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Logistics & Warehousing Market in India Outlook Update Q2 2020

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Report Summary Supply shock due to shut down of manufacturing facilities disrupted the logistics and warehousing segment in India; revival on cards in near future  

Logistics & Warehousing Market in India Outlook Update Q2 2020

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    Supply Chain has been disrupted all around the world due to pandemic Covid-19. India too has not escape the wrath of the virus. Warehousing Demand Shaken, but Recoveries Could be Quick. 3PL, e-commerce & FMCG for essential goods / services & Pharma likely to recover the quickest.

    As the imposition of the lockdowns and the spread of Covid-19 disrupted the manufacturing facilities worldwide, the supply shock triggered the ripple effect on logistics and warehousing segment across the globe. Moreover, India too has not escape the wrath of the virus and affected the logistics segment. Notably, overall container volume slowed down to 3.5 per cent in Feb-April as against 11 per cent growth in the corresponding period of FY19. In addition, Railways incur INR 450 crore loss as movement of passengers has been suspended. Also, the freight corridors impacted due to shutting down of manufacturing industries. Furthermore, the largest hit sector is aerospace sector as Indian aviation industry could face INR 24,000 crore revenue loss. On the other hand, the warehousing segment is likely expected to grow quicker than other segments as investment deals of almost USD 600 million are underway in the warehousing space owing to greater attention to local sourcing in order to reduce the imports majorly from China.

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