy Marine Group, the crew was All Indian, 22 in total. The "Dali" has a capacity of 10,000 TEU and onboard Units: of 4,679 TEU. Grace Ocean Private Ltd owns the vessel and the ship's movement was outbound from Baltimore to Colombo. Owners and managers of the Singapore-flagged container ship DALI report that the vessel collided with one of the pillars of the Francis Scott Key Bridge, Baltimore, whilst under pilotage with two pilots onboard, at approximately 01:30 local time on March 26, ship management company Synergy Marine Group said in a statement. It said: All crew members, including th

'IAF's Gagan Shakti exercise from Apr 1, Army providing logistical support'

The Indian Air Force's 'Gagan Shakti' mega exercise is slated to be held over 10 days starting April 1, encompassing both western and northern fronts, sources said on Tuesday. Fighter planes and helicopters taking off from different parts of the country will "engage pseudo targets" at Pokhran Field Firing Ranges in Rajasthan during the massive exercise held every five years, the sources in the defence establishment said. Ahead of 'Gagan Shakti 2024', the Indian Army has been involved in providing logistical support to the IAF in the true spirit of "achieving synergy in various domains", they said. The exercise "encompassing both the western and northern fronts" is scheduled to be conducted from April 1-10, they said, The Army has facilitated a "comprehensive pan-India move of approximately 10,000 IAF personnel" and ammunition to validate the Operational Rail Mobilisation Plan (ORMP) aspects of the IAF, the sources said. "This involved formulation and facilitation of rail move plan

Cabinet approves inter-governmental agreement between India-UAE on IMEC

The Union Cabinet on Wednesday approved an inter-governmental framework agreement between India and the United Arab Emirates on cooperation for the India-Middle East Europe Economic Corridor. The aim of the inter-governmental framework agreement (IGFA) is to enhance the bilateral ties and further strengthen the relations between the two countries in ports, maritime and logistics sectors, an official statement said. IGFA includes areas of cooperation with the objective of exploring the further potential of future joint investment and collaboration with respect to the development of the India-Middle East Europe Economic Corridor (IMEC). The agreement contains a detailed framework for cooperation between the two countries. The cooperation will be based on a set of mutually agreed-upon principles, guidelines and agreements, consistent with the relevant rules and regulations of the countries' jurisdiction.