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A worsening diesel supply crunch across parts of India has disrupted freight movement, pushed up transportation costs and intensified pressure on the country’s logistics sector, with industry executives warning of broader inflationary spillovers.
Transport associations and logistics firms estimate that nearly one in five commercial trucks is currently off the road as operators struggle with fuel shortages and sharply rising diesel prices. The disruption has tightened vehicle availability across major freight corridors, leading to higher trucking rates and delays in cargo movement.
The crisis has hit smaller fleet owners particularly hard. These operators, who form the backbone of India’s fragmented trucking industry, are facing mounting operating expenses at a time when profit margins were already under strain from rising maintenance, toll and labour costs.
Diesel prices have increased multiple times over the past two weeks following volatility in global crude markets linked to geopolitical tensions in West Asia. Industry bodies said fuel now accounts for nearly half of a truck operator’s total running cost, making it difficult for transporters to absorb additional price increases without passing them on to customers.
Freight rates on several high-traffic routes connecting western and northern India have reportedly risen by 10–15%, while local haulage services in some regions have seen even steeper increases. Operators involved in automobile logistics and industrial cargo movement said working capital pressures have also intensified after several fuel stations curtailed credit sales and shifted to advance payment requirements.
Large fleet operators acknowledged delays at fuel stations but said operations remain functional for now. Logistics companies have increasingly relied on route optimisation, predictive planning and fuel stock management to limit disruption. Mid-sized operators, however, have already scaled back trips in response to uncertain fuel availability and higher procurement costs.
The fuel shortage has been most visible along key transport corridors, where long queues of trucks have formed outside retail fuel stations. Industry executives attributed part of the problem to bulk diesel buyers shifting purchases to retail outlets after institutional fuel prices rose significantly above pump prices, creating supply pressure at public stations.
Analysts warned that if elevated diesel prices persist, the impact could extend beyond logistics into consumer markets. Higher freight charges are expected to raise transportation costs for food products, agricultural produce, manufactured goods and other essentials, adding to inflationary pressures already affecting households and businesses.
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With rising concerns over maritime security, access to critical minerals, and fragile supply chains, the Quad nations pushed for deeper cooperation at the Foreign Ministers’ Meeting in New Delhi. External Affairs Minister Dr. S. Jaishankar stated that the Indo-Pacific must remain a driver of global growth and stability. The meeting takes place during a time of heightened geopolitical tensions, supply chain disruptions, and competition over strategic infrastructure that are reshaping the Indo-Pacific region. Given this backdrop, the Quad countries—India, the US, Japan, and Australia—aimed to present themselves as an action-oriented partnership focused on security, connectivity, technology, and economic resilience. Jaishankar opened the meeting by stating that the Quad’s agenda would focus on the “many challenges and opportunities” before the world, especially in the Indo-Pacific. “We have to address issues like supply chain resilience, connectivity choke points, manufacturing and resource concentrations, and gaps in critical infrastructure,” Jaishankar said. He added that these challenges also present new opportunities for partnerships, stronger growth, and realising the full potential of technology. He emphasized that the Indo-Pacific needs stronger strategic confidence, maritime security, and reliable partnerships. “Over the past several months, our officials have advanced collaboration across key priorities, including maritime security, critical technologies, economic resilience, and humanitarian assistance,” the External Affairs Minister noted, while recognizing “encouraging progress” in existing initiatives. Referring to the shared outlook among the four nations, he commented, “As maritime democracies, pluralistic societies, and market economies, we share the responsibility for a free and open Indo-Pacific.” US Secretary of State Marco Rubio mentioned that the Quad is evolving from a consultative platform to one focused on tangible outcomes. “My first meeting as Secretary of State was with the Quad, shortly after being sworn in. I believe this shows our commitment to this effort,” Rubio said. Rubio added that recent global developments have made the Quad’s initiatives more relevant, especially regarding energy security, critical minerals, humanitarian response, and freedom of navigation. Japanese Foreign Minister Toshimitsu Motegi affirmed that the Quad sends a bold message about endorsing a free and open Indo-Pacific. “Indo-Pacific nations should strengthen their resilience and capacity to shape their own future, including economic security,” Motegi said, while calling for quicker collaboration within the Quad. For more such news and updates, visit CARGOCONNECT.
Frozen food exporter HyFun Foods has moved part of its export logistics network from road to rail through a new partnership with Adani Logistics and Evergreen Marine Corporation, aiming to improve supply chain efficiency and reduce transportation emissions. Under the arrangement, the company has introduced a dedicated rail freight service to transport frozen potato products from Virochannagar Inland Container Depot in Gujarat to Mundra Port for exports. Overseas shipments will be managed by Evergreen Marine Corporation, creating an integrated rail-to-port export corridor. According to the companies, each train movement is expected to replace nearly 40 refrigerated truck trips that previously handled the same cargo movement. The shift is expected to reduce fuel consumption, ease highway congestion and improve consistency in temperature-controlled transportation for frozen products. The dedicated rail service will operate within the logistics infrastructure managed by Adani Ports and Special Economic Zone, which has been expanding multimodal cargo connectivity across key export hubs. Kamlesh Karamchandani, Group Executive Director at HyFun Foods, said, “This collaboration will further strengthen our export capabilities by making our export operations more efficient and sustainably reliable. It also supports our vision of becoming a truly global frozen food brand.” HyFun Foods, which exports frozen potato products to more than 40 countries, said the new corridor is expected to strengthen its international distribution network as the company scales exports further. The Gujarat-based processor has been expanding manufacturing capacity and export operations in recent years to meet rising overseas demand for frozen foods from India. The move also reflects a broader trend in India’s cold-chain and export logistics sector, where companies are increasingly adopting rail-linked freight systems to lower logistics costs and improve cargo reliability for temperature-sensitive products. Follow CARGOCONNECT for more such updates.
Amazon India has expanded health and insurance benefits for nearly 90,000 delivery associates across its India operations network, while also expanding its “Ashray” rest centres for gig and logistics workers. The company said the enhanced coverage includes mediclaim support of up to ₹1.5 lakh, outpatient department (OPD) benefits of up to ₹10,000, and accident insurance coverage reaching ₹10 lakh. The programme also extends wellness services to delivery workers and up to three family members, including teleconsultations, free OPD consultations, and access to international second medical opinions. Amazon stated that the benefits will be implemented across all of its last-mile delivery programmes in India. The company is also organising health camps nationwide offering eye, dental and general health check-ups for delivery personnel. Alongside the insurance expansion, Amazon is scaling up “Project Ashray,” its network of rest centres designed for delivery workers across the e-commerce and logistics ecosystem. The company recently announced plans to increase the number of Ashray centres to 250 across India by the end of 2026. It currently operates around 100 centres in cities including Delhi-NCR, Mumbai, Bengaluru and Chennai, with an additional 50 facilities scheduled to become operational in the near term. Amazon has also introduced mobile Ashray units, which are air-conditioned vans positioned along high-density delivery routes to provide hydration and rest support without requiring workers to travel to fixed facilities. These units offer amenities such as seating, Wi-Fi, water, electrolytes and mobile charging stations. The expansion comes as logistics and e-commerce companies face increasing scrutiny over working conditions, health support and welfare standards for gig economy workers, particularly during extreme summer conditions and peak festive demand periods. Follow CARGOCONNECT for more such updates.
