Category Archives: Supply Chain

Tata Steel flagged-off its first batch of liquefied natural gas (LNG) powered vehicles to transport its finished steel products at a function in Nagpur on March 5, 2022. This initiative by Tata Steel is part of its ongoing efforts towards a carbon-neutral future. Under the guidance of Tata Steel’s logistics department, its vendor partners Ashmi Logistics and Shreyas Associates deployed two vehicles each for local movement of the products in Nagpur. The vehicles aim to ferry around 1,000 metric tonnes of product. LNG vehicles don’t emit sulphur dioxide and their NOx and greenhouse gas emissions are up to 85% lesser than vehicles that run on other fuels. Over the last three decades, Tata Steel has made concerted efforts in various areas, including supply chain, to mitigate climate change and manage associated risks. Tata Steel launched its Responsible Supply Chain Policy in FY20 which specifies “Environmental Protection” as an integral sustainability principle for all its supply chain decisions and processes. In February this year, Tata Steel became the first Indian steelmaker to transport goods using inland waterways from the Haldia Port in West Bengal to Pandu Port in Assam, reiterating its commitment to building a sustainable future. In July 2021, the Company pioneered the use of electric vehicles to move finished goods from its erstwhile Tata Steel BSL’s Sahibabad Plant and Pilkhuwa Stockyard in Uttar Pradesh. Tata Steel also became the first steel producer in the world to join the Sea Cargo Charter to reduce ‘Scope 3’ greenhouse gas emissions in ocean trade last year. The Company has been rated “A” and is listed as 2021 ‘Supplier Engagement Leader’ by CDP, a global environmental non-profit charity, for its initiatives to reduce …

Following Russia’s invasion of Ukraine two weeks ago, the global seaborne commodities trading map is still being rebuilt at a breakneck speed. The US announced a ban on Russian oil and other energy imports. In remarks from the White House, President Joe Biden declared, “We’re prohibiting all imports of Russian oil, gas, and energy.” “This means Russian oil will no longer be accepted at US ports, and the American people will give Putin’s war machine another heavy blow.” This will only apply to energy imports into the United States. The United Kingdom plans to enact such a prohibition “before the end of the year.” Other European allies are not expected to join the US in the ban, at least for the time being. German chancellor Olaf Scholz said that although Berlin supported tough measures against Moscow, Russian energy supplies remained “essential” for daily life in Europe. Russia exported 114.2 million tonnes of crude oil to the European Union in the same year, accounting for 53.9 percent of Russia’s seaborne crude exports, plus another 40 million tonnes through pipeline. It sent 4.3 million tonnes of clean oil products to the United States last year, accounting for 6% of Russia’s seaborne clean product exports. Russia sent 41.9 million tonnes of clean oil products to the EU in the same year, accounting for 57.9% of Russia’s seaborne clean product exports. The European Commission outlined plans to rid the continent’s dependency on Russian natural gas by two-thirds by the end of the year, in a plan called REPowerEU. Meanwhile, the war and subsequent sanctions are seeing ships and cargoes pile up at ports across Europe. Leading liners – with the notable exception of COSCO …

Dr A V Ramana, Chairman of the Additional Mangalore Port Authority, announced that three new projects worth Rs 695 crores will be implemented under PM Gati Shakti. Mechanization of Berth No.14 for handling container and other cargos on a DBFOT basis in partnership with JSW, construction of new Berth No.17 for handling bulk and dry-bulk cargos at Rs 217 crores, and development of fishing harbour at Kulai at Rs 197 crores are among the projects. The PM Gati Shakti, a National Master Plan for Multi-Modal Connectivity, was released in October 2021 at a cost of Rs 100 lakh crores with the goal of developing infrastructure while lowering logistics costs and boosting the economy. This includes 16 various ministries such as shipping, waterways, railways, roadways and so on for integrated planning and coordinated implementation of infrastructure connectivity projects. Dr. A V Ramana, speaking at a press conference here, said that the PM Gati Shakti combines infrastructure schemes from various Ministries and State Governments, including Bharatmala, Sagarmala, Inland Waterways, Dry/Land Ports, UDAN, textile clusters, pharmaceutical clusters, defence corridors, electronic parks, industrial corridors, fishing clusters, and agri-zones. He also stated that the Ministry of Ports, Shipping, and Waterways has identified 101 projects to improve port connectivity with consumption and production centres as part of the National Master Plan. In addition, he mentioned that 111 waterways in 24 states around the country have been designated as National Waterways. “Due to semi-mechanized handling of containers, there was tremendous need for the augmentation of the port capacity in handling containers. Mechanized handling of containers at Berth No. 14 will satisfy this and boot the economy of Karnataka’s hinterlands,” he

The International Air Transport Association (IATA) released data for global air cargo markets showing slower growth in January 2022. Supply chain disruptions and capacity constraints, as well as a deterioration in economic conditions for the sector dampened demand. Demand growth of 2.7% in January was below expectation, following the 9.3% recorded in December. This likely reflects a shift towards the more normal growth rate of 4.9% expected for this year. Looking ahead, however, we can expect cargo markets to be impacted by the Russia-Ukraine conflict. Sanction-related shifts in manufacturing and economic activity, rising oil prices and geopolitical uncertainty are converging. Capacity is expected to come under greater pressure and rates are likely to rise. To what extent, however, it is still too early to predict,” said Willie Walsh, IATA’s Director General

Global air cargo markets are already feeling the effects from the Russia-Ukraine conflict, according to IATA, however, the in-depth impact of the same is still to be assessed. Making the assessment based on its latest cargo demand data, IATA reveals that January has been a soft patch for the industry with a global growth of 2.7%, the lowest rise in cargo tonne kilometres (CTKs) since December 2020. Citing the factors responsible for the impact, IATA says that the Omicron variant of Covid-19 on passenger and cargo-only networks in January, notably reduced bellyhold cargo capacity as services were cancelled, plus weaker economic drivers have led to the soft patch of the industry. The airline association further suggested, that due to the pre-Ukraine conflict, the air cargo market was likely shifting “towards a more normal growth rate of 4.9% expected for this year”, following much higher increases throughout 2021. War in eastern Europe has introduced several uncertainties into that market and was already having a negative impact from late February, the airline body states. Consequences seen so far will ”further reduce available capacity and increase already elevated air cargo rates”, IATA says, adding that it is too soon to predict the extent of those developments. However, the increasing cost of crude oil, is likely to be “unprofitable for airlines and air cargo more expensive for businesses”. Although Russia accounts for only 0.6% of global air freight carried, the airspace restrictions will significantly reduce the cargo services to and from Russia, IATA notes. Nevertheless, “several key operators” in the sector are based in Russia and Ukraine, it states. The airspace restricton is also hampering with the Europe and Asia trade, although alternative routings …

As Russia continues its military assault on Ukraine, the Western economies and their allies have retaliated by imposing harsh sanctions on the Russian economy, practically paralysing it. The shipping industry would be particularly affected, as delays and shipping prices are projected to rise as a result of interruptions in the global supply chain. Approximately 15 maritime ports in Ukraine were closed when the war broke out. Cargo loading and unloading has ended. Around 140 ships berthed in Ukrainian ports at the time have remained in the ports ever since. So yet, none of the ports or the ships berthed in them have been attacked. Two ships were attacked while in anchorage leading traders to avoid Black Sea routes for their ships. The ship, which contains electricity, food, and the ability to create water, is always the safest place for sailors in the event of an accident. According to Sanjay Prashar, managing director of VR Maritime Services, while bunkers in ports have been discovered for safely lodging seafarers, ship crews have not moved out of their ships. One of the company’s ships has become trapped in a port in Ukraine. Indian crews are on board some of the stalled ships at Ukrainian ports.

B2B logistics tech platform Oorjaa has raised around Rs 9 Crores in a Pre-Series A round led by Inflection Point Ventures. The round also saw participation from a clutch of HNIs who have invested in personal capacity and through Vinners angel investing platform. The funds will be used to focus on the product and tech development, expanding into new geographies and on working capital requirements. Oorjaa was founded by Sandeep Patil, Prashant Mohite and Yogesh Parab, each with uniquely diverse and complimentary skill sets in late 2019. Oorjaa offers highly effective technology driven logistics solutions aided with transformative technology solutions on auto-routing, network optimization, data analytics, trip management and highly efficient operating processes run by the most skilled and trained manpower. Their biggest strength is having proprietary tools for optimizing logistics operations, diversely skilled founders with decades of experience in building products and businesses. They have bootstrapped to an impressive two-digit ARR with founders’ capital and investment of just Rs. 40 Lakhs. Since its launch in November 2019, Oorjaa has expanded to 15+ cities, 30+ Hub locations, conducting 4000+ orders per day with 200+ Vehicles (inclusive of EV Cargo Vehicles, promoting sustainability). Their B2B clientele include some of the most well-known large e-commerce, food-tech & e-groceries companies.

Cainiao Network (Cainiao), the logistics arm of Alibaba Group, announced the partnership with Qatar Airways Cargo to launch a weekly charter flight from Hong Kong (HKG), China, to São Paulo (GRU), Brazil, and serve one of Cainiao’s fastest-growing e-commerce destinations in Latin America. On 5 March, the first Cainiao chartered Boeing 777 freighter departed Hong Kong Airport (HKG) at 6.45 p.m. UTC, headed for Guarulhos Airport (GRU), São Paulo, Brazil, with a tech stop at Qatar Airways Cargo’s hub in Doha, Qatar. The cargo on board included online retail products such as beauty and fashion goods, jewellery, watches, appliances, toys, and sports equipment. Operating once a week, the Boeing 777 freighter provides 100 tonnes of cargo capacity. “Cainiao’s mission is to deliver globally within 72 hours; a goal that can be achieved with the right logistics partners. In just over a year, Cainiao has established a comprehensive operation in Latin America, and we see that e-commerce retail in Brazil, in particular, is growing at a phenomenal rate. With Qatar Airways Cargo, we are in a good position to support that growth, and look forward to a long and fruitful partnership,” says William Xiong, Cainiao’s Chief Strategist and General Manager for Export Logistics. Cainiao has experienced a three-figure growth rate in its Latin American business over the past year and has driven a focused air cargo network expansion in recent months to secure smooth supply chain performance. “There is no doubt that e-commerce is not only here to stay but is also one of the fastest-growing commodities within logistics, today. It demands versatility, speed, accuracy, and a reliable, global network,” Guillaume Halleux, Chief Officer Cargo of Qatar Airways Cargo, explains. “We …

Jet Freight, one of India’s leading freight forwarders, appoints logistics veteran, Joy John, as its Director for Air and Sea Freight effective March 1, 2022. Joy will be responsible for Pan India Sales and Operations of Jet Freight Logistics Ltd. Joy brings over 30 years of comprehensive experience in airfreight management, freight forwarding, cross-border operations, sales support, business development, and team management skills from his previous roles. He is renowned as a keen planner, strategist, and implementer with demonstrated abilities in accelerating business growth in line with the board’s business plans. As a veteran in the logistics sector, Joy is an effective communicator with excellent relationship-building and interpersonal skills. He is distinguished as a leader with proficiency in analytical and problem-solving competencies. Jet Freight is considered among India’s most renowned freight forwarders, with global operations controlled from offices in India and Dubai. Jet Freight has over 10 regional offices across the country and continues to spread its logistic efforts for superior last-mile delivery solutions. Jet Freight is a technology-enabled company and is on the road to becoming a top choice for freight forwarding and supplying logistics distribution services to its clients. Jet Freight plan to extend seamless and environment-friendly deliveries for their customers. According to Richard Theknath, Chairman and Managing Director, Jet Freight, “We are happy to have Joy John on board with Jet Freight as Director Air-Sea Freight. Given his vast experience in the freight forwarding industry, we are confident that he will take Jet Freight to greater heights and are keen to leverage his leadership skills in enhancing our sales and operations. His competitive selling strategies to improve brand and service awareness will help us enhance our existing …

The Indian logistics sector emerged as one of the strongest support systems for the economy ravaged by a global pandemic. The rise can be attributed to several factors, including appropriate policy amendments and infrastructure support by the government for improving transport and storage facilities, with a focus on reducing the logistic cost. In addition to this, the sector has also be driven largely by fast paced tech adoption, the meteoric rise ecommerce led last mile deliveries, a more robust food and pharma supply chain and AI driven operations. In addition to tech adoption, global trends in adopting Greener business practices are also pushing for adoption of environmentally responsible solutions in logistics and supply chain. This would mean that the next wave of disruption for Indian logistics is set be the evolution of ‘Sustainable’ Supply Chains which are not only environmentally conscious but also efficient in terms of cost, time, fuel and productivity. Hector Patel, Executive Director, and Board Member. Jeena & Co. lists some key points of transformation that will help build sustainable supply chains for India: 1. Tech Adoption 2. Optimised storage Capacity 3. Agile solutions 4. Greener Transportation