As ongoing global disruptions like the US Iran war continue to strain shipping operations and working capital Triton Logistics & Maritime Pvt is actively diversifying its exposure across multiple economic corridors
CEO Jitendra Srivastava said that shipping routes are being significantly altered For vessels to avoid disruptionp rone corridors like the Strait of Hormuz and Bab al Mandeb in the Middle East region they now have to reroute their journeys by nearly 4,000 miles। This led to transit delays of almost two weeks more forcing logistics companies to rethink their plans and budgets
Srivastava pointed out the operational issues caused by longer and unpredictable transit cycles saying We now have to start budgeting for time paralysis. He also said that these delays are making it increasingly difficult in the near term to accurately assess cost differentials or delta
Srivastava emphasized that clients will need to put a greater emphasis on cash management because extended shipping timelines will drain capital for longer periods of time। He stated that alternative logistics options are available but he warned that these options will cost more
Srivastava noted that clients are increasingly looking for novel and unconventional ways to manage supply chain risks as there is uncertainty। He explained People are looking for many solutions particularly out of the box approaches to navigate the current environment
He explained that the logistics sector is still in a transitional period as businesses adjust to changing trade routes rising costs and changing demands from customers
Srivastava said that working capital pressures have increased on Triton with margins near breakeven। He also noted that the current environment has resulted in a price war in the logistics industry calling it a very sentimental game due to the cost uncertainty and delivery deadlines
