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Domestic Cargo Shipping in India: How it Works?

March 18, 2024

8 min read

Domestic cargo shipping means transferring goods from one location to another within a country, using different types of transportation methods. Domestic cargo shipping supports a wide range of industries, like manufacturing, retail, agriculture, and construction to name a few. Efficient and reliable domestic cargo transportation system is needed to meet the needs of domestic customers as well as business owners. It ensures that goods are shipped and delivered timely and also contributes towards economic expansion.

In the fiscal year 2023, the combined domestic cargo volume handled by all scheduled airlines operating in India was close to 698 thousand metric tons. When compared to the prior year, this represented a rise. Dedicated freight and belly cargo accounted for the volume of cargo. Want to learn more about domestic cargo shipping in our country? In this article, we have shared everything you need to know about domestic cargo shipping in India: how it works, what are its key features, which modes of transportation are used in the process and more. Read on to find out!

Domestic Cargo Shipping: An Overview

Domestic cargo shipping refers to the transportation of goods within the boundaries of a country. Within a country, cargo shipping is made possible by a variety of transportation modes like aeroplanes, trucks, trailers, ships, or trains. Domestic cargo shipping is important for society in many ways. It is necessary to promote business, trade, and industrial activity  and deliver goods to meet the demands of people living in different parts of the country.

India’s domestic cargo shipping industry has evolved over time. This change can be attributed to several factors such as the and changing, shifting market trends, technical advancements improvements, changes to in trade regulations, and the expansion of infrastructure. 

Types of Domestic Cargo Shipping

The different types of domestic cargo shipping offered in India are explained below:

  1. Air Cargo Services: This includes the transportation of goods by aeroplanes. It is one of the fastest modes of domestic shipping for time-sensitive and valuable products. The cost of air transportation is typically higher than that of other transit modes. The capacity and availability of air cargo services in isolated locations may be restricted.
  2. Rail Cargo Services: Rail cargo services involve the movement of goods by trains. Indian Railways operates one of the biggest rail networks in the world, which links ports, industrial centres, and big towns. It works effectively for long-distance transport of big and bulky items or large volumes of material at lower transportation costs than road transport.
  3. Road Cargo Services: Road cargo services refer to the transportation of goods through trucks, vans, etc. Transporting goods to various locations has been made easier because of the vast network of roads, which includes state highways, rural roads, and national highways. For domestic shipping, road cargo services are very easy to use and much more economical in comparison to air cargo. Besides, they and reach isolated locations with little connectivity.

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Services Provided by Different Cargo Services

A wide variety of services are provided by different cargo services to satisfy the various transportation requirements of businesses. Some of these include:

  1. Cargo shipping services: Cargo forwarding, or shipping services, involves organising and coordinating the movement of goods from one location to another. The cargo forwarders manage various aspects aspect of a shipment, including the documentation, customs clearance, and logistical preparation. The trusted ones in the market provide efficient modes of transportation based on your specific requirements. The distance, delivery speed, and type of goods to be transported are some factors considered to determine the most suitable mode of domestic shipping.
  1. Transportation of goods: A variety of transportation routes, including air, sea, rail, and road, are offered by cargo shipping organisations. 
  • Road transport means the movement of goods via trucks, trailers, or other vehicles.
  • Rail transportation uses passenger and goods trains to transport cargo across long distances, This mode is particularly used to ship large and heavy items.
  • Air transportation is used for the transport of products via aeroplane, which offers efficient and timely delivery of expensive and urgent goods.
  • Water transportation is the process of moving goods by ships, vessels, or boats through canals and oceans. It is ideal for moving big and heavy cargo over long distances. Reports suggest that in 2023, maritime transport accounted for around 70% of trade by value across India.
  1. Storage and Distribution: To efficiently handle, store, and transport products, cargo services usually also offer distribution and storage services. A storage service makes inventory management easier by providing a location to keep items that need to be shipped. On the other hand, distribution services cover the tasks of sorting, packaging, and delivering goods to their destination, including last-mile delivery to customers or distribution centres.
  1. Monitoring and Tracing: Cargo shippers typically provide tracking and monitoring services so that you may check the whereabouts and status of their your goods in real-time. These services allow you and your customers to keep a watch on the products shipments. Cargo logistics providers offer quick updates by utilising advanced monitoring technologies like barcoding, RFID, and GPS .This not only enables you to monitor the progress of your goods but also helps anticipate any delays and manage logistics effectively.

ALSO READ: B2B Logistics Technology Trends

Peculiarities of Domestic Cargo Services

Various characteristics differentiate domestic cargo services from international ones. The following are a few of the main features of domestic cargo services:

  1. Domestic cargo shippers provide their services to geographic areas within the boundaries of a country. Therefore, they only focus on domestic transportation rules, laws, and infrastructure.
  1. Domestic cargo services are bound by the regulations and policies set by the country’s government. However, the regulations may differ as per different regions and states, which directly impacts the requirements of licences, safety rules, weight restrictions for cars, environmental laws, etc. in domestic shipping.
  1. They transport goods from their distribution centers to their final destinations. Delivering the goods to the last mile becomes difficult sometimes because of various connectivity issues like traffic, weather, different customer requirements, narrow roads, etc.
  1. There have been many innovations to make delivery of the shipment to its destination possible, such as collaboration with local people and companies, hubs in urban areas, delivery through electric vehicles, drones, etc.

ALSO READ: Impact of B2B Logistics on the Indian eCommerce Market

Top Domestic Cargo Services in India

  1. Indian Postal Service: The Indian public sector postal system was established in October 1854. It offers domestic cargo shipping services, including express deliveries, logistics solutions and surface transportation, etc. The Indian postal service has more than 1.5 lakh post offices for cargo shipping in India, which helps offer cost-effective services and reach rural and remote areas.
  1. DTDC Express Limited: It was established in 1990 in Mumbai, India. It is one of India’s largest courier delivery companies and offers multiple cargo services to individuals as well as businesses. DTDC has a strong presence in India and offers top notch service. It covers more than 11,440 10,000 pin codes across India.
  1. Blue Dart Express Ltd: It was launched in 1994 in Chennai and is a subsidiary of DHL. They have a wide network covering more than 44,000 locations and offer multiple cargo services like warehousing, air freight, distribution, etc.
  1. First Flight Courier Ltd: It was established in 1968 in Mumbai. It has over 1200 offices in India, offering different domestic cargo shipping services like cargo forwarding, logistics solutions, etc.
  1. Delhivery Pvt. Ltd: It was established in 2011 in Gurugram, Haryana, India. It is one of India’s largest logistics and supply chain companies and offers a range of cargo services like supply chain solutions, warehousing, express delivery, etc.
  2. Ecom Express: Launched in 2012, Ecom Express has made a place among the top logistics solution providers in India. It provides first-mile pickup, last-mile delivery and reverse logistics, among other services. It has more than 3,700 large facilities and delivery centers. It offers excellent services by leveraging the latest tools and automated solutions. The company serves more than 27,000 pin codes across India.

ALSO READ: 10 Prominent B2B Delivery Companies in Delhi

Conclusion

To sum up, domestic cargo shipping is a vital component of India’s logistical network as it supports the country’s trade connectivity and growth in the economy. Efficient cargo shipping in India enables the seamless movement of goods across a wide range of industries and sectors. The significance of domestic shipping becomes even more important as India’s economy demands innovation, investment, and cooperation within the logistical network. India can further optimise its domestic cargo transportation capabilities by adopting technological developments, improving infrastructure, and encouraging collaborations. This would open fresh chances for growth, efficiency, and broader development of transportation networks throughout the country.

What are the stages of cargo shipping?

The stages of cargo shipping include packaging, labelling, loading, and transportation of goods to their final destination.

What are the important documents needed for cargo shipping in India?

Some of the important documentation includes a bill, commercial invoice, certificate of origin, letter of instructions, inspection certificate, export licence, etc.

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Akesh Kumari

Specialist Marketing @ Shiprocket