Struggling with shortage of manpower and a massive supply slump coupled with regulatory challenges in a world grappling with the health crisis that is Covid-19, freighters are all set to increase tariff by almost 80 percent.
According to a report in the Economic Times, Truckers have increased tariffs by up to 80 percent, while Blue Dart has implemented a 25 percent emergency situation surcharge (ESS) and Air India may increase freight charges by 90 percent per kilo if it doesn’t have sufficient cargo to ferry.
The Indian retail industry had been on an upward growth trajectory pre-Covid, but a lot of the growth potential was riding on logistics as the key enabler. The e-commerce retail logistics market pre-Covid was valued at US $1.35 billion in 2018, as per a report by KPMG.
With freight costs set to rise to almost double, Indian logistics and products’ costs are expected to go up exponentially in the coming days.