As we are approaching the end of Q1 of the financial year 2021-22, following one of the most historically dynamic year for logistics and transportation in history. Meanwhile, shippers and production companies continue to face transportation challenges in the covid-19 pandemic. As India gets hit by the second wave of the corona crisis since march 2021, E-commerce and domestic trading soared by more than 30%. But still, there is a surge in production capacity and even forcing the transportation industry to stay alert to keep up with unprecedented demand.

Vaccines Supply Contribute to Tight Freight Market

The country-wide distribution of the COVID-19 vaccine has narrowed capacity further. With India plans to deliver 250 Million Covid-19 Vaccine doses across the Indian supply chain nationwide will affect the capacity of refrigerated trucks, and it could disrupt medical supplies to distribute the vaccines. With the government’s interference in the logistics chain to supply vaccine and medical supply to the required states and hospitals is narrowing the capacity of transport vehicles.

Transportation Fares continue to Rise in 2021

While the emergency distribution of medical supply may cause stress in the logistics capacity, many economists believe that country’s immunization will reopen more than the consumer economy. Corporates that experience delays in infrastructure and equipment development in 2020 due to pandemic will need to catch up on their investment allocation. As a result, Pricing will continue to rise as transport service supply remains constrained with trucking and air freight services increases between 6 to 10 percent, And part load segment increases 3 to 5 percent.

Driver shortage plagues as the second wave hit India.

The driver and labor shortage, which has been going on since March 2020, and even before that. But after the second wave, it continues to affect the supply chain industry as recruiting laborers for warehouses and drivers for heavy trailers and trucks becomes more challenging. Since the full lockdown and partial lockdown have been started in many states across the county, drivers and laborers are traveling back to their hometown until the situation gets any better. The growing deficit of manpower contributes to the current and upcoming tight freight market.

What’s in it for Production Companies?

Because the freight market is likely to remain disturbed because of the critical situation across the country. Shippers and manufacturers must take a close look at their overall logistics network and transportation planning strategies to reduce risk. Starting from pricing negotiation to transporters network integration into your digital infrastructure. Companies that rely on third-party transport operators and open freight market can improve their planning and cost by Hypercollider – Transportation Service Management Set up, where you can leverage competitive pricing and process in your transport operator’s network.

As per our understanding, the key to survive and get the maximum benefit out of the current and upcoming situation is to staying digitally interconnected with your transport partners. So you can get key access to transportation events and accelerate freight movement that could impact your organization.