It was quite apparent that sellers stocked up high inventory in anticipation of the festive season demand. This led to an enormous amount of E-way bill generation for India’s trucking sector. However, in November, there was a notable development when the E-way bill generation witnessed a substantial dip, aligning with fluctuations in the truck market demand.
Data analysis by the industry body All India Transporter’s Welfare Association (AITWA) reveals a distinctive shift in supply chain dynamics during this period. According to them, the average E-way bill generation from April to October stood at 903 lakh bills. However, in November, there was a considerable drop, with only 876 lakh bills generated. Notably, October recorded the highest E-way bill generation at 1003 lakh bills, making November’s figures reflect a significant 13% month-on-month decline.
AITWA attributes this decline to potential overstocking in anticipation of the festive season. As businesses geared up for increased demand, movements experienced a dip in November, contributing to the overall decrease in E-way bill generation.
Eventually, the post-festive season movements have remained lukewarm even into December – a trend that suggests a continued impact on logistics activities following the festive surge. This shift in E-way bill generation underscores the intricate relationship between logistics, overstocking practices, and market demand, signaling the need for businesses to recalibrate their supply chain strategies.
Logistics Insider Magazine: December issue 2023