Lockdown brings logistics to a grinding halt, experts predict 2-yr wait for normalcy

The sector was already facing the impact of slowdown when the pandemic hit the world and brought normal life to a standstill. After industries and manufacturing units were closed down as part of the lockdown, there simply is no work for those in the logistics sector, making it impossible for them to repay loans.

To overcome this situation, many are seeking moratorium on loan repayment for at least six months, stop action against truck owners like penalty on nonpayment of interest among other demands, said JP Joe Villavarayar, president, Tuticorin Port Transport and Equipment Owners Association. Talking to DT Next, he added that the authorities should also consider reducing toll charges by 50 per cent for six months, as it would take time for the industry to rebound, and sought road tax waiver for three months from April.

Even as he welcomed the three-month moratorium on loan repayments that provided a breather, it would take a loan waiver to resurrect the sector, said T Velshankar, president, Tuticorin Stevedores Association.

According to him, the lockdown triggered a chain reaction that has crippled this capital intensive sector. Noting that nearly 50,000 people were dependent on the sector directly or indirectly, Velshankar said it would take at least two years to fully completely from the present crisis.

Though truck operations got the go-ahead since the middle of April after curfew was partially relaxed, it has limited impact as the operators could not get adequate cargo, pointed out S Murugan, joint secretary, Thoothukudi Lorry Owners Association. Besides lockdown, they were also affected by the 10 to 15 per cent hike in toll fee and increase in diesel price.

“When the lorries are keeping off roads, how can operators remit road tax and insurance,” he asked. In his view, returning to normalcy would depend on multiple factors. “About 60 per cent of workforce at factories and industrial units are migrant labourers. So with them leaving for their home towns, these firms cannot restart operations. Logistics sector can survive only when factories resume work in full swing,” Murugan said.

Even drivers and cleaners are hesitant to return to work fearing COVID, he added. Echoing him, S Varadharajan, secretary, Thoothukudi District Container Truck Owners Association, said only about 10 per cent of essential cargoes could be moved as most of the workforce failed to return. On an average, container cargo of about 20,000 to 25,000 Twenty-foot Equivalent Units (TEUs) used to be sent every month through VO Chidambaranar Port in Thoothukudi. However, it was not the same in March, he said.

However, sources from the port said cargo handling has only been marginally affected. Even though several restrictions were put in place to contain the pandemic, there was no restriction for Exim trade, officials said.