Logistics firm TCI (Transport Corporation of India) is expecting its less-than-truckload business accounting for 40 per cent of the full truck-load business in the next three years, a senior company executive has said.
The company is slowly shifting its business from Full Truck Load (FTL) to LTL which fetches higher margins compared to FTL, according to Vinit Agarwal, Managing Director TCI.
Less-than-truckload or Less-Than-Load (LTL) is a shipping service for relatively small loads or quantities of freight. LTL services are offered by many large, national parcel service operators as well as by logistics providers.
On the other hand, FTL is a shipping mode wherein a truck carries one dedicated shipment.
According to a presentation by TCI in May this year, following the announcement of the company’s Q4 and FY22 earnings, the size of LTL segment stands at around USD 40 billion. India’s total logistics market, as per the presentation, was pegged at around USD 160 billion.
”We are slowly shifting our business from full-truck load to less-than-truckload. Less-than-truck load gives you better margins. This year it is about 35 per cent of the FTL. Our target is to take it close to 40 per cent in the next three years,” Agarwal said.
The company, which has three business verticals — freight, supply chain and seaways — registered a 20 per cent year-on-year volume growth in its freight business during the previous fiscal, according to Agarwal.
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