International shipping, & logistics company in India
The vastness of Indian logistics can be measured by the fact that the warehousing and logistics industry’s share rose from 2% in 2020 to 20% in 2021. Technology advancements and a thriving e-commerce market are driving growth in the Indian logistics sector. It is projected that India’s logistics industry will contribute 14.4% of the country’s GDP. The sector has developed from being primarily concerned with transportation and storage to being specialized in, predictive planning, analytics, value-added services for last-mile delivery, end-to-end product planning, supply chain management, and more.
Given the tremendous boom in international shipping and the interdependence of global economies, India is emerging as one of the major players with a promising growth potential, all set to become the 3rd largest world economy by 2030. Now, if we are to talk about India’s position in the shipping and logistics industry, we may need to analyse and consider several factors and parameters which determine the country’s current positioning in the global shipping realm.
Significance Of Logistics Development
A booming shipping and logistics industry is a major factor that drives a nation’s overall prosperity and welfare. A robust transport infrastructure contributes to the rise in global exports, fuelling economic growth and generating employment opportunities. While India’s passenger and freight mobility sector has come a long way, logistics still faces some major challenges which are readily being addressed by the collaboration of private entities and the Indian government.
Some of the most noteworthy and promising government initiatives like the Sagarmala & Bharatmala Project were launched to boost port and road connectivity, and comprehensive policies like the National Logistics Policy(NPL) were proposed to establish a single-window e-logistics market. It further emphasizes skill development, generating employment, and empowering the MSMEs in the country. No doubt that the Indian government is at the forefront of revamping the country’s shipping and logistics infrastructure, but no industry is immune to barriers and challenges!
Overview Of The Challenges And Opportunites In The Indian Logistics and Shipping Industry
Although the Indian logistics and shipping industry is flourishing, challenges continue to persist, a few of which are listed below:
Given the recent global military and trade wars, fuel prices are the worst affected and with that, the cost of transportation is rising at an unprecedented rate. With the dominance of road freight in India, the burden falls on the logistics companies in India to compensate for their loss by raising the courier charges.
There is no long-term solution to stabilise the fluctuating global fuel prices, as global conflicts will only rise shortly and the OPEC countries will entirely manipulate the oil prices in the upcoming years. A gradual transition to electric freight and bio-fuel substitutes is the only way to overcome the surging transportation cost. Freight consolidation is also one of the effective ways to tackle cargo costs.
Logistics heavily depend on manpower, and it can be challenging to communicate with employees and the workforce who are frequently engaged in transporting goods. The demand for qualified labour in the logistics industry is critical, and the scarcity of drivers is a persistent problem. In addition, there are insufficient training facilities in the country for holistic skill development in the logistics industry.
Handling customer experience
Customers these days have a plethora of options in the fiercely competitive logistics market. To satisfy customers and win their loyalty, logistics companies are expected to provide the finest possible service. It might be difficult for providers to help customers at every touchpoint, and this can negatively impact the customer experience.
Logistics firms frequently face difficulties when they do not have full control or visibility over the supply chain map. To guarantee that goods are taken the right route and arrive on schedule, it is critical to have total awareness of the supply chain at every point.
India’s federal form of governance sometimes becomes the reason for inter-state trade disputes. Since the state governments have the autonomy to craft rules and regulations related to inter-state trade, it creates problems for logistics companies to operate across the states. Also, these rules are subjected to reforms, so that also becomes problematic.
Lack of technological innovations
In the digital age, logistics and shipping infrastructure is still lagging in technological advancements and upgradation. Logistics companies in India still have a long way to go when it comes to adopting state-of-the-art technologies like blockchain, AI, data analytics, warehouse robotics, etc.
What Opportunities Does the Indian Logistics Industry Hold?
The size of the Indian logistics market is anticipated to increase at a CAGR of 5% from 2022 to 2027, generating market revenue of USD 633.6 billion by that time, according to a report titled “India E-commerce Logistics Market Performance and Future Outlook to 2027.”
As the world cripples under the shadows of global conflicts and trade wars, the West and the global South holds high hope and expectations from a booming Indian economy which is becoming the centre stage of global affairs. Flourishing startup culture and entrepreneurship further raises the scope of innovation in the country’s eCommerce market. This in turn lays the ground for the expansion of shipping and logistics companies in India.
Many Indian logistics and supply chain companies are marching towards becoming the leaders in international shipping with an innovative approach to offering global shipping solutions. One such name is NimbusPost, India’s 2nd largest tech-enabled shipping aggregator, whose global network spans 196+ countries and territories. Their extensive network covers 29,000+ pin codes in India with an integration to the top 27+ courier partners. Their innovative approach to catering to the needs of national and global eCommerce businesses is what makes them a crucial player in the Indian logistics industry.