Mohit K. Kapoor, Chair – Events Committee at Warehousing Association of India (WAI) shared his views on the Indian Logistics Industry and National Logistics Policy. He said, “Logistics is considered as the backbone of a country’s economic ecosystem and for the fastest growing market like India, which is expected to grow at a CAGR of 10.5 per cent, it was imperative to be given utmost importance to achieve the futuristic target of a $5 trillion economy, creating PM Narendra Modi’s #Atmanirbharbharat vision. Despite enormous potential, the largely unorganized and highly fragmented Indian logistics sector was further hampered by a complicated and non-unified regulatory system that was impeding its desired and realistically possible growth. The National Logistic Policy (NLP) is a comprehensive long-term plan designed to achieve international standard efficiency in services and bring down the high 12-14 % logistic costs to single digit before 2030, thus enabling a rank among the top 25 nations in Logistic Performance Index (LPI). WAI, in its pursuit to create an inclusive and robust ecosystem for logistics, warehousing and supply chain industries is organizing an event titled, ‘National Logistics Policy – The road ahead for integrated best in class infrastructure development on 11 November 2022 at, The Oberoi with active participation from DPIIT, Ministry of Commerce and Industry, and industry stalwarts from across the globe, where the Handbook on Warehousing Standards will be released. Enlisted are key points to make India a logistic hub: • Seamless, resilient, cost-effective long term streamlined ecosystem • Current multimodal connectivity accounting for roads 60%, railways 30 % and waterways 5% will be duly balanced

Shiprocket has gone live on ONDC, enabling first ever inter-city logistics on the government-backed e-commerce network. The first successful transaction was fulfilled on October 22. “Our mission is to reach every independent retailer in the country and enable them with state of the art technology that can help them better manage their delivery and customer experience and be able to compete on even keel with the larger platforms that are out there,” said Saahil Goel, Co-Founder, Shiprocket in an official statement. The company said it will enable sellers on ONDC to select a trusted delivery partner to pick up their products from 24,000 pincodes, with both cash-on-delivery as well prepaid shipping facilities available to the customers. Small and medium logistics providers, operating in towns and cities, can now offer their services through Shiprocket on the ONDC network. ONDC, a Ministry of Commerce initiative, will enable sellers to tap this massive market by offering an equitable and secure platform that integrates multiple sellers, buyers and logistics players.

With an aim to serve customers better and more efficiently, S.A. Consultants & Forwarders has expanded its business and moved to a 13,500 sq. ft. state-of-the-art facility. The new facility offers the opportunity to better serve customers and work with our valuable business partners. “We look forward to continuing to serve our customers’ needs and work with them at our new location. The phone numbers and email addresses will remain the same,” said an official release.

Airport Authority Hong Kong (AAHK) has introduced an autonomous electric tractor developed by Teksbotics and partners to meet expected cargo demand growth. AAHK and Teksbotics have officially launched a project to utilise autonomous tractors to perform routine driving works between West Cargo Apron and Cargo Apron Staging Area at Hong Kong International Airport (HKIA). Currently, there are 20 units of autonomous electric tractors working around the clock at the airport for both cargo and baggage operations. The autonomous electric tractors work in conjunction with human-driven tractors, which are freed up to perform more complicated tasks, said reports. “In this project, autonomous electric tractors are deployed to release pressure of human drivers from the daily routine and simple driving tasks. Human drivers can focus on more skilled tasks in the Cargo Apron Operation,” said an official from Teksbotics.

Alaska Airlines has plans to buy 52 Boeing 737 MAX aircraft for delivery between 2024 and 2027, said reports. With this purchase, the carrier will have confirmed 737 MAX fleet from 94 to 146. According to the reports, to boost growth, the carrier has also secured rights for 105 more planes through 2030. This agreement represents the largest commitment for future aircraft in the airline’s history, says an official release. “This investment secures aircraft to optimize our growth through the next decade, which we know will be a formidable competitive advantage,” said Ben Minicucci, CEO, Alaska Airlines. “We’re proud of the strong financial foundation that uniquely positions Alaska to make this commitment to our future, and of the fantastic partnership we share with our hometown aircraft manufacturer at Boeing,” he added.

Air Canada has expanded its fleet and ordered conversion of 15 Airbus A220-300 aircraft into firm orders, taking the total order to 60 aircraft. “The expanded order for the A220 is an important development in the modernization of our fleet and a clear indication that we are emerging from the pandemic solidly positioned for the future. The A220 has become a mainstay of our narrow body fleet, and its performance and passenger comfort are enabling us to compete effectively in the North American market. We are also proud to support the Canadian aerospace industry. This increased order will support jobs at Airbus’ Mirabel factory and affirms Air Canada’s positive economic impact in Montreal, Quebec and throughout Canada,” said Air Canada official.

DP World has plans to expand its multimodal cargo services and infrastructure footprint in India as the country shrugs off Covid-19 woes and gears up for growth, said Rizwan Soomar, CEO – Indian subcontinent, in official reports. The Dubai-based container terminal company is searching for more locations to set up more free trade zones, expand its coast shipping footprint and also looking at opportunities to expand its private rail segment, said reports.

Industry body, The Confederation of Indian Industry (CII) has urged the government to lower freight and power costs for exporters and set up a shipping regulator, to promote outbound shipments, said reports. CII also suggested to fast-track establishment of an export promotion body. “There is also a need to do an internal export promotion and marketing exercise to get more businesses on the export markets,” said CII. “Can we consider lower freight and power costs for exporters? It is not required to have subsidies but calibrated rates so that exporters are not cross subsidizing other consumers. In this regard, including electricity costs under GST could be a way out to lower tax incidence. The government can consider a carve-out under the national logistics policy for investments in trade-related infrastructure. States should be encouraged to work on industrial park infrastructure, connectivity modes and faster clearances. Last year, Indian exporters faced huge issues due to shortage of containers and high freights charges. With situation stable now, we should have our own shipping regulator and shipping line, which can protect Indian exporters during such turbulent times,” said CII spokesperson.

IAG Cargo is trialing new sustainable film for wrapping transported goods at its London Heathrow hub in a bid to save up to 15 tonnes of virgin polyethylene a year. 100% recyclable and biodegradable by landfill, the film has been developed by German disposal company and film manufacturer Verpa Folie alongside US-based BioNatur Plastics. The film has a 15 micron thickness and is designed to have an indefinite shelf life, prohibiting unnecessary waste. It can also be used for food and temperature-controlled items – which are popular services for IAG Cargo. The receiving country of the goods will be able to sustainably dispose of the film, said IAG Cargo. David Rose, chief transformation officer at IAG Cargo, said, “We are continuously looking at ways in which we can reduce our impact on the environment in line with our commitment to sustainability. This solution provided by Verpa Folie, which we plan to roll out across our operation, will reduce our plastic consumption and is another step forward for IAG Cargo as we become fit for future.” Peter Griebel, managing director of Verpa Folie Weidhausen GmbH (exclusive producer of BioNatur foil for M&G packaging in Europe) said, “We are really happy that our long-term partner, IAG Cargo, has started using our product, which is one of the most sustainable and thinnest solutions for air cargo operations worldwide.”

Xerxes Master, President, Association Of Multimodal Transport Operators of India (AMTOI) said, “We at AMTOI categorically and unambiguously, disapprove this move to levy GST on Export Freight and will make the required representation to the government against it. We are hopeful that wisdom will prevail and the government which we believe is respective to the voice of the trade, will reconsider this decision and exempt this levy which hurts the EXIM trade as well.” He added, “The exporters who are already struggling with inflated Ocean and Air Freight triggered by the pandemic will now have to provision for additional working capital on account of GST which has to be deposited with the Government. The cost of money in India is between 8-12%, whereas in the most developed world which imports from India it is between 1-5%. This additional capital is likely to be blocked anywhere between 60-90 days. Logistics costs for export freight will go up anywhere between 1-2% points. The Exporters are likely to avoid this undue cost, by changing the incoterms from CIF to FOB, leaving the freight decision to the overseas buyer. This move will most certainly eliminate the Freight Forwarding community majority of who are small entrepreneurs belonging to MSME segment. In absence of these forwarders, there will be no competition in the market, and larger players, particularly multinationals are likely to exploit this lack of competition, resulting in a higher cost to the Indian Exporter.”