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Time of India
30-06-2025
- Automotive
- Time of India
Outside metro cities, Green Logistics struggles to gain momentum
Last-mile deliveries now contribute up to 40 per cent of city transport emissions—a twin burden on both business margins and urban air quality. As pressure mounts from regulators, investors, and consumers, India's logistics sector is being forced to rethink how goods move through its cities. In response, metro hubs like Delhi, Mumbai, Hyderabad, and Bengaluru are becoming live testbeds for green logistics —where cleaner fuels, denser delivery networks, and return-to-base routes make sustainable solutions both feasible and impactful. At the heart of this shift is the growing adoption of Compressed Natural Gas (CNG) and Electric Vehicles (EVs) for last-mile operations One workaround gaining traction is a two-tier logistics model , already operational in Delhi. It involves using diesel trucks for long-haul transport to the city outskirts, followed by green vehicles for the last-mile leg. "You often see large trucks stopping at the outskirts, and then goods are transferred to smaller CNG vehicles or even Boleros for the final leg into the city. This kind of last-mile movement works well because it fits into a return-to-base model. This two-tier logistics model ensures operational efficiency while also reducing emissions within city limits," says Sarthak Elwadhi, founder of TrucksUp. That model is already scaling within urban networks—where both infrastructure and emission goals converge. As per Grant Thornton's findings, last-mile delivery is a natural starting point for decarbonisation with electrification expected to power 30 per cent of all last-mile deliveries by 2030. It's a trend Prediman Koul, CEO of Jeena & Company is already seeing firsthand, "Our partnership with Tata Motors to convert our last-mile delivery fleet to electric vehicles has been successful in cities like Hyderabad, Bengaluru, Mumbai, Delhi, and Ahmedabad. We have successfully converted 25 per cent of our last-mile delivery fleet to EVs.' City models don't scale—Yet While green logistics solutions are proving effective in urban centres, scaling these models nationwide presents a significant logistical and financial puzzle as its adoption faces high initial cost. "When it comes to longer hauls, CNG and EVs haven't gained the same traction," explains Elwadhi. "When we talk about transitioning to a green fleet—whether that's EVs or LNG vehicles—the initial investment is significantly higher compared to conventional diesel trucks.' As per the Grant Thornton's Freight Forward report, only about one-third of India's heavy-duty truck fleet is expected to shift to LNG over the next 5–7 years. The lack of charging and LNG refueling stations on highways remains another major deterrent. Even for companies committed to sustainability, the shift is slow and cautious. "It is always tough to move from the status quo, especially for businesses and large supply-chain-led operations like ours. A simple change can shake up the ecosystem; however, we are conscious that we are preparing for our future today," says Koul. Intent needs to match pragmatism However, investor appetite for sustainable logistics is rising sharply—private equity investments jumped 300 per cent in Q2 2025, especially into urban, EV-led models. Yet, this financial momentum hasn't been matched by policy or infrastructure support. To take green logistics beyond city limits, the sector needs more than intent. Expanded green financing, targeted subsidies, and infrastructure investments—especially for charging and refueling along long-haul routes—will be crucial. So will regulatory nudges, like mandating green freight quotas for large manufacturers or offering incentives such as priority access for low-emission vehicles. As Elwadhi notes, 'Unless there are clear business advantages, it's tough to make that change.' Collaboration across the ecosystem—from shippers and fleet owners to digital platforms and policymakers—is essential to make sustainability economically viable.


Time of India
28-06-2025
- Automotive
- Time of India
World Logistics Day: Outside metro cities, green logistics struggles to gain speed, ET Infra
Advt Advt City models don't scale—Yet Intent needs to match pragmatism By , ETInfra Last-mile deliveries now contribute up to 40 per cent of city transport emissions—a twin burden on both business margins and urban air quality. As pressure mounts from regulators, investors, and consumers, India's logistics sector is being forced to rethink how goods move through its response, metro hubs like Delhi, Mumbai, Hyderabad, and Bengaluru are becoming live testbeds for green logistics —where cleaner fuels, denser delivery networks, and return-to-base routes make sustainable solutions both feasible and the heart of this shift is the growing adoption of Compressed Natural Gas (CNG) and Electric Vehicles (EVs) for last-mile operationsOne workaround gaining traction is a two-tier logistics model , already operational in Delhi. It involves using diesel trucks for long-haul transport to the city outskirts, followed by green vehicles for the last-mile leg."You often see large trucks stopping at the outskirts, and then goods are transferred to smaller CNG vehicles or even Boleros for the final leg into the city. This kind of last-mile movement works well because it fits into a return-to-base model. This two-tier logistics model ensures operational efficiency while also reducing emissions within city limits," says Sarthak Elwadhi, founder of model is already scaling within urban networks—where both infrastructure and emission goals converge. As per Grant Thornton's findings, last-mile delivery is a natural starting point for decarbonisation with electrification expected to power 30 per cent of all last-mile deliveries by a trend Prediman Koul, CEO of Jeena & Company is already seeing firsthand, "Our partnership with Tata Motors to convert our last-mile delivery fleet to electric vehicles has been successful in cities like Hyderabad, Bengaluru, Mumbai, Delhi, and Ahmedabad. We have successfully converted 25 per cent of our last-mile delivery fleet to EVs.'While green logistics solutions are proving effective in urban centres, scaling these models nationwide presents a significant logistical and financial puzzle as its adoption faces high initial cost."When it comes to longer hauls, CNG and EVs haven't gained the same traction," explains Elwadhi. "When we talk about transitioning to a green fleet—whether that's EVs or LNG vehicles—the initial investment is significantly higher compared to conventional diesel trucks.'As per the Grant Thornton's Freight Forward report, only about one-third of India's heavy-duty truck fleet is expected to shift to LNG over the next 5–7 years. The lack of charging and LNG refueling stations on highways remains another major for companies committed to sustainability, the shift is slow and cautious. "It is always tough to move from the status quo, especially for businesses and large supply-chain-led operations like ours. A simple change can shake up the ecosystem; however, we are conscious that we are preparing for our future today," says investor appetite for sustainable logistics is rising sharply—private equity investments jumped 300 per cent in Q2 2025, especially into urban, EV-led models. Yet, this financial momentum hasn't been matched by policy or infrastructure take green logistics beyond city limits, the sector needs more than green financing, targeted subsidies, and infrastructure investments—especially for charging and refueling along long-haul routes—will be crucial. So will regulatory nudges, like mandating green freight quotas for large manufacturers or offering incentives such as priority access for low-emission Elwadhi notes, 'Unless there are clear business advantages, it's tough to make that change.'Collaboration across the ecosystem—from shippers and fleet owners to digital platforms and policymakers—is essential to make sustainability economically viable.


Economic Times
25-04-2025
- Business
- Economic Times
Trump's tariffs may spike freight costs by 30%; India set to ride the supply chain shake-up
iStock India's shipping sector navigates a complex landscape shaped by US tariffs, presenting both challenges and opportunities. Experts suggest India can leverage its competitive advantages and favourable tariff exposure to enhance its global trade position by diversifying export strategies and negotiating beneficial market access. India's shipping and logistics sector is bracing for both turbulence and opportunity, as the reciprocal tariffs imposed by the Trump administration in the US have dramatically altered global trade flows, upending supply chains. With freight costs rising and cargo volumes shifting, experts say that Indian companies are facing unprecedented supply chain pressures along with new opportunities. Industry stakeholders unanimously agree that Trump's tariffs have affected interconnected supply chains, leading to changes in freight rates, rerouting cargo, and forcing logistics providers to re-examine traditional routes. Higher freight, spiked costs Sateshwar Tuteja, Director of Sales at shipping firm Jeena & Company, explains that global factors like supply and demand, fuel prices, and disruptions mainly affect freight rates, but ongoing high demand on certain routes, like India-US due to trade diversion, can give shipping companies more control over their prices and potentially increase costs for shippers, benefiting logistics‑intermediary margins if managed the silver lining, Tuteja, however, cautions that expanded US duties could dent cargo volumes on affected lanes, adding to already mounting customs scrutiny, longer dwell times, and 10-14% higher compliance costs. Asked about sectoral pressures as witnessed by his company, he says, 'India-US freight rates have risen by 18% year-on-year. Over 40% of Indian apparel exporters have shifted operations to Vietnam and Bangladesh, and major lines are preparing for a 25% capacity reduction on US‑bound routes. Industries reliant on imports are already facing a 12-15% cost increase, offsetting the country's reshoring gains. Trump's sector-wide tariffs on Indian exports will mainly impact telecom, gems and jewellery, auto components, and processed foods, which together are valued at over $21 billion in annual trade.' Despite looming challenges, Tuteja emphasises that India maintains a competitive advantage, which enables it to navigate the current turbulent period. 'India's relatively moderate tariff exposure compared to other countries like China (imposed with up to a 245% tariff) positions us as a competitive alternative for global manufacturing. A 17% increase in warehousing demand and a 12% surge in foreign manufacturing interest reflect this shift. India could leverage this large tax gap vis-à-vis China by adopting firm and strategic policy measures with efficient export strategies, including market access negotiations, to create scope for trade diversification to the US.' A mixed bag for India According to industry experts, US tariffs could trigger a 30% freight hike. Alan Barboza, Executive Director at Flomic Global Logistics, describes Trump's tariff offensive as 'a mixed bag for global trade—and possibly a windfall for India'. 'If the 90‑day tariff pause extends and Trump's 'up to 245%' levy on Chinese goods holds, Indian exporters could gain a critical edge, especially in low‑cost manufacturing sectors,' he says. Since the tariff announcements, Barboza says, booking queries for breakbulk and loose cargo have jumped 14-17%, particularly from Gujarat and Tamil Nadu. Air cargo demand is also up, led by pharmaceuticals and perishables bound for the US East Coast. 'With carriers set to trim US-bound capacity by 25 %, Indian logistics firms must adapt—consolidate loads, optimise multi-port routing, and invest in compliance excellence to stay globally competitive in a fractured trade landscape.'Meanwhile, rising geopolitical tensions and stuck consignments in China are also stoking fears of a global container crunch. Jitendra Srivastava, CEO of Triton Logistics & Maritime, cautions that trade tensions with China could trigger a 30% freight hike. He adds containers stranded in Chinese ports due to tariffs and uncertainty risk creating global shortages. 'Shipping lines will raise rates to recoup costs as volumes fall. For India's medium and small exporters, this could mean sharply higher logistics bills. If China's export woes persist, we could see freight‑rate swings of 10–30% across regions as early as next month,' cautions Srivastava. Seizing the upside According to experts, India's logistics sector faces a turning point, as rising freight rates, shifting shipping capacity, and growing compliance issues exacerbate its challenges. However, experts highlight that India's moderate tariff structure, expanded market access via CEPAs, and growth in warehousing and manufacturing create an opportunity to redefine its global trade role. Industry observers also see an opportunity if the US pause on tariffs extends beyond 90 days. Surendar Singh, Associate Professor of International Business at O.P. Jindal Global University, argues India must act swiftly: 'We have a chance to capitalise on these shifts, but we need concrete measures. The Ministry of Commerce should pinpoint high‑potential products and partner with industry to seize emerging opportunities.' Notably, India is currently in the process of negotiating a bilateral trade agreement with the US. However, Singh flags that meeting US demands related to agricultural products remains challenging for India due to its complex domestic political economy. As a solution, Singh advocates a 'selective approach' to a US trade deal that includes reducing tariffs on certain industrial goods to somewhat please US interests but avoids negotiating sensitive areas like government procurement, IPR, digital trade, and environmental standards.


Time of India
25-04-2025
- Business
- Time of India
Trump's tariffs may spike freight costs by 30%; India set to ride the supply chain shake-up
India's shipping and logistics sector is bracing for both turbulence and opportunity, as the reciprocal tariffs imposed by the Trump administration in the US have dramatically altered global trade flows, upending supply chains. With freight costs rising and cargo volumes shifting, experts say that Indian companies are facing unprecedented supply chain pressures along with new opportunities. Industry stakeholders unanimously agree that Trump's tariffs have affected interconnected supply chains, leading to changes in freight rates, rerouting cargo, and forcing logistics providers to re-examine traditional routes. #Pahelgam Terrorist Attack Pakistan suspends Simla pact: What it means & who's affected What is India's defence muscle if it ever has to attack? Can Pakistan afford a full-scale war with India? Higher freight, spiked costs Sateshwar Tuteja, Director of Sales at shipping firm Jeena & Company, explains that global factors like supply and demand, fuel prices, and disruptions mainly affect freight rates, but ongoing high demand on certain routes, like India-US due to trade diversion, can give shipping companies more control over their prices and potentially increase costs for shippers, benefiting logistics‑intermediary margins if managed well. Beyond the silver lining, Tuteja, however, cautions that expanded US duties could dent cargo volumes on affected lanes, adding to already mounting customs scrutiny, longer dwell times, and 10-14% higher compliance costs. Live Events Asked about sectoral pressures as witnessed by his company, he says, 'India-US freight rates have risen by 18% year-on-year. Over 40% of Indian apparel exporters have shifted operations to Vietnam and Bangladesh, and major lines are preparing for a 25% capacity reduction on US‑bound routes. Industries reliant on imports are already facing a 12-15% cost increase, offsetting the country's reshoring gains. Trump's sector-wide tariffs on Indian exports will mainly impact telecom, gems and jewellery, auto components, and processed foods, which together are valued at over $21 billion in annual trade.' Despite looming challenges, Tuteja emphasises that India maintains a competitive advantage, which enables it to navigate the current turbulent period. 'India's relatively moderate tariff exposure compared to other countries like China (imposed with up to a 245% tariff) positions us as a competitive alternative for global manufacturing. A 17% increase in warehousing demand and a 12% surge in foreign manufacturing interest reflect this shift. India could leverage this large tax gap vis-à-vis China by adopting firm and strategic policy measures with efficient export strategies, including market access negotiations, to create scope for trade diversification to the US.' A mixed bag for India According to industry experts, US tariffs could trigger a 30% freight hike. Alan Barboza, Executive Director at Flomic Global Logistics , describes Trump's tariff offensive as 'a mixed bag for global trade—and possibly a windfall for India'. 'If the 90‑day tariff pause extends and Trump's 'up to 245%' levy on Chinese goods holds, Indian exporters could gain a critical edge, especially in low‑cost manufacturing sectors,' he says. Since the tariff announcements, Barboza says, booking queries for breakbulk and loose cargo have jumped 14-17%, particularly from Gujarat and Tamil Nadu. Air cargo demand is also up, led by pharmaceuticals and perishables bound for the US East Coast. 'With carriers set to trim US-bound capacity by 25 %, Indian logistics firms must adapt—consolidate loads, optimise multi-port routing, and invest in compliance excellence to stay globally competitive in a fractured trade landscape.' Meanwhile, rising geopolitical tensions and stuck consignments in China are also stoking fears of a global container crunch. Jitendra Srivastava, CEO of Triton Logistics & Maritime, cautions that trade tensions with China could trigger a 30% freight hike. He adds containers stranded in Chinese ports due to tariffs and uncertainty risk creating global shortages. 'Shipping lines will raise rates to recoup costs as volumes fall. For India's medium and small exporters, this could mean sharply higher logistics bills. If China's export woes persist, we could see freight‑rate swings of 10–30% across regions as early as next month,' cautions Srivastava. Seizing the upside According to experts, India's logistics sector faces a turning point, as rising freight rates, shifting shipping capacity, and growing compliance issues exacerbate its challenges. However, experts highlight that India's moderate tariff structure, expanded market access via CEPAs, and growth in warehousing and manufacturing create an opportunity to redefine its global trade role. Industry observers also see an opportunity if the US pause on tariffs extends beyond 90 days. Surendar Singh, Associate Professor of International Business at O.P. Jindal Global University, argues India must act swiftly: 'We have a chance to capitalise on these shifts, but we need concrete measures. The Ministry of Commerce should pinpoint high‑potential products and partner with industry to seize emerging opportunities.' Notably, India is currently in the process of negotiating a bilateral trade agreement with the US. However, Singh flags that meeting US demands related to agricultural products remains challenging for India due to its complex domestic political economy. As a solution, Singh advocates a 'selective approach' to a US trade deal that includes reducing tariffs on certain industrial goods to somewhat please US interests but avoids negotiating sensitive areas like government procurement, IPR, digital trade, and environmental standards.