Fixing bottlenecks in cargo consolidation in India

Fixing bottlenecks in cargo consolidation in India

Logistics and freight forwarders play important roles in accentuating the economy of any country,
leave alone India. When transport of the goods is enhanced through cargo consolidation in India,
the success automatically reflects on the country’s financial condition. Hence attempts are made to
identify hindrances in cargo consolidation so that the country’s Ease of Doing Business ranking is
elevated to favourable status.

Factors that affect cargo consolidation in India

While probing into cargo consolidation in Chennai, shipments are brought together in one shipment
or freight modes are combined as freight consolidation to execute one dispatch. Within one or two
days of arrival, goods are packed in pallets into full truckloads and dispatched to destinations.
Number of companies come together to use a particular container or truck for their cargo, as he
situation demands.

Thus, the business establishment’s success and profit is immensely influenced by cargo
consolidation in India. Such techniques to transport goods enhance efficiency of the supply chain
and facilitate delivery speed in low operational costs. Shipping plays an important role in the
developing trade and commerce scenario where demand for containerized shipping is increasing by
the day.

Measures taken to improve cargo consolidation in India

In a bid to improve the functioning of freight forwarding, attributes such as regulatory causes which
influence delay in consignment movement, logistics issues that affect supply chain and lack of
infrastructure, are probed for improvisation.

Sometimes the regulatory factor may not cause delay as much as logistics and infrastructural issues
might do. Reportedly cargo consolidation in Chennai and other parts of the country might be less
affected due to delay in cargo movement than due to other reasons.

Storage space constraints, lack of proper road connections and traffic congestion might lead to delay
in delivery of cargo. Authorities concerned effort to identify these problems and rectify them besides
checking for logistics issues in rail and terminal operations. They also ensure if importers pay dues to
shipping lines. Import and export percentages of contribution in bills registered in sea, land and air
ports are analysed to place them as a factor while working on improvements.

Ports which are slow will be reportedly identified and brought under targeted policies in a bid to
improvise.

International criteria for cargo clearance

While World Bank standards insist sea cargo and air cargo to be cleared within 48 and 24 hours
respectively, India seemingly takes 105 hours for clearance. In a bid to find itself in the top 50
countries ranked in Ease of Doing Business category, the country has proposed a red, amber and
green model to develop its customs clearance.

On a concluding note, the cargo consolidation in Chennai prevents losing money to too many
shipments and the concept is a very big boon to micro, medium and small businesses which aim to
elevate themselves to the next level. Consolidation in origin solves many problems besides reducing
issues and increasing profitability. The concept when aptly used strengthens the supply chain and
establishes customer’s trust which is an important criterion in a trade’s existence.