Freight forwarding services have gained momentum in India due to its growing integration with the global economy along with rising production activity and consumption trends. These factors present the industry with a plethora of growth opportunities. India recorded a mammoth export worth $778 billion in FY 2023-24, indicating buoyancy in trade activities and raising opportunities for logistics players offering impressive delivery services in Noida, Bangalore, Delhi, Mumbai, Ghaziabad, Pune and other locations across India.
The growing tendency of large organisations focusing on their core business activities has made them outsource supply chain management activities to intermediaries. This raises the demand for freight forwarders who offer businesses enhanced cost efficiency. Other factors such as evolving consumer preferences, growing digitisation, expanding e-commerce and government policies such as PM Gati Shakti Yojana
In this article, we will share details regarding freight forwarding services in India.
What is Freight Forwarding?
Freight forwarding is a concept integral to supply chain management. It involves freight forwarders who transport goods from businesses to the final destination. These use multiple modes of transport to carry goods to different destinations. Freight forwarders, in view of the changing logistics landscape, have started their activities on packaging, inventory management, warehousing and value-added services.
Value Added-services in Freight Forwarding
Advising ways to optimise transportation costs such as freight charges, customs duty, clearance expenses, etc
Suggesting ways for efficient merchandise packaging, labelling and loading.
Supply chain optimisation services by transporting the goods efficiently to the final destination.
Major Trends Elevating the Growth of Freight Forwarding in India
India’s freight forwarding service market is witnessing sharp transformations in the wake of game-changing trends. These include -
Adoption of Advanced Technology
India’s logistics companies increasingly use AI and IoT to streamline freight operations, follow government norms and increase efficiency. Besides leveraging the power of automation, logistics companies aim to build a transparent and mobilised ecosystem for increased supply chain visibility. These technologies have made way for smooth logistics operations with enhanced real-time tracking, route optimisation, data insights and more. Further, digitisation has allowed freight forwarders to comply with regulatory needs and maintain transparent transactions. Further using artificial intelligence and machine learning technologies helps estimate potential supply delays, boost inventory management and offer optimised routes.
Emphasis on Sustainable Logistics Solutions
Sustainable logistics solutions are widely preferred by industry players to curb costs as well as environmental pollution. The reduction in carbon footprint and the elimination of expensive fuel-powered vehicles due to roll out of green vehicles are elevating India’s logistics market to greater heights. Businesses appreciate the sharp reduction in cost owing to sustainable logistics solutions in use.
Rapid E-commerce Growth
The growth of India’s freight forwarding market has been largely due to the expanding e-commerce industry in India. As people often go online to order a wide range of products, the demand for freight forwarders has increased substantially.
Komentarze