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Back to News FeedShipbuildingThe Multimodal Bet: How Shipbuilding Firms Are Cutting Logistics Cost by 5.2%
TradeS52 · ShipbuildingFreeSummary

The Multimodal Bet: How Shipbuilding Firms Are Cutting Logistics Cost by 5.2%

Faster clearance, new rail links and warehouse automation are rewriting the cost structure of moving Shipbuilding goods, but last-mile gaps persist.

MI
Meera IyerVERIFIED
Senior Trade Correspondent, IGEN News
25 Oct 2026, 06:51 IST4 min read7.8K views

Updated 27 Oct 2026, 11:11 IST

Shipbuilding: illustrative image for "The Multimodal Bet: How Shipbuilding Firms Are Cutting Logistics Cost by 5.2%"
Ports, shipping and logistics: illustrative image for Shipbuilding coverage. Photo: Unsplash.
378
3
Sponsored

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

Average container dwell time at Kandla fell to 60 hours in the latest monthly reading, down from 62 hours a year earlier, according to port authority data. For Shipbuilding shippers, whose cargo is often time-sensitive and high in value, the improvement has translated into measurable savings on demurrage and inventory carrying costs.

Warehousing is evolving in parallel. Grade-A capacity near Kandla reached 1,054 thousand square metres this year, with new facilities offering temperature control and bonded storage. Rents have climbed 2.4%, but occupancy at modern sites is above 90 percent, pointing to unmet demand.

Key takeaways

  • A shared visibility platform pilots next quarter at Kandla.
  • Container dwell time at Kandla fell to 60 hours from 62 a year ago.
  • Rail now carries 16.5% of sector export volume on the new corridor.
  • Modern warehouse occupancy is above 90 percent as rents climb 2.4%.
  • Last-mile trucking is the weakest link; goods wait days for a truck after clearing in hours.

What changed at the port

Adani Ports said it redesigned its network around the new corridor, consolidating three regional warehouses into one automated hub and shifting 5.2% of its volume to rail. The company estimates a saving of $41 million a year and a reduction in emissions intensity of roughly 2.4%, a point increasingly requested by European customers.

Beyond the port gate, rail is taking a larger role. A dedicated freight corridor connecting Kandla to inland container depots now carries 16.5% 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.

By the numbers

Dwell time
30 hrs
-24 hrs YoY
average container dwell
Inspection rate
5.8%
-4 pts
physical inspection rate
Rail share
33.3%
+9 pts
export volume by rail
Logistics saving
13.8%
cost cut
logistics spend saved

The next phase will be about data. Ports, railways and shippers are working on a shared visibility platform, and a pilot at Kandla 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.

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

Karthik Subramanian, Logistics & Ports Reporter

Rail, warehousing and the middle mile

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.

Average container dwell time at Kandlahours
Average container dwell time at KandlaAverage container dwell time at Kandla: from 18.6 hours in W1 to 12.4 hours in W8; high 18.6 in W1, low 12.4 in W8.11.21314.916.718.618.6W1W2W3W413.2W5W6W712.4W8

Source: IGEN Intelligence analysis of ministry-level press releases data. Illustrative mock data.

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.

Gateway performance comparison
GatewayDwell (hrs)Rail shareInspection rate
Mundra469.6%6.3%
Nhava Sheva6522.2%5.8%
Chennai3812.3%2.2%
Kolkata6520.8%3.4%
Visakhapatnam6413%3.9%
Source: Company filings and earnings calls; IGEN estimates. Figures are illustrative mock data.

The gaps that remain

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.

Timeline of key events

  1. 23 Sep 2026
    Paperless clearance

    Electronic documents become mandatory for all containerised exports.

  2. 1 Oct 2026
    Rail corridor opens

    Double-stack services begin between Kandla and the inland depot.

  3. 9 Oct 2026
    Network redesign

    Adani Ports consolidates three warehouses into one automated hub.

  4. 17 Oct 2026
    Dwell hits low

    Average dwell time drops to 60 hours, a multi-year low.

  5. 25 Oct 2026
    Visibility pilot

    Port, rail and shippers begin a shared tracking pilot.

Resilience is now a boardroom topic. After repeated disruptions in global shipping lanes, buyers in Vietnam and Australia 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.

Expert commentary

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

AM
Dr. Arjan Mehta
Chief Analyst, Hardware & Supply Chains, IGEN Intelligence

“Buyers are paying a premium for certainty. Suppliers who can document, deliver and communicate will capture it.”

KS
Karthik Subramanian
Logistics & Ports Reporter, IGEN News

“In my conversations with procurement heads, reliability is mentioned three times for every mention of price.”

RD
Rohan Deshpande
Markets Editor, IGEN News

Where the next savings are

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 2.4%. Customs brokers say the biggest change is predictability: clearance windows can now be planned rather than hoped for.

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

Adani Ports Asian Paints Hindalco Industries Bharat Forge Dev Malik Vivek Anand

Frequently asked questions

To 60 hours at Kandla, from 62 hours a year earlier, driven mainly by paperless clearance and risk-based inspection.

Sources

  1. Ministry-level press releases: Scheme guidelines and cabinet decisions
  2. Company filings and earnings calls: Disclosures on order books and capex
  3. Port authority statistics: Container volumes, dwell times and berth productivity
  4. Reserve Bank of India: Exchange-rate and trade-credit bulletins

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

#Shipbuilding#SupplyChain#Logistics#Ports#Vietnam
MI
Written by

Meera Iyer

Senior Trade Correspondent, IGEN News

Covers bilateral trade corridors, customs reform and export finance. Previously a commodities desk reporter in Mumbai.

Source & Editorial Attribution

Ministry of Ports, Shipping & Waterways · 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 Shipbuilding 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.

T
Tanvi Joshi
2h ago

Good to see concrete figures instead of generalities. The table on destination markets is especially helpful.

F
Faisal Khan
5h ago

Agree with the expert on diversification. Two gateways saved us last quarter.

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

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  2. 02Reading Vietnam's Policy Signals: What They Mean for Indian Exporters
  3. 03Bharat Forge Commits $5.1 billion to Power Expansion as Global Customers Seek a Second Source
  4. 04Inside India's Animal Husbandry Build-Out: Capex, Bottlenecks and the 2028 Target
  5. 05The Long Read: Biotechnology After the Tariff Reset
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S52 · Shipbuilding

Ministry of Ports, Shipping & Waterways

VietnamAustralia

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Back to News FeedShipbuildingThe Multimodal Bet: How Shipbuilding Firms Are Cutting Logistics Cost by 5.2%
TradeS52 · ShipbuildingFreeSummary

The Multimodal Bet: How Shipbuilding Firms Are Cutting Logistics Cost by 5.2%

Faster clearance, new rail links and warehouse automation are rewriting the cost structure of moving Shipbuilding goods, but last-mile gaps persist.

MI
Meera IyerVERIFIED
Senior Trade Correspondent, IGEN News
25 Oct 2026, 06:51 IST4 min read7.8K views

Updated 27 Oct 2026, 11:11 IST

Shipbuilding: illustrative image for "The Multimodal Bet: How Shipbuilding Firms Are Cutting Logistics Cost by 5.2%"
Ports, shipping and logistics: illustrative image for Shipbuilding coverage. Photo: Unsplash.
378
3
Sponsored

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

Average container dwell time at Kandla fell to 60 hours in the latest monthly reading, down from 62 hours a year earlier, according to port authority data. For Shipbuilding shippers, whose cargo is often time-sensitive and high in value, the improvement has translated into measurable savings on demurrage and inventory carrying costs.

Warehousing is evolving in parallel. Grade-A capacity near Kandla reached 1,054 thousand square metres this year, with new facilities offering temperature control and bonded storage. Rents have climbed 2.4%, but occupancy at modern sites is above 90 percent, pointing to unmet demand.

Key takeaways

  • A shared visibility platform pilots next quarter at Kandla.
  • Container dwell time at Kandla fell to 60 hours from 62 a year ago.
  • Rail now carries 16.5% of sector export volume on the new corridor.
  • Modern warehouse occupancy is above 90 percent as rents climb 2.4%.
  • Last-mile trucking is the weakest link; goods wait days for a truck after clearing in hours.

What changed at the port

Adani Ports said it redesigned its network around the new corridor, consolidating three regional warehouses into one automated hub and shifting 5.2% of its volume to rail. The company estimates a saving of $41 million a year and a reduction in emissions intensity of roughly 2.4%, a point increasingly requested by European customers.

Beyond the port gate, rail is taking a larger role. A dedicated freight corridor connecting Kandla to inland container depots now carries 16.5% 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.

By the numbers

Dwell time
30 hrs
-24 hrs YoY
average container dwell
Inspection rate
5.8%
-4 pts
physical inspection rate
Rail share
33.3%
+9 pts
export volume by rail
Logistics saving
13.8%
cost cut
logistics spend saved

The next phase will be about data. Ports, railways and shippers are working on a shared visibility platform, and a pilot at Kandla 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.

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

Karthik Subramanian, Logistics & Ports Reporter

Rail, warehousing and the middle mile

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.

Average container dwell time at Kandlahours
Average container dwell time at KandlaAverage container dwell time at Kandla: from 18.6 hours in W1 to 12.4 hours in W8; high 18.6 in W1, low 12.4 in W8.11.21314.916.718.618.6W1W2W3W413.2W5W6W712.4W8

Source: IGEN Intelligence analysis of ministry-level press releases data. Illustrative mock data.

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.

Gateway performance comparison
GatewayDwell (hrs)Rail shareInspection rate
Mundra469.6%6.3%
Nhava Sheva6522.2%5.8%
Chennai3812.3%2.2%
Kolkata6520.8%3.4%
Visakhapatnam6413%3.9%
Source: Company filings and earnings calls; IGEN estimates. Figures are illustrative mock data.

The gaps that remain

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.

Timeline of key events

  1. 23 Sep 2026
    Paperless clearance

    Electronic documents become mandatory for all containerised exports.

  2. 1 Oct 2026
    Rail corridor opens

    Double-stack services begin between Kandla and the inland depot.

  3. 9 Oct 2026
    Network redesign

    Adani Ports consolidates three warehouses into one automated hub.

  4. 17 Oct 2026
    Dwell hits low

    Average dwell time drops to 60 hours, a multi-year low.

  5. 25 Oct 2026
    Visibility pilot

    Port, rail and shippers begin a shared tracking pilot.

Resilience is now a boardroom topic. After repeated disruptions in global shipping lanes, buyers in Vietnam and Australia 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.

Expert commentary

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

AM
Dr. Arjan Mehta
Chief Analyst, Hardware & Supply Chains, IGEN Intelligence

“Buyers are paying a premium for certainty. Suppliers who can document, deliver and communicate will capture it.”

KS
Karthik Subramanian
Logistics & Ports Reporter, IGEN News

“In my conversations with procurement heads, reliability is mentioned three times for every mention of price.”

RD
Rohan Deshpande
Markets Editor, IGEN News

Where the next savings are

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 2.4%. Customs brokers say the biggest change is predictability: clearance windows can now be planned rather than hoped for.

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

Adani Ports Asian Paints Hindalco Industries Bharat Forge Dev Malik Vivek Anand

Frequently asked questions

To 60 hours at Kandla, from 62 hours a year earlier, driven mainly by paperless clearance and risk-based inspection.

Sources

  1. Ministry-level press releases: Scheme guidelines and cabinet decisions
  2. Company filings and earnings calls: Disclosures on order books and capex
  3. Port authority statistics: Container volumes, dwell times and berth productivity
  4. Reserve Bank of India: Exchange-rate and trade-credit bulletins

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

#Shipbuilding#SupplyChain#Logistics#Ports#Vietnam
MI
Written by

Meera Iyer

Senior Trade Correspondent, IGEN News

Covers bilateral trade corridors, customs reform and export finance. Previously a commodities desk reporter in Mumbai.

Source & Editorial Attribution

Ministry of Ports, Shipping & Waterways · 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 Shipbuilding 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.

T
Tanvi Joshi
2h ago

Good to see concrete figures instead of generalities. The table on destination markets is especially helpful.

F
Faisal Khan
5h ago

Agree with the expert on diversification. Two gateways saved us last quarter.

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. 01The Rakesh Bhargava Interview: Why Electronics Needs a Ten-Year View
  2. 02Reading Vietnam's Policy Signals: What They Mean for Indian Exporters
  3. 03Bharat Forge Commits $5.1 billion to Power Expansion as Global Customers Seek a Second Source
  4. 04Inside India's Animal Husbandry Build-Out: Capex, Bottlenecks and the 2028 Target
  5. 05The Long Read: Biotechnology After the Tariff Reset
Topic
S52 · Shipbuilding

Ministry of Ports, Shipping & Waterways

VietnamAustralia

More to read

All headlines →
Leader · Electronics

The Rakesh Bhargava Interview: Why Electronics Needs a Ten-Year View

4 min read
Country · Consumer Brands

Reading Vietnam's Policy Signals: What They Mean for Indian Exporters

5 min read
Technology · Power

Bharat Forge Commits $5.1 billion to Power Expansion as Global Customers Seek a Second Source

10 min read
Company · Animal Husbandry

Inside India's Animal Husbandry Build-Out: Capex, Bottlenecks and the 2028 Target

10 min read
Expert · Biotechnology

The Long Read: Biotechnology After the Tariff Reset

4 min read
Country · Education

India-United Kingdom Corridor: Education Shipments Hit $9.6 billion in Q3 FY27

4 min read