Logistics Rebooted: Allcargo’s July Performance Signals a Turn in Global Trade Winds

After a sluggish June marked by global trade softness, Allcargo Logistics reported a strong recovery in July 2024, driven by rising Less-than-Container Load (LCL) volumes and improved freight dynamics.

Market pulse:

- LCL volumes rose 6% month-on-month to 818 lakh cubic meters in July, matching the company’s highest-ever monthly performance

- The rebound was fueled by improved global trade sentiment and Allcargo’s growth initiatives across key regions

- Container utilization index climbed to 106, with 40-foot container usage hitting 110, reflecting operational efficiency gains

Macroeconomic backdrop:

- June saw subdued activity due to weak exports from China and soft demand across Asia

- Freight rates remained firm in July despite new capacity additions, supported by Red Sea disruptions and longer cargo booking windows

Financial snapshot:

- Q1 FY25 revenue rose 16.6% YoY to Rs 3,812.81 crore

- Net profit declined sharply to Rs 5.37 crore, impacted by margin pressures and global headwinds

Allcargo expects momentum to continue through the peak season, with strategic focus on volume growth and cost optimization.

Sources: Business Standard, CNBC TV18, Upstox, Economic Times, Allcargo Logistics official release