CARGOCONNECT-APRIL2026 - Flipbook - Page 6
DI DYOU KNOW
Last-mile delivery costs rise to
53% of total logistics expenditure
Global logistics market to reach
up to US$27.49 trillion by 2035
1
The global logistics market is experiencing signi昀椀cant
growth, with projections suggesting the market size
could range between approximately US$13.1-US$27.49
trillion by 2035, largely driven by the expansion of
e-commerce, increasing trade, AI, automation, IoT,
and infrastructure modernisation.
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Asia-Paci昀椀c commands over 35%
share of global logistics market
2
The Asia-Paci昀椀c region is the world’s largest logistics
market, commanding approximately 3.9 to 4.6 trillion
in value and accounting for over 35% of the global
market share. Driven by manufacturing dominance
(35.74% of sector share) and booming e-commerce,
it is the premier global logistics hub.
Coal contributes nearly 49% of
Indian Railways’ freight income
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Middle East con昀氀ict removes
up to 20% of global air cargo
capacity
3
Escalating con昀氀icts in the Middle East, including
major airspace closures have severely disrupted global
air cargo by removing 16–18% of global capacity,
with reports suggesting up to 18–20%. Key hubs
like Dubai and Doha experienced up to a 52% drop
in outbound capacity from the region to Europe.
LDB 2.0 will support better assessment of logistics
performance. It will help monitor trucks’ compliance with regulations and allow exporters to track
containers even after departure from Indian ports
across international waters, improving coordination
and enhancing credibility in global markets.
8
V O Chidambaranar Port Authority (VOCPA) in
Tamil Nadu became India’s 昀椀rst major port to launch
a comprehensive Digital Twin platform, creating a
real-time virtual replica of the port’s infrastructure
to boost efficiency by 25%, enhance safety, and
support data-driven decision-making.
6 | CARGOCONNECT APRIL 2026
Under the Shipbuilding Financial Assistance Policy
(SBFAP), a total of 288 contracts worth `19,748 crore,
covering 456 vessels, have received in-principal
approval. Total 昀椀nancial assistance amounting to
`620.57 crore has been disbursed to 23 shipyards
for the construction and delivery of 204 vessels.
Road freight continues to
dominate 65–71% of India’s goods
movement
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VOC Port launches India’s 昀椀rst
Digital Twin platform for port
operations
5
Coal stands as the single largest contributor to
railway freight, with an average share of nearly 49%
of total freight income. This dominant commodity
constitutes over 33% of the total railway earnings,
showcasing the sector’s substantial in昀氀uence on
India’s railway transportation network.
Approval for ₹19,748 crore
shipbuilding contracts across
456 vessels
LDB 2.0 to enhance real-time
container tracking and logistics
monitoring
4
Last-mile delivery continues to remain the most
complex and expensive segment of logistics operations. This 昀椀nal step of delivery has grown from
41% of total costs in 2018 to 53% in 2026. This
high-cost stems from congestion, failed deliveries,
and rising expectations for fast, free shipping.
India’s reliance on road transport for goods movement remains high, with road freight accounting for
approximately 65% to 71% of all goods transported
within the country. As the primary mode, road
transport is driven by high demand for faster, versatile
delivery despite being more expensive.
AI-driven analytics adopted
by 68% of logistics and supply
chain 昀椀rms
10
Approximately 68% of logistics and supply chain
companies are adopting AI-driven analytics to
optimise routes, manage inventory, and improve
demand forecasting accuracy by up to 50%. Key
bene昀椀ts include 10–20% lower transportation costs
and 30% lower warehouse costs.
