# Transport and logistics: Follow one offering through the chain Shipping, road, rail and air freight, warehousing and passenger transport operators Source page: https://www.materialinsights.org/industries/transport_logistics/story/ #### Follow one offering through the chain **4** Example story · 7 steps · India ### An export container from NCR to Europe Follow one box by freight corridor to Nhava Sheva, onto a container ship and through the paperwork that clears it. 1 / 7 · Fleets and fuel #### Boxes and ships built in Asia **91%**ship tonnage built in East Asia, 2025 The steel container is usually leased from a container lessor, and the ship that will carry it was almost certainly built in East Asia: some 91% of ship tonnage completed in 2025 came from yards in China, South Korea or Japan. Owners often lease both boxes and vessels for years, spreading their capital cost across many voyages.^[1](https://unctadstat.unctad.org/insights/theme/25) **Constraint** With 91% of new tonnage from three countries, India's shipbuilding ambitions start from a very small base. [St Steel](https://www.materialinsights.org/commodities/steel/)[Pnt Paints and coatings](https://www.materialinsights.org/chemicals/paints_coatings/)[Al Aluminium](https://www.materialinsights.org/commodities/aluminum/)[HI Energy-intensive industry](https://www.materialinsights.org/energy/e_heavy_industry/)[Vehicles, ships, rail, aircraft](https://www.materialinsights.org/industries/vehicles/)[Finance: banking, insurance, markets](https://www.materialinsights.org/industries/finance/) 2 / 7 · Fleets and fuel #### Diesel for trucks, bunker for ships **42.1%**fuel's share of road-freight cost Fuel is the biggest running cost in most freight. The truck that brings the box to the inland depot burns diesel, which makes up 42.1% of Indian road-freight costs, and the ship burns marine fuel oil bought at bunkering ports. Refiners such as Indian Oil and Reliance supply both, and oil price spikes pass straight into freight rates.^[2](https://www.outlookbusiness.com/economy-and-policy/indias-logistics-cost-pegged-at-797-pc-of-gdp-in-first-systematic-study) **Constraint** India imports most of its crude oil, so freight costs move with world oil prices and the rupee. [Oil Crude oil](https://www.materialinsights.org/energy/crude_oil/)[Ref Refining and reforming](https://www.materialinsights.org/energy/e_refining/)[Tk Tankers, barges and fuel trucks](https://www.materialinsights.org/energy/e_tankers/) 3 / 7 · Ports, terminals and corridors #### Double-stacked on the freight corridor **~50%**Dadri-JNPA transit time cut At the Dadri inland depot the box goes onto a double-stack train on the Western Dedicated Freight Corridor, which runs nearly 1,500 km to Jawaharlal Nehru Port and was fully opened in September 2026. A haul that once took close to 72 hours now takes roughly half as long, and India's operational dedicated corridors together average some 435 freight trains a day.^[3](https://cargoconnect.co.in/railways/pm-modi-dedicates-final-wdfc-sections-completing-jnpt-dadri-freight-route)^,^[5](https://blogs.worldbank.org/en/endpovertyinsouthasia/road-to-rail--unlocking-india-s-freight-potential-) **Constraint** The final 326 route km alone cost over ₹20,700 crore, and rail still carries only about 25% of India's freight. [St Steel](https://www.materialinsights.org/commodities/steel/)[Cu Copper](https://www.materialinsights.org/commodities/copper/)[Rail Rail traction](https://www.materialinsights.org/energy/e_rail_traction/)[RW Railway electrification and wireless power](https://www.materialinsights.org/energy/e_rail_wireless/)[Vehicles, ships, rail, aircraft](https://www.materialinsights.org/industries/vehicles/)[Construction and infrastructure](https://www.materialinsights.org/industries/construction/) 4 / 7 · Ports, terminals and corridors #### Craned aboard at Nhava Sheva **8.17 mn**TEU handled at JNPA, 2025-26 At Jawaharlal Nehru Port near Mumbai, terminal operators lift the box off the train, stack it in the yard and crane it aboard. JNPA handled a record 8.17 million TEU of containers in 2025-26, up 11.9% on the year before, and 102 million tonnes of cargo in all, making it a main gateway for northern and western factories.^[4](https://indianinfrastructure.com/2026/04/02/jnpa-sets-new-record-with-102-mt-cargo-handling-in-2025-26/) **Constraint** Deep-water berths are scarce, so congestion at one or two west-coast ports can delay trade for weeks. [St Steel](https://www.materialinsights.org/commodities/steel/)[Cem Cement](https://www.materialinsights.org/commodities/cement/)[Dist Distribution grids, mini-grids and interconnectors](https://www.materialinsights.org/energy/e_distribution/)[ICE Internal combustion engines and gensets](https://www.materialinsights.org/energy/e_engines/)[Construction and infrastructure](https://www.materialinsights.org/industries/construction/)[Machinery and equipment](https://www.materialinsights.org/industries/machinery/)[Computers and electronics](https://www.materialinsights.org/industries/computers_electronics/) 5 / 7 · Carriers #### Most freight still goes by truck **~70%**Indian freight moved by road Not every box gets a train. Many exporters truck containers straight to port, hiring small fleet owners through brokers or apps such as BlackBuck. Road carries nearly 70% of India's freight against about 25% by rail, and shifting more heavy, long-distance cargo to rail and coastal shipping is the big efficiency prize.^[5](https://blogs.worldbank.org/en/endpovertyinsouthasia/road-to-rail--unlocking-india-s-freight-potential-)^,^[2](https://www.outlookbusiness.com/economy-and-policy/indias-logistics-cost-pegged-at-797-pc-of-gdp-in-first-systematic-study) **Constraint** Diesel is 42.1% of road-freight cost, and most trucks belong to small owners with little capital to upgrade. [Oil Crude oil](https://www.materialinsights.org/energy/crude_oil/)[Rbr Natural rubber](https://www.materialinsights.org/commodities/rubber/)[Ur Urea](https://www.materialinsights.org/chemicals/urea/)[ICV Combustion road vehicles](https://www.materialinsights.org/energy/e_road_ice/)[Vehicles, ships, rail, aircraft](https://www.materialinsights.org/industries/vehicles/) 6 / 7 · Carriers #### Across the sea with a giant line **21.5%**MSC's share of container capacity A container line such as MSC sells the exporter or its forwarder a slot on a scheduled service to Europe. Ocean shipping is highly concentrated: on mid-2026 Alphaliner data MSC alone runs 21.5% of world container capacity and the top ten lines about 85%. Rerouting round Africa to avoid the Red Sea has lengthened Asia-Europe voyages by about 30%.^[6](https://container-news.com/largest-container-shipping-companies-at-the-end-of-h1-2026/)^,^[7](https://unctad.org/system/files/official-document/rmt2025ch1_en.pdf) **Constraint** Ten lines control about 85% of capacity (calculated), so Indian exporters are price-takers when rates spike. [Oil Crude oil](https://www.materialinsights.org/energy/crude_oil/)[St Steel](https://www.materialinsights.org/commodities/steel/)[MeOH Methanol](https://www.materialinsights.org/chemicals/methanol/)[Shp Ship propulsion](https://www.materialinsights.org/energy/e_marine/)[LNG LNG chain](https://www.materialinsights.org/energy/e_lng/)[Vehicles, ships, rail, aircraft](https://www.materialinsights.org/industries/vehicles/)[Computers and electronics](https://www.materialinsights.org/industries/computers_electronics/) 7 / 7 · Forwarding, warehousing and coordination #### Paperwork that moves the box **7.97%**India's logistics cost, share of GDP Throughout, a freight forwarder books the train and the ship, and a customs broker files the shipping bill so the box can be examined, sealed and cleared. Their work is part of a large bill: India's logistics cost was about ₹24.01 lakh crore, or 7.97% of GDP, in 2023-24, and every slow handover between road, rail and port adds to it.^[8](https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/nov/doc20251127708001.pdf) **Constraint** Documents, inspections and mode changes add days; digital platforms help only when every agency shares data. [Software and IT services](https://www.materialinsights.org/industries/software_it/)[Finance: banking, insurance, markets](https://www.materialinsights.org/industries/finance/) #### What the chain shows India's new corridor and record port volumes cut costs at home, but the ships, boxes and ocean lines that set freight rates are controlled abroad. Sources 1. [Data insights: maritime and other transport (shipbuilding by country, 2025)](https://unctadstat.unctad.org/insights/theme/25) UNCTADstat, 2026 2. [India's logistics cost pegged at 7.97% of GDP in first systematic study (reporting DPIIT-NCAER, including fuel's share of road-freight cost)](https://www.outlookbusiness.com/economy-and-policy/indias-logistics-cost-pegged-at-797-pc-of-gdp-in-first-systematic-study) Outlook Business, 2025 3. [PM Modi dedicates final WDFC sections, completing JNPT-Dadri freight route](https://cargoconnect.co.in/railways/pm-modi-dedicates-final-wdfc-sections-completing-jnpt-dadri-freight-route) Cargo Connect, 2026 4. [JNPA sets new record with 102 mt cargo handling in 2025-26](https://indianinfrastructure.com/2026/04/02/jnpa-sets-new-record-with-102-mt-cargo-handling-in-2025-26/) Indian Infrastructure, 2026 5. [Road to rail: unlocking India's freight potential](https://blogs.worldbank.org/en/endpovertyinsouthasia/road-to-rail--unlocking-india-s-freight-potential-) World Bank, 2025 6. [Largest container shipping companies at the end of H1 2026 (Alphaliner Top 100 data)](https://container-news.com/largest-container-shipping-companies-at-the-end-of-h1-2026/) Container News, 2026 7. [Review of Maritime Transport 2025, Chapter 1](https://unctad.org/system/files/official-document/rmt2025ch1_en.pdf) UNCTAD, 2025 8. [Assessment of Logistics Cost in India (DPIIT-NCAER), summary](https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/nov/doc20251127708001.pdf) Press Information Bureau, Government of India, 2025 ## Other sections - [Overview](https://www.materialinsights.org/industries/transport_logistics/index.md) - [Where ₹100 goes](https://www.materialinsights.org/industries/transport_logistics/cost-mix/index.md) - [Price links with suppliers](https://www.materialinsights.org/industries/transport_logistics/price-links/index.md) - [Linked industries](https://www.materialinsights.org/industries/transport_logistics/linked-industries/index.md) - [Value chain](https://www.materialinsights.org/industries/transport_logistics/value-chain/index.md) - [Materials drawn on](https://www.materialinsights.org/industries/transport_logistics/materials/index.md) - [Chokepoints and risks](https://www.materialinsights.org/industries/transport_logistics/risks/index.md) - [Sources](https://www.materialinsights.org/industries/transport_logistics/sources/index.md)