Technology is ever-changing the face of business and the brightest thing about it is that it is changing all the businesses it can with technology itself. One such example that we have is of the Freight Carrier and Logistics business such as Logistics Junction.
In the Indian market, transport services especially in Pune and logistics are one of the biggest players, with around 5 million kilometers of roads which has around 8 million transport vehicles constantly running on at any given time.
Indian Logistics Sector has been consistently on upward trajectory registering a CAGR of 9-10% in the last few years. Government’s infrastructure push to accelerate economic growth and better operational efficiency due to a larger use of digital technology especially by online logistics companies in India have been the two major drivers of growth for logistics sector. Recognizing the promising potential of the sector, the government has recently given infrastructure status to it. Further, the implementation of Goods and Service Tax is also going to have a favorable effect on logistics sector due to the removal of the multiplicity of taxes levied by states and the central government making interstate commercial transport smoother. However, at 14% GDP, the logistics sector in India still suffers from one of the highest logistics cost in the world. The sector is expecting from the government to bring down this cost in order to enhance global competitiveness while keeping up the infrastructure push. Further, in terms of policy, the logistics startups are making a demand for the government to formulate an integrated transportation policy to ensure efficient and smooth transportation of the goods.
What is Green Logistics?
The logistics industry is one of the major contributors to environmental despoliation. Around a quarter of global CO2 emissions are due to fossil fuel combustion in transport sector alone, according to International Energy Association. While Europe and the developed world have taken concrete actions to reduce Green House Gas (GHG) emissions from the logistics and commercial transport sector, the developing nations have barely moved beyond paying lip service. As witnessed in the developed world, increase in emission is in lockstep with economic growth; for instance, the CAGR in Indian CO2 emissions from transport sector due to fossil fuel combustion has been around 4.5 % compared to 1.16 % in OECD countries and 1.04 % in North America in the previous decade. No wonder, environment, and growth are often couched in mutually antagonistic terms, especially in India, which is in a great hurry to catch up on growth. Transportation globally accounts for major impact on the environment. Out of total carbon dioxide emission, 75% of it is contributed by road transport vehicles, and this number is growing exponentially. Also, 95% of the road transportation consumes oil, which leads to around 60% consumption of the total oil in the world. All this puts the national government under strong pressure to come up with domestic transportation solutions to reduce pollution and gasoline demands.
On July 20, 2018, the All India Motor Transport Congress (AIMTC), which calls itself the apex body of transport companies in India, announced an indefinite nationwide transport strike, putting a stop to transport services all over the country. A large part of the 14 lakh vehicles transporting goods and essential commodities across Maharashtra went off the roads, slowly affecting commodity prices and the daily routine of its citizens.
The society we live in is ever growing, especially in terms of technology. It has changed at a tremendous pace. If we look at the growth of the technological market, a decade back, the phones and tablets we use were not as evident and widely used. But a decade later, almost every pocket has a smartphone and every house has an Internet access. The growth of the logistics industry has also taken a huge turn with this unprecedented growth in the field of technology. Now we look at the further levels of growth that can be achieved with the constantly changing technology and the future aspects that may come and change the trends once and for all.