Showing posts with label India Road Freight Market Revenue. Show all posts
Showing posts with label India Road Freight Market Revenue. Show all posts

Friday, June 19, 2020

India Road Freight Market is Expected to Cross INR 9,500 Bn by 2024: Ken Research


The truckers who have bought trucks with 50-100% institutional finance will see a tough time due to COVID 19 and need to maintain 90% capacity utilisation for upcoming EMIs, Insurance premiums & Permit with same freight cost in spite of high diesel cost.

The Government is investing ₹ 20-30 Tn (15% via PPP) in transport infrastructure with focus on rural & last mile connectivity & increase in outlay of 39% to PMGSY.
Government Change in Regulations such as Revision in GST norms to increase the transparency, Restrictions on the age of trucks and Revision in Axle Load Norms to Bring GVW at par with Global Markets will impact the Road freight market.
Covid-19 Impact on Trucking Industry in India:  During the Lockdown phaseImports and Exports have fallen from major trading partners such as China, US and UAE affecting the road freight volumes transported from ports to other parts of India. Majority of the truckers are Small fleet operators who are the worst hit as they need to maintain 90% capacity utilization in order to bear additional expenses such as EMI, Insurance Premium and Permits. LFO s and MFOs who are more inclined towards Asset light model are even affected due to shortage of Drivers and labourers. The trucking will see negative growth rate in the FY’2021 due to complete lockdown and transportation of only essential commodities, but is expected to revive back in FY22.
Revision in Road Freight Norms by Government: The government regulations such as axle norms increasing Maximum Possible Payload reducing freight rates, phasing out older & polluting vehicles that are over 15 years old, GST to Increase Transparency, Reduce Delays and Administration Costs will Impact the Road Freight Industry.
Adoption of New Technology: Companies have started adoption of new technologies such as TMS, GPS for real time tracking assuring transparency to their clients.  Larger Domestic Companies are even moving towards Asset Light Model having tie ups with Local Subcontractors. Digital Freight brokerage platforms such as Rivigo, Truckola, Trucksuvidha   and many more are being very popular in India and are used by many companies for short and long hauls solving the problem of empty returns and maintaining their margins.
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 rising Competition in Road freight market, Rising Digital aggregator Start ups for trucking and e commerce market, Introduction of GST, E way Bills, Fastags along with Technological Advancements.
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
Key Topics Covered in the Report:-
India Logistics and Warehousing Market Introduction
Logistics Infrastructure
Cross Comparison of Logistics Performance in Different Countries (Germany, US, India, Australia, China, Vietnam, Philippines)
India Logistics and Warehousing Market Size
India Logistics and Warehousing Market Segmentation
India Logistics and Warehousing Market Future Outlook
India Logistics And Warehousing Market Future Segmentation
India Freight Market Size
India Freight Market Segmentation
India Freight Market Future Outlook
India Freight Market Future Segmentation
India Trucking Market Size
India Trucking Ecosystem
India Trucking Market Segmentation
India Trucking Market Future Outlook
India Trucking Market Future Segmentation
Innovations in Transportation Market
Investment Model on Road freight transportation
Regulatory Environment
Issues and Challenges
For More Information on the research report, refer to below link:-
Related Reports:-
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249

Thursday, June 11, 2020

India Road Freight Market Outlook to 2024: Ken Research


The report titled India Road Freight Market Outlook to 2024 – Driven by BS VI Norms, revision in Existing Axle Norms by the Government and Technological Advancementsprovides a comprehensive analysis on the status of logistics sector in India. The report covers various aspects including the current logistics scenario in India, its components viz, freight transportation, warehousing, CEP and VAS. The report specially focuses on Road freight market highlighting its issues and challenges, major growth drivers, investment in infrastructure, tech disruptions and innovations, and competition benchmarking. The report concludes with market projections for future of the Road freight market including forecasted industry size by Revenue.

India Logistics Market Overview and Size
India Logistics Sector has witnessed a robust CAGR with highest share to freight forwarding Market followed by Warehousing, Courier parcel and Express market and VAS Market. Road freight is the dominant mode with transportation to Domestic Flow corridors and international Neighboring Countries also. Many real estate developers such as Indospace, Logos India, ESR and many more are making constant investments in warehousing market in Gurgaon, Chennai and Mumbai. E commerce sector is becoming extremely popular with introduction of online payments such as Amazon Pay, Paytm, Gpay and new popular delivery apps.

India Road Freight Market Overview and Size
Small fleet owners dominated industry (70% of all fleet) operating at a margin of 8-12% and average transaction days of 12-15 per month.  SFOs primarily operating on Spot bookings while MFOs and LFOs working on LHAs. India Road Freight Market has witnessed an average CAGR during 2014-19 due to revision in BF VI Norms, Scrappage Policy, GST and new axle norms from the Government with rise in Average highway construction of Roads. The developments of  Bhratamala Pariyojana and the Sagarmala projects and the Eastern and Western Dedicated Freight Corridors, Developments of ports along with  Public Private partnership Projects has stimulated the growth in the market. On the front of assessing seasonality fluctuations in demand, Freight rates usually high during festive season in September-December with WAFC being ₹ 2.58/tonnes/km in 2019.

India Road Freight Market Segmentation
Road Freight Market Segmentation by LTL and FTL
The Road freight market is dominated by FTL by revenues and by Volume. The average freight cost charged for LTL is higher than FTL due to additional risk in carrying multiple loads, higher insurance cost and more.

Road Freight Market Segmentation by type of trucks
There are 12 million+ trucks in India, with net additions of over 6 lakh trucks in the market annually and there exist 40+ variants of trucks in the market.The Country is dominated by Light Goods Carrier Vehicles in comparison to High Goods Carrier Vehicles. The ratio of LCGV to HGCV is around 6:5. The LCGVs are expected to remain the dominant category in India Trucking Market.

Competitive Landscape of Major Players Operating in the India Road Frieght Market
The trucking Industry in India are extremely fragmented in nature. The trucking Industry is dominated by local domestic players who have large number of fleets and providing competitive prices. Big Companies such as Mahindra and All Cargo are moving towards Asset Light Model, subcontracting with local transport vendors and provide  Value added services such as Kitting, Assembling, packing and other which are very important in road freight market. Online platforms such as Blackbuck, TruckOla, rivigo and many more are disrupting the logistics space. The major players in the India Road freight market include GATI, VRL logistics, TCI, Om Express, DGFC, Varuna, Express logistics and many more.

India Road Freight Market Future Outlook & Projections:
The Trucking Industry in India will be impacted by COVID in the country and is expected to revive back in 2021 with faster growth rate. The truckers who have bought trucks with 50-100% institutional finance will see a tough time and need to maintain 90% capacity utilisation for upcoming EMIs, Insurance premiums & Permit with same freight cost in spite of high diesel cost.  This is due to disturbed production- consumption cycle with only 30% of trucks operating with cut throat competition for loads. Increasing Demand of e commerce products, growing Reefer trucks, technical innovations such as E vehicles, Fleet Management Software and more are disrupting the competition space.

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

Key Topics Covered in the Report:-
India Logistics and Warehousing Market Introduction
Logistics Infrastructure
Cross Comparison of Logistics Performance in Different Countries (Germany, US, India, Australia, China, Vietnam, Philippines)
India Logistics and Warehousing Market Size
India Logistics and Warehousing Market Segmentation
India Logistics and Warehousing Market Future Outlook
India Logistics And Warehousing Market Future Segmentation
India Freight Market Size
India Freight Market Segmentation
India Freight Market Future Outlook
India Freight Market Future Segmentation
India Trucking Market Size
India Trucking Ecosystem
India Trucking Market Segmentation
India Trucking Market Future Outlook
India Trucking Market Future Segmentation
Innovations in Transportation Market
Investment Model on Road freight transportation
Regulatory Environment
Issues and Challenges

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

Related Reports:-



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