Page 26 - ITLN May June 2023 Magazine

Spotlight
Perishable
Logistics

tracking devices and also integrated more temperature-controlled wagons
temperature monitoring systems had available and originating from more
been traditionally used but now all these cities; not just Tier 1 cities.”
things can be tracked in IoT solutions.
These can give us more visibility and Can air freight be the alternative?
traceability in terms of understanding The expansion of air freight is proving
the logistics map of where and how my essential for the growth of perishable
vehicle is, the inherent temperatures, logistics because perishable goods,
and if my product is safe and it gives me such as life saving medical equipment,
100% assurance as to the safety aspect pharmaceuticals, exotic fruits, and
of my product.” vegetables, require a fast and reliable
mode of transportation to maintain
Shortage of reefer trucks their quality and freshness. Air freight,
Apart from the lack of cold chain being the fastest and most efficient
and storage infrastructure in India, The future of logistics mode of transportation allows faster
congestion on Indian roads, the is technology. shipping to distant markets without
shortage of reefer trucks is often cited Transparency, sacrificing their freshness.
as a huge challenge, especially in minute tracking, IoT, It is believed that private-public
emerging economies like India, where Blockchain and robotic partnerships will play the role of
the transportation infrastructure is catalyst in enhancing the effectiveness
often inadequate. operations have to be of air freight as the expansion of air
Malik added, “The reefer truck gap is inculcated for effective freight for the growth of perishable
huge, and the current estimate is that logistic solutions. logistics is very important.
the requirement is 70,000 trucks, while Alzawahra added, “ Newer or non-
the current availability is in the range Gubba Kiran traditional markets for all types of
of 20,000 trucks. The basic issue is that Gubba Cold Storage perishables goods may not be ready
you don’t have return loads in reefer to fully commit to large, sea-freight
trucks most of the time, and also, the and private sector for investments container quantities of goods. As more
investment is far higher than for normal in policy-making and investments cargo companies get into the air freight
trucks. The customers are not keen to towards increasing the number of reefer space, more space becomes available
pay a higher price for these trucks, and trucks and improving transportation to new traders, and this means better
that is another challenge because the infrastructure. pricing for these services. The cost
product value in perishables is low in Alzawahra added, “Yes, capacity, of air freight for heavy goods is much
comparison to pharma.” lack of reefer trucks, and expensive higher than by sea freight, but most
Sakthivarman added, “There is infrastructure continue to be minimum-order quantities are too
a huge market demand for reefer challenging, though these are all great for the risk involved. There is
trucks in India; however, fleet owners improving. The pandemic has spurred increased flexibility in perishable air
or companies are keeping their innovation and forced large logistics freight cargo.”
investments to a minimum due to price companies to take more chances in However, the infamous price factor
competition, seasonal spikes, managing their service offerings. Many larger and challenges like lack of legroom in
drivers, toll costs, and the management organisations have tried to be more air freight causing delays in receiving
of reefer systems/vehicles. The vertically integrated so they could the shipments and deliveries are
availability of reverse haul load is also offer end-to-end solutions to their marked out as common issues by
a serious challenge, as fleets have to customers. This has opened up industry players.
travel with no load to the nearest cities, access to these supply chains that Many claim that programmes like
with no compensation from clients.” manufacturers, farmers, and producers the Krishi Udan 2.0 have been launched
There is also a growing need for more could tap into at reasonable entry by the government and cover certain
reefer trucks that can handle a variety volumes which is key for developing airports, but it is important that such
of temperature ranges and not just new business; particularly in emerging schemes be extended to all the airports
ones meant for the pharma verticals markets like India.” in the country for it to start seeing any
or frozen foods. They are increasingly Batting for looking at utilising the benefits of the scheme.
in demand in many Tier 2 and 3 Indian Indian railways as an alternative, he Malik told the publication, “There
cities which are growing and urbanising adds, “Indian railways is one of the is an immediate requirement for
at a rapid pace and also because most more efficiently run government entities good road infrastructure to reduce
of these cities are in-land and at least which is proven by the ridership, reach, the transit time for the time-sensitive
6-7 hours away from any coast or sea and the desire for people to want to shipments, facilities such as cold
cargo terminal. work for this organisation. The central storages and pack houses near to farm
To address this, the industry is or state governments should be working gate should be made available at Tier 2
looking towards the government more with Indian railways to have and 3 airports as well.”
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