Snowman Logistics opens its first-ever state-of-the-art A-Grade dry warehouse for the chemical industry in Shoolagiri, Tamil Nadu. This is the cold-chain logistics company’s first venture into the chemicals business and first step into storing and distributing Hazardous chemicals. Snowman Logistics will work with BDP UGL Global Logistics (I) Pvt. Ltd – one of the world leaders in automobile chemicals – and will soon extend to other chemicals & related customers. The Shoolagiri facility is situated in Horizon Industrial Parks Pvt. Ltd. and is 50,000 sq. ft. of warehouse space with a capacity of 5500 MTs with G+5 racking, equipped with all safety equipment and compliances. The warehouse is equipped with modern storage and handling equipment and provides an efficient and secure storage solution for goods. It is also well-wired with cutting-edge technology to provide a 24-hour monitoring system and fire protection for the safety of the stored goods. Sunil Nair, CEO of Snowman Logistics says, “Being a market leader in the cold chain space for over three decades, we have come out of our comfort zone this time. We are very excited to serve and grow in this new segment and are committed to continuing to provide our customers with the highest quality services in the Chemicals space, as well.” He further added, “We are looking forward to working with BDP UGL Global Logistics (I) Pvt. Ltd, which is one of the world leaders in automobile chemicals and together implementing global standards and practices and developing world-class capabilities for storing and distributing hazardous chemicals in the region and beyond.” Speaking on their association with Snowman Logistics, Pavithran M Kallada, Managing Director, BDP India, says, “With our expertise in global chemical …

Reacting on increased repo rate and how it will impact the logistics trade, C K Govil. Vice President, ACAAI shares, “An increase in the repo rate in India can have a significant impact on the logistics industry. This is because the logistics industry heavily relies on borrowing to fund its operations and investments in infrastructure. An increase in the repo rate means higher interest rates on loans, which can increase the cost of borrowing for logistics companies. This can lead to higher operating costs, lower profit margins, and decreased competitiveness for the industry. Moreover, higher interest rates can also affect consumer spending and reduce demand for goods, leading to a decrease in the volume of goods being transported. This can result in a slowdown in the demand for logistics services, putting pressure on companies to find ways to reduce costs and remain profitable. Overall, an increase in the repo rate can have a negative impact on the logistics industry in India, leading to higher costs and decreased demand for logistics services.”

Reacting to the increase in the Repo Rate by 25 basis points with immediate effect to 6.5 percent, FIEO President, Dr A Sakthivel said this increase is in line with the ongoing initiative and effort of the Reserve Bank of India to contain inflation and the flight of capital looking at such a volatile and challenging global scenario. Recently the US Fed also hiked its rate by 25 basis points and the Bank of England by 50 basis points. The FIEO President said that global foreign trade is passing through a difficult phase owing to rising inflation, reducing the purchasing power, and countries entering into recession and high volatility in currencies. In the given scenario, we have to ensure that further increase in export credit rates should not blunt our competitive edge as we are losing out to our competitors in countries with reduced rates of interest and deep depreciation of their currencies. Dr Sakthivel urged the Government to increase interest subvention under the Interest Equalization Scheme (IES) from 3% and 2% respectively to 5% (to all MSME manufacturers) and 3% (to all other eligible categories) as interest rates are at a much higher level than the pre-covid times besides extending of tenure of Pre-shipment Credit in Foreign Currency (PCFC) from 180 days to 365 days will further provide headroom for the exporting community. At the same time, FIEO Chief has advised the exporters to opt for foreign currency denominated credit which is available at LIBOR+150-200 basis points and provide a comfort, during the extreme volatility in dollar, without any hedging cost. FIEO Chief also requested RBI to extend “Export Refinance Facility” to banks. Under such a mechanism, banks may …

Raaja Kanwar, Chairman and Managing Director, Apollo Supply Chain and Apollo International Limited shared his views on Budget 2023, “The Union Budget 2023 lays out a credible roadmap towards the development of transport infrastructure and last-mile connectivity. We congratulate the budget for making Green Growth one of the top 7 priorities; focusing on ease of doing business. As, Apollo Supply chain, we look forward to resolving the inefficiencies in the country’s supply chain.”

Everts Air Cargo is expanding its fleet with the conversion of an MD-88SF into a freighter configuration through Aeronautical Engineers, Inc. (AEI). The aircraft will commence conversion in March 2023 with modification touch labor being performed by Dothan, Alabama-based, Commercial Jet, which is an authorised AEI Conversion Center. Everts will use the freighter to accommodate fleet expansion plans. The AEI MD-88SF is capable of carrying 12 88” x 108” Containers/Pallets. Everts Air Cargo is the sister company to Everts Air Alaska and serves customers residing in larger Alaskan cities, as well as, small villages in remote locations. The company’s primary business is transporting freight and mail, as well as the movement of oversized freight, hazardous materials and small packages. The company’s fleet consists of C-46 and DC-6 aircraft, which are well-suited to the many shorter, unimproved gravel or ice runways in Alaska, along with DC-9s, and MD-80s.

IATA released data for global air freight markets showing that 2022 full-year demand for air cargo took a significant step back from 2021 levels but was close to 2019 performance. Global full-year demand in 2022, measured in cargo tonne-kilometers (CTKs*), was down 8.0% compared with 2021 (-8.2% for international operations). Compared with 2019, it was down 1.6% (both global and international). Capacity in 2022, measured in available cargo tonne-kilometers (ACTKs), was 3.0% above 2021 (+4.5% for international operations). Compared with 2019 (pre-COVID) levels, capacity declined 8.2% (-9.0% for international operations). December saw a softening in performance: global demand was 15.3% below 2021 levels (-15.8% for international operations). Monthly cargo demand tracked below 2021 levels from March 2022. Global capacity was 2.2% below 2021 levels (‑0.5% for international operations). This was the tenth consecutive monthly contraction compared with 2021 performance. 2022 ended with mixed signals:​ Global new export orders, a leading indicator of cargo demand, have stayed at the same level since October 2022. For major economies, new export orders are shrinking except in Germany, the United States, and Japan, where they grew. Global goods trade decreased 1.5% in November, down from a 3.4% increase in October. The Consumer Price Index for G7 countries indicated inflation tracking at 6.8% for December. The 0.6 percentage point drop compared with November (7.4%) was the largest over the course of year. Inflation in producer (input) prices reduced to 12.7% in October, its lowest level so far in 2022. “In the face of significant political and economic uncertainties, air cargo performance declined compared with the extraordinary levels of 2021. That brought air cargo demand to1.6% below 2019 (pre-pandemic) levels. The continuing measures by key governments …

The e-commerce giant, Amazon is scaling back on flights this year, citing lower demand and slower economic growth. Air Transport Services Group, which runs a significant portion of Amazon’s air cargo fleet, said it expects to operate Boeing 767 freighters dedicated to servicing Amazon and DHL at reduced schedules and less flight time per aircraft. “Both companies are adjusting their ground and air distribution and fulfillment networks in the United States to conform to reduced U.S. economic growth and consumer spending levels in the first half of 2023,” ATSG said. Air cargo rates, which surged in recent years due to port congestion and high demand for fast deliveries, have slumped. The Baltic Air Freight Index was down more than 33% on Jan. 30 from a year earlier. The International Air Transport Association said last month that air cargo demand in November was down nearly 14% from the year-ago period, while capacity fell 1.9%. Meanwhile, passenger airlines have said travel demand has held up as consumers prioritize trips and other experiences. But coming off Amazon’s weakest year for growth in its quarter century as a public company, CEO Andy Jassy has taken steps to curtail expenses. That includes cutting more than 18,000 jobs, pausing warehouse expansion and shuttering some projects.

Kale Logistics Solutions (Kale) has gone live with its state-of-the-art cargo management system, GALAXY, at GMR Goa Air Cargo (GGAC), completing implementation of 100 percent digital domestic cargo operations at the new Goa airport. Kale’s web-based solution, GALAXY, is enabling end-to-end digital processing for all domestic outbound cargo at GGAC, from acceptance to loading and departure, as well as for domestic inbound cargo from flight arrival and flight check through to cargo delivery at the warehouse. GMR Goa International Airport Limited (GGIAL), a subsidiary of GMR Airports Limited (GAL), was inaugurated in December 2022 by Prime Minister Shri Narendra Modi, and the domestic air cargo operations went live from an interim facility at the airport with Kale’s solution in January. “GMR Goa Air Cargo has set a new record, going digital from the start button,” said Vineet Malhotra, Co-Founder and Director, Kale Logistics Solutions. “Our longstanding strategic partnership with GMR Cargo and deep understanding of their business, challenges, and market dynamics positions Kale well to help them meet higher customer expectations. “Supported by our fully digital solution, we are confident that GGAC will exceed its cargo handling estimates, and look forward to supporting its commitment to sustainable operations.” The GALAXY cargo management system is used by several hub airports and cargo terminals all over the world and is currently operating at more than 100 air cargo stations globally. The solution also covers processing for transshipment and direct delivery, as well as for inbound and outbound cargo. The newly launched Goa International Airport looks to become a hub for cargo movement alongside Mumbai and Bengaluru in Western India.

Deepak Tiwari, COO, KSH Logistics said, “Budget 2023 is prioritizing the logistics and supply chain sector with a significant allocation of Capex of 10 lakh crore in infrastructure, roads, and railways which will help the industry to accelerate its growth. We believe that this initiative taken by the government will ensure the timely creation of exceptional transportation infrastructure and improve logistics throughout the country. On the other hand, the emphasis on green energy and skill development demonstrates a commitment to sustainability and growth, positioning the industry for a more efficient, environmentally conscious, and skilled future.”

Debajyoti Bagchi, VP, Trucking and Air Cargo Charters, TT Aviation Handling Services Pvt Ltd. said, “The ‘Bright Star’ 2023 budget of the world’s 5th largest economy reveals people centric agenda and facilitate sustainable economic development. It’s a progressive thought process of new India that has aimed at artificial intelligence, MSMEs as a growth engine, women empowerment, digitization, and most importantly Indian start ups which is the 3rd largest ecosystem globally. The vision of 50 additional airports & aerodromes will expedite the abundance of regional connectivity including passenger and cargo. In addition to that, the prioritization of 100 identified critical transport projects will be a crucial factor for NLP deliverables. Revision of the income slabs in the proposed income tax regime will allow some definite breather for people. However, the budget doesn’t mull anything on the lowering of the fuel/LPG prices to reduce overall inflation.