Category Archives: Aviation

Global air cargo rates continue to rise in March: TAC Index

Global air freight rates are continuing to rise, according to the latest data from TAC Index. The overall Baltic Air Freight Index calculated by TAC gained a further 4.1 percent in the week to March 18, the third successive weekly increase, reducing the decline over 12 months to 20.3 percent. Rates are rising strongly again out of China with the index of outbound routes from Hong Kong up a further 5.2 percent WoW with gains on almost all major lanes cutting its YoY decline to only 7.9 percent, the update added. “With sources among forwarders suggesting renewed robust demand for Chinese exports, outbound Shanghai gained 8.9 percent WoW – strong gains both to Europe and the U.S. – further eroding the YoY decline to 7.6 percent. Meanwhile, after recent huge gains, rates out of India seem to be levelling off, and from Vietnam falling back a little.”

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DHL inks pact to boost SAF ops for GoGreen Plus service

DHL Express is further building up its Sustainable Aviation Fuel (SAF) operations with the signing of a strategic partnership with international bank Standard Chartered for its GoGreen Plus service. The two companies have agreed to co-invest in SAF, allowing Standard Chartered to balance CO₂ emissions linked to its upstream logistics with Verified Emission Reductions (VER) carbon credits. Standard Chartered is among the first banks to use the GoGreen Plus service globally, and has committed to net zero emissions in its own operations by 2025 and in its financed emissions by 2050, said DHL Group. The bank expects to see its own emissions reduce by up to 30% in year one (against a 2019 baseline) with an expected incremental reduction of 7% year on year from 2025. It estimates that 3,780 tonnes CO2e will be saved between 2024 and 2030. Standard Chartered will receive a monthly report on the carbon footprint of its shipments as part of GoGreen Plus and quarterly certification of the emission reduction achieved by an independent auditor. “The partnership between Standard Chartered and DHL has been going strong for more than two decades. They were the first bank to adopt our GoGreen service in 2011 and are now working with us to make international express shipping more sustainable,” said Yung Ooi, senior vice president for commercial, Asia Pacific, DHL Express.

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‘Industry needs skilled workforce, widebody freighters’

Pradeep Panicker, CEO, GMR Hyderabad International Airport says, “Indian EXIMs heavily depend on international carriers, presenting a growth opportunity for domestic airlines to enhance freighter connectivity. However, challenges persist, including inadequate infrastructure for cold chain logistics operations, limited adoption of advanced technologies, scarcity of pharma skilled workforce, and post-Covid regulatory hurdles. The absence of dedicated wide-body freighter aircraft impedes access to long-haul destinations, while time-consuming regulations and lack of coordination among industry stakeholders exacerbate delays and inefficiencies in air cargo operations. Achieving seamless coordination among stakeholders and addressing infrastructure deficits are crucial steps towards optimizing India’s air cargo industry.”

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‘Transparent, consistent trade policies crucial to boost EXIM trade’

Keku Bomi Gazder, CEO & MD, Aviapro Logistic says, “Changing trade policies can have significant ramifications on global supply chains, influencing sourcing strategies, production locations, and distribution networks. Tariffs, trade agreements, and geopolitical tensions can disrupt established supply chains, leading to increased costs, delays, and uncertainties for businesses worldwide. As a company operating within this complex landscape, we closely monitor trade policy developments and adapt our strategies accordingly. We prioritize agility and resilience in our supply chain operations to mitigate risks associated with policy changes. Additionally, we maintain open communication channels with our suppliers and partners to swiftly address any emerging challenges. From the government, we expect transparent and consistent trade policies that foster a conducive environment for international trade. Clear regulations, minimal bureaucratic hurdles, and a commitment to free and fair trade are essential for businesses to thrive in the global marketplace. Furthermore, we encourage policymakers to engage in constructive dialogues with industry stakeholders to understand their concerns and develop policies that support sustainable economic growth. Additionally, investments in infrastructure, technology, and skill development are crucial to enhance the competitiveness of Indian businesses on the global stage. By fostering an enabling environment for trade and innovation, the government can contribute to the resilience and prosperity of the Indian economy amidst evolving global dynamics.”

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‘Data transparency, adoption of digital standards vital to enhance supply chains’

Glyn Hughes, Director General, TIACA shares, “The risks of geo-political tensions and the impact they have on supply chains, often go without notice. The recent situation in the middle east which escalated to closing off the red sea shipping lanes was one example. It very quickly caused crucial drug shortages in parts of Europe and whilst air cargo was quickly mobilized to support, accessing suitable capacity at short notice was a challenge. Additionally, effective disruption management requires constant interaction between partners to identify if temperature excursions are at risk and to then agree on corrective measures. For this to be optimized we need much greater adoption of universal digital standards and the agreement to utilize and share data across the community.

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‘Exporters’ friendly policies can maximize productivity, exports’

Sunil Kohli, Managing Director, Rahat Cargo says, “The air cargo sector has recently seen growth in the export of high-value goods and pharma, the industry is focusing on ensuring safe and seamless transportation followed by efficient deliveries. So, it’s vital to have exporters’ friendly rules & guidelines in place by the govt which could encourage them to achieve their optimal productivity in maximising the exports. It may be noted that the disruptions in the supply chain also have a direct and an indirect impact on inflation. The direct impact is related to the prices of imported goods, which rise as shipping costs increase. The indirect impact is related to an increase in the price of tradable inputs used in the domestic non-tradable sector.”

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Delhi LG approves setting up of SEZ, FTZ at Delhi’s IGI Airport

Delhi L-G VK Saxena has given the go-ahead for setting up a Special Economic Zone (SEZ)/Free Trade Zone (FTZ), at the Indira Gandhi International Airport over an area of five acres, a move that will give a major economic boost to the capital, the LG Office said in a press release. According to the LG Office, “Related to the Cargo Infrastructure and other allied activities, this SEZ/FTZ once operationalized will give a massive fillip to the logistics sector and catalyse the economic growth apart from spinoffs for generating employment”. The LG approved the proposal taking note of the strategic importance of developing an FTZ/SEZ at the Airport hub, after ensuring that DDA gives a go-ahead for the same as per provisions of MPD-2021, the release stated. “The SEZ would create economic activities through exports, warehousing, trading and provisions for related services at the Airport complex. It will also liberalize and reduce procedural complexities in terms of applications, licensing, clearances and other regulations and reduce red tape, apart from providing tax benefits to entrepreneurs,” the release said. The official press note stated that the Ministry of Civil Aviation, Government of India has identified Delhi as a Pilot Air Cargo Hub which requires Tier 1, 2 and 3 level infrastructure while DIAL already has developed Tier 1 & 2 infrastructure by way of developing two cargo terminals and logistics centres at the Airport, it will achieve Tier 3 once an SEZ / FTZ comes up at the Airport complex. “DIAL proposed the setting up of two multi-product SEZs at the IGI Airport over an area of 2.02 hectares each (5 acres) and requested for Delhi Government’s recommendation under SEZ Rules, 2006. Thereafter, …

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DIAL transships over 80 lakh kgs of Bangladeshi cargo in one year

GMR led Delhi International Airport Ltd (DIAL) has achieved a significant milestone by transshipping over 80 lakh kgs of Bangladeshi cargo to international destinations in the last one year. The first batch of transshipment cargo left Delhi Airport on March 5, 2023. Since then, Delhi Airport has helped transship Bangladeshi Cargo to various international locations including Spain, Netherlands, and France. Delhi Airport has transshipped over 5.17 lakh MT of international cargo between April 2023 and January 2024. This achievement not only cements Delhi Airport’s status as the foremost Cargo hub in Southeast Asia but also catalyzes a favorable domino effect throughout the aviation industry. The transshipment facility for Bangladeshi cargo first began on February 26, 2023, paving the way for a faster and cost-effective route of shipping export cargo internationally. Since then, Delhi Airport has helped tranship over 80 lakh kgs (8000 MT) of readymade garments to European nations including Spain, Netherlands, and France. The European Union is the second-largest export destination for Bangladeshi apparel, followed by UK and Canada. The first batch of cargo, which left Dhaka on February 26, 2023, arrived at Delhi Airport on March 3, 2023, and proceeded for its destined location in Spain on March 5, 2023. The Government of India’s approval on February 7, 2023, allowing Delhi International Airport Limited (DIAL) to serve as a Cargo Transshipment hub between Bangladesh and other global destinations, has significantly boosted international ties and the national economy. This decision has not only reduced shipment costs for manufacturers but has also led to a daily increase in the export of international cargo via Delhi Airport, covering a spectrum of products, from ready-made garments (RMG) and handlooms to footwear, leather …

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‘Ensuring data integrity, skill development crucial’

Cyrus Katgara, Partner, Jeena & Co, says, “Ensuring data integrity across medical products and services throughout the supply chain is a significant challenge, alongside other areas in the sector that require improvement. While efforts are underway to address various issues, the shortage of skilled workforce remains a major pain point.” Focusing on Govt’s initiatives to improve multimodal infrastructure, he adds, “Governments and private sector are actively investing in the enhancement of transportation infrastructure. These investments aim to facilitate the accommodation of temperature-controlled vehicles and facilities through various upgrades and expansions. Furthermore, there is a notable integration of advanced technologies such as GPS tracking, temperature monitoring systems, and remote control mechanisms into reefer vehicles. This integration is geared towards improving the precision and efficiency of managing temperature-sensitive shipments, thereby optimizing overall logistics operations. Additionally, the establishment of strategically located cold chain warehouses along transportation routes is playing a pivotal role in ensuring the seamless transfer of goods between different modes of transport while maintaining the requisite temperature conditions. Along with infrastructure and technological advancements, the government is instituting regulations and standards to ensure the safe and efficient transportation of perishable goods. These regulations encompass vehicle specifications, driver training protocols, and strict adherence to temperature maintenance guidelines.”

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IATA launches cargo digitalisation leadership charter

The International Air Transport Association (IATA) announced launched IATA digitalisation leadership charter at the IATA World Cargo Symposium in Hong Kong. Cathay Cargo, CHAMP Cargosystems, Global Logistics System (HK) Company (GLS), IAG Cargo, IBS Software, LATAM Cargo and Lufthansa Cargo are the inaugural signatories of the charter, says an official release from IATA. “The digitalisation leadership charter aims to accelerate the air cargo industry’s digitalisation journey by committing to five key guiding principles. Developed in consultation with IATA’s cargo advisory council members, airlines and the wider air cargo community, the charter seeks to drive innovation, enhance efficiency and promote a sustainable and harmonised digital transformation. Central to the charter is the importance of data sharing using IATA ONE Record for smooth and efficient data exchange.” Brendan Sullivan, Global Head of Cargo, IATA says: “Digitalisation is imperative for the air cargo industry. It requires alignment to ensure a unified and effective approach. IATA has introduced the digitalization leadership charter to spearhead this alignment. By adhering to the charter’s principles—adopting industry-wide standards, championing sustainability, ensuring ethical technology use and upholding digital leadership — the charter sets a benchmark for excellence.”

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