Kempegowda International Airport, Bengaluru (KIAB/ BLR Airport) processed 180,745 kgs of pomegranates from April to August 2020, to emerge as the leading airport for pomegranate exports from India. According to the data available from the Agricultural and Processed Food Products Export Development Authority (APEDA) and the Directorate General of Commercial Intelligence and Statistics (DGCIS), BLR Airport also accounted for 99 per cent of the total pomegranate exports from Karnataka. The fruit was exported to 12 international destinations, by nine global freight carriers – Air France, British Airways, Cathay Pacific, Emirates Airlines, Etihad Airways, KLM Royal Dutch Airlines, Qatar Airways, Singapore Airlines and Turkish Airlines. Powered by superior logistics and backed by two reputed cargo terminal operators – Air India SATS and Menzies Aviation Bobba Bangalore, BLR Airport plays a key role in ensuring that products reach their destinations in good condition. To retain their freshness, perishables are stored, cleared and moved to the aircraft on priority, with the required temperature controls in place, therefore reducing dwell time at terminals. The cargo infrastructure has been built to ensure the rapid distribution of perishable cargo, making KIAB the preferred cargo airport in South India. BLR Airport has a dedicated cold zone – AISATS CoolPort – with the capacity to handle 40,000 MT per annum and temperature zones ranging from -25 to +25 degrees Centigrade, under the same roof and Menzies Aviation Bobba Bangalore, with the capacity to handle 20,000 MT per annum.

Transporting total of 9963 kilograms of cargo which includes medical supplies and other general commodities, IndiGo operated its maiden flight to Chittagong, Bangladesh on September 21, 2020. The flight was operated while adhering to all the precautionary measures. Ronojoy Dutta, Chief Executive Officer, IndiGo said, “We are pleased to operate our maiden CarGo flight to Chittagong , Bangladesh, using our A-320 passenger aircraft in a ‘freighter mode’. We are proud to play a part in maintaining and supporting supply chains in and out of the country at this critical time. Cargo flights have gained significant momentum and we are pleased with the growth of this revenue stream over the last six months. IndiGo will continue to contribute and adapt its business to the needs of the hour.” Owing to the first flight, Chittagong was the 23rd destination covered by IndiGo for its cargo charter network. IndiGo has operated to multiple new destinations including Bishkek in Kyrgyzstan, Cairo in Egypt, Almaty in Kazakhstan, Tashkent in Uzbekistan and Kathmandu in its cargo network. Within the last 5 months, IndiGo has also transported cargo equivalent to the loads carried in the last financial year, despite limited capacity.

As per the AIC issued and approved by Ministry of Civil Aviation (MoCA) vide letter no. AV.14027/07/2020-A-MoCA dated 15.09.2020), the open sky policy for foreign cargo carriers promulgated with AIC 18/1992 has been reviewed by the government and some changes have been made with a view to ensure fair and equal opportunity in the air cargo capacity offered by Indian registered airlines and airlines registered elsewhere. The operations of foreign ad hoc and pure non-schedule freighter charter service flights shall be restricted to 6 airports namely Bengaluru, Chennai, Delhi, Kolkata, Hyderabad and Mumbai. Foreign carriers may submit application/proposal to the Director General of Civil Aviation for getting clearances for such flights as per procedure specified for the purpose. However, DGCA reserves the right to deny permission for operating cargo flight. Notwithstanding the aforesaid provisions, the all-cargo flights operated under humanitarian and emergency needs through the UN and other multilateral bodies of which India is a member, and also all-cargo flights hired by or carrying cargo belonging to any Ministry/Department of Government of India or a State/UT Government may be permitted to operate with requisite priority to/from any airport in India where customs/immigration facilities are available. Operators are required to meet the operational and safety requirements while operating such ad hoc/non-scheduled cargo flights. According to the AIC, Indian operators facing any systematic and non-systematic discriminate tree and restrictive practices and/or regulatory impediments in operating international cargo flights in any of the foreign countries may bring such issues to the knowledge of DGCA for further suitable actions in this regard.

With the aim of cutting costs and time taken to transport goods between India and the Maldives, the two countries launched a cargo ferry service connecting Tuticorin and Cochin ports with Male. The maiden voyage of the ferry service was launched during a virtual ceremony by Mansukh Mandaviya, Minister of State for Shipping, Government of India and the Maldives’ Minister of Transport and Civil Aviation Aishath Nahula. The cargo vessel MCP Linz, operated by the Shipping Corporation of India (SCI), will travel from Tuticorin to Cochin and then to Kulhudhuhfushi port in the north of the Indian Ocean before making its way to Male on September 29. The service shall have a round voyage of 14 days connecting Cochin, Tuticorin and Kulhudhuhfushi Male with a container cum break bulk vessel having a capacity to carry about 200 TEUs and 3000 metric tonnes of cargo. This vessel provides direct cargo connectivity between India and the Maldives on a predictable and affordable basis for the first time, and will lower costs and times for traders in both countries. The ceremony was joined by representatives of Tuticorin and Cochin ports and officials of the Maldives Ports Limited and the foreign ministry of the Maldives.

Sharing the potential of Northeast India and how the region is constantly evolving and standing at the verge of a trillion dollar business opportunity, Jaideep Raha, President – North East, SCLA, says, “Northeast has been neglected for so long and now is the time to focus on the tremendous potential of the region as it could become the new growth engine for the country.” He continues “Cross border supply chain is important because e-commerce didn’t stop in this pandemic. Hence, modernisation of cross-border supply chains is required to unlock value and create business opportunities. However, in order to do that we need to develop the logistics infrastructure; the basic infrastructure is already there, a little bit touch up is required.” “The attention needed on trade logistics, e-commerce supply chain, connectivity and border logistics infrastructure,” he adds. Raha expresses his views at the recent conference organised by ASSOCHAM and SCLA focusing on Northeast – New Business Opportunities & Logistics Achievability.

The International Air Cargo Association (TIACA) has announced the launch of the Safe Supply Chain class in collaboration with the International Civil Aviation Organization (ICAO). The first class is scheduled for October 20-23, 2020. The development of course is aimed at providing necessary knowledge and skills to ensure that cargo is handled appropriately in a safe and efficient manner within the ICAO’s regulatory framework. This course will provide the entities in the air and mail cargo supply chain with the necessary knowledge and skills to work together effectively to ensure that cargo is handled appropriately in a safe & efficient manner within the ICAO’s regulatory framework. The course also addresses the ‘what causes’ and ‘why it could impact’ the safety of the supply chain through an understanding of the global market and supply chain trends. The course is in a classroom format and will be offered in the English language.

The transportation companies have been burdened with high fuel rate which exists despite such low rates of crude in international market. The effect or benefit of falling crude in international market has not percolated to this sector at all while all the benefit is being passed on to state-owned refining companies. According to Surendra Jeet Singh, Managing Director, Pinkcity Logistics, it is not a great business decision on part of the government. He adds, “In times of pandemic, the state should subsidise the sectors of industries which are stressed and the government could have helped the sector by assisting on fuel prices and helping with the direct state taxes form the major part of overhead and operational cost. No benefit has been provided by the government to help a fleet owner to maintain the staff during the pandemic. Logistics sector, particularly road, if not provided with these benefits can take more than next three quarters to see an upside.”

Stressing on air cargo has been strong on the pillars with the help of strong infrastructure, equanimity, robust versatility business model and innovation during the times of pandemic Vandana Aggarwal, IES, Sr. Economic Advisor, Ministry of Civil Aviation, says, “We have mega challenges and opportunities in the air cargo industry. With the initiatives are undertaken by Indian enterprises, we can say that Indian enterprises are beginning to look towards the future and find ways forward that transform their business in these changing times.” Talking about the initiatives undertaken by the Government of India, she mentioned that despite the challenging times, we ensured the swift movement of carriage on passenger aircraft by increasing dedicated freighters and ensuring the shift movement of cargo at airports. She highlighted that we grew hugely in the export of agriculture produce. Aggarwal expressed her views in a virtual conference organised by the PHD Chamber of Commerce and Industry on “Air Cargo Sector Transformation-Way Forward”.

With the gradual increase in the movement of general cargo, Chhatrapati Shivaji Maharaj International Airport (CSMIA) is witnessing a shift in the import and export of goods transported through the airport. Between April – August 2020, CSMIA catered to a total of 72000 tonnes of general cargo, thus witnessing a growth of 278% by the end of August 2020 as compared to April 2020 on the total volumes of general products. These include products such as Engineering goods and Machinery, Electricals and Electronics, Chemicals, Dangerous Goods, and Garments & Textiles. Overall, Mumbai Air Cargo has catered to a total of over 1,69,000 tonnes of cargo during April–August 2020, consisting of approximately 1,35,000 of international and 34,000 tonnes of domestic cargo. The airport registered a total of 18,820 cargo ATM’s during the same period and witnessed an air freight growth of a whopping 166% in August 2020 as compared to April 2020. Airlines like Qatar Airways, Cathay Pacific, Emirates & Turkish Airlines catered to the highest tonnage of general freight. At the same time, Germany, United States of America and China emerged as the most frequent destinations in terms of cargo interactions with CSMIA. Furthermore, domestic e-commerce volumes in August 2020 have picked up by 1236% as over the volumes in June 2020 due to festive season. The import of flowers has also seen a growth of 6000% in the month of August 2020 in comparison to June 2020.

DHL Express has announced that an annual price increase in India will be 6.9% for 2021 compared to 2020 and will take effect on January 1, 2021. The surcharge for Overweight Pieces and Non-Stackable Pallets will be adjusted to Rs7,250 per piece and Rs15,000 per pallet. “At DHL Express, it is our endeavour to deliver unparalleled quality to our customers. This needs us to make significant and continuous investments in infrastructure and technology,” said R.S. Subramanian, Country Manager, DHL Express India, in adding, “The annual price adjustment allows us to build our aviation and ground network, improve hubs & facilities and drive digitalisation initiatives; all to support the needs of our customers efficiently. Amidst the pandemic situation, we continue to invest to comply with the increasingly complex regulatory and security environment globally. These advances provide our customers with peace of mind while maintaining our market-leading transit times.” Prices are adjusted on an annual basis by DHL Express, taking into consideration inflation and currency dynamics such as administrative costs related to regulatory and security measures. These measures are updated by national and international authorities on a regular basis in each of the more than 220 countries and territories that DHL Express serves. Depending on local conditions, price adjustments will vary from country to country, and will apply to all customers where contracts allow.