Topic- “ Understanding the impact of covid-19 on logistics

industry.

Subject-Managerial Economics

 SUBMITTED TO- DR.HTESH THAKKAR SIR

SUBMITTED BY- SAURABH RAI
(MBA SEM-1 SHIPPING & LOGISTICS)
 Introduction
 Since the start of the unexpected crisis, the logistics industry has been on the
front lines, ensuring that supply chains remain intact.

 The supply has been disrupted since the manufacturing industries have been severely impacte
d by labour shortages and restrictions on the movement of goods and businesses.

 As a result, it is critical because it connects various markets, suppliers, and business areas
throughout the country, such as material handling, warehousing, packaging, supply chain
management, procurement, and customs service.
 Impact of lockdown on logistics sector

 The immediate impact of the pandemic on the logistics sector has been a sharp drop
in freight availability due to restrictions on the production of non-essential goods, as
well as a shortage of vehicle for movement of goods due to a driver shortage,
resulting in a sharp increase in truck rentals and air freight prices.
 According to the Indian Chamber of Commerce (ICC), the lockdown logistics
sector has lost approximately 50,000 crore rs, causing business cycles and supply
chains to be disrupted. More than 9% of shipments were stuck, 21% of orders were
delayed, and the delivery percentage has dropped by 19%, putting the logistics
sector at the forefront of the crisis.
 Role of logistics sector to revive the economy
 According to Economic Survey reports, the country's logistics industry is expected to
reach $215 billion by the end of 2021, growing at a CAGR of 10.5 percent.
 It employs over 22 million people.
 For small-sellers who want to take their business online and increase their customer base,
logistics aggregators have become the one-stop fulfilment solution. With automated
warehousing and packaging services.
 according to the National Skill Development Corporation (NSDC). Logistics businesses
should develop a strategy plan to demonstrate their resilience and dynamism by assisting
exporters and SMSEs in showcasing their products internationally.
 Government’ role in promoting logistics segment

 The government is taking steps under the Atmanirbhar Bharat and Made in India missions 
to get micro, small, and mediumenterprises (MSMEs) back on track, as they account for o
nethird of the country's GDP.
 The RBI has also announced a term loan moratorium, deferred interest payments on worki
ng capital facilities, and simplified working capital financing.
  India’s success and economic growth in the future is heavily dependent on the evolution
of its logistics sector. 
 THANKYOU