1.

Introduction

• The Logistics division in the Department of Commerce was made resulting in an

amendment to the second schedule of the Government of India (Allocation of Business)
Rules, 1961, on seventh July 2017, that distributed the errand of "Integrated advancement
of Logistics industry" to the Department of Commerce.

• Being the quickest advancing industry, the Indian logistic industry is currently developing
at a 10.5% CAGR rate since 2017 and assessed to be of $215 Bn before the finish of 2020.

• This research paper will outline the impact of the lockdown caused by the covid-19
pandemic. It will also include interviews from the industry leader in the logistic industry to
see how they have sustained in the time of crisis and gain new market share.

Resilience I Adaptability I Creativity 2

2. Literature Review

• Lina Guo (2020) has discussed modelling the demand for financial support for the logistics
industry under the financial crisis. She stated that the company needs to continuously
innovate the enterprise's internal operating mechanism by reducing the inventory and
material pressure.

• Rastogi, Cordula; Arvis, Jean-Francois. (2020) stated how a collaborative effort between
government and logistic industry could help address the immediate crisis and draw out the
sector's economic resilience path.

• Imane Chakira, MohamedEl Khailia, Mohamed Mestaria (2020), has done this research to
solve decision-making problems encountered in information systems for supply chains in a
crisis.

Resilience I Adaptability I Creativity 3

2. Literature Review

• Agrawal, Shruti & Jamwal, Anbesh & Gupta, Dr Sumit. (2020), have discussed the effect
of Covid-19 on the Indian economy and supply chains in India. They have found a total of
18 critical barriers which affected the supply chains in India.

• Article by Sunida Tiwong, Erwin Rauch, Zuzana Šoltysová and Sakgasem Ramingwong
(2019), states how Industry 4.0 (I4.0) can be employed using so-called smart information
and smart technology to increase logistic service customer satisfaction in the global
market.

• Zhu, G., Chou, M. C., & Tsai, C. W. (2020) has explored the connection between shortage
and supply chain issues, such as the lack of supply chain transparency and resilience as
unsustainable just-in-time manufacturing.

Resilience I Adaptability I Creativity 4

3. Research Methodology

• Primary and secondary research.

• Secondary research was done for calculating the impact of lockdown on the supply chain
industry. Trade figures were taken from the government database to see the trend in the
supply chain industry. Interviews of many industry leaders available on the internet were
analyzed to see the impact of the crisis and the logistic sector's future.

• Primary research involves an interview of the co-founder of a Mumbai based logistic

company Seashell Logistics Pvt. Ltd as they have a presence in 26 cities in India and two
offices international.

Resilience I Adaptability I Creativity 5

4. Background

4.1 Effect of the pandemic on Indian Logistics:

Logistics being a need area of India's Government, will undoubtedly endure the financial
emergency's results. Also, given its essential nature of managing transport, this area is relied
upon to confront the extreme effect of States and International Borders' current lockdown.

The supply chain depends on labour, and it is the foundation of the Logistics and Shipping
industry and the unavailability of the same has brought the whole supply chain to a halt. The
orders in the factories are pending; warehouses were also shut-in prompt.

India's overall exports in April-September 2020-21 are assessed to be USD 221.86 Billion, (-)
16.66 % compared to previous year. Overall imports in April-September 2020-21 are
assessed to be USD 204.12 Billion, (-) 35.43 % compared to previous year..
Resilience I Adaptability I Creativity 6
4. Background

4.1.1 Road Transport

According to the Ministry of Road Transport and Highways, road transport accounts for
about 60 per cent of freight traffic in India. The most grounded effect of COVID-19 has been
seen on the second or third day of the lockdown when trucks' movement fell by 90% – 95%.

The market share of rail rose forcefully over the five months finished June 2020 to around
25% (ordinary it is about 15%) because of the shortage of transporters. In any case, e-way
bill collection and diesel utilization have just recovered to about 5% of their ordinary levels.

Resilience I Adaptability I Creativity 7

4. Background

4.1.2 Shipping Industry

According to orders from the Ministry of Shipping, Government of India, the port area has
been announced only essential services, for keeping up of flexible link within the country.

Cargo movements at ports saw a sharp drop around 60% over the weeks due to a tremendous
fall in the nation's productions. Ports across India are working at limits under 30%.

The market share of rail rose forcefully over the five months finished June 2020 to around
25% (ordinary it is about 15%) because of the shortage of transporters. In any case, e-way
bill collection and diesel utilization have just recovered to about 5% of their ordinary levels.

Resilience I Adaptability I Creativity 8

4. Background

4.2 Exports recorded Negative growth

Table: 1
Particulars Percentage
Cashew (- 44.25%)
Gems & Jewellery (- 24.67%)
Man-made yarn/fabs/made-ups (- 9.12%
Mica, Coal and different metals, including minerals (- 6.71%)
Marine items (- 5.41%)
Leather (- 3.36%)
Tea (- 2.27%)
Fruits and Vegetables (- 1.44%)
Source: Trade figures (2020), Ministry of Commerce and Industry.

Resilience I Adaptability I Creativity 9

4. Background

4.3 Imports recorded Negative growth

Particulars Percentage
Transport Equipment (- 47.08%)
Machinery, Electrical and Non-Electrical (- 36.76%)
Petroleum, Crude Products (- 35.88%)
Pearls, Precious and Semi-Precious Stones (- 4.89%)
Organic and Inorganic Chemicals (- 2.48%)
Source: Trade figures (2020), Ministry of Commerce and Industry.

Resilience I Adaptability I Creativity 10

4. Background

4.4 Logistics Service Providers

Logistics Service Providers (LSPs) are organizations, frequently going about as

intermediaries, that embrace the execution of logistic related work that has been generally
kept in-house, additionally offering for the spread of precise and ideal data among flexibly
chain accomplices. The most widely recognized sorts of LSPs are:
• Transporters.
• Third-Party Logistics Providers (3PLs).
• International Freight Forwarders (IFF).
• Non-Vessel Owning Common Carrier (NVOCC)

Logistics service providers need to evolve as a category of "logistics solution providers" and
move beyond the status of "logistics service providers" to provide unified end-to-end
solutions.
Resilience I Adaptability I Creativity 11
5. On the Path of Transformation - Indian Logistics Industry

5.1 Government Initiatives

The logistics policy proposed by the Government of India aims to eliminate inefficiencies
and reduce costs by removing barriers to the logistics value chain. Logistics costs associated
with customs clearance and border customs clearance are expected to be reduced.

The development of cold storage infrastructure and digital technology adoption will reduce
the costs associated with warehousing operations. This policy is expected to streamline the
trade and investment process in India and improve export competitiveness.

The Ministry of Commerce is developing an integrated logistics portal that acts as a

transactional electronic marketplace by connecting buyers, logistics service providers, and
relevant government agencies
Resilience I Adaptability I Creativity 12
5. On the Path of Transformation - Indian Logistics Industry

5.1 Government Initiatives

The Indian Customs EDI System (ICES) and the Indian Customs Electronic Gateway
(ICEGT) are now synonymous with the journey of the digital evolution of Indian customs, so
the department is at the forefront of e-governance initiatives in the country.

The micro, small and medium enterprises (MSMEs) contributing to one-third of the total
economy, the government is introducing measures under the "Atma Nirbhar Bharat" and
"Made in India" campaigns. It helps by engaging stakeholders involved in delivering
essential services, e-commerce players in B2B, and abandoned purchasing domains.

RBI announced a moratorium on loans, suspended interest payments on working capital

facilities and flexible working capital financing.
Resilience I Adaptability I Creativity 13
6. Invigorating Logistic Industry Post Pandemic

6.1 Future of Indian trade and opportunities in a post COVID-19 world:

The Indian Customs EDI System (ICES) and the Indian Customs Electronic Gateway
(ICEGT) are now synonymous with the journey of the digital evolution of Indian customs, so
the department is at the forefront of e-governance initiatives in the country.

The micro, small and medium enterprises (MSMEs) contributing to one-third of the total
economy, the government is introducing measures under the "Atma Nirbhar Bharat" and
"Made in India" campaigns. It helps by engaging stakeholders involved in delivering
essential services, e-commerce players in B2B, and abandoned purchasing domains.

RBI announced a moratorium on loans, suspended interest payments on working capital

facilities and flexible working capital financing.
Resilience I Adaptability I Creativity 14
6. Invigorating Logistic Industry Post Pandemic

6.1 Indian logistics industry evolves over the next few years with multi-
dimensional changes.

Coordination between different government agencies requires multiple ministries' approval,

which has hampered multimodal transportation in India. There is a managerial focus on
reducing cycle time to provide additional value to customers at the company level.

Contract logistics will now be more serious, as the country seeks suppliers who can offer
automated and mechanical solutions rather than manual options.

Ground transport in India will also expand significantly by removing the barrier, and more
national actors will develop in this space with a combination of MNCs and local forces.

Resilience I Adaptability I Creativity 15

7. Key drivers for the logistics Industry in India
The entry of several MNCs into the country's FMCG sector creates new growth opportunities
for the Indian logistics industry and directly impacts inventory management's growth in
India's logistics industry and the potential warehouse solutions for retail.

Increasing availability encourages corporations to invest heavily in logistics services through

bargaining or outsourcing.

Technology usage in the logistics industry illustrates the burden of operation and various
system progress. Technologies such as artificial intelligence, machine learning aim to lay the
groundwork for traditional logistics operations in the country.

The progress of e-commerce will soon reach new highs, resulting in more opportunities for
the logistics industry to make a mark on classy express delivery

Resilience I Adaptability I Creativity 16

8. Case Study
Rajesh Gujjarlapudi the founder and director of Seashell Logistics Pvt Ltd through his
continuous Innovation, the relentless pursuit for excellence, efficiency, foresight, un-matched
execution capabilities and entrepreneurial spirit has been able to not only survive in the
industry but was able to gain some new opportunities.

Seashell Group, is a leading SINGLE WINDOW service provider in offering Integrated and
turnkey services in Shipping, Logistics, Supply Chain Management, Projects – Engineering,
Consultancy for DGFT / Customs (own customs license) / Central Excise / other Indirect
Taxation matters and International Trade.

Mr Rajesh shared his journey through this pandemic.

Resilience I Adaptability I Creativity 17

8. Case Study

8.1 Challenges faced during the pandemic

The government during lockdown slowly allowed essential services that included shipping
and transport, but there was confusion among state government agencies on coordinating.

The government offices were allowed to open for a limited time every day, which created
many operations problems especially for import and export.

Every state had their set of rules and containment zones because transportation got halted,
and it stopped exports and imports for a few days.

Another factor was the unavailability of drivers who went to their native states and were
stuck there.
Resilience I Adaptability I Creativity 18
8. Case Study

8.2 Response to the crisis

The management of Seashell group anticipated this move by the government and was ready
with all possible solution to minimize the impact on their work.

Export and Import services were given essential services category and were allowed to open
office with bare minimum staff.

They spoke to local authorities for passes for their key employees to run their operation
smoothly. Confusion among the central and state government made it very difficult to take
permission initially and slowly it improved.

Resilience I Adaptability I Creativity 19

8. Case Study

8.3 Communication is the key

While handling clients, Seashell Logistics made sure that there is no communication gap.
They keep updating their client regarding government authorities' decision so that their
shipment would not get stuck.

It was not allowed to go outside in a pandemic, so there was no question of meeting clients.

One of the important things to provide the services to their customer is to be online and
communicate through the mail. They emphasized tele-calling and regularly checked if their
client needs urgent assistance.

Resilience I Adaptability I Creativity 20

8. Case Study

8.4 Employee safety and work continuation

Apart from this, the management made sure that people must avoid coming to the office
unless necessary to ensure their safety. Also, wearing of mask and sanitization is made
mandatory for those who came to office.

Covid-19 insurance was provided to all of their employees and their families.

To ensure smooth operations, they provided their employees with a laptop and arranged for
an internet connection to work from home.

They were keeping in mind a good work culture; they haven't layoff employee during this
period. On the contrary they hired new employees.
Resilience I Adaptability I Creativity 21
8. Case Study

8.5 Opportunities in the crisis

This pandemic has brought many challenges as well as opportunity. Companies who were
prepared and well organized were able to increase their market share because others could
not operate and provide services.

Seashell group was able to increase their revenue despite pandemic. Their salespeople kept
their effort all the time.

This pandemic provided them with the opportunity to convert some client whose service
provider could not do work properly.

Resilience I Adaptability I Creativity 22

8. Case Study

8.6 Financial planning

In the logistic industry, credit is a significant issue. They do provide credit to their clients, but
all service providers start asking for advance payment during the lockdown.

They were sure that they would not do business with a client who seems risky during this
period. They profiled all the customers and found risky ones and decided to either do
business with them or ask for the advance payment.

Moreover, they have provided an extended credit facility to their esteemed clients for their
previous debts.

Resilience I Adaptability I Creativity 23

8. Case Study

8.7 Changes in the work culture

One significant change that happened during this pandemic in all organization is the
validation of work from home culture.

Seashell logistics management has tested this concept successfully and has made sure to
include this in their HR policies.

They further stated that they might see this as a permanent change in their working culture.

Resilience I Adaptability I Creativity 24

9. Managerial implications of the research
In this article, the authors provide a perspective on the critical challenges through secondary
research using information available in the public domain and describe some exciting
initiatives that some firms & industries are taking to compete through excellence in
managing their logistics during the Covid-19 pandemic.

The authors have provided a case study that will help academia and corporate organisations
gain insight into what steps can be taken to thrive the time of crisis and how entrepreneurial
spirit helps find opportunity in crisis.

A detailed analysis was provided of the government's actions and how collaborative efforts
between the logistic Industry and government can lead to stability and recovering the losses
faced by the Industry during this challenging time.

Resilience I Adaptability I Creativity 25

10. Conclusion
The peak of Covid-19 virus has impacted the global logistic industry and supply chain and
forced thousands of industries to throttle down or shut down their operations in the U.S and
Europe and now in the developing nations like India.

while physical capacity creation is being facilitated slowly, other changes must be made
along with the capacity creation drive to realize the full impact of such changes.

Businesses and international corporations that partner with various Indian logistics
companies will build mutually beneficial relationships while reducing their logistics costs,
increasing consumer transportation capabilities.

In the future, we can expect specialized logistics and delivery operations to be in high
demand by customers from all walks of life.

Resilience I Adaptability I Creativity 26

11. References
[1]. Sector Report (2020), Supply Chain & Logistics Industry, Indian Chambers of
Commerce.

[2]. Praveen Vashistha (October, 2020). Role of logistics industry to revive the economy post
covid-19, Manufacturing Today.

[3]. Saket Sundria (2020), World's Biggest Lockdown Brings Trucks to A Standstill in India,
NDTV Profit.

[4]. Rabin Bihani (2020), Logistics Monitor: Sea and Road Transport on Recovery Path; Air
Transport Still Significantly Impacted, India Ratings &Research.

[5]. Article (2020), IMPACT OF COVID-19 ON SHIPPING AND LOGISTICS, Maritime

Gateway.
Resilience I Adaptability I Creativity 27
11. References
[6]. Matopoulos A., Papadopoulou EM. (2010) The Evolution of Logistics Service Providers
and the Role of Internet-based Applications in Facilitating Global Operations. In: Wang L.,
Koh S. (eds) Enterprise Networks and Logistics for Agile Manufacturing. Springer, London

[7]. Deloitte Report (2018), India - On the Cusp of a Logistics Revolution

[8]. Turant Customs (2020), Faceless, Contactless, and Paperless customs clearance, Turant
Custom Programme, Version 1.0. Available at: https://www.cbic.gov.in/resources/htdocs-
cbec/deptt_offcr/Guidebook_Faceless_Assessment_29Oct2020.pdf;jsessionid=A6DA3D805
594D982F26A9D73B07AD9DA.

[9]. Vineet Agarwal (2020), Future of Indian supply chains and opportunities in a post
COVID world, The Economic Times.

Resilience I Adaptability I Creativity 28

11. References
[10]. Sindhu Kashyaap (2020), technology will be the key driver of growth in logistics,
believes Vishal Sharma of DB Schenker, Yourstory.

[11]. iThink Logistic (2019), Key Areas that will Drive Significant Growth in India's
Logistics Sector 2020, iThink Logistic.

[12]. Lina Guo (2020), "Modeling the Demand for Financial Support for the Development of
Port Logistics Industry under the Financial Crisis," Journal of Coastal Research 103(sp1),
605-608.

[13]. Rastogi, Cordula; Arvis, Jean-Francois. (2020), Logistics and Freight Services: Policies
to Facilitate Trade. Trade and COVID-19 Guidance Note. Washington, DC: World Bank. ©
World Bank.

Resilience I Adaptability I Creativity 29

11. References
[14]. Imane Chakira, MohamedEl Khailia, Mohamed Mestaria (2020), Logistics Flow
Optimization for Advanced Management of the Crisis Situation, Procedia Computer Science,
Volume 175, 2020, Pages 419-426.

[15]. Agrawal, Shruti & Jamwal, Anbesh & Gupta, Dr Sumit. (2020). Effect of COVID-19 on
the Indian Economy and Supply Chain, Preprints 2020, 2020050148. (DOI:
10.20944/preprints202005.0148.v1.)

[16]. Gyanesh Sinha (2016), Study of Indian Logistics Industry in Changing Global Scenario,
International Conference ICON 2016.

Resilience I Adaptability I Creativity 30

11. References
[17]. Sunida Tiwong, Erwin Rauch, Zuzana Šoltysová and Sakgasem Ramingwong (2019),
Industry 4.0 for Managing Logistic Service Providers Lifecycle MATEC Web Conf., volume-
301, Article Number-00014

[18]. Zhu, G., Chou, M. C., & Tsai, C. W. (2020). Lessons learned from the COVID-19
pandemic exposing the shortcomings of current supply chain operations: a long-term
prescriptive offering. Sustainability, 12(14), 5858.

Resilience I Adaptability I Creativity 31