Most of the industry is run by small fleet owners (owning 1-5 trucks). Dependence on middlemen/brokers increases costs and delays. Lack of standardization in freight rates, service quality, and contract terms.

Blog - Why Transport Services are necessary ?
The Transport industry in India remains largely unstructured due to several factors, despite its critical role in the economy. The transport industry faces gaps like poor infrastructure, high fuel costs, fragmented operations, and reliance on middlemen. Issues include inefficient logistics, driver shortages, safety risks, outdated technology, and regulatory complexities. These challenges lead to delays, higher costs, and reduced reliability, impacting overall supply chain efficiency and growth.


Many small players still rely on manual booking and paper records. Slow adoption of GPS tracking, automated dispatch, and fleet analytics. Resistance to digital payments and online freight platforms.

Frequent fluctuations in fuel prices affect profit margins. High toll charges and state border taxes increase costs. Rising insurance and vehicle maintenance expenses make operations costly.

Unpredictable transit times due to traffic, checkposts, and inefficient route planning. Delays in loading/unloading at warehouses and factories. Poor use of technology for tracking and fleet management.

Bad road conditions increase vehicle maintenance costs and slow down deliveries. Lack of dedicated truck terminals, parking spaces, and logistics hubs leads to delays. Traffic congestion in urban areas affects fuel efficiency and delivery schedules.

Complex tax structures & toll systems (GST has helped but not fully streamlined). E-way bill compliance issues, especially for small businesses. Frequent changes in government policies create uncertainty..

High risk of cargo theft, especially in long-haul trucking. Accidents due to poor road safety measures and vehicle overloading. Lack of emergency roadside assistance services.

High carbon emissions from diesel-powered trucks. Lack of alternative fuel infrastructure (CNG, electric trucks). No proper recycling or disposal system for old vehicles.
Possible Solutions & Improvements:

Investing in better road infrastructure reduces delays, lowers costs, boosts safety, enhances connectivity, and strengthens supply chains for economic growth..

Encouraging digital adoption streamlines logistics, improves tracking, reduces paperwork, enhances route optimization, boosts efficiency, cuts costs, and empowers businesses to make data-driven decisions for growth.

Improving driver conditions with fair wages, rest stops, proper training, health benefits, and safer work environments boosts retention, reduces accidents, and enhances overall transport efficiency.

Reducing middlemen dependency through digital freight platforms, direct contracts, and transparent pricing empowers transporters, boosts profits, cuts delays, and streamlines logistics operations for greater efficiency and fairness.

Sustainable transport initiatives, like adopting EVs, using alternative fuels, optimizing routes, and promoting eco-friendly logistics, reduce emissions, cut costs, and create a greener, future-ready industry.
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