Implication on Third Party Logistics Services in India – An Empirical Analysis

Logistics is the backbone of the economy, providing the efficient, cost effective flow of goods on which other commercial sectors depend. The logistics dashboard brings together a range of over 50 indicators (LDIs) that give different perspectives on logistics and the performance of the wider economy. The stagnating Indian economy is reflected in the 2013 edition of the logistics report, which captures the impact of weak economic growth, and a deepening European recession, on logistics. Goods vehicle operator licenses are down 15 per cent in 2011, compared to pre-recession levels (2007). New van registrations peaked in2007 but since then have fallen, a reduction of 29 per cent by 2012. New HGV registrations dropped by 10 per cent over the same period, but recovered slightly in 2012, increasing by 6 per cent on 2011. Road transport operator profit margins fell to around 1 per cent in 2012and the price of oil has hovered around $100 per barrel for the past two years, resulting in little change to the high pump price for a liter of fuel.