ICRA expects the revenues of the Indian road logistics industry to remain range-bound and grow at sedate pace of 3-6% in FY2025, given the limited ability of players to increase the freight rates, expected softening in Government capex during the elections (given the Model Code of Conduct requirements) and moderation in consumer demand sentiments amid high inflation and interest rates. The outlook for the sector continues to be Stable, fuelled by a sustained momentum in economic activities, enhanced traction of organised trade and continued support from varied segments like e-commerce, FMCG, retail, pharmaceuticals, and industrial goods. Mr. Suprio Banerjee, Vice President & Sector Head – Corporate Ratings, ICRA Limited, said: “ICRA’s sample set witnessed a modest revenue growth of 2.3% in 9M FY2024 on a YoY basis amidst tapering demand due to high inflation, an uneven monsoon, a high interest rate regime and relatively muted festive season. Thus, on an elevated base of FY2023, ICRA estimates a low single digit growth of 2-5% in FY2024. The growth for road logistics sector in FY2025 is expected to be in the range of 3-6% , owing to the impact on demand from high inflation, high interest rate regime and soft (though improving) consumer sentiment. The industry operating profit margin contracted to 11.2% in 9M FY2024 (down ~150 bps YoY), on account of increase in operating costs (ex-fuel) due to the high inflationary regime, and pressure on realisations, given the sticky retail diesel rates, limiting any formula-driven price rise. ICRA expects the margins to remain in the range of 10.5-12.5% in FY2024 and FY2025 over 12.4% in FY2023 amidst inflationary headwinds and despite benefits of efficiency gains due to increasing digitalisation and value-added …

“Indian govt. has taken initiatives to improve multimodal transport and connectivity in order to increase efficiency and promote economic growth,” says Sandeep Kulkarni, COO, Allcargo Gati. He adds, “Initiatives like the Bharatmala Pariyojana, Sagarmala Programme, Make in India, and Dedicated Freight Corridors have been critical in improving road, maritime, and rail infrastructure. Despite significant improvements, persistent issues continue, particularly as National Highways account for 40% of India’s road traffic despite comprising only 2% of the total road network. To address these challenges, ongoing efforts include increasing the road network initiatives through the National Highway Development Programme and the Bharatmala Pariyojana. Furthermore, the Logistics Efficiency Enhancement Programme (LEEP) intends to improve logistics efficiency by developing Multimodal Logistics Parks. While progress has been made in modernising facilities, there are still places that require further development, and challenges such as fragmented infrastructure and last-mile connection continue to prevent seamless freight flow. Overcoming these obstacles is critical for optimising supply chains and lowering costs across various transportation modes, resulting in a more efficient and robust logistical framework for India’s economic development.”

Global air cargo market demand rose over 11 percent year-on-year for a third consecutive month in March as buoyant e-commerce volumes and concerns over the impact of conflict in the Red Sea region on ocean freight services delivered an unexpected first quarter bonus for forwarders and airlines, according to the latest weekly market data from Xeneta. In what are typically weaker months of the year for the airfreight industry, these higher volumes outpaced growth in capacity supply in Q1, which increased by +8% YoY. In turn, this produced a jump in the global dynamic load factor, which is Xeneta’s measurement of cargo capacity utilization based on volume and weight of cargo flown alongside capacity available. Load factor in the opening three months of 2024 rose +2% pts YoY to 59%, and March performance has shown similar growth, edging up to 61%. “While this latest monthly data should be balanced against the lower base recorded in the corresponding month of 2023, when we saw weakened global manufacturing activities, Q1 2024 has still seen a surprisingly busy airfreight market. The level of demand in the first quarter doesn’t indicate a market which is running out of steam so far,” said Niall van de Wouw, Xeneta’s chief airfreight officer. “The question is, should we be surprised by it, or should we get used to it? Although the market didn’t benefit immediately, the Red Sea disruption was clearly a factor in these latest figures. Airfreight growth was primarily driven by increased volumes from the Middle East and South Asia as shippers shifted services from ocean to air to avoid Red Sea delays. We also cannot underestimate the importance of e-commerce growth, which shows no …

With the launch of direct flight to Bengaluru from San Francisco, Los Angeles, New York JFK and Seattle via London Heathrow and second daily flight to Mumbai, Virgin Atlantic is now offering an additional 25,000 tonnes of cargo capacity from the fashion, pharmaceuticals and tech sectors. “With five daily services, Virgin Atlantic Cargo will offer 43,000 tonnes of space available to and from India, which is a 336 percent increase in capacity versus 2019,” says an official release. Beginning October 27, 2024, the second daily Mumbai services will operate on the airline’s state-of-the-art Airbus A350-1000, the release added. Virgin Atlantic has a strategic partnership with IndiGo, India’s leading airline, and the partnership offers 36 additional destinations. “There is a huge opportunity for us in India, it has a dynamic, fast-growing economy and we’re anticipating a huge growth in demand for international travel to and from the region,” says Juha Jarvinen, Chief Commercial Officer, Virgin Atlantic. “We know both our customers and people love travelling to India and we have a rich history in the destination. Next year marks 25 years of operations and the first time that we’ll offer more than one million seats to India via London Heathrow with optimal connectivity for our U.S. customers from key tech hubs including San Francisco and Seattle. The launch of Bengaluru and doubling of our Mumbai services reaffirms our strong commitment and will allow our customers to travel seamlessly throughout India and beyond, flying on one of the youngest fleets in the skies, with our signature personalised service, delivered by our amazing people.”

“Construction of new regional airports and developing dedicated cargo terminals will help increase cargo volumes and transportation, says Jaideep Mirchandani, Group chairman, Sky One. He adds, “There is need for launching more freighters on high-demand routes. Nowadays, most Indian airlines primarily use the belly cargo space in their fleet for cargo movement. “Inclusion of more wide-body aircraft and also rolling out more dedicated freighters can propel the growth of the cargo sector further. There is need to focus on exploring new routes and strengthening the existing ones through bilateral agreements with key trading partners to enhance cargo movement. A collaborative effort between various stakeholders focusing on technology adoption, infrastructure development, policy reforms, and skill development is necessary to maintain the growth momentum of the cargo sector.” “Upgrading existing road and rail linkages and developing multimodal logistics parks and a greater number of warehouses, will also result in the growth of the sector. Using technology to streamline customs clearance processes, automation to reduce paperwork, and switching to digital solutions for streamlining the whole process is also necessary,” he shares.

Hong Kong Air Cargo Terminals Limited (HACTL) has signed a Memorandum of Understanding (MOU) with Westwell Holdings (Hong Kong) to introduce Autonomous Electric Tractors (AETs) to its ramp operations this year. HACTL aims to develop autonomous vehicles which, in addition to the relatively simple task of towing cargo dollies, automatically couple and uncouple the dollies, and adjust to their differing specifications, according to the press release from HACTL. Once testing and final on-site tuning and mapping to HACTL’s specific requirements are completed, the AETs will be integrated into HACTL’s current driver-controlled tractor fleet, and will initially tow loaded import ULDs on a 1km route between the outdoor ULD staging area, and the main terminal ULD system intake deck of SuperTerminal 1. AETs will be used on longer and more complex routes in due course. Safety is the major consideration in operating the new vehicles. Each AET is equipped with a highly accurate GNSS system and uses multiple HD cameras and LiDAR sensors to detect all objects and avoid collisions. The AETs have similar capabilities to the current diesel-powered tractor fleet, but operational speeds will be restricted to 8kph as an additional safety measure, the release added.

Conqueror Freight Network has launched a revamped website with a fresh and contemporary design, featuring a more visual interface that promises to captivate and engage visitors from the moment they arrive. The launch of the new website comes together with a new web app that will allow members to connect with reliable freight forwarders in over 260 cities worldwide, enhancing the reach and effectiveness of their logistics networks. Antonio Torres, President and Founder of Conqueror Freight Network, expresses the significance of this digital leap, stating, “These new innovative platforms represent a significant milestone in our ongoing commitment to providing unparalleled support and resources to our members. With a focus on simplicity and ease of use, the new website interface ensures that visitors can navigate the site effortlessly, regardless of their technical expertise. For its part, the web app redefines the way logistics professionals collaborate, facilitating swift and efficient communication between members and partners. This is yet another significant stride in Conqueror’s digital evolution.” The website showcases a modern design aesthetic, incorporating visually appealing elements to enhance user engagement. With streamlined navigation and an intuitive layout, users will find it easier than ever to access all the vital information, connect with members on WhatsApp and WeChat with just a click, and explore the numerous opportunities that the network makes available. Thanks to the redesigned navigation structure finding relevant information and accessing essential resources is now more intuitive than ever. Conqueror’s web app enables members to stay connected on the go, allowing them to manage partnerships and logistics operations directly from their mobile devices. Moreover, a user-friendly interface facilitates the location of agents in specific cities, simplifying the process of finding reliable …

The International Air Transport Association (IATA) released data for February 2024 global air cargo markets showing continuing strong annual growth in demand. Total demand, measured in cargo tonne-kilometers (CTKs*), rose by 11.9% compared to February 2023 levels (12.4% for international operations). This is the third consecutive month of double-digit year-on-year demand growth. Capacity, measured in available cargo tonne-kilometers (ACTKs), increased by 13.4% compared to February 2023 (16.0% for international operations). This was largely related to the increase in international belly capacity accompanying growth in passenger markets (29.5% year-on-year increase), which far exceeded international capacity on freighters (3.2% year-on-year increase). “February’s demand growth of 11.9% far outpaced the 0.9% expansion in cross-border trade. This strong start for 2024 could see demand surpass the exceptionally high levels of early 2022. It also shows air cargo’s strong resilience in the face of continuing political and economic uncertainties,” said Willie Walsh, IATA’s Director General. Several factors in the operating environment should be noted: Global cross-border trade increased by 0.9% in January. In February, the manufacturing output Purchasing Managers’ Index (PMI) climbed to 51.2, indicating expansion. The new export orders PMI also rose to 49.4, remaining slightly below the 50 threshold that would indicate growth. February year-on-year inflation dropped to 2.8% in the EU while rising to 2.8% and 3.2% in Japan and the US respectively. After four months of deflation, China reported a 0.7% increase in inflation year-on-year—a positive development amid concerns over China’s economic slowdown.

GE Aerospace has announced an investment of over Rupees 240 crore (~USD 30 million) to expand and upgrade its manufacturing facility in Pune. The investment will allow the facility to add new projects and manufacturing processes by acquiring machines/equipment and specialized tools along with capacity enhancement of existing products. “Our team at are Multi-modal Manufacturing facility at Pune has a strong focus on safety, quality and delivering for our customers. I am delighted to see the expansion at this site which has already become a strong contributor to our global supply chain of aircraft engine components,” said Mike Kauffman, vice president, Global Supply Chain at GE Aerospace. “This investment helps us to continue our growth in aerospace in India, giving us the resources, we need to meet increasing customers’ demand,” said Amol Nagar the managing director for GE Aerospace’s Pune facility. Inaugurated by Prime Minister Modi in February 2015, the factory produces components for commercial jet engines. These are supplied to GE’s global factories where they are used to assemble G90, GEnx, GE 9X, which is the world’s most powerful commercial jet engine, and the LEAP engines by CFM, a GE and Safran joint venture. The facility has been instrumental in developing local aerospace manufacturing talent having trained over 5000 people since inception in specialized aerospace precision manufacturing processes. Certified under ISO14001 & ISO45001, the facility has built environmental best practices and stewardship in the community. For example, 30% of its power consumption comes from renewable sources, it has zero liquid discharge, recycles and reuses 1 crore litres of water(100 million litres) every year and recycling 20 metric tons of plastic.

Air India SATS Airport Services (AISATS) organised a roadshow for the air cargo industry stakeholders, and invited air cargo associations such as ACAAI, unveiling its plans for the cargo facility at the upcoming Noida International Airport. Mr. Seow Chai Hing Kelvin of AISATS and Nitin Mittal of NOIDA International Airport Cargo welcomed the team. A site visit to the upcoming project at Jewar was also done showcasing the development stage of various projects.