While shippers have been facing a ‘triple shock’ from the coronavirus outbreak that looks set to continue for some time yet, logistics service providers have been equally impacted by the ‘dangerous combination’ of transport capacity shortages, disruptions to supply chains and an inability to plan. As the government starts to lift the lockdown in phases, the number of trucks plying on the road is increasing but fleet owners say the big challenge is convincing drivers to return to work. C V Kumar, CEO, CCI Logistics Limited informs Upamanyu Borah, more on the ground reality which is continually in flux, and how the company is trying to adapt to the changing environment.
c v kumar
We have another two to three months of uncertainty to forecast and manage
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n the fifth phase of lockdown or phase-I of unlock 1.0, what is the ground reality? Has the transport been restored to any extent? Transportation is the one thing that connects all stages of the supply chain, from farm to food processing to warehouse to grocery store. A shortage of truck drivers, is posing a serious threat to the entire supply chain as the high demand for essential services continue unabated. At present, only 25-35 per cent of the trucks are on road due to driver unavail36 |
July 2020
ability. Additionally, there’s enormous pressure on logistics service providers (LSPs), and non-placement of vehicles has become a bane. Export-Import (EXIM) cargo movement is also hit due to low trailer availability. In container freight stations (CFSs), due to low number of Kalmar operators, loading and unloading of both stuffed and empty containers are running slow. Also, other stakeholders and service providers in the export-import (EXIM) containerised trade are either not func-
tioning or functioning marginally because of uncertainties related to the current environment. However, things are turning to change now. Importers and agencies involved in import clearance/transportation are starting to take delivery of import loaded containers. Besides, essential labour is being deployed by CFSs to handle the export-related work.
Please inform us about the ongoing situation with shippers. There is a growing frustration among the shippers because the coronavirusled lockdown has pushed things backward. They are facing potential threats to their business with less manpower in production/packaging/loading and unloading operations. They are also having a hard time finding drivers and truck capacity. More than 60 per cent of India’s (organised long haul) trucking fleet is now without drivers, the logistics sector may not see an immediate uptick since most drivers have gone back to their native places. When the volume rebound happens, it will get harder for shippers without capacity guarantees to get enough truck space.
