priiyaanss

Logistics, e-Commerce & warehousing to boost Indian economy

As the Indian growth story has progressed, the logistics industry has played a vital role in empowering other sectors. G.V. Sanjay Reddy, Vice Chairman GVK, highlights “how the logistics sector in India, which was at $160 billion in 2017, has witnessed a tremendous growth. In 2020, its market was estimated at $215 billion”. The underlying factors driving this upward trend is the increasing demand of e-commerce in the non-metro cities of India. In recent years, e-commerce has expanded aggressively to tier-2 and tier-3 cities across the country, which has further led to the growth of the logistics sector to keep up with the rising demand. In the fourth quarter of 2020, smaller cities accounted for 46 per cent share in total e-commerce volumes, marking a steep 14 per cent rise from the period just before the Covid-19 pandemic spread. A striking reason for the increased online spending per customer in these cities is driven by the development of last-mile delivery by the logistics companies and an exponential increase in the warehousing space. This trajectory is expected to continue with annual investments being made to the tune of $500 billion, with the projected CAGR for 2019-2025 standing at 10.5 per cent. Similarly, the investments made in the warehousing segment have increased by $7.12 billion between 2018 and 2020.

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Shipping lines skip Busan due to capacity issues

South Korea’s Ministry of Oceans and Fisheries said that liner operators have been omitting calls to Busan, reportedly because Chinese shippers are more willing to pay higher freight charges. Citing data from Busan Port Authority, the ministry said that from the beginning of this year to 10 July, 6,767 container ships entered the country’s busiest container port, a decrease of about 700 (9%) compared to the same period last year. THE Alliance, comprising Hapag-Lloyd, ONE, Yang Ming and HMM, is among those skipping Busan. From 19 July to 15 August, the alliance’s MD2 Asia-Mediterranean service will not stop at Busan. To maintain schedule reliability and prioritise container allocation, liner operators have been skipping ports that are perceived to be less important, said Linerlytica analyst Tan Hua Joo, who told Container News that the situation is not unique to Busan. Chinese ports Qingdao and Tianjin have also been affected, even though Tianjin is the main port serving Beijing.

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Hyperport, heralding a new era in container transportation

HyperPort is a sustainable high-speed cargo and freight solution which is capable of increasing capacity and efficiency while also keeping a check on the pollution and congestion at ports worldwide. The system which is developed in partnership with terminal operator Hamburg Hafen und Logistik AG, is said to be going into certification design review. At present, as part of its short term concept, the companies are developing a VR demonstrator that will be presented at the ITS World Congress in Hamburg later this year from October 11-15. Engineered to current industry standards, the new concept is a plug-n-play solution for port operators who are capable of transporting containerised cargo hundreds of kilometres away, in minutes. It will be capable of sustainably moving 2,800 containers per day at speeds of up 600 km/h (327 mph). The new system is considered to give the Airplane speed at the price of freight cost. It is potentially two or three times faster than high-speed rail and has 10 times the speed of regular rail services. Also, it is more energy efficient as the track doesn’t need to provide power to the pods continuously. Furthermore, the pods can leave every 30 seconds, and this makes it an on-demand service. Such exceptional speed makes it very well in sync with the changing consumer demand and the rising concept of same day deliveries.

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BIAL and IBM partner to create ‘Airport in a Box’ platform

IBM and Bangalore International Airport Limited (BIAL) operator of Kempegowda International Airport, Bengaluru (BLR) announced a ten-year partnership under which IBM and Kyndryl will provide the finest IT solutions. The plan is to create a new ‘Airport in a Box’ platform that will support transforming the end-to-end travel experience for passengers at BLR Airport. To achieve this goal, BIAL has selected IBM global business services, IBM hybrid cloud capabilities and Kyndryl, the new, independent company that will be created following the separation of IBM’s managed infrastructure services business, to design and implement a next generation architecture with robust and dynamic delivery model. The new platform will also enable BIAL to improve employee productivity, better utilization of IT assets, reduce costs through streamlined inventory control and improved incident management. IBM and BIAL will work to ensure that the platform supports BIAL’s commitment to sustainability and the community at large. BIAL recently achieved its goal of net energy neutral status in the financial year 2020-21, consuming energy from renewable sources.

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Spoton Logistics improves efficiencies for an auto components giant

Spoton Logistics, India’s premier technology-driven logistics company, successfully eliminated operational inefficiencies and increased monthly sales turnover by over 3-times for one of India’s largest auto components manufacturers. Spoton drastically reduced the Order-to-Supply turnaround time – by an astonishing 30%, improved customer collections, as well as significantly increased repeat orders resulting in record-high production and sales units. Delivering service excellence to over 5500 customers in India over the past nine years, Spoton Logistics was entrusted with the responsibility to manage post-production operations. Spoton’s team deftly redesigned workflows, packaging, and weights and measures processes in order to bring about improvements in the entire supply chain processes. Abhik Mitra, MD & CEO, Spoton Logistics, expressed, “We are honoured to work with giants in India, helping them simplify their workflows and attain positive business outcomes with the amalgamation of cutting-edge technology and our service excellence. We are certain to deliver substantial value to our customers through our integrated logistics services impacting their bottom-line results in a positive manner.”

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Container shortage hits Indian exporters

Foreign buyers have started cancelling the shipments boarding from India because the exporters are not able to avail any containers leading to consignments lying at various ports for weeks together. This, coupled with ever-soaring freight rates and congested ports, has left the small-time exporters of India fighting for every penny as the freight rates are higher than the cost of their product. Container News spoke with the Managing Director of the New Delhi-based clothing manufacturer, Jyoti Apparels, HKL Magu, who said that “high freight rates can be absorbed, but unavailability of containers has changed the rules of the game. Several vessels are bypassing India because there are no containers for consignments to be shipped. Sometimes our consignments are lying in ports for three to four weeks. International buyers tell us to either cancel the order or send it by air. But air freight rates have also skyrocketed”.

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JMB extends help with Oxygen Cylinders

The exponential surge of coronavirus infection over the past few weeks has swamped the health care system that witnessed patients facing many challenges in getting oxygen at the right time thus resulting in lots of deaths at various situations. The dire shortage has turned out to be a major challenge faced by hospitals in many states across the country. Several healthcare centres in Indian cities and towns have run short of the gas leaving the people helpless. Recently JM Baxi Group had supplied Oxygen Cylinders to the states of Delhi, Andhra Pradesh and Maharashtra. At the time of extreme crises faced again across the country JM Baxi has once again extended its hands to help the needy in the imports of oxygen cylinders through Visakha container Terminal. The imports are done by WAN HAI lines that brought 14×20’ of oxygen laden cylinders from Qingdao & 25×20’ of empty cylinders on their service “m.v. TRF Kaya” arrived Visakhapatnam Port on 09th July. The unconditional support from the shipping fraternity in carrying these oxygen cylinders across the country is truly commendable. Despite the challenges of the lockdown VCT also continued to render its services through the able support of all the concerned stakeholders.

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Air Canada Cargo achieves $358 million revenue

Air Canada Cargo, the cargo division of Air Canada announces their quarterly results. They believe this quarter has seen their best performance ever. Canada’s largest airline and the flag carrier’s, Air Canada Cargo, achieved a record $358 million in revenue. This represents an increase of $89 million, or 33 percent compared to the same quarter in 2020. The second quarter results were recently announced and the highlight of the financial numbers for the North American carrier was the cargo revenue. “We’re tremendously proud of the strongest quarterly results Air Canada Cargo has ever seen, which are a testament to our continued efforts to maintain stable and consistent capacity flows for our customers across the globe through cargo-only flying,” said Matthieu Casey, senior director, cargo global sales and revenue optimization at Air Canada.

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35 Multi-Modal Logistics Parks projects to come up

Cabinet Committee on Economic Affairs (CCEA) on October, 2017 had approved Phase-I of Bharatmala covering 24,800 km of roads under Bharatmala Pariyojana in addition to 10,000 km of residual NHDP, at an financial outlay of Rs. 5,35,000 Crores. Apart from above highways projects, CCEA also mandated MoRT&H to develop 35 Multi Model Logistics Parks (MMLP) across the country. The list of 35 MMLPs is provided at Annexure – I. The status of 35 MMLPs along with land acquisition and the status of detailed technical assessment is provided at Annexure – II. The status of detailed technical assessment is provided at Annexure – II. 35 MMLPs being implemented by MoRTH are to be developed under Public Private Partnership (PPP) on Design, Build, Finance, Operate and Transfer (DBFOT) mode. The bidding documents (The Model Concession Agreement and Request for Proposal) for these 35 MMLPs is under finalization. Based on outcome of DPR/Feasibility Studies and approved bidding document, the tender will be invited from companies.

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Lufthansa Cargo modernises RFS high-rack storage system

Lufthansa Cargo, supported by Miebach Consulting, is modernising the infrastructure for its road feeder services (RFS) at its Frankfurt hub. On behalf of the carrier, two mechanical companies — Vollert Anlagenbau and Körber — will carry out the modernisation of the RFS high-rack storage system, including its mechanical, control and IT features. Completion of the RFS stacker conversion is planned for early summer 2023. The complete modernisation of the Lufthansa Cargo Center is expected to be finished in 2029. Harald Gloy, chief operations officer and chief human resources officer at Lufthansa Cargo, commented: “The modernisation of the RFS stacker is another important component of the extensive infrastructure program for the logistics center at the Frankfurt site. In the future, our RFS customers will benefit from shorter turnaround times and more efficient handling of transports by truck. With the help of a modern IT environment, we are ensuring the adaptability of the high-rack storage system with regard to upcoming technological developments.”

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