“The Year 2024 shall see major developments taking place in Logistics infrastructure throughout the country,” says V Raju, Head of Contract Logistics, Allcargo Supply Chain sharing his outlook for the year 2024 and his views on the performance of the logistics industry in 2023. He adds. “Sufficient capital outlay will be allotted for the developmental works in the budget by the Centre. Multimodal transport, warehousing and logistics parks will be leading the way in the sphere of infrastructure development, supported immensely by aggressive road construction. On the supply chain front, we shall see aggressive work being initiated in the field of Digitization and Sustainability. India shall be the leaders globally in these fields. We will see an increase in investment in Technology implementation by logistics players, while lot of innovation and speed in manufacturing of EV, alternate fuel and battery technology will be the front runners in 2024. Logistics ecosystem will hear a lot more on geopolitical disruptions in 2024, thus increasing the work in areas of developing robust resilient measures to survive these difficult times. While auto and e-com businesses shall continue to boom in 2024, the same cannot be said about chemical logistics, as most of the global chemical companies are passing through a severe recession, coupled with energy and oil crisis forcing them to go defensive. Food and pharma sectors will need continued support from the government to boost their trading numbers. Start ups will see lot of traction and last mile delivery in the field of e-com shall assume tremendous importance.”

The industrial and logistics sector witnessed significant growth both in terms of absorption and supply. In 2023, the sector witnessed absorption of 49.4 mn sq. ft. indicating a 6.7% increase compared to the 46.3 mn sq. ft. absorption in 2022. Notably, tier I cities witnessed 75% of the absorption while tier II and III cities accounted for the remaining 25% according to International real estate advisory firm, Savills India. Tier II and III cities are growing significantly as sourcing hubs, aiding efficient distribution. The absorption is being led by a surge in demand from the manufacturing and retail sectors, as well as continued sustained demand from the 3PL sector. The report suggests that the sector witnessed a fresh supply of 62 mn sq. ft. in 2023 of which 46.2 mn sq. ft. (75%) was from tier I cities and 15.8 mn sq. ft. (25%) from tier II and III cities. The surge in supply was due to the delivery of projects across the cities by major developers in response to growing demand. Absorption (mn sq. ft) across cities Note: Tier I city includes Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, Delhi-NCR, and Pune. Tier II and Tier III cities include Guwahati, Bhubaneshwar, Patna, Hosur, Coimbatore, Rajpura, Lucknow, Jaipur, Nagpur, Surat, Indore, Kochi, Hubli, Vizag, Belgaum and Anantapur. The overall Grade A space accounted for 53% of the supply in 2023 up from 48% in 2022, while overall Grade A absorption accounted for 54% in 2023 up from 42% in 2022, indicating a significant increase in the supply and demand for graded and compliant buildings. “Fueled by rising domestic demand and expanding distribution networks in tier II and III cities, the industrial …

Horizon Industrial Parks, a portfolio of Grade A logistics parks in India owned and managed by Blackstone Real Estate funds, has welcomed Flyjac Logistics to its new built-to-suit logistics space. Flyjac Logistics, a 3PL service provider company, will be maintaining leading electrical and electronics company V-Guard’s warehousing operations in Horizon’s facility at Farukhnagar, Gurugram. Horizon Industrial Park Farukhnagar is a state-of-the-art, 108 acres grade A facility near IMT Manesar and Gurugram. It is an emerging premier gateway to North India’s logistics and warehousing market. The new facility of Flyjac will encompass 330,000 square feet in area alongside Amazon, LF Logistics, Rhenus and Reliance within the Industrial Park. Urvish Rambhia, principal at Blackstone, said: “Our commitment is building exceptional logistics space in prime locations so our tenants can better serve their customers and stay competitive.” AV Ravikumar, MD, Flyjac Logistics, said: “We have seen tremendous demand from customers who are increasingly going online and want faster deliveries. We are excited to expand our presence in India through Horizon Industrial Parks’ new state-of-the-art facility in Farukhnagar and continue to deliver excellent service to our tenants and their customers.” Antony Sebastian K, executive director, SCM, V-Guard Industries, said: “We are impressed with the facility provided by Horizon Industrial Parks to Flyjac for maintaining V-Guard warehousing operations. The operations are smooth, and it will help us to strengthen our business.”

Global air cargo demand increased three per cent in December compared to December 2022, according to the latest Air Freight State of the industry report by DHL Global Forwarding. Despite a slight increase in output price inflation observed in November 2023, it remained among the lowest levels seen in the past three years, contributing to an environment of relative stability. “PMI index increased to 50.4 in November from October’s 50.0, indicating a slight revival in production growth. Global demand remains low, leading to a decline in demand-driven price pressures towards their long-term average,” the report added. The report emphasises an upswing of 10 percent in air cargo capacity compared to December 2022. The growth is attributed to a 17 percent increase in passenger belly cargo capacity. However, certain regions experienced capacity constraints during Q423 due to higher seasonal demand, resulting in industry backlogs.

Global average air cargo rates are now 50 percent above their pre-Covid levels following the significant rebound in the last few months in demand and pricing, especially ex-China, according to the latest figures from WorldACD Market Data. Preliminary figures for week 50 (December 11-17) indicate that global tonnages and average worldwide rates have been stable compared with the previous week after recovering more quickly than last year from the seasonal post-Thanksgiving dip last month based on the more than 400,000 weekly transactions covered by WorldACD’s data. “Comparing weeks 49 and 50 this year with the preceding two weeks (2Wo2W), overall tonnages increased one percent and overall global average rates continued to rise, by two percent, with capacity up one percent. The figures indicate that demand and pricing are levelling off, as they usually do in the second half of December, after rallying in the last three months. Although the main driver for the recent increases has been a surge in tonnages and rates ex-Asia Pacific, especially China, volumes ex-Asia Pacific have now flattened although there have still been some modest rises in average rates ex-Asia Pacific, especially to North America (up four percent), on a 2Wo2W basis.” Tonnages to and from North America, and in some cases prices, have continued to recover in the last few weeks after dropping significantly for much of this year, especially outbound, the update added. “Notable tonnage increases in the last two weeks from North America include to Asia Pacific (13 percent), Europe (12 percent) and Central & South America (11 percent).”

DHL Express and Japan Airlines (JAL) have signed a long-term contract to utilise JAL’S Boeing 767-300 freighters. The companies that they aim to use the new partnership to leverage “growing customer demand in the expanding international express and e-commerce shipping market in the East Asia region”. JAL’s partnership with DHL will support previously announced plans to connect Japan, Seoul, Shanghai, and Taipei using Boeing 767-300ER freighters. Earlier this month, JAL said it would launch freighter operations on February 19. It has already taken delivery of one 767-300ER freighter converted from its passenger fleet, and is due to add a further two 767-300 freighter conversions. The airline first announced it would return to the freighter market after an absence of 13 years in May. In response to the growth of cross-border express shipments, DHL has strengthened its infrastructure network, including the recent inauguration of its expanded Central Asia Hub, its largest hub facility in Asia Pacific. The companies said DHL will further strengthen its intra-East Asia network using the routes which JAL will inaugurate in February.

Kempegowda International Airport Bengaluru (BLR Airport) has been honoured with prestigious accolades at the UNESCO’s 2023 Prix Versailles. The airport’s Terminal 2 (T2) has secured recognition as one of the ‘World’s Most Beautiful Airports’ and has been awarded the coveted ‘World Special Prize for an Interior 2023.’ The World Judges Panel for the Prix Versailles 2023, chaired by Elie Saab (renowned fashion designer), revealed the latest architectural projects to win a World Title. BLR Airport is the only Indian airport to receive this esteemed recognition, highlighting the airport’s commitment to exceptional design and architecture on a global scale. This remarkable achievement positions BLR Airport amongst the top airports globally. The Prix Versailles, established in 2015, focuses on “intelligent sustainability” as a cultural driver, acknowledging innovation, creativity, reflection of local heritage, ecological efficiency, and values of social interaction. T2, also known as the “Terminal in a Garden,” was inaugurated on November 11, 2022. Encompassing 255,661 square meters, the terminal is built upon four foundational pillars: technological leadership, a terminal in a garden, environmental and ecological stewardship, and a celebration of Karnataka’s rich heritage and culture. Embraced in engineered bamboo, the terminal’s interiors offer a contemporary yet classic ambiance. The terminal also features a spacious indoor garden with rammed-earth walls and waterfalls, as well as hanging planted bells, adding to the terminal’s unique aesthetic. Hari Marar, MD & CEO of Bangalore International Airport Ltd, said, “The nomination of Terminal 2 for the 2023 Prix Versailles Award is a moment of immense pride, and we are pleased to see the terminal receiving the recognition it deserves. T2, with its unique blend of art and technology, serves as a distinctive gateway, leaving a lasting …

Blue Dart Express has announced the “Merry Express” offer ahead of the end-of-the-year festivities. This offer is valid till January 15th, 2024. A discounted rate can be availed on all Merry Express gift shipments for both domestic and international destinations, providing customers with a comprehensive solution for all their logistics needs. While there is a flat 40% off on domestic shipments between 2 -10 kgs, and up to a 50% discount on international shipments on specific weights in the range of 3 -25 kgs across India. This offer is applicable for both domestic priority and international shipments, with conditions applied.

Australian airline Qantas has taken delivery of its second A330-200P2F (passenger to freighter) aircraft from EFW.The aircraft was converted from Qantas’ passenger fleet, said the German conversion company in a LinkedIn post on December 20, The A330-200P2F is going to serve Qantas Freight’s international network and can be operated for air cargo on longer routes. The conversion freighter is capable to holding up to 23 containers in the maindeck and can load XXL pallets of over 11 tonnes,” said EFW, a joint venture between Airbus and ST Engineering. Earlier this year Qantas received its first A330-200P2F, also converted from the airline’s own passenger stock.

American footwear giant Sketchers has opened its national distribution centre spanning over 6,00,000 sq ft at Lodha Industrial and Logistics Park at Palava township in Kalyan. The state-of-the-art facility located close to Taloja MIDC is designed to streamline supply chain operations facilitating Skechers’ expansion of its footprint in the Indian market and enabling shipping of up to 60,000 units per day. Lodha group said this is the first warehouse building in western India to feature Free Movement (FM1) super flat flooring which enables easy transportation of shipments and has been designed to be an IGBC Platinum pre-certified building. This is the first phase of a strategic partnership to develop a 1.1 million sq ft facility in Palava township developed by the Lodha group.