Sandeep Kulkarni, Chief Operating Officer, Allcargo Gati Limited shared his expectations from the upcoming budget and says, “As country’s economic growth is gaining accelerated momentum and the key sectors are witnessing strong domestic and global demands, the logistics industry requires a robust infrastructure and policy push from the interim budget to build superior operational and efficiency to meet the growing demand and enhance overall competitiveness in the global logistics landscape. As the country is making significant progress towards becoming a global manufacturing hub, the logistics industry has an enabling role to play to catalyse the rise. In addition, an efficient logistics infrastructure and operational framework will eventually strengthen the ease of doing business narrative. Apart from continuing the capex push for multimodal transport infrastructure development consistent with National Logistics Policy, the budget needs to propose incentives in terms of tax benefits to attract private sector investments to strengthen last-mile connectivity in the form of building warehousing and transportation networks. As the growth of the digital economy is driving e-commerce progress, the budget should propose measures, provisions or policy support which will encourage new-age data-driven technology adoption to enhance supply chain agility, responsiveness and resilience. With environmental sustainability emerging as a dominant theme in the logistics and supply chain industry and more and more logistics companies adopting the principles of green logistics, the interim budget needs to propose incentives to encourage renewable energy adoption, EV deployment, etc.”

Retailers are turning to air freight to protect supply chains and keep their products on shelves amid the ongoing crisis in the Red Sea and Suez Canal, according to Oslo-based Xeneta. The latest data released by Xeneta today, January 18, 2024, shows air cargo volumes from Vietnam to Europe – a major trade route for apparel – spiked 62 percent in the week ending January 14. “This is also six percent higher than 2023’s peak week in October, and a 16 percent increase on the volumes recorded in the same week 12 months ago.” Niall van de Wouw, Chief Airfreight Officer, Xeneta says: “This is the first signal in Xeneta data that the Red Sea crisis is impacting air freight. This is typically a quieter time of year for air freight. To see increases of this magnitude with higher volumes than at any point in 2023 is significant. “Routes from Vietnam to Europe are used heavily for apparel, a sector we have been told is switching more goods from ocean to air due to the Red Sea crisis, so it is particularly noteworthy we are seeing volumes increase to such an extent on this trade. “We should also recognise that the upcoming Lunar New Year may also be contributing to the increase in volumes.” Air freight rates from Vietnam to Europe have increased by 10 percent compared to last week but with increasing volumes putting pressure on capacity and load factor, costs could be set to rise further, the update added. “When the Red Sea crisis escalated in December, we stated that once the impact starts to be felt in air freight, things could happen very quickly,” says Van de …

The International Air Transport Association(IATA) and the International Civil Aviation Organization (ICAO) have extended their long-standing cooperation on setting and implementing global standards for the safe carriage of dangerous goods by air. An agreement to this effect was concluded at the IATA executive offices in Geneva during a visit by Juan Carlos Salazar, Secretary General, ICAO, according to a release from IATA. A greater collaboration between the two organisations was also discussed during the visit, the release added. “The safe carriage of dangerous goods has become common practice, thanks to the strict adherence to global standards and guidelines. Today’s agreement ensures that dangerous goods will continue to be handled according to the highest globally applicable standards. To this effect, IATA will continue its advocacy work with key stakeholders to maintain a globally aligned, and practically focused approach to the regulated transport of dangerous goods. This will lead to more efficient and robust supply chains whilst upholding aviation’s number one priority of safety,” said Willie Walsh, Director General, IATA.

Etihad Cargo, Abu Dhabi Airports and Abu Dhabi Food Hub KEZAD have signed MoU to jointly establish an origin-to-destination perishable air corridor known as the ‘Fresh Corridor 2.0’ to serve global supply chains and meet consumers need globally. The initiative aims to support the diversification of food sources, development of new trade corridors and enhance the choice and variety of products available for regional consumers. The partnership aims to help position the UAE as a key node in global food supply chains. The partners seek to establish a robust process for food trading and investment, which includes advanced infrastructure, access to regional consumer markets, and reliable logistics and connectivity worldwide. The three parties have agreed to an exchange of knowledge and expertise in handling, storage and logistics, food safety, and hygiene. The partners also aim to address the evolving demands of the food trade by liaising with government stakeholders, relevant facilitators, and key contributors from the food ecosystem.

DHL Express and Singapore Airlines (SIA) have deployed the fifth and final freighter as part of a tie-up signed in 2022. The Boeing 777 freighter, which offers a payload capacity of 102 tons, will be based in Singapore and be used to expand capacity between Asia and the Americas. In total, the five 777Fs will operate 12 flights each per week with a total payload capacity of 1,224 tons per aircraft per week. Following the addition of the final aircraft, three of the five freighters will ply the Singapore-Bangkok/Taipei-Incheon/Nagoya-Cincinnatti-Honolulu-Sydney-Singapore route seven times a week. The other two will cover the Singapore-Nagoya-Los Angeles-Honolulu-Singapore route five times a week.

Skilling is a very important subject and absolutely it’s a shared responsibility, says Jivisha Joshi (IRTS) Deputy Secretary, DPIIT at an event organised by Air Cargo Forum India (ACFI) to emphasise upon ‘Skilling – A shared responsibility to propel air cargo.’ She adds, “Skilling is one of the most important pillars of government’s comprehensive logistics master plans. Be it National Logistics Policy or Gati Shakti initiative, skilling is an integral part of it and time to time stress has been laid upon identifying the number of institutions across India imparting education on logistics and supply chain business. We have been trying to educate officers about the new policies, we are educating workers at group level about policy implementation or execution guidelines. We also work with Logistics Skill Council (LSC) to understand the logistics courses and curriculums, and number of logistics aspirants enrolling yearly. I thank ACFI for continuously promoting skilling as a subject. We need skilled and trade manpower to take the industry forward and we are there to support the trade throughout.” Many other dignitaries from government department and industry participated in the event wherein ACFI honored and felicitated ACFI trainers who have been the backbone of ACFI initiative to skill the logistics industry.

Sanjiv Edward, CEO- Cargo, GMR Group says, “Current air cargo traffic in India is approx. 3 MMTs per annum, 30% of 10MMTs target, giving us ample head room to grow. Growth is actuated by India’s GDP, in 2030, poised at $7.3 Trillion from current levels of $3.7 trillion. Given that national growth will be at twice the size, opportunity is complimentary to its speed and volume. Adding, international trade, adoption of updated digital & physical infrastructure will be the key strategy. Tier 2 & 3 Airports needs better connectivity – Transport & Digital Highway. However, non-compliance of regulations, maze of non-standard processes and ignorance to ESG can impede our trajectory and speed.”

Cyrus Katgara, Partner, Jeena & Company shared his expectations for the budget announcement this year. He says, “The government’s substantial capital expenditure on infrastructure, particularly in roads, railways, and airports, has already spurred momentum in the logistics sector. This, coupled with the ongoing prioritization of logistics infrastructure development across roads, warehouses, and ports, has garnered enthusiastic support. The industry anticipates the Union Budget to further solidify the Digital India Act, promoting digitalization through artificial intelligence, data analytics, and 5G technology. Higher investment in digital upskilling and reskilling programs for the workforce to ensure the logistics industry remains competitive and resilient in the global digital age is anticipated. Additionally, enhanced regulatory frameworks that facilitate seamless cross-border logistics operations would be greatly welcomed, promoting smoother international trade and connectivity.”

Mahindra Logistics Limited (MLL) announced the opening of its state-of-the-art warehousing facility in Phaltan, near Pune. Encompassing an expansive area of 6.5 lakh sq. ft., this facility will be developed in two phases. The first phase, comprising 3.5 lakh sq. ft., is scheduled to be operational by the end of 2024. Spread over an area of 25 acres at Phaltan, the new facility will be an important part of Mahindra Logistics Ltd. nationwide network of multi-client facilities. Phaltan is a strategic location in close proximity to key customers in auto OEM & components through this warehouse, Mahindra Logistics will manage inbound logistics to manufacturing and distribution solutions of diverse clients in automotive and manufacturing sectors, located in the region. The facility will be integrated with MLL’s national network of warehouses, full truck load, and express parcel service. Phase 1 has been contracted to a manufacturing customer and will function as their national logistics centre and will go live by Q3, 2024-25. Amongst the largest warehouses by logistics service providers in the region, the facility will be designed as per Mahindra Logistics Ltd. sustainability standards. These include measures such as decarbonisation, utilization of renewable power, adherence to green warehousing standards, and active participation in local community development. As a part of this announcement, Mahindra Logistics Ltd. also plans to dedicate resources to skill development initiatives, creating employment opportunities for more than 500 individuals in the region. The company and its partners are set to invest Rs. 170 crores in capital across multiple phases for the development of the new facility and related infrastructure. Mr. Rampraveen Swaminathan, MD & Chief Executive Officer, Mahindra Logistics Ltd. said, “To enhance our capabilities and meet …

GMR Aero Technic (GAT), MRO division of GMR Air Cargo and Aerospace Engineering Ltd. (GACAEL) signs MoU with Lufthansa Technik AG (LHT) and Spirit Aero System to bring the innovative technology utilized by Cyclean jointly at Indian airports for the operators in the region. Cyclean® is an efficient and eco-friendly engine cleaning system that saves water and fuel and cuts down on emissions by washing aircraft engines. The system guarantees a clean and safe collection of all waste water without any negative impact on the environment. A strategic partnership was forged with Spirit Aero Systems, one of the world’s foremost manufacturers (ORM) of aero structures as well. This groundbreaking partnership establishes a cutting-edge Aircraft Nacelle component repair service at the GMR Aero Technic Base Maintenance Facility in Hyderabad. This collaboration marks a significant milestone in GMR Aero Technic’s MRO journey, establishing its role as a one-stop destination for Nacelle repair services. Ashok Gopinath, President & Accountable Manager, GMR Aero Technic said, “The partnerships with Lufthansa Technik AG and Spirit Aero Systems exemplify our commitment to delivering exceptional value through innovation using the latest technology solutions in providing enhanced operational efficiency for our MRO customers. With these augmented capabilities, the strategic move will position our MRO facility as a go-to hub for customers. This service offering is a value add for our base maintenance customers.”