Rising Cold Transportation, Revision of Government Norms and Increasing Tech Penetration is Facilitating Growth in Road Freight Industry in India: Ken Research

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Increased Government Spending: The government under the budget of 2020-2021 has allocated INR 170,000 crore for Transportation which is 8% higher than the budgetary allocation of 2019-2020. The National Infrastructure Pipeline for 2019-2025 pegged the projected capital expenditure for Transportation (covering Roads, Railways, Ports and Airports) at about INR 35.7 lakh crore. Various efforts include Bhratamala Pariyojana and the Sagarmala Project, Bangalore suburban transport project and many more.

High seasonal demand variation: The demand for trucking in India is the highest during Festive Months (Sept, Oct, Nov, and Dec) and harvesting Months (February to April) where the occupancy of trucks can rise by 30-40% along with freight fluctuations of 6-7% in comparison to normal freight rates prevailing in the trucking Industry.

Change in Government Regulations: The government is constantly changing the regulations associated with trucking industry such as Restriction of trucks above age of 15 years to phase out older & polluting vehicles from the country. GST has shifted all manual transactions to digital mode with e way bills and Fastags ensuring more transparency into the system. The government has even revised Axle norms to increase load capacity that have impacted Small fleet operators negatively.

Improving Cold Transportation: India exports huge variety of Fruits and vegetables which require Cold Chain Services which are extensively being used now-a-days in India. Inspite of huge Cold Storage Capacity, the country still lacks in Cold transportation services with only 30k refrigerated containerized trucks available on road. In the past few years many food and meat processing companies such as Hibachi, Tendercuts, Zappfresh and more who require Cold transportation is being catered by many cold transporters such as GATI KWE, DHL Smart trucking,  Snowman, Coldman logistics and more providing Integrated Logistics Solutions and positively impacting Road freight market of the country.

Analysts at Ken Research in their latest publication India Road Freight Market Outlook to 2024 – Driven by BS VI Norms, revision in Existing Axle Norms by the Government and Technological Advancements believe that the Road Freight Market in India is expected to grow due to Government spending on Roads, Ports, Inland Coastal Shipping to reduce congestion in metropolitan Cities, increasing E commerce sector, Revised Axle norms that have reduced freight Cost and increased the capacity of trucks in India.

india-road-freight-industry

Key Segments Covered:-

Freight Forwarding Market

By  Mode of Transportation

Road Freight (Fleets, Volume, FTK, Price/ton/km and Revenue)

Sea Freight (Volume, Price/ton/km, Revenue and Inland Coastal Shipping Price/ton/km)

Air Freight (Volume, Price/ton/km and Revenue)

By Road transportation

Less than Truck load (Revenue)

Full truck load (Revenue)

By Type of Fleets (Number of Fleets)

Less Goods Carrier Vehicles

High Goods Carrier Vehicles

Companies Covered:-

GATI-KWE

VRL Logistics

TCI

OM Logistics

DGFC

Varuna

Express Logistics

Aggarwal Packers and Movers

NTC Logistics

FSC

Associated Road Carriers

KerryIndev Logistics

Coastal Roadways

Stellar Value Chain

Sical Logistics

VTrans

CEVA

Anand Roadlines

Southern Cargo

Andhra Bangalore Roadways

DHL

CTC Freight Carriers

Mahindra Logistics

ALL Cargo

TVS

Key Target Audience:-

Freight Forwarding Companies

E Commerce Logistics Companies

3PL Companies

Consultancy Companies

Logistics/Warehousing Companies

Time Period Captured in the Report:-

Historical Period – FY14-FY19

Forecast Period – FY20-FY24

For More Information on the research report, refer to below link:-

India Road Freight Market

Related Reports:-

Philippines Road Freight Market Outlook To 2024 – Driven By Government Spending On Road Infrastructure and Technological Advancements

Philippines Logistics And Warehousing Market Outlook To 2024 – By Freight Forwarding (Air, Sea, Land), Domestic And International Freight Flow Corridor; By Warehousing (Industrial/Retail Freight, Container Freight, Cold Storage, Agriculture And Others), Express And E-Commerce Logistics, Balikbayan Box, Third Party Logistics

Indonesia Logistics and Warehousing Market Outlook to 2023 – Driven by Infrastructure Spending for Airport and Seaports Albeit by Poor Existing Road Network

Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249

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