ARCON Container - Effective Container Management

ARCON Container
Supal Shah, CEO - ARCON Container, and CEO – Sarjak Container Lines, shares the trends and challenges in the Container Market, and the impact of government policies on the logistics industry.

What are the current challenges in India’s Container Market?

The Container Market is faced with the challenge of repositioning empty containers, which are currently seeing an oversupply in the market, and shortage of storage space. The container industry was on a roll post-pandemic, stabilising over the past 6 months. The prices of the containers went up by more than 100% for brand new containers and more than 300% for old containers. However, prices have now corrected to the pre-pandemic level.

Due to the container shortage during Covid, the industry began to produce a bigger number of containers than usual; this led to an excess stock. It will take a few months before container prices stabilise and new demand emerges. Many shipping lines are planning to take delivery of new vessels and the slow streaming of vessels from the shipping lines may increase container demand soon.

Although availability of containers is no more a challenge, there is a shortage of their storage space, which is being seen across the world. There are many ports where containers are in imbalance, which leads to increased empty repositioning of the containers and add to their increased operational cost and low productivity.

Inland Container Depots (ICDs)

How does your company meet these challenges?

ARCON works on a hub and spoke model wherein we tag container movements for demand locations only. This approach helps us minimise the need for repositioning empty containers. Generally, we prefer to store them in locations where storage cost is either free or low. We also maintaining a tight container inventory and expand it only when necessary.

Inland Container Depots (ICDs)

How crucial are ICDs and CFS?

Inland Container Depots (ICDs) are a crucial component in promoting imports and exports to hinterland dry ports in India. They have played a vital role in promoting India’s global EXIM trade. Container Freight Stations (CFSs) are keeping our ports decongested and will continue to play a significant role in the growth of shipping and logistics in the EXIM trade. However, with the implementation of Direct Port Delivery Policy (DPD) by the Government, the economic viability of the CFS business is in question.

Inland Container Depots (ICDs)

In what ways are government policies bringing more efficiencies in the logistics industry?

The Indian government is proactively reducing overall logistics costs through its new logistics policy which focusses on cost-effectiveness, scalability, and safety. Government initiatives such as Dedicated Freight Corridors (DFC), PM GatiShakti, and Sagarmala are driving the logistics industry forward. The DPD policy of the government has undoubtedly helped the industry in reducing its overall import logistics cost.

The Government is also pushing domestic shipping, container transportation via rail, including double-decker rail, improving the quality of highway infrastructure, constructing new airports and ports, etc. As infrastructure improves, logistics operations become more efficient, leading to cost reductions and increased scalability. However, a lot needs to be done by the Government to achieve better results for the logistics industry.

What are the factors driving demand for containerization?

  • Economy of scale
  • Safety and security of the cargo including protection from adverse weather conditions
  • Ease of handling
  • Ease of transshipment
  • The ability of containers to facilitate global trade by traveling worldwide
LIFTING & SPECIALIZED TRANSPORT, SEPTEMBER u2013 OCTOBER 2023
Heavy Haul Trailers Enhancing Safety and Reliability

Heavy Haul Trailers Enhancing Safety and Reliability

Transporting cargo via trailers is a complex process that comes with various challenges, requiring careful consideration, meticulous planning, adherence to regulations, and proactive risk management before starting an

Read more ...

J M Baxi Heavy: Providing Heavy Haul Transportation via Trailers

J M Baxi Heavy: Providing Heavy Haul Transportation via Trailers

“For heavy haul operations via trailers, we look for solutions that encompass client’s budget, safety concerns, and project timelines, and we conduct route surveys for identifying potential roadblocks and hazards in order to formulate effective

Read more ...

Procam Logistics: ODC Transportation via Trailers

Procam Logistics: ODC Transportation via Trailers

“An interconnected ODC transportation system in India through enhanced infrastructure, optimised regulations, digitalization, and streamlined permit processes will not only bolster economic growth but also solidify India's position as

Read more ...

Nimbus Logistics: Delivering Reliable Transportation Solutions

Nimbus Logistics: Delivering Reliable Transportation Solutions

“In response to evolving logistics requirements, we are delivering reliable transportation solutions and are collaborating with trusted domestic suppliers to reduce dependence on international OEMs and enhance the efficiency and

Read more ...

Prism Logistics: Ensuring Safe & Efficient Transportation

Prism Logistics: Ensuring Safe & Efficient Transportation

“As India's logistics sector continues its meteoric rise, collaboration amongst trailer operators, manufacturers, and the government will be indispensable for ensuring secure and efficient movement of goods. Sanjay Sarode, President- Sales

Read more ...

JOST India Enhancing TCO of Trailer Owners

JOST India Enhancing TCO of Trailer Owners

To help build India’s road infrastructure, the CV OEMs are coming out with game changing variants such as the 4 x 2, Gross Vehicle Weight (GVW) 55T tractor, which offers low capital and high returns. On the trailer side, manufacturers

Read more ...

ZF: Cutting-Edge Technologies & Solutions For India’s Trailer Industry

ZF: Cutting-Edge Technologies & Solutions For India’s Trailer Industry

“With its extensive portfolio of cutting-edge technologies and innovative solutions, ZF is well equipped to meet the transformative trends and rapidly evolving market dynamics and become a driving force behind the ongoing growth and evolution

Read more ...

Reverse Logistics: With Rise in E-Commerce, Online Returns Surge

Reverse Logistics: With Rise in E-Commerce, Online Returns Surge

The growth trend in online sales has triggered a comparable increase in online returns, creating challenges for retailers and logistics providers. Returns are the consumer-facing side of reverse logistics and a focal point of discussion

Read more ...

Blue Dart: Enabling A Streamlined Product Return Process

Blue Dart: Enabling A Streamlined Product Return Process

“As South Asia’s premier express air and integrated transportation and distribution company, we have been early adopters of innovative concepts such as ‘Cash on Delivery’ and ‘Reverse Pickups’. Our top priority is ensuring a smooth and

Read more ...

Safexpress: Effortless Returns with SafeReturns

Safexpress: Effortless Returns with SafeReturns

“Our SafeReturns service is designed to streamline the returns management process by providing a one-stop solution for the movement of returned goods to re-distribution or disposition warehouses.” Vijay Vashisht, VP Business & Marketing

Read more ...

Vastco Group: Ensuring Secure and Efficient Reverse Logistics

Vastco Group: Ensuring Secure and Efficient Reverse Logistics

“In view of the sensitivity of the reverse logistics process, we offer a wide range of innovative supply chain services and have robust, watertight processes to maintain all checks and balances at all times.” Samir Baig, Founder & Chief Executive

Read more ...

Navigating E-Commerce's Reverse Logistics Challenges

Navigating E-Commerce's Reverse Logistics Challenges

K Giri, Secretary General, Empower India, shares views on the Critical Role of Free Shipping and Returns in the Evolving Consumer Landscape and why the Reverse Logistics Market needs to deal with the surge of returns with a fleshed-out strategy.

Read more ...

Mammoet completes Sheybarah Island Resort Installation at The Red Sea

Mammoet completes Sheybarah Island Resort Installation at The Red Sea

Mammoet, the global leader in engineered heavy lifting and transport, has successfully completed the transportation and installation of 73 prefabricated villa orbs from Sharjah, UAE, to Sheybarah Island in the Saudi Red Sea

Read more ...

Women shaping the future of Logistics

Women shaping the future of Logistics

Over the past few decades, women have been growing professionally in the logistics industry, much like their counterparts in other professions. While this industry is still dominated by men, women are now holding key positions. This points

Read more ...

Grade A Warehousing in Tier 2 & 3 Cities Fuelling India's Logistics Sector

Grade A Warehousing in Tier 2 & 3 Cities Fuelling India's Logistics Sector

The Indian warehousing market is seeing increasing demand with 3PL and e-commerce players being the major occupiers in tier-2 and 3 cities. Factors like the boom in e-commerce, outsourcing to logistics

Read more ...

CJ Darcl revolutionizing logistics & warehousing with cutting-edge solutions

CJ Darcl revolutionizing logistics & warehousing with cutting-edge solutions

As India's economy grows, there's a continuous demand for warehousing, especially in Grade A and B categories, fuelled by sectors like electronics, retail, FMCG, and manufacturing and these industries

Read more ...

TVS ILP elevates warehousing standards

TVS ILP elevates warehousing standards

With the influx of companies venturing into Tier-2 and 3 markets, there's an imperative for the industry to reassess models and strategies so that they can effectively harness the emerging opportunities

Read more ...

NDR Warehousing's network spans 21+ Industrial Parks across India

NDR Warehousing's network spans 21+ Industrial Parks across India

The growing demand for tech-enabled operations and the widespread adoption of cutting-edge technology have rendered Grade A warehouses highly agile, enabling them to effectively adapt to the ever-evolving

Read more ...

Welspun One tailored Grade-A warehouses elevating industry expectations

Welspun One tailored Grade-A warehouses elevating industry expectations

The surge in warehousing demand in recent times is largely attributed to the pivotal role played by Tier-2 and Tier-3 cities, fueled by extensive digital penetration, transforming them into significant

Read more ...

LP Logiscience's integrated warehousing systems redefine efficiency

LP Logiscience's integrated warehousing systems redefine efficiency

A multitude of factors like allowing 100% FDI in warehousing and increased adoption of technology have contributed to the growth of the modern warehouse segment in tier 2 and tier 3 markets, including the post-pandemic

Read more ...

To get latest updates on whatsapp, Save +91 93545 87773 and send us a 'Saved' message
Click Here to Subscribe to Our eNewsletter.