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Lockdown 3.0 or Exit 2.0 has largely opened up industrial activity in 603 out of 733 districts in India. Cold Storages and warehouses, which are essential to India’s supply chain, have largely become operational since May 4th. Infact as per the Press Release given below, Cold Storages and Warehouses will be open in Red Zones as well:
If you are still facing warehouse related issues on the ground, share the details with us.
According to internal estimates from our clients, 80% warehouses are now functional. The ones which haven’t opened yet are located mostly in Containment Zones and can be expected to open up soon. Problems currently faced by Warehouses and Industry in general is more around availability of labour for loading, unloading and other vital manual tasks. However, the opening up of these warehouses and cold storages should provide a lot of relief to truckers, who may expect a rise in demand going forward.
Infact, the broader trend in a post-Covid world could be for a rise in warehousing in India. Early signs of this change in trend was seen when grocery e-tailer Grofers reported mid-April traffic to be 25-30 times of what it was in February. Infact, they had to add 3 more warehouses in April itself (over and above the 26 they already had) and are slated to open 5 more warehouses in the next 2 weeks.
Many experts are anticipating a behavioral shift from offline to online, especially in Indian retail in the coming months. Infact, a majority of the demand for warehousing is generated by e-commerce firms and third-party logistics firms which help in moving goods for many fast moving consumer goods (FMCG) brands. The acceleration in the trend of e-commerce would hence necessitate setting up of warehouses for maintaining a buffer of goods and for efficient distribution.
Another huge factor that could spur warehousing in India is the shift of manufacturing out of China. Efforts to attract manufacturing away from China to India have already been started at multiple levels and this could give further impetus to industrial warehousing activity.
A direct impact of increased warehousing would be seen on demand for trucks. In fact, as the lockdown is eased around the country, e-commerce demand will start rising immediately and its positive impact on warehousing and truck transportation could be seen very soon. In fact, we earlier wrote about how a rise in e-commerce propelled logistics in China after the lockdown was eased there: https://help.wheelseye.com/en/posts/1141/. WheelsEye would like to suggest the trucking community to closely follow trends in the e-commerce sector for the next few weeks and if possible, grab as many opportunities as possible from this promising sector.
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