Wednesday, September 12, 2012

Project Logistics' Unnerving Times

I just realised that it has been 3 months since my last post!
I was wondering why. May be there was nothing to write about in these months. The project transport scene was so bleak that nothing happened to write about.

Every transporter i talked to was complaining about the bad situation. One well known transporter from Gujarat even said "if this period continues for another 3-4 months many will be out of business". I have been anticipating this period for a long time. I mentioned this in my previous posts.

Last 2-3 years before March 2012 were crazy due to announcement of various projects. There was a mad rush for Hydraulic Platform Trailers. Every other transport company was buying these vehicles. Every other trailer manufacturer under the tree was making cheap imitations of Hydraulic Trailers. Result was rates nosedived in turn there was hardly any operating margins.

Now when projects are either stalled or scrapped. There is bloodbath in transport rates. Smaller players are cursing the day they entered ODC transport business. They have started to sell their hydraulic trailers. I infact received a call from one yesterday.

There is a silver lining though. 

This phase will cleanse the system. Sometimes nature should left alone to take its own course. Survival of the fittest. I hope once the madness subsides, better sense will prevail. I may sound harsh but that's how everything can be set right again.

Meanwhile, KHL has released the annual ICT world ranking of top transporters on basis of carrying capacity. In my opinion carrying capacity alone does not make a top rated transporter.
Here below is a snapshot. You can download the magazine from www.khl.com

5 comments:

  1. The story behind hydraulic axles is true. Transporters are cursing themselves for falling prey to this temptation. Today the scene is such that all their axles are idle and they are paying their EMIs from their own pockets. This is really a very rough weather for the transport industry.

    ReplyDelete
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  3. I think you have noted some very interesting points ODC transportation in India.

    Regards for the post.

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  4. Very informative blog about the scenario of ODC transportation in India.

    It would be lot better to share the average rate per kilometre of ODC transportation prevailing in India

    ReplyDelete
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