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Back to News FeedStartupsThe Multimodal Bet: How Startups Firms Are Cutting Logistics Cost by 6.5%
TradeS54 · Startups & InnovationFreeSummary

The Multimodal Bet: How Startups Firms Are Cutting Logistics Cost by 6.5%

Shippers that moved early to digital documentation are reporting double-digit reductions in dwell time; laggards are paying for it in demurrage.

KS
Karthik SubramanianVERIFIED
Logistics & Ports Reporter, IGEN News
17 Oct 2026, 11:45 IST9 min read2.0K views

Updated 18 Oct 2026, 16:05 IST

Startups & Innovation: illustrative image for "The Multimodal Bet: How Startups Firms Are Cutting Logistics Cost by 6.5%"
Business leaders and the boardroom: illustrative image for Startups coverage. Photo: Unsplash.
350
3
Sponsored

Trade finance for exporters: invoice discounting in 48 hours (partner content).

Average container dwell time at Nhava Sheva fell to 90 hours in the latest monthly reading, down from 62 hours a year earlier, according to port authority data. For Startups shippers, whose cargo is often time-sensitive and high in value, the improvement has translated into measurable savings on demurrage and inventory carrying costs.

Technology adoption is uneven. Large shippers have integrated customs, transport and inventory systems and receive alerts on delays in near real time; smaller firms still rely on email and phone calls. Logistics platforms are targeting this gap with subscription tools priced for firms with fewer than 50 shipments a month.

Key takeaways

  • Last-mile trucking is the weakest link; goods wait days for a truck after clearing in hours.
  • Physical inspection rates dropped to 3.5% under risk-based clearance.
  • Container dwell time at Nhava Sheva fell to 90 hours from 62 a year ago.
  • Rail now carries 28.4% of sector export volume on the new corridor.
  • Modern warehouse occupancy is above 90 percent as rents climb 3.5%.

What changed at the port

Mahindra Group said it redesigned its network around the new corridor, consolidating three regional warehouses into one automated hub and shifting 6.5% of its volume to rail. The company estimates a saving of $414 million a year and a reduction in emissions intensity of roughly 3.5%, a point increasingly requested by European customers.

Not every link has kept pace. Last-mile trucking remains fragmented, with small operators accounting for most capacity and little data sharing. Several exporters reported that goods cleared in 24 hours then waited three days for a truck, eroding much of the benefit achieved upstream.

By the numbers

Dwell time
45 hrs
-24 hrs YoY
average container dwell
Inspection rate
2.3%
-4 pts
physical inspection rate
Rail share
35.4%
+9 pts
export volume by rail
Logistics saving
9.2%
cost cut
logistics spend saved

Insurance and finance are adapting. Cargo insurers have begun offering parametric products that pay out automatically when a vessel is delayed beyond a threshold, and banks are experimenting with receivables finance triggered by electronic bills of lading, which could shorten cash cycles by two to three weeks.

“Predictability beats speed. A two-day clearance you can plan around is worth more than a one-day clearance you cannot.”

Divya Menon, Partner, Customs & Trade Law

Rail, warehousing and the middle mile

The gains are largely procedural. Pre-arrival processing, risk-based inspection and paperless clearance now cover most consignments, and the share of containers selected for physical examination has fallen to 3.5%. Customs brokers say the biggest change is predictability: clearance windows can now be planned rather than hoped for.

Average container dwell time at Nhava Shevahours
Average container dwell time at Nhava ShevaAverage container dwell time at Nhava Sheva: from 34.7 hours in W1 to 21.1 hours in W8; high 34.7 in W1, low 21.1 in W8.1922.926.830.834.734.7W1W2W3W427.8W5W6W721.1W8

Source: IGEN Intelligence analysis of ministry of commerce & industry data. Illustrative mock data.

Resilience is now a boardroom topic. After repeated disruptions in global shipping lanes, buyers in Netherlands and Brazil have asked suppliers to document contingency routes. Indian exporters with alternative gateways at two or more ports are winning preferred-supplier status in several categories.

Gateway performance comparison
GatewayDwell (hrs)Rail shareInspection rate
Mundra5723.6%3.1%
Nhava Sheva527.6%2.1%
Chennai5614.4%2.4%
Kolkata5524.3%3.1%
Visakhapatnam555.6%3.3%
Source: Industry association surveys; IGEN estimates. Figures are illustrative mock data.

The gaps that remain

Beyond the port gate, rail is taking a larger role. A dedicated freight corridor connecting Nhava Sheva to inland container depots now carries 28.4% of the sector's export volume, and double-stack services have cut inland transit to under 36 hours for the first time. Rates are competitive with road once total delivered cost is considered.

Timeline of key events

  1. 15 Sep 2026
    Paperless clearance

    Electronic documents become mandatory for all containerised exports.

  2. 23 Sep 2026
    Rail corridor opens

    Double-stack services begin between Nhava Sheva and the inland depot.

  3. 1 Oct 2026
    Network redesign

    Mahindra Group consolidates three warehouses into one automated hub.

  4. 9 Oct 2026
    Dwell hits low

    Average dwell time drops to 90 hours, a multi-year low.

  5. 17 Oct 2026
    Visibility pilot

    Port, rail and shippers begin a shared tracking pilot.

Warehousing is evolving in parallel. Grade-A capacity near Nhava Sheva reached 2,285 thousand square metres this year, with new facilities offering temperature control and bonded storage. Rents have climbed 3.5%, but occupancy at modern sites is above 90 percent, pointing to unmet demand.

Expert commentary

“Resilience is becoming a commercial differentiator, not a cost centre.”

SK
Sanjay Kulkarni
Banking & Trade Finance Editor, IGEN News

“The data is clear on direction and less clear on pace. I would plan for slower and be pleasantly surprised.”

DM
Divya Menon
Partner, Customs & Trade Law, Menon & Partners

“For Startups, the margin of safety is in diversification: two markets, two gateways and two sources of finance.”

FS
Dr. Farah Siddiqui
Economist, Trade & Development, Centre for Trade Studies

Where the next savings are

The next phase will be about data. Ports, railways and shippers are working on a shared visibility platform, and a pilot at Nhava Sheva will go live next quarter. If it works, exporters will be able to track a container from factory gate to destination port in a single interface.

What it means for you

Shippers

Move to paperless clearance and book rail slots in advance; consider a second gateway for contingency.

Logistics providers

Invest in data integration with customs and ports; fragmented last-mile operators should consider consortium models.

Warehouse investors

Demand for bonded and temperature-controlled space near gateways outstrips supply; underwrite at current rents.

Buyers abroad

Ask suppliers for documented contingency routes and track transit via the new visibility tools as they roll out.

Companies and leaders in this story

Mahindra Group JSW Steel Havells India Titan Company Rohini Sethi Amit Chandra

Frequently asked questions

To 90 hours at Nhava Sheva, from 62 hours a year earlier, driven mainly by paperless clearance and risk-based inspection.

Sources

  1. Ministry of Commerce & Industry: Monthly trade statistics and notifications
  2. Industry association surveys: Member-level compliance and sentiment data
  3. Port authority statistics: Container volumes, dwell times and berth productivity
  4. Central Board of Indirect Taxes & Customs: Port-level clearance and dwell data

Mock content for demonstration. Names, figures and quotes are illustrative and not real reporting.

#Startups#SupplyChain#Logistics#Ports#Netherlands
KS
Written by

Karthik Subramanian

Logistics & Ports Reporter, IGEN News

Follows container volumes, port efficiency and multimodal corridors from Kandla to Kolkata.

Source & Editorial Attribution

Department for Promotion of Industry and Internal Trade · IGEN Trade Intelligence

This article is curated and summarized by the IGEN editorial desk. All text is verified from official filings and trade bulletins, rendered strictly in plain text for compliance and clarity. Full text and regulatory updates are archived in the national registry.

Daily briefing

Get stories like this in your inbox

One concise email each morning on trade, policy and markets across Startups and 49 other sectors.

Discussion (3)

Sort by: Most recent
Log in to comment
S
Smita Verma
38m ago

Useful numbers. Would love to see the same breakdown for smaller units, since they carry most of the compliance burden.

D
Deepa Nair
2h ago

Any word on how this plays out for services exporters? Would be a good follow-up.

R
Rahul Menon
5h ago

The timeline section is a handy reference. Sharing with our procurement team.

In this article
  1. 1. What changed at the port
  2. 2. Rail, warehousing and the middle mile
  3. 3. The gaps that remain
  4. 4. Where the next savings are
  5. 5. Discussion (3)

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S54 · Startups & Innovation

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Back to News FeedStartupsThe Multimodal Bet: How Startups Firms Are Cutting Logistics Cost by 6.5%
TradeS54 · Startups & InnovationFreeSummary

The Multimodal Bet: How Startups Firms Are Cutting Logistics Cost by 6.5%

Shippers that moved early to digital documentation are reporting double-digit reductions in dwell time; laggards are paying for it in demurrage.

KS
Karthik SubramanianVERIFIED
Logistics & Ports Reporter, IGEN News
17 Oct 2026, 11:45 IST9 min read2.0K views

Updated 18 Oct 2026, 16:05 IST

Startups & Innovation: illustrative image for "The Multimodal Bet: How Startups Firms Are Cutting Logistics Cost by 6.5%"
Business leaders and the boardroom: illustrative image for Startups coverage. Photo: Unsplash.
350
3
Sponsored

Trade finance for exporters: invoice discounting in 48 hours (partner content).

Average container dwell time at Nhava Sheva fell to 90 hours in the latest monthly reading, down from 62 hours a year earlier, according to port authority data. For Startups shippers, whose cargo is often time-sensitive and high in value, the improvement has translated into measurable savings on demurrage and inventory carrying costs.

Technology adoption is uneven. Large shippers have integrated customs, transport and inventory systems and receive alerts on delays in near real time; smaller firms still rely on email and phone calls. Logistics platforms are targeting this gap with subscription tools priced for firms with fewer than 50 shipments a month.

Key takeaways

  • Last-mile trucking is the weakest link; goods wait days for a truck after clearing in hours.
  • Physical inspection rates dropped to 3.5% under risk-based clearance.
  • Container dwell time at Nhava Sheva fell to 90 hours from 62 a year ago.
  • Rail now carries 28.4% of sector export volume on the new corridor.
  • Modern warehouse occupancy is above 90 percent as rents climb 3.5%.

What changed at the port

Mahindra Group said it redesigned its network around the new corridor, consolidating three regional warehouses into one automated hub and shifting 6.5% of its volume to rail. The company estimates a saving of $414 million a year and a reduction in emissions intensity of roughly 3.5%, a point increasingly requested by European customers.

Not every link has kept pace. Last-mile trucking remains fragmented, with small operators accounting for most capacity and little data sharing. Several exporters reported that goods cleared in 24 hours then waited three days for a truck, eroding much of the benefit achieved upstream.

By the numbers

Dwell time
45 hrs
-24 hrs YoY
average container dwell
Inspection rate
2.3%
-4 pts
physical inspection rate
Rail share
35.4%
+9 pts
export volume by rail
Logistics saving
9.2%
cost cut
logistics spend saved

Insurance and finance are adapting. Cargo insurers have begun offering parametric products that pay out automatically when a vessel is delayed beyond a threshold, and banks are experimenting with receivables finance triggered by electronic bills of lading, which could shorten cash cycles by two to three weeks.

“Predictability beats speed. A two-day clearance you can plan around is worth more than a one-day clearance you cannot.”

Divya Menon, Partner, Customs & Trade Law

Rail, warehousing and the middle mile

The gains are largely procedural. Pre-arrival processing, risk-based inspection and paperless clearance now cover most consignments, and the share of containers selected for physical examination has fallen to 3.5%. Customs brokers say the biggest change is predictability: clearance windows can now be planned rather than hoped for.

Average container dwell time at Nhava Shevahours
Average container dwell time at Nhava ShevaAverage container dwell time at Nhava Sheva: from 34.7 hours in W1 to 21.1 hours in W8; high 34.7 in W1, low 21.1 in W8.1922.926.830.834.734.7W1W2W3W427.8W5W6W721.1W8

Source: IGEN Intelligence analysis of ministry of commerce & industry data. Illustrative mock data.

Resilience is now a boardroom topic. After repeated disruptions in global shipping lanes, buyers in Netherlands and Brazil have asked suppliers to document contingency routes. Indian exporters with alternative gateways at two or more ports are winning preferred-supplier status in several categories.

Gateway performance comparison
GatewayDwell (hrs)Rail shareInspection rate
Mundra5723.6%3.1%
Nhava Sheva527.6%2.1%
Chennai5614.4%2.4%
Kolkata5524.3%3.1%
Visakhapatnam555.6%3.3%
Source: Industry association surveys; IGEN estimates. Figures are illustrative mock data.

The gaps that remain

Beyond the port gate, rail is taking a larger role. A dedicated freight corridor connecting Nhava Sheva to inland container depots now carries 28.4% of the sector's export volume, and double-stack services have cut inland transit to under 36 hours for the first time. Rates are competitive with road once total delivered cost is considered.

Timeline of key events

  1. 15 Sep 2026
    Paperless clearance

    Electronic documents become mandatory for all containerised exports.

  2. 23 Sep 2026
    Rail corridor opens

    Double-stack services begin between Nhava Sheva and the inland depot.

  3. 1 Oct 2026
    Network redesign

    Mahindra Group consolidates three warehouses into one automated hub.

  4. 9 Oct 2026
    Dwell hits low

    Average dwell time drops to 90 hours, a multi-year low.

  5. 17 Oct 2026
    Visibility pilot

    Port, rail and shippers begin a shared tracking pilot.

Warehousing is evolving in parallel. Grade-A capacity near Nhava Sheva reached 2,285 thousand square metres this year, with new facilities offering temperature control and bonded storage. Rents have climbed 3.5%, but occupancy at modern sites is above 90 percent, pointing to unmet demand.

Expert commentary

“Resilience is becoming a commercial differentiator, not a cost centre.”

SK
Sanjay Kulkarni
Banking & Trade Finance Editor, IGEN News

“The data is clear on direction and less clear on pace. I would plan for slower and be pleasantly surprised.”

DM
Divya Menon
Partner, Customs & Trade Law, Menon & Partners

“For Startups, the margin of safety is in diversification: two markets, two gateways and two sources of finance.”

FS
Dr. Farah Siddiqui
Economist, Trade & Development, Centre for Trade Studies

Where the next savings are

The next phase will be about data. Ports, railways and shippers are working on a shared visibility platform, and a pilot at Nhava Sheva will go live next quarter. If it works, exporters will be able to track a container from factory gate to destination port in a single interface.

What it means for you

Shippers

Move to paperless clearance and book rail slots in advance; consider a second gateway for contingency.

Logistics providers

Invest in data integration with customs and ports; fragmented last-mile operators should consider consortium models.

Warehouse investors

Demand for bonded and temperature-controlled space near gateways outstrips supply; underwrite at current rents.

Buyers abroad

Ask suppliers for documented contingency routes and track transit via the new visibility tools as they roll out.

Companies and leaders in this story

Mahindra Group JSW Steel Havells India Titan Company Rohini Sethi Amit Chandra

Frequently asked questions

To 90 hours at Nhava Sheva, from 62 hours a year earlier, driven mainly by paperless clearance and risk-based inspection.

Sources

  1. Ministry of Commerce & Industry: Monthly trade statistics and notifications
  2. Industry association surveys: Member-level compliance and sentiment data
  3. Port authority statistics: Container volumes, dwell times and berth productivity
  4. Central Board of Indirect Taxes & Customs: Port-level clearance and dwell data

Mock content for demonstration. Names, figures and quotes are illustrative and not real reporting.

#Startups#SupplyChain#Logistics#Ports#Netherlands
KS
Written by

Karthik Subramanian

Logistics & Ports Reporter, IGEN News

Follows container volumes, port efficiency and multimodal corridors from Kandla to Kolkata.

Source & Editorial Attribution

Department for Promotion of Industry and Internal Trade · IGEN Trade Intelligence

This article is curated and summarized by the IGEN editorial desk. All text is verified from official filings and trade bulletins, rendered strictly in plain text for compliance and clarity. Full text and regulatory updates are archived in the national registry.

Daily briefing

Get stories like this in your inbox

One concise email each morning on trade, policy and markets across Startups and 49 other sectors.

Discussion (3)

Sort by: Most recent
Log in to comment
S
Smita Verma
38m ago

Useful numbers. Would love to see the same breakdown for smaller units, since they carry most of the compliance burden.

D
Deepa Nair
2h ago

Any word on how this plays out for services exporters? Would be a good follow-up.

R
Rahul Menon
5h ago

The timeline section is a handy reference. Sharing with our procurement team.

In this article
  1. 1. What changed at the port
  2. 2. Rail, warehousing and the middle mile
  3. 3. The gaps that remain
  4. 4. Where the next savings are
  5. 5. Discussion (3)

Trending now

  1. 01AI Meets Environment: Early Adopters Report 8.7% Productivity Gains
  2. 02$9.3 billion Investment Wave Reshapes Semiconductors: Plants, Talent and the Race for Capacity
  3. 03India-Australia Corridor: AI Shipments Hit $5.9 billion in Q1 FY28
  4. 04Amit Chandra's Playbook: Three Decisions That Reshaped a Health and Family Welfare Franchise
  5. 05AI Meets Ports: Early Adopters Report 4.1% Productivity Gains
Topic
S54 · Startups & Innovation

Department for Promotion of Industry and Internal Trade

NetherlandsBrazil

More to read

All headlines →
Company · Environment

AI Meets Environment: Early Adopters Report 8.7% Productivity Gains

6 min read
Sector · Semiconductors

$9.3 billion Investment Wave Reshapes Semiconductors: Plants, Talent and the Race for Capacity

4 min read
Sector · AI

India-Australia Corridor: AI Shipments Hit $5.9 billion in Q1 FY28

6 min read
Leader · Health and Family Welfare

Amit Chandra's Playbook: Three Decisions That Reshaped a Health and Family Welfare Franchise

7 min read
Company · Ports

AI Meets Ports: Early Adopters Report 4.1% Productivity Gains

7 min read
Technology · FinTech

Inside India's FinTech Build-Out: Capex, Bottlenecks and the 2030 Target

5 min read