Indian warehousing and logistics sector have demonstrated resilience and continued growth, despite the economic headwinds brought upon by the COVID-19 pandemic. Factors which contributed immensely to this remarkable growth are growth in e-commerce, digitalisation and government’s highly ambitious initiatives like ‘Atmanirbhar Bharat’ and ‘Ease of Doing Business’. Large-scale development of Grade A warehouses, logistics parks, dedicated freight corridors and world-class infrastructure by the private players supported by government policies has given a much-needed fillip to the sector and attract more and more foreign investors who are bullish on India as a industrial and manufacturing hub and ready to pour billions into India in a variety of service sub-sectors indicating sustainable growth. Amidst the pandemic, industrial real-estate has truly become the next frontier of investments and development. Ritika Arora Bhola reports…
Indian warehousing and logistics sector, with its outstanding contribution especially during the pandemic, is all set to make a global benchmark in the coming years. According to research reports, the sector is expected to attract nearly US$10 billion investments over the next 4-5 years.
The COVID-19 pandemic has resulted in fueling the growth of the e-commerce logistics sector. E-commerce players are seeking alternative warehousing locations to help in the continuity of their business, along with mitigating delivery delays. According to a report published by Unicommerce, as of June 2020, India's e-commerce industry noticed an overall order-volume growth of 17 per cent post COVID-19 outbreak.
“While manufacturing and other industrial activities encountered a slowdown due to the pandemic, the logistics industry has been on the frontline since the beginning of the unprecedented crisis, ensuring supply chains remain intact,” says Abhijit Malkani, Co-CEO and Country Head, ESR India. “The pandemic has actually accelerated the scope and the pace of e-commerce adoption, facilitated by increased digital penetration, expansive internet data coverage, and rising consumerism. India’s logistics industry has been not only been successful in generating employment but is also working towards optimising last-mile delivery, efficient transportation, shorter delivery timelines, etc.”
“Favourable policies are helping the industry to move from a ‘tax planning’ to a ‘supply chain planning’ efficiency model,” is what Ashish Sharma, Director– Contract Logistics for CEVA Logistics (India) feels. In addition, he says, changing consumer behaviour is encouraging e-commerce buying patterns. All these factors require a very well-oiled and agile supply chain, meaning the supporting infrastructure, in terms of transport and storage should be highly efficient, scalable, and accessible. As a result, we see growth in the warehousing sector with a large number of companies looking to consolidate their facilities and aspiring for more and more tech-driven facilities. E-commerce is pushing the supply chain to gear up for servicing tier II and III cities, resulting in the growth of efficient and scalable warehousing across locations within India.”
Research reports from JLL India Industrial Services notifies that 2020 witnessed a 13 per cent y-o-y growth in total stock in Grade A and B warehousing space in top eight cities. The overall warehousing space stands at 238 mn sq ft in 2020 compared to 211 mn sq ft in the previous year. Vacancy rate in warehousing segment has hovered around 10 per cent for the last 5 years and has shown the same tendency even during 2020. Interestingly, with factors such as, 100 per cent FDI and long-time leases on logistics and warehousing real-estate, the investment is facilitating a robust growth of good quality Grade A warehouses.
According to Chandranath Dey, Head- Operations & Business Development, Industrial Services, JLL India,“During 2020, end-users/tenants continued to look for new and innovative ways for taking up spaces on short-term or temporary leased tenure of 9 -12 months—for further renting out any such white/unused spaces on sub-lease—in existing leased out models. In Q4, the market started gaining momentum with highest supply and absorption in 2020 post COVID-19 lockdown.”
“Sectors such as e-commerce, pharmaceuticals and FMCG are witnessing an increased growth with specialised demand of warehousing spaces including cold storage and in-city warehousing. This has increased an uptake in demand of urban logistics and cold chain infrastructure. These trends have resulted in transformation of the logistics sector from a supporting service sector into an essential and mainline sector.”
Importantly, investors are hopeful of the warehousing segment emerging stronger from the crisis globally and institutional investors are expected to continue to acquire warehousing assets in the coming years. In light of the growing demand and supply dynamics, India’s warehousing sector has already evinced significant interest from local and global investors.
Reportedly, India’s warehousing market is expected to be an estimated US$12.2 billion in 2020, growing to US$19.5 billion by 2025. This kind of growth is expected to come from development of large logistics parks to support growing space requirements, from improving allied infrastructure such as road, rail and communication networks, while ensuring the availability of a trained workforce.
Abhijit Verma, Executive Director & CEO of Avigna Group agrees. “Overall quality of assets has improved due to which longevity, safety and security has increased. The quality of Grade A warehouses are now as per the International standards which is giving confidence to more investors to invest and even attracting MNC clients who demand such facilities. In 2020, warehousing industry in India was valued at Rs 1,050 billion and expected to grow at the CAGR of 14 per cent between 2021 and 2025 to reach a value of Rs 2,028 billion. With this rapid growth and modernisation happening in the warehousing sector, young professionals are also considering this as one of the potential career opportunities.”
“The warehousing industry underwent a radical shift in the past decade fuelled by increasing demand for Grade A spaces. Interest from institutional investors wanting to invest in modern assets with higher yield grew more, supported by reforms and infrastructure developments introduced by the government,” says Malkani. “Increased investments have led to the development of quality assets with international standards for global companies to expand their operations in India. At present, investors are upbeat about the warehousing sector due to the continued growth of the e-commerce industry leading to an increase in demand for Grade A facilities.”
“Additionally, availability of quality infrastructure, reforms to further enhance Ease of Doing Business will attract international players and provide the necessary impetus to fuel the growth of manufacturing in India.”
Dey takes into account the same. “There has been an increased demand for international standards of compliance, human safety, hygiene and technology-solutions in terms of warehousing requirements from global manufacturers and occupiers. This is in line with the affinity being shown towards Grade A warehouses with a shift towards technological advancement and automation in terms of modernisation and optimisation. Built-to-suit, plug-and-play facilities developed across the country by large developers are being provided to international companies who may be facing land-related issues while setting up any asset.”
In fact, with modernisation and technological upgradation, Grade C warehouses are also coming into Grade A and Grade B category, says Sharma. “The structure and quality of construction of warehouses has improved drastically. For instance, traditionally, warehouses were just of 7-8 mt in height but at present, it is 12-13 mts whereas the throughput capacity has reached 7-9 tonnes from previous 2-3 tonnes.”
“In 2015, Grade A consisted of only 3 per cent of warehousing space which has gone up by 10 per cent in 2019 and this clearly indicates that the sector is not only growing but is getting more organised.”
Tapping demand to improve customer service and operations
The Indian warehousing market is now at a crucial point in its evolution. Modernisation, automation and tech-enabled facilities are an area with huge growth potential and that is something operators have well understood. This alone is a prime factor drawing the interest of big foreign manufacturing companies to invest in the Indian market.
Dey explains, “With a wider internet penetration, technology enabled growth drivers like automation, real-time tracking, RFID for automated data collection and stock identification are becoming increasingly popular. Furthermore, modern Warehouse Management Systems (WMSs) and other IT driven solutions are helping create an efficient warehousing network that provides integration with automatic material handling equipment, cross-docking, yard management, labour management, billing and invoicing, etc.”
“However, under the present working conditions, the job in a warehouse is not very attractive for skilled young people. Although with the changing design and work environment of logistics centres and logistics parks, there is still a long way to go.”
“A well-trained workforce is a challenge in this sector,” Sharma agrees. “We have an unskilled, untrained labour class working in the warehouses. There is no formal education or training given to the warehouse operators. The industry needs to catch up fast on this aspect in order to succeed.”
The change happens to take place. Industries are experiencing competition to secure warehouse labour and are in the race to win an available skilled workforce. To worsen this impasse, customer’s expectations about delivery time grew exponentially in 2020. Businesses try to deliver continuous and in-time operational recovery whilst creating work conditions that make it simpler to attract, train and retain associates.
Malkani says, “Companies will widely adopt automation to reduce human contact, enable safer practices and achieve consistency and efficiency in their operations. Modern warehouses, today, are employing skilled workforce to adapt to automated processes. Consolidated, large scale industrial and logistics parks compared to standalone buildings will deliver operational efficiency, implementation of sustainable practices, shared costs, secure and digitised premises and create more employment opportunities in surrounding regions,” points out Malkani.
What also needs to be discussed and addressed is storage with respect to agricultural warehousing, which is one of the primary concerns, especially for the government as there are several loopholes that exists. From agricultural produce to cold chain and industrial goods to e-grocery product basket, demand will determine the diversification and restrcuturing of every warehousing asset. This would eventually mean that customers, irrespective of where they live, will get what they want, along with the benefits of improved logistics cost efficiencies.
According to the data released by the United Nations Food and Agricultural Organisation (FAO), more than 40 per cent of the food produced is wasted at the consumer and retail level.
“Revamping agricultural warehousing in a revolutionary manner is the need of the hour to have a positive domino effect,” says Verma. “The exigency to increase the scientific storage capacity of agricultural products stems from the fact that India has an ever-growing population to cater to, along with the rise in production capacity since the green revolution.”
“Although India’s entry is late in the world of modern warehousing, the sector is fast adapting and quickly accelerating to catch up to the standards, in the next 2-3 year’s time.”
Strategy for a new India
At present, the Indian warehousing sector is at an inflection point and is expected to grow at a CAGR of more than 20 per cent in the coming years. The sector will have more of Grade A warehousing and logistics facilities in the country in the coming years, making the most of the conducive global environment to attract Foreign Direct Investments (FDI). Providing tax incentives to foreign investors to invest in areas that need funding such as infrastructure appears to be working in attracting investments such as the ones from the Abu Dhabi sovereign wealth fund.
“The warehousing sector is one of the hottest spaces for the investors right now,” Verma says. “2015 onwards, the sector has seen an average investment of approximately US$2 billion. The investors list includes some of the top foreign alternative investment firms from Singapore and UAE as well as many leading domestic players are making mega investment in the warehousing sector in India,” he informs.
According to Malkani, supportive government policies like conferring infrastructure status to the logistics sector, and initiatives to create multimodal logistics parks, enhance cargo movement through development of roadways, special cargo trains for agriculture and food transport, etc. are set to impact the growth of the sector, making it very attractive among large investors with long-term capital commitment.
In fact, government’s recent initiative, ‘Atmanirbhar Bharat’ (Self-Reliant India) also focusses on limiting imports and increasing domestic manufacturing capabilities. The recently introduced Production-Linked Incentives (PLIs) in various sectors such as electronics, pharmaceuticals, food products, white goods, telecom and networking products, auto components, etc. are also targeted towards attracting global manufacturers and choosing India as the preferred destination.
According to the JLL Research, Logistics and Industrial assets accounted for 16 per cent of global investments in 2020, an increase from 10 per cent in 2010, while the share of office assets reduced from 40 per cent in 2010 to 35 per cent in 2020.
“During 2016-2020, several global funds with marquee developers have formed platforms worth US$12 billion for deployment in dedicated asset classes, where warehousing accounted for the largest share of 43 per cent. Many large international players are now actively entering in the Indian warehousing market,” adds Dey.
“The liquidity infusion by global investors is prompting the market to develop more Grade A warehousing space. Foreign investment is largely coming in by partnering with a local developer or a global warehousing operator. Increased capital will ensure more quality space is being built to fulfill the demand for warehouses near emerging urban areas across the country,” he says.
The larger picture and path-dependencies
By the time all of this unfolds to its full potential, no other market in the world in terms of consumption would be as big as India. Going by global industry projections, India’s population will be 1.6 billion by 2050 which means one in three middle-class consumers in the world, would be an Indian. The retail segment alone is likely to be worth US$8 to 10 trillion.
Given India’s renewed vision to position itself as a strong market in global value chain, this appetite is expected to grow considerably.
Modern-day Grade A warehouses, automated material handling solutions, smart logistics and supply chain operations—complementing dependence on online shopping and time bound (even same day) deliveries—have today become the buzzwords of the industry.
“The interface of technology is a new change. Shift in buying behaviour from physical stores to e-commerce platforms and direct-to-consumer via mobile devices has led to demand of more storage space than ever before,” Verma says. “Price is no longer a competitive differentiator as quick shipping is. This has led to setting up of warehouses in even tier I and II cities which was otherwise concentrated around the business corridors of metros.”
“Cold storage has become a crucial asset class during the pandemic, fuelled by online grocery commerce and pharmaceutical companies. The shift from Grade B to Grade A expedited during the pandemic with companies wanting to consolidate their operations and implement automation and digitisation,” highlights Malkani.
“A major trend observed in the warehousing industry is the growing demand for ‘Ready Spaces’ or buildings with a shorter delivery timeline at select tier I and II cities to absorb the rising demand created by the burgeoning e-commerce industry,” he says. “Construction delays and disruptions have contributed to this trend.”
“The pandemic has led to a surge in grocery commerce and delivery of essentials. With last-mile delivery playing an instrumental role, in-city distribution has become the need of the hour,” he explains. “Multilevel warehousing is likely to gain prominence in the future.”
Trends Report
As these trends collide, the sector and its stakeholders must prepare for a number of strategic imperatives. Key among these are transformative mega trends, and internal challenges, with so many economic and social shifts set to occur—the evolution of millennials, the growth of people and their aspirations, and increasing digital divides. Last, businesses will face internal challenges as job automation and acceleration reconfigure the workforce, along with the urgency of corporate reskilling.
Sharma jots down a few trends set to redefine the next phase of logistics and warehousing and business sustainability:
Importantly, Sharma says, rental prices for warehousing may soar due to real-estate prices going up. “Rising rentals may also push operators to work on improving utilisation of the space both horizontally and vertically and to review the optimisation of the rest of the supply chain to cut down on inventory pile up at the warehouse, ultimately saving cost by eliminating waste.”
Meanwhile, Dey points out three key themes that are guiding growth and investment decisions:
Many e-commerce and 3PL companies started opting for in-city warehousing to reduce delivery times and for last-mile deliveries.
In-city warehousing is being seen as an important infrastructural requirement, especially in the major consumption centres, where delivery timelines are shrinking from ‘next-day’ to ‘within hours’.
Omni-channel retailing is expected to help in optimising inventory holding costs, operating costs and real-estate costs while increasing brand prominence and consumer base across the country.
With the focus on omni-channel, customers expect new alternatives such as buying online and pickup in-store or ship from store. Effectually, this transforms a traditional retail store into a fulfilment centre.
Industry estimates reveal that the 3PL sector in India is set to triple in next few years, i.e from US$2.1 billion in 2018 to US$6 billion in 2025. Considering that 3PL brings in the necessary economies of scale for multi-tenant sites, the potential growth is significant.
It contributed to nearly 35 per cent of the total net absorption in 2020, highest among all the other sectors. Demand from 3PL has increased as different sectors such as e-commerce, engineering, electronics and white goods are routing through 3PL. This in turn, may lead to increase in space demand from 3PLs in 2021 as many large and medium manufacturing operations may offload part of their inventory management to optimise the cost.
Ecom Express Limited, India’s sole pure-play B2C e-commerce logistics provider as of the Financial Year 2024, has introduced a new brand identity, underscoring its commitment to customer-centricity. This rebranding reflects a focus on addressing specific customer needs, prioritising customer-facing metrics, and integrating innovative technology across its nationwide express logistics network. The goal is to enhance speed, agility, and network reach, ensuring a customer-focused approach. The rebranding includes a dynamic logo and a refreshed visual identity, symbolising Ecom Express’s pursuit of excellence. The new logo features a forward-moving arrow within a square, representing the company’s dedication to delivery. The letter "E" in the logo stands for Expression, Innovation, and Progress, while the bold magenta colour signifies bravery, self-expression, and strength. This vibrant magenta reintroduction reflects Ecom Express's renewed commitment to customers, partners, and team members, as the company aims to simplify and democratise logistics for all. Ajay Chitkara, CEO and MD of Ecom Express, elaborated on the transformation, stating, “Our refreshed brand identity reaffirms our customer-first approach as we continue to integrate technology and innovation to provide reliable, high-speed services with the widest network reach. This transformation also underscores our commitment to our employees and delivery partners, who are essential to our business.” The new logo embodies Ecom Express’s dedication to its core values, focusing on customer welfare and fostering a diverse, inclusive environment. This rebranding signifies a promise to redefine logistics through advanced technology, making life easier for all types of customers.
Building a visionary company requires one percent vision and 99 percent alignment. This analogy resonates deeply when we compare the process of building a company to conducting a symphony orchestra. Just as a conductor leads musicians to create a harmonious masterpiece, a successful business and its management fosters alignment among team members to achieve extraordinary success. In the business world, this vision translates into a clear understanding of where the company wants to go and what it aspires to achieve. The one percent of vision acts as the guiding force that sets the stage for greatness. However, a conductor alone cannot create a symphony. The true magic lies in the collective effort of the musicians, each playing their part to perfection. Similarly, in a visionary company, alignment becomes paramount. Every team member needs to be facing in the right direction, equipped with the right skills, and focused on delivering the right results at the right time. By fostering alignment, harnessing the diverse talents within the team, and continuously fine-tuning performance, savvy teams and visionary leaders carry the potential to transform their companies into harmonious and successful organisations that resonate with greatness. Embracing the power of alignment, inspiring teams with a clear vision, and actively cultivating an environment where every member can contribute their unique talents, RE Rogers India has over the years formed an indispensable pillar of business triumph. Most recently, the company orchestrated a symphony of success handling over 300 events in the fiscal year 2023. Four of these were mammoth events taking place in four different cities at around the same time frame. And these were not merely gatherings, they were milestones. The four gigantic events (CPHI and PMEC 2023 – 28 to 30 November at India Expo Centre, Noida; ENGIMACH 2023 – 6 to 10 December at Helipad Exhibition Centre, Gandhinagar, Gujarat; EXCON 2023 – 12 to 16 December at Bangalore International Exhibition Centre, Bengaluru; PLASTIVISION 2023 – 7 to 11 December at Bombay Exhibition Centre, Mumbai) entailed approximately 650 on-ground manpower, 4300 packages, 370 equipment display, and 3600 vehicles. The symphony of greatness bubbled up in RE Rogers India's operational procedures and functions, and the teams and management leadership soared to create a masterpiece of lasting success as always. "To our heroes who faced the challenges head-on in handling their jobs with total finesse, and to our valuable customers who trusted us blindly during our busiest period pan-India: A HUGE THANK YOU!," the RE Rogers India team was quoted expressing in a LinkedIn post. As the demand for large-scale events and exhibitions continues to rise, the need for comprehensive and reliable exhibition logistics services has never been more critical. In India, where the exhibition industry thrives, one name stands out among the rest — RE Rogers India — who have been delivering unparalleled logistical solutions tailored to the unique demands of the exhibition sector. RE Rogers India have years of first-hand, specialist experience in handling every aspect of exhibitions, ranging from freight forwarding, transportation, customs formalities, secure handling of materials, on-time delivery and site assistance and supervision. Remember that logistics is not just about getting your materials from point A to point B; it’s about ensuring a seamless and stress-free experience for everyone involved in your exhibition, from exhibitors to attendees. So, if you partner with RE Rogers India, you’re not just hiring a logistics company; you’re bringing a dedicated and reliable team on board to ensure your exhibition materials reach their destination in perfect condition and on time. Having served a variety of clients from both the domestic and international arena, the company has developed deep understanding of the unique challenges of delivering time-critical goods in the face of huge crowds, open day pressure, and complex logistical requirements. RE Rogers India fully understands the value of complete exhibition sets in terms of the clients’ reputation and market standing, ranging from trade show booths, exhibits, and other equipment, which include wooden panels, steel frames, prefabricated designs, bunk houses, E-houses, printed material, lights, electronic items and other display resources. The company therefore takes utmost care to pay close attention to critical things like packing, loading, storing, lifting, etc. so as to eliminate any chance of damage. Due diligence is also exercised in choosing optimum and fastest mode of transport to enable the materials to reach the venue well in time, so as to facilitate timely set-up by the clients team at the venue. Post-exhibition, pick-up and delivery back to the shipper is also handled. With RE Rogers India as your esteemed logistics partner, you can focus on wowing your audience and making the most of your exhibition experience. Under the astute leadership of Ravinder Sethi, RE Rogers India is not just reaching new heights; it is setting successive benchmarks. With the innate ability to see through the intricacies and a commitment to perfection down to the minutest detail, Sethi has steered the company towards a trajectory of unparalleled success. His visionary approach complemented by the team's meticulous attention to excellence have become the driving force behind RE Rogers' ascent in the events and exhibition logistics sector. The collective efforts of Sethi and his entire team continue to sculpt a legacy of precision and excellence in the world of logistics that remains exciting, challenging and rewarding.
The Federation of Freight Forwarders’ Associations in India (FFFAI) held its 6th EC Meeting for the term 2021-23 on May 27 and 28 in Bengaluru. The meeting was attended by the Office Bearers and 28 Member Association representative of FFFAI from across the country, there were many issues discussed and updates provided concerning customs, CBLR, EDI, Service Tax/GST, logistics, air cargo, sea cargo, skill development,importance of social media which FFFAI has expanded recently, technology developments, etc. The special focus of the 6th EC meeting was the updates on forthcoming 24th Biennial Convention of FFFAI to be held from August 12 to 14, 2022 in Chennai with the theme LOGISTICS RESHAPE, EMBRACE AND SURGE IN THE DIGITAL ERA. At this EC meeting, FFFAI also implemented Digital Learning platform for members and next generation for e-learning. It has been decided that FFFAI would initiate FIATA eFBL here in India to benefit the trade, which empowers customs brokers, freight forwarders and logistics service providers. In addition, updates on the recently held FIATA HQ Meet was also provided by the concerned members of FFFAI. FFFAI members present at this EC meeting stressed upon enhancing productivity on ICEGATE for trade facilitation and Ease of Doing Business. The FFFAI members also urged for creating a dedicated portal for LSP integration. As regard to skill development initiatives, IIFF’s (training arm of FFFAI) past and forthcoming training programmes (both online and classroom/physical) for the entire logistics industry were presented at the EC meeting. In addition, FFFAI’s various initiatives on capacity building through technology/IT also discussed withadequate importance. Recent activities of FFFAI Women’s Wing including organising interactive meetings with Government of India officials and industry experts were highlighted at this meeting which drew huge appreciation from the members. The members committed to expand the activities of the Women’s Wing in all the 28 member association locations to empower/encourage the women logistics practitioners. At this EC meeting FFFAI has signed an MoU with the National Institute of Industrial Engineering (NITIE) with an objective of skilling the aspiring candidates looking for opportunities in the logistics sector. Notably, a special session was organised at this 6th EC Meeting where N Sivasailam, former Special Secretary (Logistics), Ministry of Commerce, Government of India was present to address the FFFAI members and highlight the recent initiatives of the government in strengthening the logistics infrastructure, thereby leading in increase of international trade through multimodal connectivity and faster cargo clearance. He projected the ambitious growth potential of the logistics industry in India with a strong collaboration between government and industry people. Also speaking on the occasion was Bani Bhattacharya, IRS, who interacted with members of FFFAI on various initiatives of CBIC for the trade facilitation without human intervention. FFFAI Chairman Shankar Shinde thanked all the 28 associations for their support and appreciated the contribution of CBIC/DG systems trade facilitation measures. FFFAI Member Associations are: 1. Ahmedabad Custom Brokers' Association2. Aurangabad Customs House Agents Association3. Association of Custom House Agents Thiruvanthapuram4. Bangalore Custom House Agents Association5. Brihnamumbai Custom Brokers Association6. Calcutta Customs House Agents Association7. Chennai Customs House Agents Association8. Cochin Customs Brokers' Association9. Coimbatore Customs House and Steamer Agents Association10. Custom Brokers Association Hyderabad11. Delhi Customs Brokers Association12. Goa Custom Brokers Association13.Indore Customs House Agents Association14. The Kakinada Customs Brokers Association15. Kandla Custom Brokers Association16. Kanpur Customs Brokers Association17. Ludhiana Customs House Agents Association18. Mangalore Customs House Agents Association19. Mundra Customs Brokers Association20. Nagpur Customs House Agents Association21. Nashik Customs House Agents Association22. Nadia Custom Brokers Association23. Pipavav Custom Brokers Association24. Pune Customs House Agents Association25. Rajasthan Customs House Agents Association26.Tuticorin Custom Brokers Association27.Visakhapatnam Cusotms Brokers' Association28.West Bengal Custom House Agents Society FFFAI welcomes Women in Logistics/Youth in Logistics to participate on FFFAI forums and also invites membership application form logistics service providers in industry as this is a big national and international forum to network.
The past decade has been a transformative period for the Indian logistics sector, characterised by a blend of challenges and growth opportunities. Key milestones such as the formal recognition of logistics as infrastructure, the implementation of GST, and disruptions from COVID-19 have reshaped the industry landscape. During this time, technology adoption surged, sustainability became a focal point, and the sector prioritised agility and resilience. As a result, new business models emerged, and the sector registered a growth rate of 8%-9%. Throughout this period of growth, logistics companies have created significant value for their customers by offering innovative solutions, improving efficiency, and providing exceptional service experiences. However, the process of capturing and capitalising on this value is complex, requiring long-term investment and strategic focus. Companies typically follow one of two paths: competitive pricing or superior customer value. Yet, only a few have successfully extracted profits and solidified their competitive position, while others have faced decline. On a broader scale, while the logistics sector has made substantial progress in innovation, infrastructure, and technology, its financial returns and profitability have often fallen short of expectations. The challenge lies in the varied performance of subsegments such as express delivery, e-commerce logistics, and contract logistics. Each of these subsegments faces distinct challenges, influenced by factors such as market demand, regulatory policies, technological integration, and investment levels, leading to diverse outcomes across the sector. India's transportation sector is predominantly road-based, with nearly two-thirds of the market share. Among road logistics, Full Truck Load (FTL) remains highly fragmented, with a minimal presence of organised players. While the market has nearly doubled over the last decade, along with technology adoption in fleet and transport management, startups like Blackbuck have made attempts to drive the sector toward organisation, but no significant breakthroughs have emerged. As a result, FTL has struggled to create substantial value for customers, and profitability within the segment has remained stagnant. The second major segment in road logistics is Part Truck Load (PTL) services, where organised players have made gradual improvements. Companies like VRL and V-Trans India have established a national presence, supported by relevant infrastructure and technology. These organised players have delivered tangible value to customers, improving profitability alongside revenue growth through a cost-conscious approach. Rail logistics, on the other hand, has created significant value in specific subsegments, such as container train operators, private rail operators, and car carriers. While Indian Railways remains the primary infrastructure provider, private players like Adani, DP World, Gateway Distriparks, and Pristine have experienced profitable growth over the past decade. E-commerce logistics has been the most hyped segment in the last ten years. While e-commerce logistics started gaining traction in 2010, it exploded in 2014 with technological advancements and the emergence of new-age companies. This segment has grown into a US$6 billion market, creating immense value by reducing transit times, improving customer service, and offering tech-driven solutions. However, as these differentiators become industry standards, the rate of value creation has slowed. Despite significant investments to achieve profitability, most e-commerce companies are still either EBITDA-negative or marginally positive. While they have made strides in reducing losses, profitability remains below industry benchmarks. The express logistics segment, largely controlled by organised players, has also experienced incremental improvements in service offerings and customer service. Despite challenges such as declining document volumes, slow air cargo growth, and cost pressures, express logistics has achieved double-digit growth. However, the segment has failed to create significant new value, as many differentiators have now become standard offerings. This inability to create and capture value raises concerns for the future of express logistics. In contrast, the contract logistics segment has benefited from complex global supply chains and the post-GST momentum, providing significant opportunities for value creation through optimisation. Organised players, with their advanced solutions, technology, and automation, have been able to capture substantial value in this segment. Overall, while the logistics industry has created value across most of its segments, the ability to capture this value has been suboptimal. Factors such as technological advancements, sustainability trends, and evolving customer expectations will continue to influence value creation. However, value capture will hinge on effective pricing strategies, market positioning, and operational scalability. In the future, a balance between continuous innovation and profitability will be essential for long-term success in the logistics industry. Author: Vikash Khatri, Founder, Aviral Consulting
A significant milestone has been achieved in the Indo-Bangla railway project with the inauguration of the inaugural freight train connecting Bangladesh's Gangasagar to Tripura's Nischintanpur. This momentous event marks a significant step forward in strengthening the rail connectivity between the two neighboring countries. The new railway connection is set to enhance trade and commerce between India and Bangladesh, providing a more efficient and cost-effective mode of transportation for goods. It will not only boost bilateral trade but also promote economic development in the region by opening up new opportunities for businesses and industries. The Indo-Bangla railway project is part of a broader effort to improve connectivity and foster closer ties between the two nations. It is expected to play a vital role in facilitating the movement of goods and passengers, ultimately contributing to the economic growth and prosperity of both countries.
Trade shows are mission-critical, high-investment events where logistics execution directly influences marketing ROI. Exhibitors spend months preparing for a few days on the floor, since a single missed delivery window can jeopardise the entire programme. In this environment, Less-Than-Truckload (LTL) trade show logistics is no longer just transportation; it is an orchestration of timing, compliance, risk control, and venue-specific expertise. While standard LTL carriers can handle general freight, elite trade show shippers excel because they are built for the ecosystem — understanding drayage, marshalling yards, target windows, live-loading rules, equipment constraints, and the high-value nature of exhibits. This updated guide unpacks the differentiators that set the best providers apart, enhanced with additional dimensions such as KPIs, risk mitigation frameworks, technology adoption, sustainability practices, and a practical vendor-evaluation checklist. The Key Differentiators of Elite Trade Show Shippers When shipping general freight, a standard LTL carrier may be sufficient. However, event logistics demand a higher level of specialised service. The top trade show shippers possess four key differentiators that distinguish them from the rest. Proactive and Specialised Support Trade shows operate on rigid move-in schedules tied to booth size, dock flow, and decorator rules. The strongest providers deploy dedicated trade show teams who can interpret show manuals, coordinate with decorators, and time deliveries to avoid re-handling fees. Best-in-class partners also: Pre-audit documentation and labels to avoid show-site rejections Manage drayage coordination to reduce dwell and material-handling charges Offer pre-receiving and staging at regional facilities for smoother Day-1 move-ins This advisory-driven model transforms logistics from a cost center into a risk-mitigation service. Flexible Coordination and Network Access Because no two events are alike, trade show logistics demand configurable access to LTL, FTL, hot-shot, air, and international capacity. Top providers match service levels, route constraints, and budget requirements by tapping into broad asset and partner networks. A sophisticated network allows for: Expedited or guaranteed-capacity moves for high-stakes shows Cost-effective options for booth materials that can stage early Lane-specific equipment (air-ride, liftgate, climate-controlled) This flexibility becomes essential during peak show seasons when capacity is tight and timelines narrow. Guaranteed Performance and Asset Protection Event deadlines are immovable. Leading providers commit to guaranteed on-time service, narrow ETA bands, and contingency planning across linehaul and last-mile execution. They also emphasise exhibit protection through: Air-ride suspension fleets Strapping, padding, and vibration-control practices Secure transport protocols for prototypes and LED/AV assets With show participation costs rising, damage and delay prevention become competitive differentiators. End-to-End Visibility and Services Real-time visibility is no longer optional. Tocay, exhibitors rely on it to make staffing, booth-build, and drayage decisions. The best LTL partners deliver: Live tracking from pickup to booth delivery API connectivity with exhibitor dashboards Pre-emptive exception alerts and delay recovery paths For international events, leading providers integrate customs documentation, Carnet handling, temporary import permits, and venue-specific rules, ensuring frictionless handoffs across borders. What Are the Best LTL Logistics Companies for Trade Shows? Several providers exemplify these differentiators. The following firms are selected based on their demonstrated strength in specialised show support, performance-oriented service design, event fluency, flexible coordination and comprehensive offerings that cover pre-show to teardown. 1. Green River Logistics Solutions A brokerage-led model with deep carrier reach, making it ideal for exhibitors with varied lane structures. Key strengths: Highly personalised coordination and single-point-of-contact support Flexible equipment sourcing — LTL, flatbed, refrigerated, heavy haul Real-time updates and precise timing for fragile builds 2. XPO Logistics A multinational leader with a controlled linehaul network and a dedicated Trade Show Desk. Key strengths: Tight schedule integrity Venue-specific coordination and dock navigation Strong performance management systems. 3. TWI Group A global exhibition logistics specialist excelling in international customs and venue compliance. Key strengths: ATA Carnet expertise and cross-border support On-site liaisons at major venues High-touch service model for global exhibitors 4. Averitt A time-definite, reliability-driven carrier focused on window compliance. Key strengths: Guaranteed performance Expertise with marshaling yards and dock appointments Rapid recovery for last-minute constraints 5. TTI Logistics A specialist for fragile and custom builds requiring maximum protection. Key strengths: Air-ride fleets and vibration-controlled handling Precision timing for target-move-ins Advanced security protocols Comparing the Top LTL Logistics Providers for Trade Shows These providers excel in different areas. This table offers a quick comparison of their key service features to help you align their strengths with your specific needs. New Strategic Enhancements Added for a Modern Exhibitor’s Playbook Technology Advancements Worth Evaluating AI-assisted ETA predictions Digital drayage coordination tools IoT-enabled condition monitoring for AV and prototype freight Automated warehouse cut-off compliance checks Risk-Mitigation Practices That Matter Pre-show risk audits Contingency rerouting plans Venue-specific compliance checklists High-value cargo insurance design Sustainability Expectations from Today’s Exhibitors Low-emission or EV linehaul and last-mile options Carbon-neutral freight programs Reusable or recyclable crating solutions Emissions dashboards linked to booth shipments Performance Metrics That Define Best-in-Class Providers On-time delivery to target windows Damage-free shipment percentage Visibility uptime SLA Drayage handoff accuracy Exception-resolution response time How to Vet Your Trade Show Logistics Partner Applying the key differentiators includes asking potential partners the right questions. When your program includes international stops, ask about their documentation process, how they manage Carnets and how visibility will work across handoffs. The following can further validate fit and execution discipline: What is your detailed experience with my venue and decorator? Can you guarantee delivery within target-window constraints? What risk-mitigation plan is activated if my freight misses staging cutoff? What specialised equipment will you use for fragile or custom exhibits? How do you integrate with drayage contractors and marshaling yards? Which visibility tools and tracking integrations are available? Can you manage international customs documentation end-to-end? What sustainability options can be applied to my show calendar? Your Partner Is Your Most Critical Exhibit A logistics provider is more than a freight handler; they are the enabler of your presence on the show floor. The right LTL partner combines timing discipline, technical fluency, equipment strength, and venue intelligence to protect your brand and maximise your event ROI. Elite trade show shippers don’t just move freight; they orchestrate flawless show execution.
The expansion of Dammam Port in Saudi Arabia has taken a significant step towards strengthening trade relations between India and the Gulf region. The enhanced infrastructure and capacity of the port are set to benefit businesses and industries on both sides, facilitating smoother trade and commerce. The expansion of Dammam Port opens up new opportunities for Indian businesses to engage in import and export activities with the Gulf nations. It also serves as a strategic gateway for goods traveling to and from India, further improving the logistics and transportation landscape for businesses. The project showcases the commitment of both India and Saudi Arabia to enhance economic ties and boost bilateral trade. The increased port capacity will help meet the growing demand for trade between the two regions, ultimately contributing to the economic growth and prosperity of both nations.
Air India is setting its sights on a promising future as the exclusive carrier for TATA's iPhone exports. This strategic partnership between the renowned Indian airline and the tech giant TATA promises to boost India's manufacturing and export capabilities. The collaboration will enable Air India to become the sole carrier for TATA's iPhone exports, facilitating the efficient transport of these popular devices to international markets. With a reputation for reliability and global reach, Air India is poised to play a crucial role in TATA's supply chain. The move not only strengthens the relationship between two major Indian companies but also underlines India's growing importance in the global technology and manufacturing sectors. Air India's role as the exclusive carrier for iPhone exports is expected to generate significant revenue for the airline and enhance India's position as a hub for high-tech exports.
