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‘Embracing cloud-first approach to enhance cargo handling processes’

“With ongoing enhancements to our online booking capabilities, we will continue to invest in our digital platforms, shares ” Camilo Garcia Cervera, Chief Sales and Marketing Officer at IAG Cargo. He adds, “Embracing a cloud-first approach, we’re migrating all applications to cloud environments for scalability, flexibility, and improved data accessibility. The airfreight industry is rapidly embracing a digital future, marking a transformation shift in approach. At IAG Cargo we have recently made substantial technological investments in our operation, notably in our cargo handling capabilities, opening a semi-automated state-of-the-art Premium facility at London Heathrow, and at our Madrid hub we have implemented a new Material Handling System– which enhances efficiency and automation of cargo handling processes.””

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‘Digital India & ‘Start-Up India’ will propel economic growth’

Vipin Vohra, Chairman, Continental Carriers, says, “In the forthcoming budget, Finance Minister Nirmala Sitharaman faces the challenge of charting India’s economic trajectory in an election year. Acknowledging the nation’s aspirations to become the third-largest economy by 2030, this interim budget serves as a pivotal guide for the road ahead. With favorable conditions of low inflation and robust GDP growth, the government’s focus on the ‘Make in India,’ ‘Digital India,’ and ‘Start-Up India’ initiatives has attracted multinational corporations, propelling economic expansion. The logistics industry, a crucial driver of economic efficiency, anticipates key policy measures to streamline operations. Expectations include simplified regulations, a ‘single window’ for approvals, and a reconsideration of permanent GST exemptions for international transportation services. The budget strategy must align with the PLI schemes and infrastructure investments to mitigate domestic logistics costs and enhance India’s supply chain efficiency, addressing current disparities in global Logistics Performance Index rankings. Additionally, the implementation of the National Logistics Policy and ‘Make in India’ schemes necessitates the alleviation of congestion at international airports. The budget should incentivize off-airport cargo handling locations to ease this strain. Furthermore, a growing call for increased budgetary allocations towards upskilling and vocational training highlights the need to bridge the skill gap and empower the workforce for effective utilization of emerging technologies in the logistics sector. Rationalizing and simplifying cargo movement costs, fostering an ‘Open Sky Policy,’ and tapping into the commercial potential of Tier II and Tier III cities are essential components for India to achieve its ambitious 10 MMT annual cargo throughput target by 2030.”

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‘Red Sea crisis will hike air cargo volumes, if rates stay same’

Tushar Jani, Group Chairman, Cargo Service Center (CSC) said, “The current trouble in the Red Sea will increase some air cargo volume however if the airline increases freight rate, then it will become counterproductive. The industry must work towards keeping a reasonable rate to achieve good growth and allow the supply chain to remain more productive and stable with air cargo compared to increased sea freight cost, provided air cargo remains affordable. We must learn the lesson of Covid where the air cargo rates became so exorbitant that some commodities moved their supply chain through maritime shipping. This is a golden opportunity for air cargo to convert those lost tonnages from maritime shipping back to air cargo, provided we keep the stability of the air freight rates keeping in mind the long-term advantage of growth. This will help in achieving the 10MMT target set up by the Government and Industry mutually.

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‘Red sea crisis impacts transit time, costs, exporters turn to air transport’

Multinational logistics companies and shipping lines are now moving towards air transport and expecting more demand for air transport due to the ongoing Red Sea crisis, despite significantly higher costs. Recently DB Schenker has secured additional air freight space to be able to service the expected switch from shipping to air freight. ‘We expect the impact on air freight to occur in around two to three weeks,” the company said in a statement. “A combination of sea and air freight shipping could prove best, – for example goods could be shipped from China and unloaded just before the crisis-affected area to then be transported by air,” it added. According to the reports, Indian exporters especially those who are in the textiles and apparel sectors have not encountered widespread rejection of export consignments or demands for contract re-negotiation due to the Red Sea blockade, concerns are growing over potential business disruptions if the crisis prolongs. They are mainly witnessing extended transit times and increased freight costs, prompting worries about the sustainability of their operations. In many cases, buyers bear the transportation costs. However, sensing potential delays, some buyers, especially those dealing with seasonal fashion items, are opting for air cargo to avoid missing sales opportunities, said reports.

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BLR Cargo records 422,644 MT cargo in CY 2023, 2% rise Y-o-Y

Kempegowda International Airport Bengaluru (BLR Airport) has seen a notable growth processing a total of 422,644 MT of cargo during CY 2023, indicating a 2% increase from previous year. BLR Airport continues to maintain its standing as a reliable hub for handling Perishable (PER) cargo in India for the third consecutive year, emphasizing its commitment to seamless cargo operations. The domestic sector soared with an impressive 11% growth, highlighting BLR’s strengthening position as a rapidly growing cargo hub in India. Perishables continued to be a key focus, with coriander exports surging by 67%. The export of mangoes reached a three-year tonnage record, achieving a 124% year-on-year growth. 684 MT of mangoes were exported, facilitated by an 86% increase in the number of pieces shipped. This accomplishment highlights BLR Cargo’s robust cold chain capabilities and dedication to efficient perishable handling. BLR Cargo’s strategic infrastructure developments in May 2023 welcomed two new Cargo terminal operators: Menzies Aviation Bangalore Pvt Ltd (MABPL) and WFS Bangalore Pvt Ltd (WFSBPL). MABPL provides dedicated facilities for domestic cargo and international cargo processing, while WFSBPL offers specialized cold chain capabilities in addition to international cargo processing. These partnerships are anticipated to enhance efficiency, expand capacity, and sustain cargo growth for the Airport in the coming years. The developments aim to elevate BLR Cargo’s cargo capacities to approximately ~1 million MT by the end of this decade. July 2023 also marked a significant milestone for BLR Cargo, handling the highest monthly domestic tonnage since the Airport’s opening, totaling 16,507 MT. Additionally, Oman Airlines commenced freighter operations last year, further diversifying and strengthening BLR Cargo’s global connectivity. As we reflect on 2023 as a year of resilience and milestone …

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‘Limited funds, airport infra, land acquisition challenge in remote locations’

Pradeep Panicker, CEO, GMR Hyderabad International Airport (GHIAL) shares, “We have witnessed a boom in air cargo traffic in Tier 2 and Tier 3 cities. The growth is attributed to the rise in manufacturing units, increased industrial output, and the expansion of the e-commerce industry. The potential in perishable cargo has also been a major contributor to this development. However, these cities face challenges, including limited funds for upgrading airport infrastructure, where significant investment is needed. Land acquisition for expansion is complex and time consuming. Additionally, attracting private sector participation in these cities is challenging due to lower passenger and cargo volumes to metropolitan airports.”

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Pragati Warehousing signs MoU, plans to invest ₹1,500 cr in five years

Pragati Warehousing has signed MoU with the Tamil Nadu government, signaling a substantial investment exceeding ₹1,500 crores over the next five years. This decisive step cements Pragati Warehousing’s steadfast commitment to propelling economic development in Tamil Nadu. The company is strategically positioned to contribute significantly to the region’s growth, with plans to invest in the development of industrial and logistics parks. This investment is projected to generate direct employment opportunities for 500 individuals and create an additional 2,000 jobs indirectly. Lt Col Jitender Yadav, Chairman and Founder at Pragati Warehousing, said, “At Pragati, our efforts are dedicated to transforming the Indian warehousing landscape. This MoU reinforces our commitment to add global standard assets to the Indian logistics and industrial real estate. We believe in setting new industry benchmarks and ensuring that our contributions elevate the standard and efficiency of the entire sector.” Maneesh Jain, Chief Investment Officer at Pragati Warehousing, commented on the MoU signing, “From ease of doing business to a well-established industrial ecosystem, Tamil Nadu offers a compelling proposition for any investor. Tamil Nadu’s strides in electronics and auto manufacturing make it a pivotal hub for our expansion. This collaboration is a testament to the state’s forward-thinking policies, and Pragati Warehousing is excited to contribute to the state’s thriving industrial landscape.” Chandraveer Singh, Chief Financial Officer at Pragati Warehousing, added, “This MoU with the Tamil Nadu government will be instrumental in achieving shared objectives. It also lays a solid foundation for our further expansion in the key micro markets of the state. We are excited to be the state’s partner in progress.”

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MSC Cargo receives new B777F for global operations

MSC Cargo’s latest freighter has been delivered and will be put into action on the transpacific. The new-build Boeing 777F was this week delivered to lessor Atlas Air Worldwide Holdings and is the last of four aircraft to be delivered for its long-term ACMI agreement with MSC. The inaugural 777F was delivered in November 2022, with the second and third 777Fs being delivered in July and November 2023, respectively. Atlas said the freighter would complement the existing weekly service, including a route from Hong Kong to Dallas Fort Worth. Anders Matikka, vice president, air cargo, MSC, said: “This latest 777 Freighter delivery represents a pivotal moment and significant milestone for our company as it marks the completion of our first set of aircraft in partnership with Atlas Air. “This new and enhanced fleet will empower us to elevate our offering, ensuring enhanced support for our valued clients and a stronger presence in the market”

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Shiprocket, Dependo team up to enhance same day delivery

Shiprocket, joined hands with Dependo, a growing logistics service provider, in a strategic partnership to enable Indian merchants with intercity same/next-day delivery. The partnership between Shiprocket and Dependo opens new avenues for Indian merchants, empowering them to offer efficient and swift intercity same/next-day delivery services. The collaboration takes advantage of Dependo’s courier network, which offers widespread coverage in major cities, ensuring smooth connectivity for a wide range of merchants. For SDD-NDD, courier partner’s presence is in all major metropolitan areas such as Mumbai, Delhi NCR, Bangalore, Hyderabad,Kolkata , Jaipur , Chennai and Pune . Speaking about the partnership, Saahil Goel, co-founder and CEO of Shiprocket, said, “We look forward to the strategic collaboration with Dependo, which holds significant promise for the eCommerce landscape in India. Through this partnership, Shiprocket and Dependo are committed to enhancing intercity same- or next-day delivery, presenting a transformative solution for merchants and customers. This collaboration is in line with our dedication to advancing the eCommerce sector and delivering exceptional services to Indian businesses. Together, our goal is to redefine delivery standards and offer sellers a streamlined and expedited shipping experience in key cities.” Sellers can now avail of next-day delivery from Delhi to Agra, Ambala, Chandigarh, Jaipur, Kanpur, Lucknow, Meerut, Ludhiana, and Dehradun. Additionally, Bangalore sellers can reach Hyderabad and Chennai within the next day, while Mumbai sellers can seamlessly connect with Pune. This collaboration reinforces Shiprocket’s dedication to providing cutting-edge solutions that transform the eCommerce landscape in India. “Collaborating with Shiprocket’s expansive network, coupled with our logistics expertise, is set to redefine intercity same/next-day delivery. This partnership signifies a powerful fusion of strengths, and we anticipate it will bring unparalleled efficiency and convenience to …

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SpiceXpress, Star Air partner to expand domestic cargo network

SpiceXpress, a subsidiary of SpiceJet, has entered into a partnership with Star Air, to manage the belly space capacity for cargo transportation in Star Air’s fleet of nine aircraft. Star Air, operating five Embraer 145 jets and four Embraer 175 jets, will significantly enhance SpiceXpress’s domestic network, incorporating nine new destinations: Belagavi, Bhuj, Kalaburagi, Kishangarh, Kolhapur, Jamnagar, Jodhpur, Nagpur, and Shivamogga. This collaboration underlines SpiceXpress’s commitment to expanding its reach and strengthening the nation’s air cargo infrastructure, aligning with SpiceJet’s mission to cater to the underserved regions in India. SpiceXpress’s domestic network will increase from 39 to 48 destinations helping the company strengthen its Door-to-Door delivery and postal service. The three-year agreement, extendable by mutual consent, establishes a foundation for seamless cooperation between the two companies. Jai Singh Sadana, Chief Business Officer, SpiceXpress, said, “This partnership with Star Air marks a significant milestone for SpiceXpress as we broaden our domestic cargo network. The extended reach to these nine destinations aligns with our vision of connecting underserved regions, contributing to economic development, and bolstering the logistics landscape in India.” “The collaboration not only grants SpiceXpress access to additional delivery points and increased daily cargo volume but also enhances our last-mile presence. Door-to-door connectivity will now be extended to pin codes that were previously untouched, showcasing the transformative potential of this partnership,” Sadana said. Capt. Simran Singh Tiwana, Chief Executive Officer, Star Air, said, “Star Air is happy to announce this exciting partnership with SpiceXpress. The flexibility gained through this alliance empowers Star Air to unlock the cargo potentials in Tier-2 and Tier-3 cities across the country. This strategic partnership exemplifies the commitment of both airlines to redefine India’s cargo landscape and …

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