Last month, the company’s LCL volumes had hit an eight-month low of 7.16 lakh cubic meters. The volumes, however, are lower by 0.35% as compared with 7.20 lakh cubic meters recorded in November 2022.

After hitting a peak of 7.84 lakh cubic meters in July 2023, Allcargo’s LCL cargo volumes had started to decline. The load volumes for this year’s August and September stood at 7.72 lakh cubic meters and 7.39 lakh cubic meters, respectively.

Allcargo Logistics stated that the demand continued to remain subdued reflecting a tough macroeconomic environment for global trade. Major decline was witnessed across key geographies of Americas, LATAM and Europe. We witnessed some improvement in APAC led by China and India.

Container utilization continued to remain soft on account of lower volumes. The container utilization index (TTM) stood at 97 in November 2023 as against 95 in October in 2023 and 100 in December 2022.

The 40 feet container usage continued to remain rangebound since operating environment hadn’t changed much. The ratio of 40 feet containers was the lowest on intra-Asia routes.

The company’s full container load (FCL) volume for the month of November 2023 was down 2% to 0.49 lakh twenty-foot equivalent units (TEUs) from 0.50 lakh TEUs in November 2022. The decline in FCL volumes is driven by lower volumes in Americas & Europe, while Asia volumes are higher than earlier.

The logistics service provider has acquired 51% shares in ECU Worldwide’s Middle East operating entity for 6.5 million AED, which will strengthen the company’s position in the country.

In a statement filled with the domestic bourses, Allcargo said: "Shipping lines are expected to avoid red sea under continued attacks, as announced by key carriers. This would lead to longer voyage times across cape of good hope and create disruptions in sailing schedules and impact the cost of transit and can lead to freight rate fluctuations in the near term.”

Allcargo Logistics is an integrated logistics service provider and operates in multiple business segments – multimodal transport operation (MTO), container freight station (CFS) / inland container depot (ICD), projects and engineering (P&E), contract logistics, and logistics parks (LPs) in which it has forayed recently.

The company's consolidated net profit declined 87.71% to Rs 21.84 crore on a 34.58% fall in sales to Rs 3,306.86 crore in Q2 FY24 over Q2 FY23.