Four month high growth at major ports

A recent monthly update report by noted credit rating and research agency ICRA which highlights the key trends in the month of June, 2018 has pointed out a significant increase in cargo handling at major ports. However, the trends in railways freight sector was different. “ The growth in cargo handled at major ports rose a four-month high 7.1% in June 2018 from 2.7% in May 2018, reflecting a sharp uptick in iron ore and coal in that month. Moreover, the growth of non-oil merchandise exports in US$ terms rose…

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Procurement Endgame

Virtually all industries have new issues to contend with. From e-mobility to the Industrial Internet of Things (IIoT), 5G and digitalization, the list is almost endless. These disruptions lead to the emergence of new products, services and business models in the blink of an eye. In this volatile environment, procurement plays a crucial role across all industry verticals. But the function needs to free itself of legacy structures and reframe its activities. The steps necessary for this procurement transformation are highlighted in the new Roland Berger study “Procurement endgame –…

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Retail sales to cross $1.2 trillion mark this year

The total retail sales in India is likely to increase from the $717.73 billion during CY 2014 to touch $1,244.58 billion by 2018 as its growing at an impressive rate of about 15%, registering a double digit growth figure year after year, according to an ASSOCHAM-Resurgent India latest study. In 2017, about 100 million consumers purchased online and the number is expected to cross 120 million by 2020 with the rise of digital natives, better infrastructure in terms of logistics, broadband and Internet-ready devices to fuel the demand in e-Commerce.…

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Revival in industrial activity supports domestic freight sector

(Excerpts from a recently released report by noted credit rating and research firm ICRA) With industrial output and consumption-driven sectors recovering in H2 FY2018 from the initial lull post GST implementation, the freight demand in the country has also reported healthy pickup during the second half of the previous fiscal. According to Shamsher Dewan, Vice President & Sector Head – Corporate Ratings, ICRA , “The performance of key listed logistics companies indicates that there was pick-up in growth momentum as the year progressed. From an aggregate revenue growth of only 4.6% in…

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67% parcels to be delivered same day by 2023

Zebra Technologies Corporation (NASDAQ: ZBRA), the global major in rugged mobile computers, barcode scanners and barcode printers, last week announced the results of the Asia-Pacific edition of the Future of Fulfilment Vision Study , a body of research analyzing how manufacturers, transportation and logistics (T&L) firms, and retailers are preparing to meet the growing needs of the on-demand economy.   KEY SURVEY FINDINGS The study revealed that 67 percent of logistics companies expect to provide same-day delivery by 2023 and 55 percent anticipate delivery within a two-hour window by 2028.In addition, 96 percent of survey respondents expect to…

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Key findings: DHL’s Logistics Trend Radar

In the fourth edition of the Logistics Trend Radar, a pioneering series that started in 2013, DHL reveals 28 key trends that could impact the logistics industry in the next five to ten years. The Logistics Trend Radar is developed through the analysis of mega- and microtrends as well as direct input from a large partner eco-system including research institutes, tech players, start-ups and customers. Most of the insights are collected first-hand from over 10,000 logistics professionals and technology experts who visit the DHL Innovation Centers annually. “Our Logistics Trend Radar acts as a…

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Positive impact of GST on Road Logistics

Credit rating and research agency ICRA has recently released a comprehensive survey report covering 50 transport companies and 15 end-user firms which examined the impact of GST on logistics business. The survey findings clearly highlight that India’s biggest tax reforms has largely been positive for the road logistics sector. Shamsher Dewan, Vice-President, ICRA said , “As was expected, the removal of inter-state check-posts has resulted in significant reduction in waiting/idle time for trucks, thereby improving their turn-around time and efficiencies, as confirmed by 60% of transporters that we interacted with. As…

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Urban Logistics and last mile delivery models

Frost & Sullivan’s recent analysis, Urban Logistics Opportunities—Last-Mile Innovation finds that global logistics spending is expected to reach $10.6 trillion in 2020, with transportation accounting for the majority at 70%. Emerging technologies such as cloud computing, big data, and crowdsourcing, coupled with an influx of tech-savvy start-ups, are unbundling the value chain and transforming delivery models. About two fifth of the overall logistics costs are associated with the last mile that are forcing providers to come up with newer innovative solutions to deliver packages within cities. Frost & Sullivan predicts…

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Improved outlook for steel business

A recent study by a leading credit rating agency has pointed at strong demand growth trends in the steel business in the country. According to the report, fresh demand from automobile and construction sectors are driving the growth in steel business. “Driven by a strong demand growth in Q4FY2018, domestic steel consumption growth has improved to 7.9% in FY2018, up from 5.2% registered in 9MFY2018. Resilient demand from the automobile sector and improving demand for longs from the construction sector remained the key growth drivers during Q4FY2018. Despite a lack…

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Margin pressure for Commercial Vehicle operator

Leading credit rating and research agency India Ratings and Research has recently come out with a report which underlines that even as there has been an increase in freight volumes in the recent months, the spike in fuel prices may keep the margins of commercial vehicle operators under pressure. “A gradual recovery in freight volumes and fleet utilisation levels will enable fleet operators to pass on a portion of the recent rise in fuel prices, albeit with some lag. The pass-through in fuel prices will vary across states, depending upon…

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