‘Not getting even a dollar from price rise due to Red Sea crisis’

After becoming the first company in the TVS fold to get listed since 1994, TVS Supply Chain Solutions (TVS SCS), one of the largest integrated supply chain solution providers in India, has set a road map to break into the top 25 companies in the segment globally. The company’s Managing Director RAVI VISWANATHAN talks about the ongoing Red Sea crisis, growth strategy, and 2032 outlook in an interaction with Shine Jacob. Edited Excerpts:

- RAVI VISWANATHAN MD, TVS Supply Chain Solutions

What is the impact of the ongoing uncertainties in West Asia on Indian logistics players like you?

One issue is that costs are going up because shipping companies are saying their expenses have increased—they have higher insurance, increased security. There is a surcharge because of this. For companies like us, there is no benefit whatsoever. We are passing on the rate increase to the customer. We are not getting even a dollar of that price increase. If we were paying $2,000 per container before the crisis, today it is $3,000 per container. We are still getting the same benefits. This additional charge is coming because of the Red Sea surcharge. There is also higher demand.

Now, some companies are saying they are ready to go down the Cape of Good Hope with a longer time and a lower rate. That means containers are going to be used for them for a longer time too. That is creating a crisis. Some companies are also waiting for the Red Sea problem to be solved.

Do you think that higher logistics costs in India are affecting the country's competitiveness in sectors like manufacturing, compared to competing countries?