Category Archives: International

International Maritime Organisation (IMO) and the World Customs Organization (WCO) urged that trade by sea must continue to flow to maintain the continued provision of essential goods, including vital medical supplies, during the COVID-19 pandemic. Kitack Lim, Secretary-General, IMO and Kunio Mikuriya, Secretary General, WCO strongly urged customs administrations and port state authorities, together with all other concerned agencies, to establish a coordinated and proactive approach to maintaining the integrity of the global supply chain so that the flow of vital goods by sea is not unnecessarily disrupted. The joint statement comes as the demand for and the movement of relief goods (such as supplies, medicines and medical equipment) across borders is increasing dramatically. It notes that ports are being closed and ships denied entry, as travel is curtailed and borders closed to slow the spread of the disease and mitigate its impacts. Such restrictions, it says, may interrupt much-needed aid and technical support, and have negative social and economic effects on the countries concerned.

Agility and Chapman Freeborn Air chartering have decided to unite their efforts in delivering CT scan and MRI machines to Malé, Maldives. The Ministry of Health in Maldives ordered approximately 41 tonnes of cargo consisting of MRI, CT scan machines and other health equipment for distribution to four different hospitals across the chain of islands and atolls that make up the nation. Agility airlifted the cargo into Dubai from various locations in the USA, China, France, Japan and India. The seamless movement of more than 287 pieces from five countries into Dubai was a challenge, especially when availability of flights and space became limited due to the COVID-19 outbreak. Agility worked with Chapman Freeborn and chartered a B747 freighter from Al Maktoum International Airport in Dubai. Using B747 aircraft provided significant cost savings when compared with alternatives such as the Antonov An124 or the smaller Ilyushin Il-76 aircraft, which would have required three separate flights. Satish Lakkaraju, Chief Commercial Officer of Agility India, says, “From the countries of origin, to the consolidation point in Dubai and to the final destination in Male, we were pleased to have such talented people working on this global project. We thank our Agility Dubai team and our trusted global partner, Chapman Freeborn, for expertly handling all challenges that arose.” Vikas Chaturvedi, Chapman Freeborn’s Dubai Commercial Manager-Cargo, says, “Transporting this type of medical equipment on short notice requires careful planning and close attention to detail. Our strength is the global aviation professionals working with Agility and Chapman Freeborn.”

Hyderabad International Airport got connected to African markets with the touchdown of the maiden cargo flight of Ethiopian Airlines from Addis Ababa. This new direct connection between Hyderabad and Ethiopia opens new opportunities to reach out to the markets in Africa and beyond leveraging the robust cargo network of the Ethiopian Airlines. The airline is expected to be operating one frequency per week. With a capacity of 50 MT per flight, it will be operating Boeing 777-300 aircraft.

The service providers are facing a cash flow crisis because of not getting payments on time from their clients. To tide over the crisis, apex bodies; Federation of Freight Forwarders Association in India, Association of Multimodal Transport Operators of India and The Air Cargo Agents Association of India has decided that for the next six months, logistics service providers will handle shipments only against 100 per cent advance payments by their clients. Generally, the payment by an exporter or importer to service provider is done only after handling the shipment and paid in advance. The service provider pays the bill and waits for the payment from their clients.

“In times of crisis, expectation from the bigger brother are justified. While the airlines also need money, a sensitive approach is needed. IATA’s insistence will have very different reactions and the results could be varied. A number of IATA agents will be forced to default, even if they have always been compliant. Member airlines may also want to exit the CASS since business is generated not by the airlines but by the agents. A simple fact missed out in the insistence of remaining insensitive,” says Samir Shah, Advisor, Federation of Freight Forwarders Association in India (FFFAI). He adds, ”The problems are many and the biggest is continuity of business. The model is based on rotation of funds; clients’ payments have dried up or are delayed. This break in cycle will break many organisations.”

IATA CASS is not unique to India but is a worldwide payment gateway and no exclusive dispensation is available country wise. AV Vijaykumar, Chairman, Federation of Freight Forwarders Association in India (FFFAI), says, “I understand there was been some relief granted only in the form of deferment by a few days in our neighbouring countries. I wish Indian agents were also extended this deferment from IATA. Indian forwarders have been caught snapping as their payments from the shippers on the agreed timelines have not materialised. This has caused untold misery in the liquidity of the forwarders who also have to face the added strain of maintaining their establishment intact. There is a steep drop in business thereby impacting future revenue streams.”

IATA has decided not to give any extension for fortnightly freight to airlines through its CASS program. Calling it not a trade friendly move, Sunil Arora, President, The Air Cargo Agents Association of India (ACAAI), says, “The freight forwarding industry is already suffering due to the entire EXIM under lockdown. All payments from clients are blocked. In such scenario, how IATA and their member airlines can expects us to pay freight on time? Our member community is not in a position to meet the CASS calendar for freight payment to airlines. It establishes, once again, that IATA is inconsiderate towards its approved agents. IATA has asked for relief from government of India on various grounds but want agents to pay on time and no extension is even granted. ACAAI has requested government to intervene and ask IATA and Air India to consider our plea.” In fact, we feel they would be able to secure their freight payment by allowing extension of time. The trade is not asking discounts waivers or financial help on salaries etc but just little grant of time. This does not signify principal to principal relationship but seems like master to slave scenario. India is one of the biggest markets worldwide for IATA members and still Pakistan and Bangladesh and many other jurisdictions have got relief from IATA, then why not India?

With the DGCA (Directorate General of Civil Aviation) permission of cargo operations using existing passenger category aircraft, Hyderabad airport handled its first international shipment of essential supplies with Qatar Cargo QR 8311. The same aircraft uplifted 28 tonne of essential supplies from Hyderabad and departed to Doha, on the same day, and connected the shipments from thereon to other corners of the globe. SGK Kishore, CEO, GMR Hyderabad International Airport (GHIAL), said, “Extraordinary situations require extraordinary solutions. The DGCA permission has opened a window of opportunity for the aviation community to leverage the fleet of idled passenger aircraft to help meet the desperate need for air cargo capacity to carry essential medicines and other supplies across the globe during this moment of global crisis. Having successfully handled the first such flight to operate into Hyderabad under the new DGCA guidelines, we remain committed to supporting continued operations of our nation’s air cargo lifeline in the days to come.” Hyderabad International Airport has been categorised as one of the 6 national hubs under Government of India’s ‘Lifeline Udan’ arrangement for operating medical cargo lifelines for the nation in this hour of crisis and GMR Hyderabad Air Cargo and GHIAL are working round the clock in close coordination with the customs, ground handlers, forwarders, CHAs (Customs House Agents), regulators, state Police, cargo trade associations, to keep the critical chain of essential supplies viz. medicines, vaccines, medical equipment, pharma raw material, defense goods, banking documents etc. up and running even through the lockdown. With around 200 dedicated and highly motivated personnel working in a shift, Hyderabad Air Cargo is ensuring all these essential supplies are properly handled and timely cleared. At present, GMR …

The airport has suspended all the commercial passenger flights until April 14 midnight with the recent directive by the Government of India. However, the airport continues to remain operational with a curtailed staff of over 500 personnel working endlessly for vital cargo operations and emergency evacuation flights, if any at the same time safeguarding safety precautions at the airport. To cater to the greater need of mobilizing and supplying essential commodities across India and the world, the airport is operating its cargo handling activities. The items include pharmaceutical goods, medical equipment, which are approved by the regulatory bodies and customs.

The Hyderabad International Airport has been shut for international and domestic traffic for the last few days. However, air cargo services are operational to keep the vital link of essential supplies alive and operational round the clock. The airport is handling 11 freighters weekly along with some special cargo charters, which are connecting Hyderabad with all major international destinations in the United States of America, European countries, Middle-east, Africa, Far East, etc. – moving emergency supplies. About 100 tonnes of export and import cargo is being witnessed at the airport. Out of this over 70 per cent consignment belongs to pharma and essential products. Some of the key Pharma companies, which are using the cargo services include – Dr. Reddys Laboratories, Aurobindo Pharma, Mylan Laboratories Limited, Hetero Drugs, Divis Laboratories Limited, MSN Pharma, Pfizer, Glenmark Pharmaceuticals, Natco Pharma, among others. Approx. 40-50 trucks which includes bonded trucking, temp-controlled trucks and general cargo trucks, are coming to Hyderabad Airport for consignment delivery and lift-off daily. With around 200 dedicated and highly motivated personnel working in a shift, Hyderabad Air Cargo is operating round the clock to ensure all these essential supplies are properly handled and timely cleared. The personnel include GMR cargo staff, Customs officials, Regulatory Agencies, Ground handlers, Freight Forwarders, CHAs among others.