Storage of goods and warehousing in India

Storage of goods and warehousing in India

 

Logistics is an important part of any economy across the globe, more so in growing countries like India. It manages flow of commodities from manufacturing end to consumption end. Logistics comprises activities such as material handling, warehousing, packaging, transportation and shipping. Logistics companies also offer value added services such as customs clearance, freight forwarding, import and export management, inventory management, assembly, installation, packaging, labelling and after sales support.

Core logistic activities include transportation and warehousing in India, whose importance is not limited to the country but expanded across the globe. Indian logistics rely on effectual warehousing and storage activities in cargo consolidation and air freight in India which also apply to other freight modes.

Warehouses may be either closed storage or open storage. Closed storage is offered for goods that are custom cleared and which are atmosphere sensitive. Open storage is for bulk commodities which are light weight and are not affected by heat and dampness.

Logistics has faced immense growth opportunities in many sectors like cargo consolidation in Chennai, transportation, freight forwarding, express cargo delivery, shipping and container services. Consequently a demand is developing for more solutions that can support future growth of logistics, which in turn is the key factor that determines the economic growth of the country. Logistics provides cost effective flow of goods and is considered to be the backbone of the country’s economy.

Warehousing in Chennai experiences immense growth, thanks to growth in e-commerce and manufacturing sectors. With such promise of growth and improvements, service oriented logistics and cargo consolidation in India might expand in a rapid pace in the upcoming years. Most of the cargo in India reportedly moves by roads, which are followed by railways, coastal shipping, airways and inland waterways.

Warehouses play a prominent role in supporting road freight in Chennai and across India. Most of the warehouses in India are of traditional sizes occupying less than 10,000 square feet. They are leak proof and have racking facilities besides being equipped with security systems. These warehouses are mainly operated by mid sized business people who have limited investment capacity. However government agencies which may be central or State, operate large warehouses.

Lack of appropriate place is an important reason for non availability of proper warehouses, mainly because their prices are not affordable. Customs brokerage in India classifies warehouses as public, private and special warehouses. Warehouses are licensed at specific places which are approved by the Central Board of Excise and Customs in India.

After declaring a place as warehouse station, a public bonded warehouse is appointed where imported dutiable goods are deposited. The industrial development of a particular place and the need for imported goods are assessed before declaring warehousing stations. Customs brokerage in Chennai is aware that warehousing of imported goods without payment of custom duty is permitted according to Customs Act 1962.

Sea freight in Chennai, along with other freight modes, employs freight broker who communicates between purchase end of the transportation and the transportation services. Customs brokers optimize the distribution of transportation services, with focus on requirement of shippers and capacities of carriers.

 

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