feature etc. and facilitate running of timethe wave of digitisation. Most other tabled freight trains for some small to medium forwarders will select pilot rain routes to proneed to tie-up with digital vide trade superior rail transfreight market-places to ensure port services and arrest the they can accelerate into the fall in its freight modal mix. future or be risked being left Outlining the need for behind,” expresses Katgara. Besides, the basic issues of infrastructure, differences in supporting the truck indusExcise Policies and Cusexcise policies and customs procedures, and inadequate try, the committee had sugtoms- Differences in excise use of technology, large credits being given and rampant gested the government to policies and customs harshly bad debts are the complex hurdles that the new players amend the existing regulaaffect both importers and exare facing in the freight forwarding segment, as the tions to make road transport porters. If this can be improved, market already has been spoilt in this respect. experience seamless and effithen function of freight forwardcient and incentivise trucking ing agents will ease down. Due to Sam N Katgara industry to move towards formal stringent regulations at various Partner, Jeena & Company and organised operators. The commitstages of cargo movements, time and tee has asked the government to intromoney are wasted, and greater are the duce the one nation, one permit, one tax complaints from traders, customers, etc system and amend the provisions of the Motor Highlighting the challenges pertaining to Transport Workers Act to incentivise trucking industry to trade facilitation at the border, Bibek Debroy-led Logistics Development Committee suggested doing away with increase its scale and size. physical examination, to be resorted only in exceptional cases, Inadequate Use of Technology- Though traditional forwarders have become adept at juggling details, they are unable to and shift towards fully facilitated ‘trust-based’ clearance process. The committee had asked to create a fully automated provide the same level of visibility as those offering a digital paperless trade environment, set up a single window digital experience. For customers who truly prefer a manual system, portal integrating all stakeholders and monitor key outputs accommodation may be made, but it's far easier to go backward across all major trade gateways. on occasion than refuse to go forward for the majority. Global Business Scenario- India’s export-import trade has A recent survey by online freight-marketplace provider taken an impact due to weakened demand in key developed markets such as that of the US and Europe. Because of economic challenges and political instability in European Union (aggravated by Brexit), has somehow also affected the logistics front of India. The freight forwarding business has thus become fragile in a way that hardships in emerging markets has slumped the trade.
A recent survey by online freightmarketplace provider Freightos revealed that just 1 of the top 20 global freight forwarders could provide an instant quote online for an anonymous prospective client.
Freightos revealed that just 1 of the top 20 global freight forwarders could provide an instant quote online for an anonymous prospective client. From load boards to Big Data-enabled route or rate calculators, new technologies promise to improve access, reduce delays and increase visibility for those who choose to use it. “Most of the forwarders lack an overall vision and compelling plan for digital adoption. However, various players from across the spectrum (including both traditional logistics players and new entrants) are adopting digital technology to provide seamless, end-to-end services,” says Sam N Katgara, Partner, Jeena & Company. “If the business model of these forwarders succeeds, competitors run the risk of losing direct contact with some of their most profitable customers, primarily the small and midsize freight forwarders,” believes Katgara. “Most of the multi-national forwarders are looking at making acquisitions in 2019 to increase their market share and improve their freight tech solutions as they look to benefit from
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Challenges faced by New Players The challenges faced by new players in the Indian freight forwarding market are many. “Basically, from finding skilled man power to build a team of talented individuals, determining the best option with best rates- the most time-consuming exercise, documentation, delays, safety and tracking of the shipments, and surging fuel prices, tops the list,” says Vohra. Thapar jots down four key quantifiers: Differentiation- Today, many customers question what differentiates a company from the rest. Continuous innovation and evolution have become imperative to stay pertinent in the industry. As a corollary, commoditisation of the standard products has made the differentiation question even more relevant. Volatility- Trade wars, economic policy shifts, political developments, and security incidents have increased volatility in the freight market place. Despite unpredictability in the industry, many customers are increasingly looking for stability and predictable costs. Human Resources - The industry is still under resourced in terms of qualified talent.