Aviral Consulting released knowledge report on key drivers and indicators for growth of logistics sector in India. Understanding the interplay between key growth indicators and the logistics sector is crucial for industry stakeholders. By analysing these indicators, stakeholders can better forecast and react to shifts in the economic landscape. Key economic metrics, such as Gross Domestic Product (GDP), inflation, and trade volumes, are intrinsically linked to the expansion of the logistics sector. Staying informed on these drivers sets businesses up for smarter decision-making and growth Surendra Ahirwar, Joint Secretary – Logistics, Department for Promotion of Industry and Internal Trade unveiled the report at International Supply Chain and Logistics Summit 2024. During his opening remarks to the attendees, he mentioned various initiatives of Government for improving logistics efficiency. About the report he mentioned “This report brings out a lot of insights about multiple aspects of the economy and just not economy but also the logistics sector in particular. I really appreciate the effort and, the kind of, mixed scenario which report is bringing about, which can be called as optimistic, less optimistic, and maybe, you know, normistic” The report was researched and authored by  Vikash Khatri (Founder, Aviral Consulting) and his team. The report was highly appreciated by everyone present at the event. Khatri also gave a short presentation post unveiling event, explaining the contents of the knowledge report and what he envisions to achieve with it. The report, he said, is a overview of the state of knowledge on the topic, and it provides insights into current trends, key economic indicators and its foreseeable impact on logistics sector. He went on to add that Aviral Consulting will continue for its commitment …

IndoSpace announced its plans to increase its investments up to INR 4,500 crore in new logistics and warehouse parks in Tamil Nadu. Following an INR 2000 crores MOU with the Tamil Nadu government last year, this new announcement highlights the firm’s dedication to both the state and the Make in India initiative. These parks will support the growing manufacturing sectors like automobile and electronics in the state. Significantly, this investment is expected to create 8000 + new jobs, accelerating economic growth and enhancing the state’s already credible industrial infrastructure. Tamil Nadu continues to be a preferred destination for global Original Equipment Manufacturers (OEMs), with companies like Hyundai, Nissan, Foxconn, and Pegatron announcing significant expansions in the state. IndoSpace has helped in developing an ancillary ecosystem that supports these OEMs, facilitating seamless supply chain operations and enabling faster industrial growth. The company’s strategic parks, located across key industrial zones, have provided state-of-the-art infrastructure to industries, contributing significantly to Tamil Nadu’s growing prominence as a global manufacturing hub. IndoSpace’s presence in Tamil Nadu: With a portfolio comprising 15 Grade A parks, IndoSpace has developed over 8.8 million square feet of completed infrastructure, with an additional 2 million square feet under construction and 4.6 million square feet planned for future development. These parks are spread across 649 acres of land and serve 66 unique tenants from a variety of sectors, including automotive, electronics, logistics, and engineering. IndoSpace’s total equity committed to the state as on date stands at USD 380 million, and the facilities offer a potential chargeable area of 15.4 million square feet, reinforcing IndoSpace’s strong presence in Tamil Nadu’s industrial ecosystem.  

Logistics Data Bank (LDB), a key initiative under NICDC Logistics Data Services Ltd. (NLDSL), has achieved a significant milestone by successfully tracking over 75 million EXIM containers. This achievement underscores LDB’s role in transforming India’s logistics ecosystem, providing the sector with greater visibility and analytics. CEO & MD, NICDC and Chairman, NLDSL, Rajat Kumar Saini commended the achievement, stating, “This is a monumental achievement for NLDSL and LDB. Tracking 75 million containers reflects the growing impact of digitalization in India’s logistics sector. LDB has significantly enhanced the country’s supply chain efficiency and is instrumental in India’s journey toward becoming a global manufacturing hub. Our commitment remains unwavering in continuing to support the growth of the logistics sector.” LDB serves as a single-window container logistics visualization system, providing comprehensive tracking using container numbers. This system tracks containers between ports and their hinterlands, including Inland Container Depots (ICDs), Container Freight Stations (CFSs), port-associated parking plazas, toll plazas, railway stations, industrial corridors, SEZs, and empty yards, etc. during EXIM and domestic journeys. The World Bank’s Logistics Performance Index (LPI), which ranks countries based on their logistics performance, has recognized the pivotal role of LDB in India’s improved rankings. India’s LPI ranking improved from 44 in 2018 to 38 in 2023, showcasing the significant advancements in logistics efficiency driven by LDB’s contributions.

According to the International Air Transport Association (IATA), August was the ninth consecutive month of double-digit year-on-year growth for the global air cargo market boosted by global trade growth, e-commerce demand and ocean shipping constraints. Total demand, measured in cargo tonne-kilometers (CTKs), rose by 11.4% compared to August 2023 levels, said IATA.  Capacity, measured in available cargo tonne-kilometers (ACTKs), increased by 6.2% compared to August 2023. This was largely due to 10.9% growth in international belly capacity. Industry-wide capacity has reached an all-time high, noted the trade body. And the cargo load factor was up two percentage points to 44%. Despite global record capacity and falling fuel prices, the global air cargo yield maintains a moderate upward trend.“We continue to see very good news in air cargo markets,” said Willie Walsh, IATA’s director general. “The sector recorded a second consecutive month of record high demand year-to-date. Even with record levels of capacity, yields are up 11.7% on 2023, 2% on the previous month, and 46% above pre-pandemic levels.“This strong performance is underpinned by slow but steady growth in global trade, booming e-commerce, and continuing capacity constraints on maritime shipping.”  

The Storage Solutions business of Godrej & Boyce announced the acquisition of Armes Maini to support India’s rapidly evolving logistics and warehousing sector, the business has substantially enhanced its production capability with this strategic move. The acquisition includes a state-of-the-art manufacturing facility on the outskirts of Bengaluru, boasting a robust capacity of 20,000 tonnes per annum, spanning 150,000 square feet. Equipped with cutting-edge technology and infrastructure, this facility will increase capacity for shelving solutions by around 35%, playing a critical role in meeting the surging demand for efficient and scalable storage solutions driven by changing consumption trends. This move comes at a crucial time when the logistics industry is experiencing unprecedented growth, driven by evolving consumption patterns and the rapid expansion of quick commerce platforms. Mr. Vikas Choudaha, Executive Vice President & Business Head, Storage Solutions, Godrej Enterprises Group, said,“With only 40% of current warehousing facilities classified as Grade A, there is a pressing need for sustainable, cutting-edge solutions to improve the quality and efficiency of India’s warehousing infrastructure. We intrinsically understand the evolving needs of our country’s burgeoning logistics and warehousing sector, and by expanding our capabilities we are actively contributing to India’s infrastructure development. As the dominant player in India’s storage solutions industry, with over 30% market share, this strategic acquisition reaffirms our commitment to nation-building.  Our enhanced capacity will allow us to meet the increasing demands of boomingsectors like e-commerce and quick commerce driven by consumption trends and serve the demand for advanced warehousing solutions.”

Amazon Transportation Services (Amazon India) and the Department of Posts (India Post) announced a strategic Memorandum of Understanding to fortify their nationwide logistics partnership. By combining Amazon’s customer-centricity and technological prowess with India Post’s vast last-mile delivery network and decades of expertise, the collaboration aims to redefine benchmarks in e-commerce logistics. Under the MoU, the two will closely synchronize operations through seamless integration and knowledge exchange to maximize efficiencies, optimize resource utilization, and explore capacity sharing across their logistics networks. The alliance will drive mutual growth while elevating the delivery experience for Amazon customers, especially in remote and rural parts of India. In the last 2-3 years, India Post’s footprint across Amazon logistics network has more than doubled with pickup points growing from 6 locations to 13 locations across the country. In another first, Amazon became the first ecommerce company to enable an end-to-end integrated cash-on-delivery solution with India Post. This along with overall improvements has resulted in a near 3X increase in the volume of Amazon parcels being delivered via India Post in the past 18 months. Abhinav Singh, VP Operations, Amazon India said, “Our relationship with India Post has been a pivotal part of Amazon’s growth story in India and has contributed to making ecommerce a nationwide phenomenon. By joining forces with this iconic institution that has served India for decades, we have been able to create new benchmarks in logistics and customer service repeatedly over the years. This aligns seamlessly with the government’s vision to modernize and augment India Post’s services and reach using cutting-edge technology and processes. As we elevate this alliance to the next level through the MoU signed today, I am confident that the best …

  Neetu Chadha, Associate- Director, Air Exports, WIZ says, “Cargo security is an important aspect throughout the entire supply chain to prevent theft, damage, and pilferages in various stages, from warehousing to terminals and air transport. Effective security measures can protect goods and maintain operational integrity. The entire industry must adhere to the guidelines set by IATA and TSA. Compliance not only avoids legal repercussions but also ensures that safety standards are met, protecting employees and the public. Effective cargo security measures help identify and mitigate risks early in the process. By taking security measures and adhering to guidelines from regulatory bodies, companies can protect their assets and foster a culture of safety and reliability within the industry. Security breaches can tarnish a company’s reputation, leading to loss of business and customer trust. Technology such as GPS tracking can enhance cargo security.”

Dipen Lalsodagar, Deputy Director, Cargo Sales, Global Aviation Services says, “Aviation industry is the most vulnerable to security threats. Aircraft flying at high altitudes are unable to take any immediate measures in any kind of emergency, hence, all kind of security measures are mandatory on ground. At the terminal, cargo x-ray detects suspicious items detrimental to aircraft and passengers. During transportation, security supervision prevents thefts and damage to cargo & help airlines and consignee save billions in claims and goods rejection. Regulatory body guidelines are as per international standards they make the aviation industry safe from any kind of threats, hence, it is mandatory to follow them meticulously during entire supply chain.”

Nihar Parida, Air Cargo Consultant says, “While cargo security is crucial and guidelines exist in India, implementation remains inconsistent due to factors like inadequate infrastructure, outdated technology, and weak regulatory enforcement. Additionally, limited awareness and investment in security protocols contribute to gaps, leaving the supply chain vulnerable to risks. Strengthening these areas is essential for comprehensive compliance and protection.”

Sunil Kohli, Managing Director, Rahat Cargo says, “The protection of cargo has been a crucial factor right from its exiting the shipper’s warehouse until it’s handed over to the airlines. The consequences of not sufficiently protecting cargo can be devastating, ranging from financial loss and damaged reputation to long-term, intricate legal disputes. And considering the fact that presently the thieves are highly tech-savvy and constantly developing modern ways and strategies to steal cargo from shippers, it’s essential that the vehicles must be equipped with high quality seals with unique serial numbers, barcodes and GPS for easy tracking followed by strict security protocols and procedures for handling, loading and unloading cargo to minimize the tempering or theft. The custodian of the airport are also expected to install CCTV at the strategic locations apart from keeping strict vigil on the movement and activities by its personnel concerned. The monitoring cell should also be imparted with the related training for proper implementation of security measures.”