Volumes of Inland logistics to be down by 40-60% in Q1 FY2021: Ind-Ra
April 23, 2020: India Ratings and Research (Ind-Ra), in its latest update on inland logistics players, believes that the volumes to be down by 10%-15% yoy in FY21, with a 40%-60% fall in 1QFY21.
April 23, 2020: India Ratings and Research (Ind-Ra), in its latest update on inland logistics players, believes that the volumes to be down by 10-15 percent YoY in FY21, with a 40-60 percent fall in 1QFY21. Ind-Ra expects that the operational recovery for logistics players will be gradual and prolonged over FY21, as against a sharp V-shaped recovery.
“The volume decline will be asymmetric across the value chain, with standalone truck operators showing the highest stress, followed by inland logistics players, ports and warehouses. Even if the government announces some relief in the lockdown, India’s export-import trade may remain subdued in FY21, as consumption demand could take even longer to recover, while exports volumes remain muted amid a weak global growth outlook,” says the release.
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"COVID-19: Gradual, Prolonged Recovery May Delay Deleveraging in Logistics"
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For FY22, Ind-Ra expects almost the entire value chain to recover above the pre-COVID-19 levels, except standalone freight operators, who will continue to struggle amid low volumes and high debt.