Current impact on Logistics Sector- Short Thread
Movement of goods across the value chain is currently witnessing unprecedented hurdles due to supply side issues and lack of coordination
1/n
Movement of goods across the value chain is currently witnessing unprecedented hurdles due to supply side issues and lack of coordination
1/n
Overall, only 20% of long distance capacities are being utilized. Volumes are down 75-80% from Feb levels. There is an acute shortage of drivers – More so because they don’t want to be stuck on road amidst no Dhaba/Food resources and also don’t want to face police harassment
2/n
2/n
One direct fallout is that the problem is more prominent in finished goods compared to long distance movement – Interstate movement is hit more than intrastate ones. The biggest issues in the ecosystem is lack of driver support system.
3/n
3/n
For stock in transition, the lockdown was sudden & caught them unawares. Production of non-essential products negligible.
Certifications for essential goods is a slow process and there is a lack of manpower at warehouses, running at less than 50% capacity
4/n
Certifications for essential goods is a slow process and there is a lack of manpower at warehouses, running at less than 50% capacity
4/n
Maximum problem is being seen in last mile transport – Almost all of it has been suspended. Small vehicles and bikers short term on demand capacity not available due to lockdown. Contracted capacity for companies disrupted due to lack of support from local...
5/n
5/n
...administration (Huge issue, everywhere). Last mile likely to resume with significant decline in service levels due to operational issues at local level.
For ports, volumes are down ~25% and will see further decline. Operation within port boundary slow but...
6/n
For ports, volumes are down ~25% and will see further decline. Operation within port boundary slow but...
6/n
stable operators and manpower available for movement of goods and equipment as of now. Multiple ports have announced force majeure suggesting likely continuation of limited support system from port to customer door step. Cargo dwell time likely to increase at ports and nodes
7/n
7/n
Impact of slowing down of west bound cargo expected to be witnessed over the next 2 weeks volumes likely to go down significantly.
Overall, industry in shambles across the value chain. Need prompt actions from authorities to ensure things don't go out of hand.
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Overall, industry in shambles across the value chain. Need prompt actions from authorities to ensure things don't go out of hand.
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