The industrial and warehousing sector in India has experienced remarkable growth in 2024, with a total leasing of 20.2 million sq ft recorded from January to September, according to a report by Colliers India. This figure represents a 17% increase year-on-year, underscoring the sustained momentum in the sector across the country’s top five cities. Notably, the quarterly average space uptake has grown from 5.7 million sq ft in 2021 to 6.7 million sq ft in 2024, highlighting a consistent rise in demand.
Among the leading regions, Delhi NCR and Chennai emerged as the frontrunners, collectively accounting for 53% of the total leasing activity during the first nine months of 2024. Third-Party Logistics (3PL) players continued to dominate demand, holding a significant 35% share of the overall leasing. The Engineering and Fast-Moving Consumer Goods (FMCG) sectors also contributed meaningfully to this upward trend. At a micro market level, Bhiwandi in Mumbai recorded the highest activity with 3.7 million sq ft leased in 2024, followed closely by Oragadam in Chennai and Chakan-Talegaon in Pune, both of which saw leasing exceed 2 million sq ft.
In the third quarter of 2024 alone, the industrial and warehousing demand reached an impressive 7.3 million sq ft, marking an 18% increase compared to the same period in 2023. Delhi NCR led this surge with 2.3 million sq ft of space leased, primarily driven by significant demand in the Bhaproda and Kulana micro markets. Commenting on this trend, Vijay Ganesh, Managing Director of Industrial & Logistics Services at Colliers India, stated, “On a quarterly basis, Q3 2024 saw an increase in industrial and warehousing demand across the top five cities, indicating a robust recovery in the sector. The large uptake of space in micro markets reflects the growing need for efficient logistics solutions.”
The report also revealed that while 3PL players maintained their dominant position with 35% of the leasing share during January to September, the Engineering and FMCG sectors collectively accounted for 32% of the demand. The electronics sector, in particular, witnessed heightened traction, doubling its leasing activity in the first three quarters of 2024 compared to the corresponding period in 2023. The rise of quick commerce (Q-commerce) players has further catalysed the demand for larger hub warehouses in major urban centres, especially in anticipation of the festive season.
Vimal Nadar, Senior Director and Head of Research at Colliers India, emphasized the positive outlook for the sector, saying, “Given the healthy demand across major cities and supportive government policies, we anticipate 2024 could close with record leasing activity of around 25 to 30 million sq ft. The improving logistics efficiencies, capacity augmentation, and India's enhanced credibility as a global manufacturing hub will sustain the growth momentum in the industrial and warehousing sector.”
In terms of supply, the first three quarters of 2024 saw a significant 29% year-on-year increase, with 21.6 million sq ft of new developments coming online. Delhi NCR again led the pack, contributing 35% of the overall completions with 7.6 million sq ft of new space. Even on a quarterly basis, new supply remained robust in Q3 2024, with around 7.2 million sq ft of completions across the top five cities. Amidst favorable demand-supply dynamics, overall vacancy levels at the end of Q3 2024 remained stable at around 12-13%, indicating a healthy balance in the market.
Moreover, large deals (greater than 200,000 sq ft) accounted for approximately 40% of the overall demand during the first nine months of 2024. While the majority of these larger deals were dominated by 3PL players, both the Engineering and FMCG sectors also participated significantly in the larger-sized deals. At the city level, the industrial and warehousing space uptake in Delhi NCR was notably driven by large-sized deals, a marked departure from 2023, where leasing activity was predominantly composed of smaller transactions. In fact, nearly 50% of the deals in the first nine months of 2024 were large-sized in Delhi NCR, illustrating a shift in market dynamics.
Singapore Changi Airport experienced a significant boost in air cargo volumes for the second quarter of 2024, handling 485,000 tonnes of airfreight from April to June. This represents a 16% increase compared to the same period last year. The growth is attributed to robust shipment flows between Singapore and major markets including the US and China. Changi Airport Group highlighted that the increase was seen across all cargo categories—exports, imports, and transhipments. The airport’s top five air cargo markets for the period were Australia, China, Hong Kong, India, and the United States. In the year-to-date, Changi Airport has processed a total of 960,000 tonnes of airfreight. The first quarter of 2024 also saw strong performance, with 475,000 tonnes handled, driven by high transhipment activity, particularly with China. Key sectors contributing to the cargo throughput include pharmaceuticals, perishables, e-commerce, and advanced materials like semiconductors. Notable airlines operating cargo flights at Changi include Spice Express, Tasman Cargo Airlines, Atlas Air, DHL Express, and Singapore Airlines, which collaborate on cargo operations. As of July 1, Changi Airport boasts 94 airlines operating over 6,900 weekly scheduled flights, linking Singapore to 158 cities across 50 countries and territories globally. This extensive network supports Changi’s role as a major international cargo hub. The airport’s continued growth in air cargo volumes underscores its importance as a critical logistics and transportation hub in the global supply chain.
AP Moller – Maersk is strengthening its operations in Bangladesh, where it has been serving the country and its exporters connect to the global market for almost three decades. Bangladesh has been one of the most important sourcing markets for the garments and apparel industry worldwide. The garment manufacturers exporting to global markets have significantly contributed towards building the country’s economy. Despite the impressive growth of garments exports from Bangladesh, the number of warehouses in Chattogram have not increased since 2012, with the sole exception of ISATL that became operational in 2018. Optimising utilisation of available capacity assisted to an extent, however it did not scale enough to meet the trade’s requirements. The logistics ecosystem and the Chittagong Port get stretched, particularly during the peak seasons. In 2021, a fallout of this structural challenge was felt by all the stakeholders involved in EXIM trade when the Container Freight Stations (CFSs) got clogged with cargo resulting in delayed clearance, stuffing and consequently dispatch of containers to the port. Delay in offloading cargo also led to longer truck waiting time, and delay in dispatch of containers to the port, consequently resulting in lack of overall productivity. These challenges have serious consequences on the overall economy of the country given the fact that the Chittagong Port handles in excess of 90 per cent of the total containerised trade to and from Bangladesh. Recognising these challenges, Maersk Bangladesh has partnered with Ispahani Summit Alliance Terminal Limited (ISATL) to build a 200,000 sq ft custom bonded warehouse. ISATL are pioneers in constructing and operating warehouses and CFS and operate four CFS within Chattogram and the River Terminal at Dhaka. Under the scope of this partnership, ISATL will construct a brand new custom bonded warehouse within the existing premises of the facility located at Pathortoli in Chattogram. The new warehouse will double the existing capacity at ISATL and add around 8 per cent additional space to the existing ecosystem at Chattogram. The construction of the new CFS has already commenced and is expected to be completed in a phased manner by the end of 2022. Bangladesh’s exporters and their overseas buyers will be able to start using the facility from July 2022, once the first phase of construction is completed. “Maersk’s commitment to connect and simplify our customers’ supply chains means that we look at long term solutions for problems such as the longstanding congestion within the ecosystem. We tackled the situation in 2021 by deploying an additional vessel for evacuating export loaded containers,” said Angshuman Mustafi, Managing Director, Maersk Bangladesh. “The solutions provided immediate relief to the ecosystem, but there was a need for a comprehensive solution to optimise ocean shipping, port handling and inland logistics that would benefit trade in the long term. By partnering with ISALT, we are establishing a facility that has the potential to partially decongest the system from the landside and streamline the flow of cargo in and out of Bangladesh.” Apart from adding capacity, the facility will offer several other benefits to Bangladesh’s exports. Amongst others, the new facility is being built by benchmarking international best practices when it comes to safety and other compliance guidelines. It will be modern multi-storeyed facility in Chattogram which will have storage at G+2 levels, thus making optimal use of available space to maximise the capacity. There will be an option to offer pallets for all operations, thereby improving the overall operational efficiency. Maersk will also offer customers Garment on Hanger facility, sorting, product audit, labelling, bar code and RFID scanning amongst others. “We are proud to partner with Maersk on this exciting long term project where ISATL’s extensive local experience combined with Maersk’s international best practices will allow us to create a truly world-class facility that will help raise the standards for the entire industry,” said Yasser Rizvi, Managing Director, ISATL.
Indian importers and exporters are grappling with significant cargo delays at Mundra Port, the country’s leading container trade hub. Local trade sources have voiced serious concerns about the worsening congestion at Mundra’s container terminals in recent weeks. "The terminals at Mundra now seem to be hugely congested, and the pendency has increased to levels affecting the normal movement of boxes between CFSs and terminals," stated the Container Freight Station Association Mundra in a complaint. The association added, "All the efforts put in by CFSs are not witnessing any improvement, but are rather finding that the situation is deteriorating further." A recent change in the process of issuing port entry permits for freight vehicles by the port authority has been identified as a major source of frustration. According to freight station owners, truckers are experiencing longer waits to move containers due to difficulties in securing entry permits promptly. "Vehicles are stranded on the road for hours together because of this. A corrective measure needs to be discussed with our members and worked out so as to ensure that movement continues without any hassles," explained the CFS association. The congestion has also frustrated container rail operators, as ICD (inland container depot) volumes constitute a significant portion of Mundra’s trade. The Association of Container Train Operators (ACTO) noted in a trade advisory, "There has been increased congestion at Mundra Port due to delays in effectively evacuating import containers in FIFO [first-in, first-out] sequence on time, despite trains being provided for clearance by container train operators [CTOs]." ACTO indicated that Indian Railways has restricted double-stack loading to expedite train evacuation from the port, resulting in additional ground rent charges for traders. Mundra, Adani Ports’ flagship entity, managed 7.4 million TEUs in the fiscal year 2023-24, marking a 15% increase over Nhava Sheva Port. With volumes rapidly expanding, the Adani Group is considering further investment to enhance capacity. "We continue to invest heavily in the business to drive growth, particularly in the logistics segment," stated Adani in a recent announcement.
Lufthansa Cargo has recently expanded its offerings, providing customers with new belly capacities on several attractive routes. Since the start of June, passengers and cargo alike can benefit from direct connections to various destinations, enhancing global connectivity and trade opportunities. Direct flights to North America, including routes from Frankfurt to Minneapolis (MSP) and Raleigh-Durham (RDU) with Lufthansa Airlines, are now available for booking. Additionally, from the Lufthansa Cargo hub in Munich, new connections to Seattle (SEA) three times a week, and daily capacity to Toronto (YYZ) and Vancouver (YVR) are being offered. Austrian Airlines has also introduced a new route, connecting Vienna with Los Angeles (LAX). Discover Airlines has expanded its services from Frankfurt to Halifax (YHZ) and Anchorage (ANC), further widening the reach of cargo transportation. Moreover, Lufthansa Cargo has introduced freighter capacity to Dubai World Central (DWC), providing customers with additional options for handling larger cargo items or special freight. This new service complements the existing belly service from Dubai International Airport (DXB) and offers enhanced flexibility and efficiency in cargo transportation. With a commitment to enhancing global connectivity and trade facilitation, Lufthansa Cargo continues to innovate and expand its service offerings. These new routes and increased capacities underscore Lufthansa Cargo's dedication to meeting the evolving needs of its customers in a rapidly changing global market.
In a momentous event today, PM Modi inaugurated a 77-kilometer-long section of the Western Dedicated Freight Corridor (WDFC), marking a significant milestone in India's ambitious infrastructure development efforts. The inauguration ceremony, held in the presence of key dignitaries and government officials, showcased the country's commitment to enhancing its transportation network. The Western Dedicated Freight Corridor is a game-changing project that aims to revolutionize India's freight transportation sector. The newly inaugurated 77-kilometer section connects key industrial regions, providing a dedicated pathway for the efficient movement of goods. With this achievement, India takes a major step towards reducing logistics costs, boosting manufacturing, and improving the overall economy. PM Modi, while addressing the audience, emphasized the importance of this project in promoting economic growth, generating employment, and reducing the carbon footprint. He noted, "The Western Dedicated Freight Corridor is a testament to India's vision for a modern and efficient transportation system. It will not only enhance our connectivity but also make us a global logistics hub." The event was attended by several Union Ministers and top officials from the Ministry of Railways, underscoring the government's commitment to accelerating infrastructure development in the country.
Rhenus Warehousing Solutions has deepened its collaboration with Blue Yonder to drive the global standardisation of its IT systems, reinforcing its digital transformation strategy. As a leading warehousing and fulfilment service provider with operations across 180 sites in 20 countries, Rhenus aims to establish a uniform and efficient IT framework to enhance customer experience worldwide. The partnership will see Rhenus implement Blue Yonder Warehouse Management on a global scale. This interoperable and configurable solution is designed to meet specific customer requirements efficiently while optimising resource allocation across different regions. By enabling in-house configuration of warehouse management modules, Rhenus will reduce its dependence on new software developments, ensuring a more agile and cost-effective operation. Ronny Sassen, Chief Executive Officer of Rhenus Warehousing Solutions, highlighted the significance of the collaboration: "With the global expansion of Blue Yonder, we are creating a robust and flexible foundation for the future of our warehouse management. This not only strengthens our competitiveness but also enables us to respond to the individual needs of our customers worldwide." Beyond system implementation, the partnership will also establish a Blue Yonder competence centre, focused on developing preconfigured modules tailored for various industries. This initiative aims to streamline the implementation process, facilitating the global roll-out of Blue Yonder’s warehouse management solutions and enhancing supply chain efficiencies. Markus Sandbrink, Chief Information Officer of the Rhenus Group, emphasised the long-term strategic benefits: "With Blue Yonder, we are building an IT infrastructure that optimises our global business processes while ensuring the security and performance of our systems. By harmonising this infrastructure, we are strengthening cooperation between all our sites and offering our business partners a reliable basis for their core business." Echoing this sentiment, Nafe Hagen, General Manager, Global Logistics Service Provider and Edge Technologies at Blue Yonder, stated: "Expanding our relationship with Rhenus to include warehousing is an important step in jointly developing innovative and scalable supply chain solutions. Our technology will support Rhenus' security and performance needs as they look to deploy our solutions globally." The initial phase of the collaboration has already demonstrated the potential of a standardised and flexible warehouse management solution. As Rhenus continues its global expansion, the strengthened partnership with Blue Yonder underscores its commitment to digital transformation and operational excellence.
The industrial and warehousing sector in India has experienced remarkable growth in 2024, with a total leasing of 20.2 million sq ft recorded from January to September, according to a report by Colliers India. This figure represents a 17% increase year-on-year, underscoring the sustained momentum in the sector across the country’s top five cities. Notably, the quarterly average space uptake has grown from 5.7 million sq ft in 2021 to 6.7 million sq ft in 2024, highlighting a consistent rise in demand. Among the leading regions, Delhi NCR and Chennai emerged as the frontrunners, collectively accounting for 53% of the total leasing activity during the first nine months of 2024. Third-Party Logistics (3PL) players continued to dominate demand, holding a significant 35% share of the overall leasing. The Engineering and Fast-Moving Consumer Goods (FMCG) sectors also contributed meaningfully to this upward trend. At a micro market level, Bhiwandi in Mumbai recorded the highest activity with 3.7 million sq ft leased in 2024, followed closely by Oragadam in Chennai and Chakan-Talegaon in Pune, both of which saw leasing exceed 2 million sq ft. In the third quarter of 2024 alone, the industrial and warehousing demand reached an impressive 7.3 million sq ft, marking an 18% increase compared to the same period in 2023. Delhi NCR led this surge with 2.3 million sq ft of space leased, primarily driven by significant demand in the Bhaproda and Kulana micro markets. Commenting on this trend, Vijay Ganesh, Managing Director of Industrial & Logistics Services at Colliers India, stated, “On a quarterly basis, Q3 2024 saw an increase in industrial and warehousing demand across the top five cities, indicating a robust recovery in the sector. The large uptake of space in micro markets reflects the growing need for efficient logistics solutions.” The report also revealed that while 3PL players maintained their dominant position with 35% of the leasing share during January to September, the Engineering and FMCG sectors collectively accounted for 32% of the demand. The electronics sector, in particular, witnessed heightened traction, doubling its leasing activity in the first three quarters of 2024 compared to the corresponding period in 2023. The rise of quick commerce (Q-commerce) players has further catalysed the demand for larger hub warehouses in major urban centres, especially in anticipation of the festive season. Vimal Nadar, Senior Director and Head of Research at Colliers India, emphasized the positive outlook for the sector, saying, “Given the healthy demand across major cities and supportive government policies, we anticipate 2024 could close with record leasing activity of around 25 to 30 million sq ft. The improving logistics efficiencies, capacity augmentation, and India's enhanced credibility as a global manufacturing hub will sustain the growth momentum in the industrial and warehousing sector.” In terms of supply, the first three quarters of 2024 saw a significant 29% year-on-year increase, with 21.6 million sq ft of new developments coming online. Delhi NCR again led the pack, contributing 35% of the overall completions with 7.6 million sq ft of new space. Even on a quarterly basis, new supply remained robust in Q3 2024, with around 7.2 million sq ft of completions across the top five cities. Amidst favorable demand-supply dynamics, overall vacancy levels at the end of Q3 2024 remained stable at around 12-13%, indicating a healthy balance in the market. Moreover, large deals (greater than 200,000 sq ft) accounted for approximately 40% of the overall demand during the first nine months of 2024. While the majority of these larger deals were dominated by 3PL players, both the Engineering and FMCG sectors also participated significantly in the larger-sized deals. At the city level, the industrial and warehousing space uptake in Delhi NCR was notably driven by large-sized deals, a marked departure from 2023, where leasing activity was predominantly composed of smaller transactions. In fact, nearly 50% of the deals in the first nine months of 2024 were large-sized in Delhi NCR, illustrating a shift in market dynamics.
Warehouse transactions across eight primary markets in India reached 23 million square feet in the first half of this year, driven by growing demand from the manufacturing sector, according to a report by Knight Frank India. Nearly 55% of these transactions were in ‘Grade A’ spaces, with Mumbai leading the way, accounting for 20% of the total warehousing volume. “Demand from the manufacturing sector has compensated for the lull in e-commerce and helped broad-base the market’s occupier profile,” said Shishir Baijal, Chairman and Managing Director of Knight Frank India. Despite challenges in the availability of viable land for warehousing development, high institutional interest is expected to support the development of high-quality supply, Baijal added. Delhi-NCR was the second most active market, representing 17% of the total warehousing area transacted, driven by third-party logistics and the manufacturing sectors. Pune emerged as the most expensive warehousing rental market, with average rents at Rs 26 per sq ft per month, followed by Kolkata at Rs 23.8 and Mumbai at Rs 23.6. Pune and Chennai saw a 4% increase in rentals, with NCR and Kolkata witnessing a 3% year-on-year growth. “India’s robust fiscal position and resilient economy are well-positioned to sustain and enhance the warehousing market’s stability and growth potential for the remainder of fiscal year 2024,” Baijal noted. The decentralisation of manufacturing capacity has significantly benefited India, with global giants like Apple, Samsung, Foxconn, and TSMC expanding their manufacturing bases in the country.
