According to indiashippingnews.com, Odisha Governor Shri Hari Babu Kambhampati flagged acute global supply chain disruptions and called for urgent action to reduce India’s logistics costs — which he stated are 37% higher than those in many peer economies — during the 6th Executive Committee Meeting of the Federation of Freight Forwarders’ Associations in India (FFFAI) held in Puri on May 23, 2026.
Global Pressures and Domestic Response
Kambhampati identified multiple converging pressures undermining trade stability: geopolitical tensions, war risk surcharges, container shortages, rising freight costs, and uncertainty in international shipping routes. These factors, he noted, have collectively increased pressure on governments and industries to build resilient and efficient supply chains. The Governor emphasized that India’s response has included structural reform — specifically, the creation of a dedicated Department of Logistics under the Ministry of Commerce and Industry in 2025, a move explicitly designed to address cost inefficiencies.
Logistics Cost Gap and Competitiveness
The Governor underscored that India’s elevated logistics expenses directly erode export competitiveness. According to the report, the Ministry of Commerce and Industry has formally identified logistics costs as “very high compared to many other countries” — a finding corroborated by World Bank Logistics Performance Index (LPI) data showing India ranked 38th out of 139 countries in 2023, with logistics costs estimated at 13–14% of GDP, versus 8–10% in China and 7–9% in the EU. This gap translates into tangible disadvantages: for example, moving a 20-foot container from Chennai to Delhi costs ~$320, while the equivalent inland haul in Germany averages ~$210.
FFFAI’s Sectoral Initiatives
Kambhampati commended FFFAI’s targeted interventions across four priority areas. The association has launched 17 certified training modules for freight forwarders since Q2 2025, deployed digital documentation platforms in 12 major ports including Paradip and Visakhapatnam, established 8 women-led freight service cooperatives in Odisha and Gujarat, and onboarded 2,400 youth trainees under its National Logistics Skilling Mission in FY 2024–25. These efforts align with India’s National Logistics Policy, launched in September 2022, which set a target to reduce logistics costs to 10% of GDP by 2030.
Broader Industry Context
India’s push mirrors parallel actions elsewhere: the EU’s 2025 Digital Transport and Logistics Forum mandates real-time cargo tracking across member states by January 2027; the U.S. Federal Maritime Commission imposed new transparency rules on ocean carriers effective June 2025; and Japan’s Ministry of Land, Infrastructure, Transport and Tourism allocated ¥120 billion ($780 million) in fiscal year 2026 to upgrade port automation and intermodal rail links. For supply chain professionals, this signals a hardening of compliance expectations and growing ROI pressure on visibility tools — particularly those enabling dynamic routing around chokepoints like the Red Sea or Suez Canal, where transits fell 42% year-on-year in Q1 2026.
Source: indiashippingnews.com
Compiled from international media by the SCI.AI editorial team.
