Historically characterised by old infrastructure, disconnectedness from global supply chains, and unpredictable ready dates, manufacturing in India has had its problems. Combined with its challenging geography and monsoonal climate the result can be long lead times and supply chain uncertainty, putting off many from doing business in India.
The Indian government is attacking these problems with vigour by investing in industrial corridors, smart cities, training and export incentives to promote advanced manufacturing processes and ensure the development of the nation.
This could not come at a better time for many Australian companies as they reconsider their reliance on a single market approach. The global shock of COVID-19 underscores the need for built-in redundancies in international sourcing – a hot topic of discussion for governments and businesses alike.
Emerging as an attractive hub for foreign investment in the manufacturing sector, India is poised to become an exciting new opportunity for many businesses.
Until then there remains a need to solve the problems associated with sea freight Import from India to Australia.
LONG AND UNRELIABLE TRANSIT TIMES
Given the nature of India commodities, most importers opt for sea freight. But the long manufacturing lead-times and transits from India manufacturing hubs often become a source of anxiety for many importers, especially those with urgent requirements.
The high cost of Air Freight only puts them between a rock and a hard place.
The recent reduction in Air Freight space due to restrictions on passenger travel has meant importers who do choose to Air Freight have seen a significant surge in rates to levels not previously seen.
From India, there are still very limited services and at the time of writing, Air Freight rates are still high.
With little indication of an increase in Air Freight space in the near term importers unaware of Air/Sea options from India are left to make the choice between frustratingly long transit times and unaffordable Air Freight rates.
Air/Sea services are not commonly offered by forwarders as they require specialist Air Freight knowledge and strong partnerships at origin to create tailored solutions that meet an importer’s need.
India air/sea solutions – AN AFFORDABLE WAY TO GET THE BENEFITS OF Air Freight
Magellan has many solutions for the cost-effective movement of cargo.
India Air/Sea solutions to suit non-urgent Air Freight or urgent sea freight, can reduce Air Freight costs by at least 45-50% and significantly cut your sea freight transit time too.
Air/Sea retains all the value-added services standard to our Air Freight service with substantial savings on the overall transportation costs, whilst maintaining a good transit time.
Our clients benefit from flexible routing options, global coverage via strategic Air/Sea hubs and end-to-end visibility across all modes. An indication of the reduced transit times costs compared to Air Freight can be seen below.
Not all forwarders do things this way.
A carefully chosen logistics partner with a successful track record in India can help you overcome India supply-chain complications. Our exclusive long-term partnership with one of India’s largest privately-operated forwarders gives you the advantage of a local contact on the ground with the experience to manage the India end of your logistics.
• Consolidation services from all major Air Freight hubs, Delhi, Chennai and Mumbai
• Private bonded warehouse provides for flexibility and control around clearances, inspections and quarantine
• Coordination of cartage, cargo insurance, warehousing and customs bonds
As one of Australia’s leading Air Freight forwarders we have the deep operational Air Freight experience and expertise to develop the right range of services to meet your specific requirements.
Full end-to-end supply chain management, including clearance and transport, allows you to realize the speed-to-market benefits of Air Freight at this time.
Case Study:
INVENTORY PROBLEM SOLVED WITH AIR/SEA
The impact of COVID on Indian supply chains has been severe. Capacity constraints, absenteeism, production delays and challenges in receiving raw materials have caused more than a few headaches for homewares, textiles and apparel importers.
Not the least for our client – a leading apparel retailer. Their supplier’s factory was faced with these issues which resulted in a two-week delay with the planned vessel departure/arrival. The next sailing would not have allowed the garments to make it into stores ahead of the Christmas trading season causing embarrassing stock-outs of advertised goods and reputational damage to the businesses. An Air Freight alternative meant the stock arriving earlier than needed and unsustainable extra cost.
Our Air/Sea solution saw the shipment uplifted from Delhi two days from goods being ready, connected in Hong Kong on the intended vessel and arriving two weeks earlier than the sea freight arrival date from India – slotting in nicely with the inventory management plan.
Better yet, the 47% reduction in freight costs (compared with Air Freight) preserved the profit margin. Smiles all round. But above all our client was freed-up to get on with what they do best instead of troubleshooting logistics glitches.
