Category Archives: Aviation

Air cargo volumes flat in June as consumers scale back on non-essential goods

According to Xeneta’s latest updates, “Air cargo volumes could drop as consumers scale back on non-essential goods, while shippers are favouring shorter-term contracts in a climate of uncertainty. Niall van de Wouw, Xeneta’s Chief Airfreight Officer, said consumers are looking to save money amid concerns about international trade. Global air cargo volumes were flat in June, up just 1 per cent year on year, while available capacity, measured over the same period, increased 2 per cent. Global air cargo spot rates declined for a second consecutive month in June, down by 4 per cent year-on-year as supply of capacity overtook demand for the first time in 19 months. “The air cargo market is losing altitude amidst so much uncertainty,” van de Wouw said. “For consumers who were already under severe financial pressure from the rise in the everyday cost-of-living, the added cost of tariffs means they are more likely to think twice about buying many of the types of goods which are exported and imported by air.” Despite the disruption from changes to tariffs and e-commerce (de minimis) in the first half of the year, air cargo demand still grew by 3 per cent in that period compared to the same period a year earlier.

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‘Electronics, pharma, perishables driving air cargo growth’

Pradeep Panicker, CEO, GMR Hyderabad International Airport (GHIAL) said, “Growth in both domestic and international air cargo is being propelled by three major sectors, electronics, pharmaceuticals and perishables. In the international segment, electronics have shown strong momentum. India’s electronic goods exports grew nearly 40 per cent year-on-year. Hyderabad Air Cargo recorded a 53 per cent surge in electronics shipments, with this segment contributing to 8 per cent of Hyderabad Airport’s total cargo tonnage — highlighting the city’s rising importance in global electronics manufacturing and distribution. In pharmaceuticals, while the national export growth remained moderate at 2.37 per cent, Hyderabad Air Cargo posted a robust 13 per cent year-on-year increase. Pharma now accounts for 68 per cent of Hyderabad Airport’s tonnage within this category, reaffirming the airport’s position as a key pharma export hub. Perishables, such as fruits and vegetables, are also gaining significant traction. National exports of perishables rose by 30.72 per cent, whereas Hyderabad Air Cargo experienced a striking 58 per cent growth in this segment, which now makes up 10 per cent of the airport’s total cargo tonnage — a reflection of growing global demand for Indian fresh produce.”

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GLN unveils digital tool to boost air freight payments

Global Logistics Network (GLN) has launched GLN Pay, an innovative international payment solution built specifically for freight and logistics professionals. Developed in strategic partnership with CargoAi, GLN Pay is powered by CargoWALLET technology and enables secure, real-time payments across 150+ countries and 47 currencies. With GLN CargoWALLET, GLN members can send or receive payments from other network members—or any freight partner—regardless of whether the recipient has a GLN CargoWALLET account. This flexibility is designed to eliminate traditional payment barriers and enhance collaboration across the global supply chain. GLN CargoWALLET was created to address common financial and operational pain points in freight forwarding, consolidation, air and ocean cargo handling, and GSSA services. It delivers a suite of powerful features, including: · Instant Payment Processing – Real-time settlements worldwide · Guest Payment Options – Send payments and receive payments even from partners not on GLN CargoWALLET · Multi-Currency Support – Transact in 47 currencies across over 150 countries · Enterprise-Grade Security – End-to-end encryption with full traceability · Operational Efficiency – Simplified reconciliation and better cash flow management “GLN CargoWALLET represents a major step forward for our network,” said Ernst van der Heijden, President of Global Logistics Network. “By integrating a smart, seamless, and secure payment solution into our ecosystem, we’re enabling members to operate with greater efficiency, speed, and trust.”

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‘Developing transit zones, competitive tariff structure vital’

Jalpa H Vithalani, Director, Global Aviation Services said, “India holds immense potential to become a global transshipment hub like Dubai or Singapore, owing to its strategic coastline and growing cargo volumes. To achieve this, India must focus on policy reforms enabling ease of doing business, seamless multimodal connectivity, and robust port infrastructure. Initiatives like PM Gati Shakti and Sagarmala are steps in the right direction. Developing world-class transshipment zones, reducing dwell times, and offering competitive tariff structures will be key. Private sector participation and digital integration across logistics chains can further position India as a global trade and logistics powerhouse.”

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‘Seamless logistics, digitised customs, PPP model must’

Vandana Singh, Chairperson, Aviation Cargo, FAII said, “India has the potential to emerge as a global transshipment hub like Singapore or Dubai. Nearly 90 per cent of India’s transshipped cargo—about 4.2 million TEUs—is currently routed through foreign ports, costing us over $200 million annually. To reverse this, we need deep-water port development, digitised customs, seamless multimodal logistics and robust public-private collaboration. The launch of Vizhinjam Port and initiatives under PM Gati Shakti and the National Logistics Policy signal the right intent. With focused execution and global alliances, India can strategically position itself as a cost-effective, self-reliant hub in global maritime trade.”  

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‘Robust digital infrastructure, streamlined customs processes & competitive tariffs are essential’

Kamal Jain, Director, Cargomen Logistics said, “India has immense potential to emerge as a global transshipment hub given its strategic coastline and proximity to major trade routes. Key strategies include developing deep-draft ports like Vizhinjam and Galathea Bay, simplifying cabotage policies, enhancing port connectivity and creating efficient Free Trade Zones. Robust digital infrastructure, streamlined customs processes and competitive tariffs are essential. India is making progress with initiatives like PM Gati Shakti, port modernisation and the push for coastal shipping, but we need faster execution and global partnerships to match hubs like Dubai and Singapore.”

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‘Push for Free Trade Warehousing Zones is a positive indicator of growth’

Vipin Vohra, Chairman, Continental Carriers said, “India has immense potential to become a global transshipment hub like Dubai or Singapore, backed by its strategic location, coastline and growing manufacturing base. However, achieving this requires focused policy reforms—streamlined customs processes, modern port infrastructure, improved multimodal connectivity, supportive regulatory frameworks like a unified national logistics policy and enhancing capacity through off-airport cargo hubs. Greater private sector participation and global partnerships can further catalyse growth. Initiatives like Gati Shakti, Sagarmala and the push for Free Trade Warehousing Zones indicate movement in the right direction. With sustained execution and stakeholder alignment, India is well poised to emerge as a major transshipment and logistics hub.’

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‘India offers competitive price & simple regulations to facilitate smooth logistics trade’

Amit Tandon, MD Asia Shipping India said, “India is making great progress in becoming a global transhipment hub, aiming to rival major players like Singapore and Dubai. The Vizhinjam International Seaport, which kicked off operations in December 2024 is an important part of it. With its deep draft of over 18 meters, it’s already handling major vessels and processed 733,000 containers, signaling its potential to capture India’s 4.6 million TEUs of transshipment cargo—most of which currently flows through foreign ports. We have to give credit to the government’s Maritime India Vision 2030 which is driving this transformation, with plans for deepwater ports like Galathea Bay and Vallarpadam. Better roads and freight corridors are also boosting connectivity, making these ports more attractive to global shipping lines. To compete, India is offering competitive pricing and simpler regulations, taking cues from Singapore’s efficiency and Dubai’s business-friendly vibe. While there are challenges like regulatory tweaks and stiff competition, the outlook is bright. Vizhinjam alone could generate massive revenue and jobs by 2028. Lets just say, India’s on track to reshape maritime trade and claim its spot on the world stage.

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‘Approx 30% cargo moves via freighters, rest travels in pax bellies, highlighting need for dedicated freighters’

Balagopal Balachandra, National Head – Air Freight, FEI Cargo said, “India is at the crossroads of global trade; will we emerge as a global transhipment powerhouse. The opportunity is ours—but are we bold enough to seize it? The strategic significance of transshipment – the process of transferring cargo from one vessel or airline to another at an intermediate port/ airport, plays a critical role in global trade. Countries that establish themselves as transshipment hubs benefit from increased trade volumes, enhanced revenues and strengthened economic linkages. For India, the potential to become a transhipment hub is particularly appealing given its geographical proximity to major global shipping lanes and its growing status as a major economic powerhouse. Cargo volumes are growing 7– 9 per cent CAGR, targeting 10 MTPA by 2030. Approximately 30 per cent of cargo moves via freighters and rest travels in passenger aircraft holds, highlighting the need for more dedicated freighter capacity. The current over-reliance on passenger belly space is outdated for a $5 trillion economy in the making. For India to realize its ambition of becoming a transhipment hub it requires more than new terminals, a multi-pronged, coordinated  strategy is essential – this includes addressing cost and efficiency issues, improving hinterland / Inter-airport connectivity, fostering public-private partnerships to attract investments, unified cargo community systems (CCS), multimodal integration required for seamless cargo transfers, infrastructure remains concentrated at major airports (delays at Tier‑II/III hubs), last‑mile connectivity issues, regulatory bottlenecks in customs, and need for expanded road–rail corridors. Leveraging India’s domestic market potential could further enhance its position as a key player in the global logistics landscape.   India does not lack ambition—it lacks alignment.  The vision is clear but now is …

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‘Address cost issues, foster PPPs, get foreign investments to make India cargo hub’

Sunil Kohli, Managing Director, Rahat Cargo said, “India is undoubtedly equipped with huge potential towards achieving its objective of being a global cargo hub since it does have an ideal geographical location coupled with a growing economy and is relentlessly heading to improve its infrastructural facilities with accelerated logistical advantages. The trade further needs to enhance its airport facilities with efficient operations apart from developing dedicated transshipment hubs. However, despite its potential, India faces several challenges in becoming a competitive transshipment hub, the primary obstacle being the high cost of port operations compared to regional competitors. Further, Indian ports often grapple with issues like inefficiencies in customs clearance, inadequate connectivity, and congestion, which undermine their preferences. For India to realize its ambition of becoming a transhipment hub, a multi-pronged strategy is essential. This includes addressing cost issues and fostering public-private partnerships to attract investments. The government too needs to introduce liberal policies by reducing avoidable governmental formalities with a view to attract the stakeholders in establishing India as a global transhipment hub.

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