Reflecting On 2023: Aspirations For 2024

In welcoming 2024, industry veterans reflect on 2023’s logistics performance, highlighting achievements, setting transformative goals, and anticipating adaptations that will shape the sector’s trajectory in the coming year.

Xerrxes Master

President, Association of Multimodal Transport Operators of India (AMTOI) & MD, Master Group

As we enter a new year, evaluating the cargo and logistics industry in 2023 reveals a transformative shift. The pandemic-induced honeymoon period is over, and economic uncertainties, geopolitical challenges, and reduced demand have impacted freight rates significantly. Shipping container costs between Asia and the US or Europe have plummeted by over 80% from the previous year. However, the industry faces a new challenge in 2024 with a potential oversupply risk due to the arrival of 2.95 million TEUs in deliveries, including megamaxes and neopanamaxes. This surge may intensify competition, decrease profits, and trigger mergers. Amid the ongoing geopolitical crises, 2024 demands consolidation, resilience, a focus on internal processes, cost-cutting, and swift digitization for the industry to navigate the forthcoming challenges effectively.

CK Govil

President, Air Cargo Agents Association of India (ACAAI) & CMD, Activair Airfreight India

In the air cargo industry, this year has been compelling globally and domestically, with India emerging as one of the fastest-growing express delivery markets. The Indian air cargo sector is projected to reach USD 13.08 billion by year-end, surging to USD 17.22 billion in the next five years. October witnessed a 3.8% global increase in air cargo demand, accompanied by a 2.6% rise in cargo yields after a 17-month hiatus. India is poised to lead this positive trend. Looking ahead, a notable evolution involves the heightened role of artificial intelligence. Initiatives like the Air Cargo Community System (ACCS), Air Cargo Message Exchange System (ACMES), and AAI Cargo Logistics and Allied Services are paving the way for a single-window ULIP platform, fostering seamless data and goods exchange and indicating a digital-driven growth trajectory in the industry next year.

Arvind Nayak

President, Domestic Air Cargo Agents Association of India (DACAAI) & MD , Nayak Aviation Services

Over the past few years, India’s logistics sector, particularly air freight, has experienced remarkable growth, notwithstanding disruptions caused by conflicts in certain nations. The relocation of supply chains from China to India, coupled with enhanced infrastructure and connectivity, promises an exciting trajectory in the coming year. Despite occasional challenges, the government’s ambitious target of 10 million tonnes for the trade appears achievable. The positive momentum, driven by strategic shifts and infrastructural advancements, positions the logistics landscape for a dynamic and prosperous future. As we anticipate the unfolding developments, the industry is poised for continued success in future.

Sudip Dey

Director, Haridass Chunder (Clearing Agents) & Honorary Secretary, Federation of Freight Forwarders’ Associations in India (FFFAI)

In 2023, the logistics industry faced sluggish growth attributed to global trade’s slow revival post-pandemic. Despite challenges like the Ukraine-Russia war and West Asia tension, India’s foreign trade showed an upward trend, particularly in services. Optimistically, as service providers, we anticipate this trend to persist in 2024. Notably, the slump in goods trade led WTO economists to revise their 2023 projections, yet they foresee a more positive outlook for 2024 with a 3.3% growth projection. Freight forwarders may find relief in 2024, as reports suggest resolving the capacity crunch with a record-breaking 3 million TEUs entering the market. Indian logistics professionals are bullish, citing government support for trade facilitation, world-standard infrastructure, and initiatives to explore new markets and routes, making 2024 an exciting year for the industry. Amidst this scenario, collaboration across the industry becomes crucial, fostering innovation and resilience for sustainable growth in this landscape ahead.

Sanjiv Edward

Chief Executive Officer, GMR Group

As we enter a new year, evaluating the cargo and logistics industry’s 2023 performance prompts optimism for India’s growth trajectory in 2024. Fueled by increasing domestic demand, expanding e-commerce, and government emphasis on infrastructure, the sector is poised for advancement. The National Logistics Policy’s implementation is projected to reduce costs by 10 percent and enhance efficiency by 20 percent by 2025. Despite this positive outlook, challenges persist, including rising fuel prices, geopolitical disruptions, and the lingering effects of the COVID-19 pandemic. Addressing these, the 2024 goals encompass Digitalization & Technology Optimisation, Sustainability and Green Initiatives, Collaboration and Partnerships, collaboration and partnerships, last-mile delivery innovation, and an intensified focus on transshipments and international integration for a resilient and adaptive industry.
Looking ahead, fostering innovation through research and development initiatives will be pivotal to overcoming industry challenges and achieving sustainable growth in 2024.

V Raju

Head of Contract Logistics, Allcargo Supply Chain

In 2024, significant strides are anticipated in India’s logistics infrastructure, fuelled by substantial budgetary allocations from the central government. The spotlight will be on multimodal transport, logistics parks, and warehousing, with robust road construction initiatives supporting these developments. The supply chain landscape will witness a surge in digitization and sustainability efforts, positioning India as a global leader in these domains. Logistics players will intensify technology investments, emphasising innovation in electric vehicles, alternative fuels, and battery technology. Geopolitical disruptions will echo in the logistics ecosystem, prompting the adoption of resilient measures. While the automotive and e-commerce sectors thrive, chemical logistics faces recessionary challenges. Sustained government support is crucial for the food and pharma sectors, while startups gain traction, emphasising last-mile delivery in the burgeoning e-commerce realm.

Zaiba Sarang

Co-founder, iThink Logistics

In 2023, the supply chain and logistics industry saw significant milestones, including the inaugural year of the NLP policy, ONDC collaboration, the G20 Summit, and a substantial government push for MSME. Marked as a pivotal year, it initiated a journey towards a seamless and integrated logistics infrastructure. Reforms for MSME growth bolstered India’s economic landscape, fostering competitiveness for e-commerce and D2C brands. Notable developments like the IMEC corridor positioned India as a global economic centre, laying the foundation for a structured supply chain. As 2024 approaches, expectations include enhanced ULIP, a paperless logistics approach, and government-backed initiatives like the IMEC corridor and MSME reforms sustaining growth. Anticipating carbon-free footprints, the industry aims for reduced emissions and optimised, technology-integrated supply chain operations in the coming years.

JP Mishra

Country Manager – India, Newland AIDC

Approaching 2024, the logistics landscape is set for transformation, fueled by innovative technologies and a commitment to sustainability. Artificial intelligence, IoT, and ML will drive logistics growth, while AIDC tools like barcodes and RFID applications ensure cutting-edge solutions. The emphasis on efficiency, transparency, and security will persist, with integrated blockchain and IoT adoption likely. The surge in EVs will amplify “green logistics,” prioritising sustainable packaging and supply chain optimization. Mobile AIDC solutions will revolutionise inventory management in the thriving e-commerce sector, reducing costs. Post-pandemic, overcoming last-mile delivery challenges remains a priority, prompting R&D investments in automation solutions like drones and robotics. Advanced analytics and integrated ERP systems will empower data-driven decisions, ensuring seamless compatibility across logistics systems.

Kushagra Singh

CTO, NITISARA

In 2023, the cargo and logistics sector grappled with challenges, including global warming impacts and escalating geopolitical tensions. Despite these hurdles, the industry demonstrated resilience and efficiency improvements. Looking ahead to 2024, there’s an anticipated emphasis on sustainability and the integration of innovative technologies, such as artificial intelligence. The focus is on enhancing supply chain visibility, mitigating risks, and ensuring a sustainable trajectory for global trade. Urgent attention is required to address the escalating geopolitical tensions affecting global commercial shipping, emphasising the critical need for immediate and strategic responses in the coming year. The commitment is to navigate these challenges while fostering a resilient and sustainable future for the logistics and cargo industry.