We are planning to expand our operations and add air cargo capacity in strategic phases so that we can follow an efficient and sustained growth to optimize our operations and deliver excellence, says, Abhishek Goyal, Director, Aeroprime Group. “We plan to add more capacity in passenger aircrafts belly space and freighter operations from multiple cities in India in 2023 to support growth of the industry,” he adds. “The key drivers for air cargo sector growth would be the increased capacity offered by passenger flights and freighter operations along with increased demand for pharma and perishable exports from India. Government policies favouring air cargo export can further support growth in 2023,” he shares.

Lalit Das, Founder of 3SC Analytics shares his expectations from the upcoming budget 2023-2024 and says, “The finance minister can address the challenges faced by the logistics sector in several ways in the Budget 2023. One of the key ways is by ensuring easy funding availability to start-ups in the sector. This can help these businesses to overcome financial barriers and scale up their operations. The finance minister can also consider providing tax rebates to start-ups in the logistics sector, which can help these businesses to reduce their costs and increase their competitiveness. Another way to support the logistics sector is by emphasizing the importance of enhancing the digital ecosystem. This can include measures such as providing tax incentives to businesses that adopt digital technologies or investing in infrastructure to improve internet connectivity. In addition, the finance minister can consider providing a rebate for those involved in exports and bringing foreign currency into the country. This can encourage more businesses to participate in international trade, which can, in turn, help unleash export opportunities for the logistics sector. Finally, the finance minister can also focus on promoting more foreign direct investment (FDI) in the logistics sector, which can help bring much-needed capital and expertise.”

Logistech Solutions Pte Ltd, which runs logistics startup Locad has raised $11 million (Rs 90 crore) in a Series A round, led by Reefknot Investments, a joint venture by Temasek Holdings and logistics firm Kuehne + Nagel. The round also saw participation from existing investors Sequoia’s Surge, Febe Ventures, Antler, Access Ventures and JG Summit. Shrey Jain, co-founder and chief technology officer at Locad, told VCCircle that the fresh proceeds will be deployed to boost growth, which includes investing in marketing, brand building and networking, as well as acquiring customers on the enterprise side. “We always have been focussed on maintaining at least up to three years of runway with the cash that has been raised,” Jain said. Founded by Jain, Constantin Robertz and Jannis Dargel in 2020, Locad enables e-commerce brands with a cloud supply chain to grow their omnichannel business. So far, the company claims to have served over 200 brands across Singapore, Philippines, Thailand, Hong Kong, and Australia and shipped more than two million transactions while maintaining a 99% same-day order fulfilment rate.

TT Aviation, which started its operation from 2010 in the Customs Bonded Trucking domain, has added Kolkata (CCU) in their network and got the necessary Customs approvals to start Export Bonded Trucking from Kolkata WEF Jan’23. In H2 2022, Kolkata was primarily used for import bonded trucking destination and successfully offloaded 150+ trucks. Kolkata is the 9th station in the network after MAA, HYD, BLR, COK, CJB, BOM, DEL & AMD, which is capable for both import and export bonded trucking activities. With this addition, the freight connectivity from Kolkata has been widened for the trade and it will connect Kolkata to all major metro/non metro air cargo terminals between 72-120 hrs. Size and shape of the cargo will not be a showstopper anymore and at the same time there will not be any commodity restrictions too. The road connectivity from Kolkata will reduce the logistics cost by approx. 10-14% for air cargo.

Nisschal Jaain, Co-founder and CEO, Shypmax shares his expectations from the upcoming budget 2023-2024, “With the upcoming budget, the Indian e-commerce logistics sector is expecting some clarity on the de-minimis (threshold) value. Currently the de minimis value for India, for e-commerce import is 0 which means that all orders into India, regardless of value, will often incur GST on their shipments. Items imported into the United States are subject to duty when the value is over USD 800. In Australia, duty and taxes kick-in after the first USD 1,000. In Canada, it’s USD 20; in some other countries, it’s USD 5. It is evident that individuals will buy more if duties are exempted or reduced. In the 2022-23 Budget, implementation of a simplified regulatory framework to facilitate export of jewellery through e-commerce was introduced however it was limited only through ECCS (Express Cargo Clearance System) at ICT Mumbai, ICT Delhi and ICT Jaipur, according to Central board of Indirect Taxes and Customs (CBIC) SoPs. Stakeholder are awaiting more details on the same from the upcoming budget. Additionally, the limit of Rs. 5 lacs worth of exports via courier under CSB-V, which affects the fine jewellery’s export, is counterproductive and confusing for the e-logistics players as well as the exporters.”

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 …