Express Logistics & its Growth Drivers

An Insight into Express Logistics

The world is no longer large as it used to be in the past, it is a small place today as the entire world and its people are connected in various ways. The vast network of the internet and the various transportation routes, as well as modes, interconnect many places across the world. The exchange of goods has been taking place for a long time but in the past, the time factor was too long. Today, with the modern methods of transportation and the emergence of new logistics companies, the time period has significantly decreased.

Looking into the express courier and cargo scenario of our country, we will be able to see many interesting things. Organizations such as BLUEDART, DHL, Ekart Logistics, Pafex, etc. are some of the players in this game. The growth of e-commerce sites has given the whole courier and cargo industry a good boost. Such online sellers use the services of logistics platforms such as the ones mentioned above for delivering the products that users buy. E-commerce sites hold so many varieties of products that people mostly prefer to buy from them rather than going to physical stores. This indirectly is giving a major boost to many logistical companies.?Moreover, due to the easy utility of the internet, people are starting their small businesses online. Such small businesses partner with delivery partners as well to deliver products to their clients. This has further given a good boost to delivery organizations.

Logistics organizations have also improved a lot in terms of their services. Organizations such as Pafex and DHL provide international courier as well as cargo services for their clients across many cities in the world. They are applying customer-centric methods to further improve their services. Online tracking of parcels, SMS notifications, and customer support are just some of the features that logistical partners such as Pafex, Ekart, BLUEDART, DHL, etc provide to their customers.

The requirements and demands of people have changed over time. People now request faster deliveries and sometimes require their parcels to be delivered the same day or the very next day of the day of collection. Logistics companies such as Pafex, Ekart, DHL, etc attend to this need of their customers as well. Pafex and its other contemporaries have same-day as well as overnight delivery services for meeting clients' needs. They also assist their customers in the packaging of their items. This overall reduces the work on the client’s side while also maintaining the integrity and quality of the items inside. Logistics organizations also take great importance on the security of their customers' items. They make sure that the packages are delivered on time and only to the specific place assigned to them.

The courier and cargo industry has seen remarkable development and progress in recent years. It is expected to undergo even more in the coming years as well. Organizations such as Pafex that are coming up with new high-quality couriers as well as cargo services are sure to help customers for a long time. Their domestic, as well as international network, promises to help the courier and cargo industry to work better and tend to people’s needs in the best way possible.

Growth Drivers of Express Logistics

?Logistics has been growing in India and has lots of opportunities in the future. More and More start-up logistics companies are starting in India and there had been a consolidation happening for larger players to gain market share. With logistics having a promising future, we find that new-age logistics companies are coming up with IPO in the marketplace.

It's important to understand what are the factors which are contributing to the growth of Air Cargo within India and Cross borders.

Let’s look at the key factors below.

Economic Growth

India's economy is growing at a steady pace and this has been one of the major factors driving the growth of the express logistics industry. The GDP of India grew by?8.9% in?2021-22 and is expected to grow by 7.2% in 2022-23, according to a report by the?RBI and the Indian Govt. The Indian government's Make in India campaign has also contributed to the growth of this sector.

The GDP growth rate in India will lead to increased consumption and investment, which will drive demand for goods, services, and transportation. E-commerce and changing consumer behavior

With more than 300 million internet users, e-commerce has become a key driver of growth in India's logistics sector. The online retail sector accounts for around 5% of India's total retail market but it is expected to grow at a CAGR of 40%. Value-Added Services

The demand for value-added services such as last-mile delivery, reverse logistics, and warehousing management services has increased due to rapid urbanization and increasing disposable income levels. Logistics Infrastructure

India has a poor infrastructure for transportation modes such as roads, railways and ports which impacts supply chains negatively by increasing costs for businesses involved in transportation processes. Make in India

The Indian economy is growing at a fast pace and this has resulted in an increase in disposable income and consumption expenditure, which has boosted the demand for express logistics services. In addition to this, there has been an increase in the number of e-commerce companies such as Flipkart, Amazon, Snapdeal etc., which are using express delivery services in order to deliver goods faster and more cost effectively to their customers. This will help in increasing the overall volume of freight movement across all major cities in India.

E-commerce and Changing Consumer Behavior

The emergence of e-commerce websites like Amazon and Flipkart has changed the way people buy products online. Consumers now prefer ordering their products online instead of visiting physical stores or shopping malls. This shift has increased the need for delivery companies to provide faster delivery services to consumers at their doorstep within a few hours or even minutes after placing an order with an e-commerce website. This has led to an increase in demand for courier services across sectors such as retail, food & beverages, pharmaceuticals etc. It has also created opportunities for entrepreneurs who want to start up businesses selling products online by delivering them fast to customers who order from their websites.

The rising trend of online shopping has also led to an increase in the demand for express logistics services. According to a study conducted by Assocham (Association of Indian Chambers of Commerce & Industry), online sales are expected to reach $40 billion by 2020 from $3 billion currently (Assocham Survey Report 2016). In order to cater to this increasing demand for fast deliveries, businesses have started investing heavily in fleet expansion and

Logistics Infrastructure: The e-commerce industry in India has grown at a phenomenal pace in the last few years. The market size is expected to reach $200 billion by 2020, up from $20 billion in 2015, according to a report by Google and Temasek. The growth of the sector has been driven by several factors, including increased Internet penetration, changing consumer behavior, and rising incomes.

Express Logistics

Express logistics is a mode of transport for goods that are urgently needed by customers. It is a service which is used to deliver goods from one place to another within a short period of time. The focus in this article will be on the growth drivers of express logistics in India. The Indian economy is growing at a rapid pace and this has led to a rise in the demand for Express logistics services

The Express Logistics sector in India is growing rapidly and has been the fastest growing sector in the logistics industry. The growth drivers of express logistics include economic growth, e-commerce, changing consumer behavior, and value-added services.

Logistics Infrastructure Growth

The growth of logistics infrastructure has also been instrumental in driving the growth of e-commerce. Logistics infrastructure refers to the roads, railways, and ports that enable the efficient movement of goods throughout the country. It includes rail networks such as the Dedicated Freight Corridor (DFC) project which consists of two corridors connecting Delhi with Mumbai via Vadodara and Ahmedabad, and Mumbai with Chennai via Bangalore and Kolkata respectively.

The government has been working towards developing an efficient infrastructure for logistics service providers by improving the road infrastructure, building new highways, etc.

The government has also announced plans to build more than 12 new ports across India at locations such as Mundra and Dhamra in Gujarat; Sagar Island in West Bengal; Enayam port in Tamil Nadu; Vishakhapatnam Port Trust (VPT); Paradip Port Trust (PPT); Kakinada Port Trust (KPT); Cochin Port Trust (CPT); Chennai Port Trust (CPT); New Mangalore Port Trust

?Value-Added Services

In addition to providing door-to-door delivery services, express logistics companies are also offering value-added services such as same-day delivery, next-day delivery, etc., which is helping them attract new customers from different verticals such as retail, food & beverages, etc

There are many companies in India that provide value-added services along. The Indian Express Logistics market is a vibrant and growing industry, which has witnessed significant growth over the last few years. The industry is expected to grow at a CAGR of over 16% during the forecast period 2018-2023.

The growth of the logistics sector is directly linked to the economic growth of a country. In India, the logistics industry is expected to grow at an annual rate of 8-10% over the next five years.

PAFEX, a logistics company in India offers various Door to Door Air Cargo solutions that are designed for various needs because of its multi-carrier arrangements ensuring you enjoy the best services with minimal costs for the distribution needs of your company. PAFEX also offers D2C services for customers who need such solutions for their requirements based on demand.