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It is no surprise to say that logistics companies around the globe are evolving rapidly. If we talk about present scenario, logistics plays a very crucial role in any kind of trade and business operations. According to many independent researches, around 10-15% of product cost can be attributed to logistics which is a clear indicator about its significance for the economy. This concerns the need for greater innovations and technology along with maintaining transportation finances. Also, many of the factors like the growing customer demands, variable needs, and cumbersome business models may pose a threat to logistic companies.

Let’s ponder over some major challenges faced by Logistics companies-


Managing manpower in any field is indeed a daunting task to accomplish. Similar is the case with logistics companies, usually, the staff tends to coordinate from different locations that make it even more challenging. Surely, it is necessary to follow proper coordination between the drivers for quick and easy transportation of orders. 


It is known that technology policies and its advancements evolve with time and it sometimes becomes difficult for logistics companies to curb the latest changes. Moreover, there is a dearth of the quality workforce and shortage of skill sets that cause hindrance with implementing changes. Though the industry supports the upcoming technology, still its implementation remains a question.

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Usually, logistics companies in India suffer because of cargo evacuation unloading or due to overcrowded berths that lead to high turnaround times. Weak landside and port facilities render problems in coastal shipping. Also, insufficient depth at ports doesn’t allow large vessels to transfer, which leads to low large-scale usage for movements. 


For every logistic company, transportation and fuel cost is surely a matter of concern. The increase in fuel prices has added up to more surcharges in the freight rate, which has resulted in cutting down of revenue of shippers. Furthermore, the higher is the fuel prices, the more is the increase in the transportation costs for shippers.


It is noted that several issues are faced by carriers like compliance regulations imposed by the government of state and other authorities. Adding to this federal regulation and other environmental issues like emission reduction regulation also act as a challenge for the logistics industry. It is necessary to be updated with the changing landscape of business operations and government policies w.r.t. logistics sector.

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Adopt freight revolution, and download Fr8War app now!!