Logistics costs across the Asia-Pacific region have risen nearly 19% year-on-year, and for Indian operators, the pain is coming from a place most are not even looking at. That is the central finding of a new report by logistics software firm FarEye, cited by PTI in its report, which surveyed over 500 logistics companies across the region between March and May. The cost pressure, the firm says, has been compounded by fuel supply disruptions tied to the ongoing Middle East conflict.
Failed deliveries are quietly draining profits
The average delivery cost increase across APAC stands at 18.9% year-on-year. India’s structural headwinds, which include fuel prices, driver wages, and urban gridlock, make that number unsurprising, as per the PTI report.
First-attempt delivery failure rates in India’s dense urban markets are running between 20% and 30%. Every missed delivery is a repeat trip. Repeat trips mean more fuel, more driver hours, and more overheads.
The quick commerce question
India’s quick commerce sector, built on the promise of 10- and 20-minute deliveries, has attracted billions in investment over three years and largely dominated the logistics conversation.
As per the PTI report, only 22% of consumers said the fastest possible delivery is their priority. A significantly larger share, 41%, said they would rather have a predictable delivery time they can count on.
Consumers will pay, but on their terms
The survey also pushes back against the assumption that Indian consumers resist paying for delivery. Sixty percent said they are willing to pay extra in specific situations, which include urgent essentials like medicines and groceries, fixed time-window deliveries, high-value items, bulky goods, and business-critical shipments, as per the PTI report.
Among businesses, 70% said their customers are willing to pay a delivery premium for certain orders.