Yogesh Dhingra, Founder, Managing Director and Chief Executive Officer, Smartr Logistics says “In line with the recently launched National Logistics Policy and the PM Gati Shakti scheme, reducing overall logistics costs in India from approximately 14% currently to under 10% of GDP is a priority for India. The upcoming budget would expect to build upon the work outlined in the prior year with a focus on multimodal connectivity and improving physical infrastructure. We could expect to see more allocation for the national highway network, towards rail infrastructure in an expansion of tracks as well as container capacity, development of cargo terminals and warehousing capacity which will further strengthen the groundwork for an integrated logistics system. We would also expect the government to continue to build on the UDAN scheme with new airports for enhanced regional connectivity and increased capacity at existing airports. We are certain that the government’s strategic moves will continue to develop the logistics sector and improve India’s supply chain competitiveness.”

Sanjay Bhatia, Co-founder & CEO, Freightwalla also shares, “In the upcoming budget, a further focus towards holistic infrastructure creation would significantly help the MSMEs and large exporters. In the infrastructure, crucial attention must be given to digitisation of the entire supply chain system for smooth functioning and lowering the logistics cost that benefits the MSME exporters. A budget allotment towards digitisation will be a catalyst for the EXIM fraternity. Special emphasis on container manufacturing, budget allocation for strengthening inland waterways and boosting multimodal connectivity will help bolster the exports. Broadening the scope of the PLI scheme by incentivising other segments like apparel, chemicals, and heavy machinery would also help significantly in boosting India’s exports. 6.3 crore MSMEs of India are the economy’s backbone by generating over 11 crore jobs and contributing over 30% to India’s exports. Despite such a robust presence, most of these MSMEs face multiple challenges in their day-to-day life. A seamless supply of working capital is one of them, due to which their production growth is hindered, and the balance sheet is affected. Targeted efforts towards creating a long-term solution for addressing working capital needs at a subsidised rate for rural and semi-urban micro and small enterprises will help them get in the export race with their larger counterparts. Some specialised incentives for women entrepreneurs, especially from rural areas, would also be instrumental in bringing much-needed gender parity.”

Nitish Rai, CEO and Co-Founder, FreightFox says, “Sub-par transportation infrastructure and poor on-the-go visibility are the country’s biggest problems, and the government has taken initial steps in the right direction towards improving it. 1. Greater push towards completion of DFCs and expressways will help increase utilisation of resources and improve speed of goods movement. 2. Inclusion of fleet owners under the GST, would help them save upto 10% of their costs incurred towards new fleet, tyres, etc. 3. bringing diesel under the purview of GST has been mulled over, but this step can further lower costs upto 7-8% for fleet owners 4. We also expect more support for our transporters on the road, especially in the form of affordable board and lodging. 5. Investment in digital R&D for the supply chain is critical, especially in an era of hyper-competition and significant opacities along the way. In the current economic climate, supply chain efficiency is vital to ensure that India’s economy stays robust. Making that a reality requires government support- and we’re confident the 2023 Budget will reflect that.”

According to Motilal Oswal Financial Services, Logistics activity improved in Dec 2022, with daily average e-way bill generations rising 1% MoM. The fleet utilization level stood at 80-85% during the month. Daily average FASTag toll collections jumped 3% MoM in Dec’22. EXIM container volumes handled by Indian Railways increased 6% YoY, with the market share of Indian Railways in EXIM containers rising to 36% as of Dec’22 from 33% in Dec’21. Overall, the container volumes handled at ports decreased 3% YoY. Volumes handled at major ports rose 10% YoY to 69.5mmt. Iron Ore/Fertilizer/Coal/ POL reported growth of 35%/11%/39%/5% YoY in Dec’22. Diesel consumption improved to 8.3m tonnes in Dec’22. Daily average e-way bill generations up 1% MoM; daily average toll collections up 3% MoM in Dec’22 Daily average e-way bill generation rose 1% MoM and clocked 2.7m/day in Dec’22. After robust logistics activity in Nov’22, the demand for logistics continues to improve in Dec’22, driven the easing in commodity prices and inflation in the last few months. E-way bill generations jumped 17% YoY in Dec’22, with intra-state bill generations increasing 23% YoY and inter-state rising 9% YoY. The daily average FASTag toll collection improved 3% MoM to INR1.59b/day. Rail EXIM container volumes increase 6% YoY in Dec’22; Rail gains market share in container traffic While overall container volumes handled at ports decreased 3% YoY, EXIM container volumes handled by Indian Railways increased 6% YoY in Dec’22. The Railways’ market share in EXIM containers rose to 36% in Dec’22 from 33% in Dec’21. Domestic container volumes handled by Railways improved 12% YoY. Traffic handled at major ports up 10% YoY in Dec’22 Iron Ore/Fertilizer/Coal/POL reported growth of 35%/11%/39%/5% YoY in Dec’22, …

Nishith Rastogi, Founder and CEO, Locus highlights trends for 2023 in logistics he says, “With the number of deliveries expected to be on the rise, several trends are expected to emerge, including: The rise in omnichannel retail: Omnichannel retailing is a process where businesses integrate all the channels to provide seamless shopping experiences to their consumers. Buying online and picking from stores (BOPIS) is a clear example. As a result, businesses increasingly invest in omnichannel capabilities to improve delivery control, speed, flexibility, and costs. It cuts unnecessary time for the product to move across intermediaries like the brand mother warehouse and makes last-mile logistics more efficient. The growing importance of Sustainability: Rising awareness around the need for sustainable operations has prompted businesses to find new ways to make last-mile fulfillment sustainable and more efficient. One example is how businesses invest in micro-fulfillment centers that are closer to customers to reduce emissions and speed up deliveries. We also expect to see continued investment in electric vehicles, parcel lockers (automated parcel devices that serve as alternate delivery locations for dense delivery zones), and greater adoption of route planning solutions to find the optimal route. That said, sustainability will take many forms going forward. Increasing adoption of technology solutions: Logistics and supply chain experts predicted that after 2022, businesses would move away from survival mode and double down on future growth opportunities. The number of packages that consumers order continues to be on the rise, and investments in logistics technology will give businesses the ability to make quick and informed decisions and differentiate their last-mile fulfillment experience. Studies have shown that by 2024, 50% of supply chain organizations will invest in applications that …

Gubba Cold Storage Pvt Ltd is planning to expand its services PAN India and in April 2023 the company is going to unveil a 6,000 pallets capacity facility with robust shuttle racking infrastructure at Gundlapochampally in Hyderabad, says Kiran Gubba, CEO, Gubba Cold Storage Pvt Ltd. At present, the company has 3 facilities located in Vishakapatnam, Hyderabad and Aurangabad with 5000 pallets & 2500 tons capacity.

Stellar Value Chain Solutions is planning to invest approx. INR 200 crores over the next 3–4 years to build modern, tech-enabled fulfilment centres exclusively for D2C (Direct-To-Consumer) brands. The company has plans to scale up the cumulative D2C fulfilment space to approx. 7 million sq. ft. in Mumbai, Delhi, Bengaluru, Chennai, Hyderabad, and Kolkata by 2026. The D2C fulfilment centres will be located at key strategic locations and will cater to all sectors, with key focus on electronics, fashion, FMCG, and home décor. Stellar Value Chain Solutions is looking at onboarding around 20 D2C brands as its initial pool of D2C clients. These centres will be equipped with advanced technologies that will empower the D2C brands with new-age supply chain solutions while building smarter 3PL strategies. The centres will also offer fast shipping and efficient return management services. Commenting on the plan, Anshuman Singh, Chairman & Managing Director, Stellar Value Chain Solutions Pvt. Ltd. said, “With the rise in the adoption of digital channels and technologies as well as the robust growth of the start-up ecosystem, India is in the middle of a D2C revolution. We intend to develop a strong supply chain backbone for emerging and growth focused D2C brands by rolling out advanced D2C fulfilment centres across key consumption centres pan India. We have always been ahead of the curve in our mission to strengthen our service offerings, and the plan to launch a D2C fulfilment centre is in line with that outlook. Our tech-enabled fulfilment centres, along with modern transportation solutions, will help D2C brands deliver a superior customer experience. Our larger goal is to support large-scale entrepreneurship across the country with our differentiated supply chain services.”

Zaiba Sarang, Co-founder, iThink Logistics shared her expectations from the upcoming budget and said, “Logistics is one of the most competent industries in the world, to the point where it is regarded as the foundation upon which all other businesses are built. As a result, when discussing budget allocation, we must recognise how critical it is to not only invest in this sector but also to ensure that our investments are directed toward areas that truly matter. Logistics is one of the unorganized industries, so we should anticipate investments in activities that will make it more organized. PM Gati Shakti, for example, has focused on seamless multimodal connectivity to enable smooth operations. We can anticipate the implementation of the National Logistics Policy, which will reduce the cost of GDP from 14% to single digits. There has also been discussion about investing in making this sector carbon-neutral by using less carbon-emitting fuels, electric scooters, and other similar technologies. On top of that, we can expect Rs 2 lakh crore in investments in port infrastructure to alleviate logistics inefficiencies. Overall, we can predict that 2023 will be the year when the logistics industry reaches its full potential.”

There are mixed signals regarding air cargo’s outlook after November saw another double-digit percentage decline in demand. The latest IATA statistics show that airfreight demand in cargo tonne km terms (CTK) declined by 13.7% year on year in November. Capacity for the month fell by 1.9% against last year and load factors were down 6.7 percentage points to 49.1%. The decline is the ninth demand decline in a row and reflects high inflation that is curtailing the spending capacity of households, the ongoing war in Ukraine disrupting trade flows, and the “unusual” strength of the US dollar making commodities traded in dollars more expensive in local currency terms. “Air cargo performance softened in November, the traditional peak season,” said IATA director general Willie Walsh. “Resilience in the face of economic uncertainties is demonstrated with demand being relatively stable on a month-to-month basis. But market signals are mixed. “November presented several indicators with upside potential: oil prices stabilised, inflation slowed and there was a slight expansion in goods traded globally. But shrinking export orders globally and China’s rising Covid cases are cause for careful monitoring.” Looking at regional performance, airlines based in the Asia Pacific region suffered the largest percentage decline as demand in CTK terms fell 18.6% year on year. “Airlines in the region continue to be impacted by lower levels of trade and manufacturing activity and disruptions in supply chains due to China’s rising Covid cases,” IATA said. North American carriers saw their cargo traffic slide by 6.6% year on year in November, which was an improvement on the 8.6% fall registered in October. European carriers noted a 16.5% decline in November. “This was an improvement in performance compared …

FedEx Express is deploying 30 TATA Ace EVs in Delhi as part of its goal to achieve carbon-neutral operations globally by 2040. Introducing electric vehicles (EV) marks a critical milestone for FedEx, as the company plans to transform its entire parcel pickup and delivery fleet to zero-emission electric vehicles by 2040. FedEx has a goal of converting 50% of its global pickup and delivery vehicle purchases to electric by 2025, with that increasing to 100% by 2030. Last year, the company conducted EV trials in India to test the vehicle technology and assess the vehicles’ operational effectiveness on a standard route fully loaded with packages. Based on these trials, each new electric vehicle added to the FedEx fleet is estimated to save up to 1.3 tons of carbon Emissions annually. “At FedEx, we have ambitious sustainability goals, and our phased approach to vehicle electrification is a crucial part of our roadmap to reduce environmental impact in pursuit of a greener world”, said Suvendu Choudhury, Managing Director of FedEx Express India Operations. “The increasing popularity of e-commerce means transforming our operations to be more sustainable is more important than ever. The electrification of our fleet will go a long way towards minimizing carbon emissions in our operations while at the same time sustainably delivering to the same service standards,” he added.