Logistics firms hire and expand for festive

Logistics firms in India are expanding their workforces and infrastructure to manage a major spike in shipments ahead of the Diwali festive season. Companies report that ecommerce and quick commerce are pushing volumes higher, with overall shipment volumes expected to surge by up to 20%.

DTDC projects the consignments it handles will increase by 14-15% by volume and 18-20% by weight in the 15 days before Diwali compared to the same period last year. The company's seasonal and temporary hiring is projected to jump by 60%. Blue Dart anticipates its business-to-business shipments will rise 40-50% during peak weeks, while its business-to-consumer volumes are expected to roughly double, according to chief commercial officer Dipanjan Banerjee.

Capacity and Cost Pressures

The faster increase in shipment weight compared to parcel volume signals greater strain on sorting, transportation, and warehousing capacity. Industry executives note that rising wages are also adding to the cost of handling this seasonal flood of parcels. DTDC stated that seasonal wages and incentives have increased 18-20% in metropolitan markets and 10-12% in non-metro areas from last year's levels.

"There is naturally an upward movement in seasonal compensation as the market tightens during the holidays," DTDC said. The company added that it plans to use automation and improved workforce productivity to offset some of the need for extra manpower.

Major Players Scale Up

Amazon is making substantial preparations for the demand surge. Abhinav Singh, vice-president of operations for Amazon India, APAC, Middle East, Turkiye and Africa, observed the strength of the coming season. "Festive demand is shaping up to be notably stronger than what we saw last year," Singh said.

The ecommerce giant has created over 160,000 seasonal work opportunities across 400 Indian cities. It has also significantly expanded its physical network, adding 20 fulfilment centres, six sorting centres, and 150 last-mile delivery stations. This expansion has increased Amazon's storage capacity in India by 50%, to a total of 64 million cubic feet.

Workforce and Operational Adjustments

Blue Dart expects its front-end operational staffing levels to increase by 30-50% above normal business levels. The company says the number of additional workers in variable roles will run into the thousands. Banerjee outlined the company's varied approach to managing the peak. We have strengthened capacity across critical areas through infrastructure enhancements, technology-led planning, workforce augmentation, and operational realignment, he said.

The following table summarizes the projected increases from key firms mentioned in the report:

Industry preparations reflect an expectation of intense festive demand across the retail supply chain, with firms investing heavily in both people and infrastructure to ensure deliveries are met.