The Covid-19 pandemic made the business tough for domestic port and logistics companies. Even more, they were already grappling with falling earnings amid the global economic slowdown.
Currently, different sections of the transportation industry business, like warehousing, trucking and last-mile delivery among others, are facing several challenges. Moreover with labour shortage is the biggest challenge across all the segments. On the other hand, longer turnaround time in case of ports, demand shock impacting volumes and supply chain disruption impacting last-mile delivery are some of the other challenges which the industry is facing.
Indeed, the coronavirus outbreak has put halt to the continuous growth of cargo volumes. In the first place, they registered positive growth for the period December 2019 to February 2020. Alternatively, a negative year-on-year growth of 2.01 per cent in March 2020. Therefore, it was dragged lower to a significant drop in container and liquid cargo volumes, said a CARE Ratings report.
Eventually in FY20, cargo handling at India’s major ports grew by a meagre 0.82 per cent as against 2.90 per cent growth achieved in the previous financial year.
Going ahead, the slowdown will affect the container traffic in the automotive transportation industry and other container cargoes (imports of white goods and granite exports) for FY21 due to weak demand.