Category Archives: Aviation

To boost exports amid slowing global trade, Foreign Trade Policy has been announced by the government. Nisschal Jaain, Founder and CEO, Shypmax, expresses his opinion on the same, “Amid the interim slowdown in the otherwise booming global trade especially with regards to the Indian Exim landscape, the Foreign Trade Policy (FTP) 2023 provides the right impetus to EXIM, e-commerce, as well as logistics stakeholders to boost exports. The new policy entails the roadmap to take India’s goods and services exports to $2 trillion by 2030. The move to focus on emerging areas like e-commerce and export hubs while promoting ease of doing business through collaboration with exporters, states, districts, and Indian Missions, is commendable. The decision to increase the value limit for exports through courier services from INR 5 lakh to INR 10 lakh per consignment, provides the much needed boost to the logistics sector. With this, the e-commerce exports are expected to grow to USD 200-300 billion by 2030.” He adds, “By minimising the export license fees from around 100,000 to 5,000, MSMEs have been given their due share of relief. This will also expand the horizons of the export market in India and make India’s a far more competitive ecosystem. Another factor which strengthens India’s footing in the global market is the internationalization of rupee which comes off as very beneficial for exporters. Their dependency on dollar pricing will start to decline. Additionally, 4 new towns of excellence along with 39 existing towns will focus on exports of handicrafts, handlooms supporting the small-scale artisans. All in all, when these orders come into effect, logistics stakeholders including logistics players will witness a competitive environment in terms of export orders, …

Incheon International Airport expects to benefit from a large-scale global distribution centre (GDC) for e-commerce that is due to be built in the Incheon Airport Free Economic Zone in August. When the GDC is completed, it is expected to generate approximately 8,000 tons of cargo and about 240 new jobs. The airport is also focusing on investing in cargo terminals to support cargo airlines, and building up pharma and cold chain business. The project will cost approximately $28m. Incheon International Airport Corporation (IIAC) said that the Incheon Free Economic Zone, which includes the Incheon Airport Logistics Complex and cargo terminal areas, provides customers with a more competitive environment through convenient customs procedures, tariff benefits, and various incentives. In April 2005, 2,093,000 sq m were designated as a free trade zone, followed by the expansion of the first airport logistics complex by 922,000 sq m in December 2007, and the designation of a new second airport logistics complex of 326,000 sq m in April 2020. There are 40 logistics companies and two manufacturing companies in the airport logistics complex, and those tenants are guaranteed free manufacturing, logistics, and trade activities, as well as receiving low rent and tariff deferral benefits.

Continental Carriers is all set to launch India’s FIRST RA3 accredited Greenfield Air Freight Station, an off-airport common user facility offering services for processing and storage of export goods, among other things. Thanks to the cooperation and assistance of the authorities viz., MoCA, CBIC, BCAS, DIAL etc, the late Shri T.N Vohra’s vision became a reality.

Tata Advanced Systems Limited (TASL) has secured an Airbus contract to manufacture cargo and bulk cargo doors of the A320neo aircraft family, says release. TASL will produce these doors at a new facility in Hyderabad using cutting-edge robotics and automation technology and each shipset will include two cargo doors and one bulk cargo door, adds release. Airbus Senior Vice president (Aerostructure Procurement) Olivier Cauquil and TASL Vice president (Aerostructure and Aero-Engines) Masood Hussainy signed the contract. Airbus presently procures components and services worth US $735 million annually from more than 100 Indian suppliers. Every Airbus commercial aircraft and Airbus helicopter has critical technologies and systems designed, manufactured and maintained in India. Airbus India and South Asia president and Managing Director Remi Maillard said, “When it comes to supporting the development of India’s industrial capacities, Airbus is walking the talk. The latest contract underlines our continued commitment to ‘Make-in-India’ for an AatmaNirbhar Bharat (self-reliant India).” “In TASL, we have a most trusted and able partner that will support the ramp-up of our A320neo family aircraft that has been the poster child of democratisation and transformation of India’s aviation sector. We will continue to grow our industrial footprint and the aviation and aerospace ecosystem at a fast pace in India,” Maillard said.

Mahindra Logistics Ltd. (MLL), an integrated logistics solutions provider, and Ascendas-Firstspace, an industrial real estate developer, announced the setting up of a one million sq ft multi-client warehouse park in Talegaon, near Pune, in Maharashtra. The development will be spread over three phases, with the first phase of 0.5 million sq ft operational by the end of 2023-24, the company said in a statement on March 27. This is the second project in the Ascendas-Firstspace Pune Talegaon-II Logistics Park, spread over 40 acres, in the Ascendas-Firstspace micro-market. Talegaon-II is part of the Chakan Talegaon Industrial Corridor (CTIC), one of the most important manufacturing clusters in India. The area has been a traditional manufacturing base for large auto, engineering, and electronics companies. The CTIC corridor is currently witnessing significant growth on account of the success of the Make in India programme, said the company in a statement. This is an important part of MLL’s pan-India network of multi-user facilities in strategic industrial clusters. In addition to A-grade warehouses totalling one million square feet, the facility will also host MLL’s first Automation Technology Centre that focuses on the development and deployment of automation technologies using artificial intelligence, Internet of Things (IoT), robotics, augmented reality & virtual reality (ARVR), automated guided vehicles (AGV), and block chain, the company said.

Transpacific airfreight rates picked up in March, although there were further declines from Hong Kong to Europe and across the Atlantic. The latest statistics from the Baltic Exchange Airfreight Index (BAI) show that prices from Hong Kong to North America in March increased by 9% compared with February to $5.38 per kg. Prices from China to the US were also up, increasing by 7.8% in March compared with February. “Sources cited an ‘end-of-quarter rush’ particularly in e-commerce and garments ahead of Easter – though [they are] also expecting prices to soften again,” stated data provider TAC Index in its weekly market round-up. Forwarder Flexport, meanwhile, reported that airlines have begun retiring freighters and some charters have been canceled, leading to capacity being nearly on par with pre-Covid numbers. And data firm WorldACD last week reported that its figures show a clear stabilisation in both worldwide tonnages as well as the global average rate, compared with the previous week, following several weeks of relative stability. However, while March saw improvements in prices to North America, there were further declines on services to Europe. The BAI Index for Hong Kong to Europe showed a decline of 5.7% in March compared with February to $4.15 per kg. Meanwhile, rates from China to Europe declined by 2.2% month on month in March to $3.96 per kg. Over the last few years, rates from Asia to both Europe and North America have tended to be fairly consistent between the two months – sometimes registering a slight increase and sometimes a slight decrease as prices stabilise during the quieter spring/early summer period.

Dachser will offer a Sustainable Aviation Fuel (SAF) booking option to customers as part of its emission reduction efforts. The German company said that shipments transported using SAF generate 30% fewer greenhouse gas emissions than those transported with traditional fuels. Customers will be able to select SAF on all flights offered by the forwarder, which secured a large contingent of SAF ahead of the launch of the new offering, says release. The company said that the SAF option would be within an affordable range. “The current price per liter for SAF is several times that of conventional kerosene and is likely to remain so for years to come due to the limited supply,” Dachser explained. To prove that the fuel was purchased and that the reduction in greenhouse gas emissions can be offset in the climate balance, every customer can request an emissions report and, in the following year, a certificate stating the emissions saved, the number of liters of SAF used, the year of consumption and the exact SAF raw material basis.

The day 3 of the recently concluded TIACA Regional Summit in New Delhi focused on ongoing developments at the airports in terms of infrastructure and technology for cargo movement. Experts also discussed upon the growing e-commerce segment focusing on the last mile delivery challenges and air cargo reaching out to tier 2 and tier 3 cities. Cross border e-commerce from India was also highlighted. There were discussions on growing perishables market and opportunities in India, evolution of GSSAs – how today’s GSSAs are much more than just a sales agent, and how they can help India achieve its air cargo objectives. Issues related to ground handling were also discussed extensively and emphasis were laid on sustainable cargo operations. A panel of airport experts also discussed the recipe for success and what is needed for even greater collaboration going forward.

Alaska Airlines has partnered with Shell Aviation with the aim of expanding the sustainable aviation fuel (SAF) market beyond a standard fuel supply agreement. As well as procurement and use of SAF, the companies will work together to define and tackle what it will take to advance SAF technology, development, infrastructure and investment. The agreement includes commitments to deepen understanding of the technology, infrastructure, carbon accounting systems and public policy support needed to bring SAF to more markets, in greater quantities and at a more sustainable long-term cost. The companies will put particular focus on enabling supply to the West Coast and alleviating fuelling infrastructure challenges in the Pacific Northwest. Shell Aviation will also supply up to 10m gallons of neat SAF to Alaska Airlines at their hub in Los Angeles. Alaska Airlines said it shares an ambition with Shell Aviation to help scale the SAF market by concurrently addressing cost and volume through multiple strategies to grow availability and commercial viability of SAF. “Alaska Airlines has set our course to net zero by 2040 and sustainable aviation fuels represent the greatest near-term opportunity to make a step-level change on that journey,” said Diana Birkett Rakow, senior vice president for public affairs and sustainability at Alaska. “That’s why we’ve pioneered SAF technologies for more than a decade. But we can’t scale the market alone. We’re excited to take this next step in the journey with Shell, to leverage their deep knowledge of the energy industry, its infrastructure requirements and supply chain to make lower lifecycle carbon SAF more widely available for the future.” Jan Toschka, president of Shell Aviation, commented: “We’re excited to expand our strong relationship with Alaska and …

Yusen Logistics Hong Kong will establish and start operating its own container freight station (CFS) for air export cargo in the Hong Kong International Airport (HKIA)-operated Dongguan Humen Bonded Logistics Park (BLP), known as the “Airport City” project. The company said it is the only logistics solution provider to operate its own CFS in the Airport City project, which was developed to promote economic development. Yusen Logistics has been involved in the project since its inception. In October last year, it began providing a new solution that transports cargo directly from the BLP in China to the island-based HKIA directly by feeder vessel and loading it on aircraft. Promoted by the Hong Kong Airport Authority (AAHK), the BLP is positioned as a logistics base station for air cargo in the Greater Bay Area, and is expected to play a role as a base of intersection connecting the Greater Bay Area to all of the world, making it easy to access not only from Guangdong Province but also from inside and outside China. “By opening our own CFS in Dongguan Humen BLP, we will manage our customers’ important cargo safely, securely, and provide optimal supply chain logistics services connecting the Greater Bay Area with the world, said Yusen Logistics. Last month, Cathay Pacific Cargo and the Cathay Pacific Cargo Terminal become the first carrier and first cargo terminal operator to have cargo shipments accepted in Dongguan and transported to HKIA by ship for outbound airfreight, enabling full upstream sea-air intermodal export cargo handling between the Greater Bay Area and Hong Kong.