Industrial and warehousing space witnessed absorption of more than 46 mn sq. ft in 2022 which includes over 36 mn sq. ft from tier I cities and over 10 mn sq. ft from tier II & III cities. India witnessed a fresh supply of 47 mn sq. ft in 2022, of which 34 mn sq. ft was from tier I cities and close to 13 mn sq. ft from tier II & III cities, as per the latest data from International real estate advisory firm, Savills India. The new projects delivered with improved specifications and of high quality environmental, health & safety (EHS) standards. Supply & absorption in tier I cities (2022 vs 2021) 2022 2021 Y-o-Y change Supply (Mn sq. ft) 34.1 36.0 -5.3% Absorption (Mn sq. ft) 36.2 35.1 +3.1% Stock (Mn sq. ft) 300 266 12.8% Vacancy (%) 9.0% 9.4% -40 bps Supply & absorption in tier II & III cities (2022 vs 2021) * 2022 2021 Y-o-Y change Supply (Mn sq. ft) 12.9 8.9 +44.9% Absorption (Mn sq. ft) 10.1 8.6 +17.4% *Tier II & III cities include Coimbatore, Guwahati, Indore, Nagpur, Lucknow, Jaipur, Rajpura, Bhubaneswar, Kochi/Ernakulam, Patna and Hosur, Madurai, Varanasi, Hubli, Ludhiana Among the major cities in India, Delhi NCR led the pack with the highest absorption in 2022 at 16% followed by Mumbai at 14%. Pune and Bengaluru saw absorptions at 13% and 12% respectively, while tier II & tier III cities accounted for 22%. 3PL and e-commerce sectors continued to drive warehousing demand, together accounting for 52% of the total absorption witnessed in 2022, followed by manufacturing sector at 16% and retail sector at 13%. Grade A space accounted 42% of total …

We definitely need more freighters in India. At present, we have a few such as Pradhan Air Express, Air India Express, and IndiGo Cargo’s dedicated freighter. We need more widebody freighters because there is so much cargo, which is lying in the remote locations that needs to be carried,” shares Tushar Jani, Group Chairman, Cargo Service Center (CSC). “First let us understand we need more global freighters than domestic freighters. I agree it is a costly operation. Multimodal transportation is going to be a game changer for Indian logistics. The government is improving inland waterways, coastal shipping, roadways, and rail. There is this new freight corridor, which will link the northeast to Myanmar to Thailand to Cambodia to Vietnam and up to Philippines and down south we are going to be cooperating with Sri Lanka in the times to come so we are on the threshold of a new journey. Now that the government has launched this NLP, then one will see India in a higher orbit and there is nothing to go back to. If you have money put in logistics, it is time to invest in the supply chain. It is a sunrise industry,” he adds.

According to the latest figures from WorldACD Market Data, global air cargo tonnages have dropped strongly, during this holiday season. However, despite the weakening trend in air cargo tonnages, this year’s decline at the beginning of the holiday season is smaller than last year, indicate, WorldACD data. “Figures for week 51 (19 to 25 December) show an overall drop of -11 percent in worldwide flown tonnages compared with the previous week. The decrease in overall chargeable weight is normal for this time of the year as the holiday period begins, with this year’s drop smaller than last year (-14percent) when comparing week 51 to week 50. The average rates declined in week 51 by -2 percent compared to the previous week, which is slightly steeper than during the same period last year and a continuation of the sliding rate levels that we have witnessed since the beginning of the month. Comparing weeks 50 and 51 with the preceding two weeks (2Wo2W), tonnages decreased -7 percent below their combined total in weeks 48 and 49, while average worldwide rates declined -3 percent, combined with a -3 percent decrease in capacity – based on the more than 400,000 weekly transactions covered by WorldACD’s data. In this two-week period, tonnages were down between all regions, except from Middle East & South Asia to Asia Pacific (+5 percent), and intra-Asia Pacific (+3 percent). Most significant decreases were recorded from Asia Pacific to Europe (-18 percent), from North America to Europe (-16 percent) and from Europe to Africa (-16 percent),” the data further indicates.

AerCap Holdings N.V. has recently announced the delivery of the first of its six new Airbus A330-900neo aircraft to German leisure carrier, Condor, said release. The remaining aircraft are scheduled to be delivered in the summer of 2023 through 2024. “We are delighted to announce the delivery of the first of six new Airbus A330-900neo aircraft to Condor, and to see the aircraft painted in their distinctive new striped livery design,” said Peter Anderson, the Chief Commercial Officer of AerCap. “The A330Neo aircraft is the perfect choice for Condor and will enable them to expand their network using the most modern, fuel-efficient technology while supporting their sustainability commitments. We wish the team every success and we look forward to continuing to build our partnership in the years to come,” he adds. “With AerCap as our very experienced and supportive partner, we are looking forward to welcoming the next A330-900neo within the upcoming months,” said Björn Walther, the Chief Financial Officer of Condor. “Thanks to the great cooperation we are able to take an important step towards a successful future.”

Miami International Airport (MIA) is adopting a vertical approach to meeting air cargo capacity demand as it contends with limited space. The airport’s “Vertically Integrated Cargo Community” project envisions a five-storey storage warehouse which is expected to more than double its current cargo capacity. Expected to break ground next year, the estimated five-year project will add approximately 4.5m (US) tons of cargo capacity to the 3m tons of existing capacity, says Jimmy Nares, section chief – marketing at Miami-Dade Aviation Department (MDAD), which operates MIA. Being a 24/7 airport without slot restrictions helps with capacity management, but the project, which has secured planning permission, is crucial to the future growth of the airport. “We’re very close to our cargo capacity right now,” says Nares. “But we should be able to go up to approximately 7.5m tons capacity. We should be in a good position for 10-15 years after that.” The idea for the building, of which two or three floors will be dedicated to cargo, originated from the limited space the airport operates in. “We’re landlocked. We don’t have the luxury of being able to add additional land to build more warehouse space. So we decided to go vertical,” says Nares. Aviation facility development organisation Airis USA LLC is leading the project. The company will be building the structure in phases. The first stage will focus on the first two floors, which will include about 2m sq ft of cargo storage, says Nares.

Sharing his predictions for New Year, Nitish Rai, CEO and Co-Founder, FreightFox says, “2022 has been a year of reckoning for global logistics and supply chains. The year created the sensitivity and need for strong supply chain visibility and resilience across manufacturing logistics. This year has also been instrumental in laying the foundation of rapid digitalisation and data-led transformation to create future-ready logistics. Also, 2022 saw strong tailwinds with organisations globally talking about ESG / Sustainability also as a core theme and taking aggressive objectives towards building net zero value chains. We believe this year was foundational in many ways and learnings post-Covid and carved a well thought future path for transformation and resilience in 2023.”

Martin Drew, Senior Vice President Global Sales & Cargo, Etihad Aviation Group says, “As 2022 comes to a close, we have seen demand for air cargo soften when compared to 2021. While forecasts have been adjusted downwards, the air cargo sector is still projected to grow and outpace pre-pandemic levels in 2023. We will likely see a reduction in capacity constraints, especially out of the Asia Pacific region. We can expect to see some softening of global yield levels with the return of more belly-hold capacity. However, an imbalance between strong demand and available supply in key cargo origin markets along with a relatively high share of freighter capacity will continue to demand higher yields. Some of the challenges we have faced in 2022 will remain in 2023. We will need to closely monitor macroeconomic factors, high fuel prices, supply shortages and ongoing border and travel restrictions. However, even with these challenges, tremendous opportunities are available to carriers who are agile, work collaboratively with stakeholders across the sector, and can adapt to evolving market conditions. We are continuously exploring introducing new territories and countries and focusing on our existing network to provide market-leading services based on customer demand. As we come to the end of 2022 and look ahead to 2023, we will continue to evaluate new markets and opportunities to grow our offering to our customers as part of Etihad Cargo’s wider cargo strategy. Etihad Cargo has identified pharmaceuticals as a high-growth sector and is investing in infrastructure and new product features to enhance our PharmaLife offering. In the coming year and beyond, the pharmaceutical sector will increasingly feature more personalised medication and treatment, including cell and gene therapy. …

“Although, many trade experts are sceptical of positive growth of air cargo in 2023; I strongly feel the slow but steady growth of air cargo next year. Seasonality may vary, and certain markets will perform better, says Dipen Lalsodagar, Deputy Director – Cargo Sales, Global Aviation Services. He adds, “From an Indian perspective, Indian domestic air cargo market will be robust due to strong economy and high demand for consumer durables. Also, with many industry setting up productions under Make in India programme, we can see India as a big exports hub in Heavy industry, Technology, IT & Defence sectors in years to come. Also, Digital development will create efficiency for air cargo in future. Sustainable aviation using energy efficient technology will also bring changes in the air cargo transportation.” “As India opened up for travel, airlines started restoring and adding new routes. This year, our principal carriers also increased their capacity into India, and as GSSA, we have been working hard to enhance their market share. The best way to sum up 2022 is with the proverb “What goes up must come down”. Ukraine war not only affected supply chain distribution but also economies worldwide resulting drop in exports and widening trade deficit. A supply and demand mismatch resulted in persistent yield decrease. A distinct demand trend was seen for commodities. From India; Heavy industry, Pharma & Perishables exports were up while general merchandise saw a decline. High airfreight + GST also shifted some business to the sea.”

“Moving towards the decarbonization air transport sector shall be the priority as we track towards 2030, hence capacity disruptions and cost increases are bound to happen during this period. Hence there could be an extra demand for space, while older aircrafts and engines go for scrapping or an engine refit to meet the goals related to emission reduction,” says Ashish Asaf, CEO, S.A Consultants & Forwarders. “Air freight demand will be offset by the near and medium-term challenges posed by a host of challenges like inflation, reduced purchasing power, consumption pattens and as well the geopolitical issues in Europe. During this time probable incremental volumes can arise due to increase in the E Commerce segment from certain Southeast Asian countries as well from the probable disruptions in the ocean freight due to port congestion or lockdowns,” he adds.

The Department of Posts and Indian Railways have jointly introduced and expanded the proof of concept (POC) of express cargo service under the Rail Post Gati Shakti Express Cargo Service programme, said reports. This has been done with the integration of Postal and Railways networks to provide seamless solutions for the movement of parcels.To take the project forward, a meeting of the Railways and the Postal authorities was held at the head post office here. Manisha Bansal Badal, Postmaster General, Punjab West Region, Chandigarh, and Bhupendra Pratap Singh, Additional Divisional Railways Manager, Ferozepur, headed the teams of their respective departments during the meeting. Representatives of trade bodies of Ludhiana and consumers of the Railways and the Department of Posts were also present. The performance of the POC model of Rail Post Gati Shakti implemented at Surat-Varanasi as pilot project was discussed and modalities were worked out to implement the project from Ludhiana to various locations of the country at the earliest with the joint efforts of the Postal and the Railways authorities. “More such joint meetings will be held before launching the project from Ludhiana city,” the Superintendent of Post Offices said.