According to DHL Global Forwarding’s latest Airfreight State of the Industry report, (October), currently global air cargo market is very unstable. The report found airfreight volumes as suppressed, with demand continuing to remain low on most trade lanes, although transatlantic volumes are comparatively strong. Global demand has softened since April this year and this year’s peak season is expected to see less of a surge than last year. Reduced purchasing power caused by economic lows will not help the sector, found the report, which uses data from various reliable sources including the International Monetary Fund (IMF), the International Air Transport Association (IATA), Seabury, WorldACD, IHS Markit Group and DGF Desk Research. Lower sales and high inventory levels caused by reduced export orders will also not offer the industry any succour, nor will high inflation rates around the world that are causing uncertainty now and are likely to remain in force into 2023. The ongoing war in Ukraine is of course having an impact on the airfreight sector, both in terms of cargo movements and capacity, indicates report. The report also pointed to a trend of air shipments being converted into ocean freight, with shippers likely to shift away from air cargo as ocean-going vessel schedule reliability continues to improve. Overall airfreight capacity was up by 18% in October compared to the same month of 2021, with month-on-month increases continuing (although global airfreight capacity in October was down 5% compared to the same month of 2019). The report described the greater capacity being made available as “encouraging”, but also pointed out that high jet fuel prices remain a challenge, with there having been only small signs of late of fuel prices …

India’s e-logistics sector has become one of the largest and fastest growing logistics markets globally and is all set to reach the $9 billion industry, with a compound annual growth rate of 35 per cent, stated a recent report released by Bengaluru-based Redseer Strategy Consultants. “The number of e-commerce logistics shipments is expected to grow by four times in the next five years. Thanks to new-age tech-enabled players who have entered India’s logistics arena, it is now easier for small- and medium-sized businesses to transport goods, and there is a drastic increase in the speed and efficiency in which parcels are delivered. Among such players, Delhivery is well positioned at the cross-section of the various logistics sector growth drivers including infrastructure, offline commerce, digital consumption, and adoption of technology and data sciences. The e-commerce logistics sphere has contributed to the overall growth of India’s logistics sector and enabled the e-retail boom in India,” the report added.

LATAM Cargo and Sonoco ThermoSafe, a unit of Sonoco, global providers of temperature assurance packaging have announced a global lease agreement for the new Pegasus ULD® temperature-controlled bulk shipping container, said release. The agreement enables pharmaceutical freight forwarders access to Pegasus ULD® containers directly from LATAM Cargo. “Sonoco ThermoSafe’s Pegasus ULD® is the world’s first FAA and EASA-approved passive bulk temperature-controlled ULD container for pharmaceutical use, which enables it to speed through international air freight handling and customs processes at the lowest possible cost. With a focus on sustainability, the Pegasus ULD® is engineered with composite materials, offering a lighter solution that is also substantially more damage-resistant than traditional metal containers. Additionally, the Pegasus ULD® contains a fully integrated, FAA-approved telemetry system providing real-time, cloud-based data on payload and ambient temperature and key environmental factors, precisely synchronized with GPS location,” the release added.

Oman-based low-cost carrier, SalamAir has launched a dedicated air cargo service and inducted its first freighter aircraft. It is the first airline in the Middle East to fly with the Airbus A321 passenger to freighter (P2F) conversion aircraft, the airline announced in a LinkedIn post. “The introduction of the A321 freighter by SalamAir is a historical moment in the aviation history of Oman and the region. It backs the Sultanate’s Vision 2040 to make the country a logistic hub in the region,” the post read.

Zongteng Group, a major provider of cross-border warehousing and logistics services for e-commerce sellers, announced the acquisition of its first freighter to help customers reach global markets faster. The news follows a growing trend of online sales platforms, such as Amazon and JD.com, and logistics providers creating private-label airlines to better control capacity and service reliability rather than exclusively rely on scheduled, multiparty carriers, said reports. Shenzhen, China-based Zongteng Group purchased a second-hand Boeing 777 freighter to increase its warehouse fulfillment capabilities, a spokesperson said. Flight-tracking websites show the plane was previously owned by China Cargo Airlines. Zongteng said Chinese startup Central Airlines will fly the large, all-cargo aircraft three to four times per week from Shenzhen to the Middle East and Europe for subsidiary YunExpress. The initial route, which was inaugurated on September 30, connects Shenzhen with Riyadh, Saudi Arabia. The spokesperson said Zongteng will launch service on its primary route, between Shenzhen and Paris’ Charles de Gaulle Airport, in December. The news release suggested air logistics service will eventually extend to North America. The 777 is a long-range twin-engine freighter, with a maximum payload of 112 tons.

The Ministry of Railways will roll out projects worth Rs. 90,000 crore in the months ahead to remove bottlenecks in the movement of freight, said Union minister for railways, Ashwini Vaishnaw at the 17th Foundation Day of Dedicated Freight Corridor Corporation of India Ltd (DFCC). “Till now, we have identified projects worth Rs. 90,000 crore, or $10 billion, to remove all potential bottlenecks in the movement of freight. Some of these are small projects, some are bigger in scale. The projects will be sanctioned in the coming months, and will help us realise the aspiration of loading 3,000 million tonnes (mt) of goods,” Vaishnaw said. At the start of the financial year, the ministry had rolled out a Rs 1.5-trillion procurement plan to augment railway performance. “The prime minister sincerely believes that the only way to transform the Indian economy is to transform Indian Railways. This shows that the support for railways is foremost in the minds of the top leadership of this country,” the railways minister said.

States should adopt a multimodal approach and ensure logistics did not become a burden on exporters, said Union Finance Minister Nirmala Sitharaman at the inauguration function of the third campus of the Indian Institute of Foreign Trade in Kakinada. She said the PM Gati Shakti was a beautiful protocol with which a synergy could be brought in. The minister referred to ‘One District-One Product’ and ‘Vocal for Local’, initiatives, aimed at promoting local products and creating their export markets. She said the Commerce Ministry was working on getting an export policy that would help the exporters by giving them incentives and promoting many things. There’s a repetitive and very relevant line that the Commerce Minister refers to We can’t be exporting taxes.’ We also should identify ways in which those taxes whether Centre, State or local that are on these products should be removed so that we don’t burden their exporters, the Finance Minister said. With better roads and ports, the logistics element is being addressed. State governments should also spend some time to see that logistics doesn’t become a burden on exporters, Sitharaman added.

The 4th Edition of SCM Logistics World summit with an apt theme ‘Reinventing Supply Chains through Agility & Resilience in a New World Order’ is all set to kickstart on November 4, 2022 at the Holiday Inn in New Delhi. Organised by the Programic Asia, the summit will have the supply chain experts discussing on various important subjects such as Net Zero Supply Chain & Impact on Business, Hiring & Culture – The Key role of Talent in the Future Supply Chain, India’s Response to Port Girdlocks and Fostering Supplier Enabled Innovation in Supply Chains. The event will prove to be a great platform to deliver the must-have insights, strategies and frameworks for chief supply chain officers and their leadership to bring continued agility, resilience and adaptability to their organizations.

AP Moller Maersk has opened its new warehouse in Dadri, Uttar Pradesh. Located within the premises of the company’s Container Freight Station (CFS), the 100,000 sq. ft. the warehouse is the first of its kind, with women running and operating all the jobs and tasks in the facility. Hand-picked from the nearby villages, Maersk has hired, trained, and created jobs for 84 women who needed employment, but did not have the right opportunities. “At Maersk, we are constantly strengthening our efforts in the area of Diversity, Equity and Inclusion (DEI). We also realize that in the larger DEI picture, gender diversity is a low-hanging fruit that can be addressed as long as there is a strong will to do so. While expanding our warehouses across the country, we wanted to create opportunities for women in a traditionally male-dominated sector. As per the 2021 census, Dadri has only 6% working women of its total population, and our team and our team on the ground had a strong desire to contribute towards a change in that respect, stated Vikash Agarwal, Managing Director, Maersk South Asia.

Mahesh Malik, Chief Commercial Officer – CarGo, IndiGo said, “The Indian government has been very forthcoming in addressing the requirements of the logistics sector, specially air cargo. PM Gati Shakti National Master Plan (PMGS-NMP) was launched with the purpose of providing multimodal connectivity infrastructure to various economic zones. The launch of the National Logistics Policy is a significant step in making India globally competitive in the logistics space. It will ensure quick last mile delivery, end transport-related challenges, save time and money of the manufacturers, prevent wastage of agricultural products. The policy constitutes planning, coordination, storing and movement of resources—like people, raw materials, inventory, equipment, etc., — from one location to another, from production to consumption, distribution, or other upstream production points. The policy has also proposed some key targets to be achieved, like a reduction in the cost of logistics from the current 14-18 per cent of the country’s GDP to the global best of around 8 per cent by 2030. India is setting big export targets and is also fulfilling them, strengthening the perception that India is emerging as a leading global manufacturing hub.”