In the rapidly changing shipping landscape, the shipping and logistics industry in India is expanding and adopting progressive approaches to improve customer experiences and streamline cross-border shipping. This sector recognizes the significance of simplifying international shipping in a fast-paced environment. Consequently, it actively integrates new innovations and technologies to enable comprehensive management and strategic planning, catering to the growing demands.
In India, the logistics industry is experiencing significant growth. According to the IBEF report, the value of the logistics sector in India reached US$ 250 billion in 2021. It is anticipated that by 2025, the market will reach an impressive US$ 380 billion, with a steady year-on-year growth rate of 10%-12%. Additionally, the government aims to bring down the logistics and supply chain costs in India from 13-14% to 10% of the GDP, aligning with industry norms.
The shipping and logistics industry receives support from both technology and the government, working together to ensure exceptional service and a seamless shipping experience. Furthermore, by embracing new trends, this industry is projected to enhance operational efficiency and significantly elevate customer service on a broad scale.
Top trends in shipping and logistics industry :
â- Technological advancements - Technological advancements have transformed the shipping and logistics industry, enhancing efficiency and effectiveness. Artificial intelligence (AI) and machine learning optimise supply chains, resource allocation, and customer experiences through predictive analytics, demand forecasting, and real-time decision-making. The Internet of Things (IoT) improves asset visibility with real-time tracking, remote monitoring, and predictive maintenance. Robotics and automation, including RPA and autonomous vehicles, streamline warehouse operations and last-mile delivery, boosting speed, safety, and productivity while reducing errors and costs. These technologies continue to advance, driving further innovation in the shipping and logistics sector.
â- Blockchain Technology - Blockchain technology offers secure, transparent, and decentralised systems that can revolutionise supply chain management. By providing a distributed ledger for recording transactions, blockchain enhances traceability, reduces fraud, and streamlines documentation processes. Smart contracts can automate payment settlements and enforce compliance, leading to greater efficiency and trust among stakeholders.
â- Sustainability and Green Initiatives - With the rise of environmental apprehensions, the shipping and logistics sector in both India and worldwide has prioritised sustainability to a great extent. The Indian Government actively supports eco-friendly shipping endeavours and offers financial assistance of around 30% for projects related to green shipping. Companies are adopting environmentally conscious practices, such as employing alternative fuels, electric vehicles, and optimising transportation routes to diminish carbon emissions. Furthermore, there is a growing emphasis on sustainable packaging solutions and waste management strategies due to the demands of customers and regulatory requirements.
â- Last-Mile Delivery Innovations - Last mile delivery, even in the context of sea cargo, presents distinct hurdles concerning expenses, effectiveness, and customer contentment. To tackle these obstacles, businesses are investigating inventive remedies such as crowdshipping, drone deliveries, and autonomous vehicles. Through the utilisation of technology and the optimization of logistics networks, the final leg of delivery can be enhanced to be swifter, more economically viable, and environmentally sustainable.
â- E-commerce Boom - The shipping and logistics industry has undergone significant transformation due to the exponential expansion of e-commerce. The increasing desire for swift, dependable, and economical deliveries has stimulated the demand for streamlined logistics networks and inventive resolutions. To meet the ever-changing expectations of online shoppers, companies are allocating resources to enhance warehousing technologies, optimise fulfilment procedures, and foster robust partnerships.
With a projected contribution of 14.4% to the GDP, the logistics sector in India plays a vital role in supporting numerous businesses. It serves as a critical backbone for many enterprises by embracing advancements and receiving government support. The Indian logistics industry is among the largest, employing a staggering 22 million people. To ensure enhanced efficiency and customer satisfaction, this industry is adapting to emerging trends such as innovative technologies, keeping pace with the booming e-commerce sector, focusing on last mile delivery and environmentally-friendly shipping, and leveraging blockchain for efficient supply management.
This article is written by Aakanksha Bhatt, VP of Jassper Shipping
