Proper road infrastructure, skilled workforce among key challenges for logistics industry: Experts

Lack of due roadworthy infrastructure, onshore availability for warehousing and skilled workforce shortages are immoderate of the cardinal challenges being faced by the logistics industry, according to experts.

Warehousing needs onshore availability successful and astir metropolitan cities arsenic a pick-up successful economical activities is creating request for logistics, Assocham Secretary General Deepak Sood said.

Besides, the warehousing assemblage successful India is highly fragmented, with galore tiny and unorganised players, starring to inefficiencies, deficiency of standardisation, and constricted scalability, helium added.

The deficiency of due roadworthy infrastructure and congestion causing delays interaction the proviso concatenation efficiency, Srikumar Krishnamurthy, Senior Vice President & Co-Group Head - Corporate Ratings, Icra Ltd, said.

Some of the near-term headwinds are the inability to summation freight rates amid competitory pressures, an inflationary situation and comparatively sticky diesel prices, helium noted.

BookMyCargo laminitis JD Yadav said the logistics manufacture is facing the contented of rising costs, skilled labour shortages, regulatory pressures, and proviso concatenation disruptions.

These challenges are pushing logistics firms to equilibrium outgo management, workforce, and exertion concern to support competitiveness.

"By moving collaboratively with the authorities connected these initiatives, the logistics manufacture tin flooded its existent challenges, ensuring a much resilient, efficient, and sustainable future," helium said.

Sharing his outlook connected the logistics manufacture for H2 FY25, Sood said the second-half prospects should witnesser betterment implicit the archetypal fractional arsenic per our assessment. A surge successful online retail, particularly during the festive season, has importantly boosted last-mile transportation infrastructure.

Yadav said proviso concatenation resilience volition beryllium a cardinal focus, with companies diversifying suppliers and investing successful flexible operations.

Technology adoption (automation, AI, IoT) volition besides summation to assistance antagonistic rising labour costs and amended efficiency, helium added.

Icra's Krishnamurthy said the outlook for the assemblage continues to beryllium stable, fuelled by assorted authorities measures and policies successful favour of the sector, and the anticipation of a unchangeable request outlook from varied segments similar e-commerce, FMCG, retail, chemicals, pharmaceuticals, and concern goods.