Global air cargo demand showed no signs of slowing down in November as volumes recorded a 13th consecutive month of double-digit growth and load factors hit their highest level since April 2022, according to the latest market analysis by Xeneta. Demand rose +10% year-on-year in November, fuelled by the continued boom in e-commerce. This, coupled with only a marginal +2% growth in air cargo capacity, contributed to global air cargo spot rates (valid for one month) also reaching their highest level in nearly two years at USD 2.90 per kilo, a sixth consecutive month of double-digit year-on-year growth. The air cargo market’s strong monthly performance in 2024 had led to hopes of a ‘peak of all peaks’ in Q4 from some sectors of the market. Niall van de Wouw, Xeneta’s Chief Airfreight Officer, however, says the industry has done well to avoid it. “The peak of all peaks should not be a goal. It should be avoided because of the imbalance it creates between winners and losers. 2024 had all the ingredients to see crazy peak season rates but the fact we haven’t seen this situation develop is another sign of the maturity we previously referenced in the global air cargo market. What we witnessed in 2023 was a mess and a valuable lesson. In 2024, we are seeing those lessons put into practice,” he said.  

Amit Tandon, CEO & MD, Asia Shipping India says, “Currently, India’s airports handle 6.5 million tonnes of cargo annually, with plans to expand this capacity to 10 million tonnes by 2030. Modernisation initiatives by the Airports Authority of India include upgrading 150 smaller airports to enhance cargo handling capabilities through multimodal hubs, cold storage facilities, and digital integration. These measures aim to reduce logistics time and costs and establish India as a trusted global trade and transshipment hub. While advancements in air cargo and logistics infrastructure are promising, sustained investment in efficiency, capacity expansion, and technological integration remains essential to drive the sector’s growth and meet the demands of an increasingly dynamic market.  

Pradeep Panicker, CEO, GMR Hyderabad International Airport says, “The air cargo and logistics sector has witnessed significant advancements in recent years, yet infrastructure standards remain a mixed bag. While major hubs boast world-class facilities, regional airports often lack the necessary infrastructure for seamless operations. Major challenges include but not limited to outdated cargo terminals, limited cargo handling capacity, and inadequate cold storage facilities for temp-sensitive cargo. Further, lack of standardized processes and digitalization hinders efficiency and transparency. Few airports in India are experiencing increasing congestion, particularly with the rise in air cargo volumes driven by current geopolitical situation, emergence of global e-commerce, increase in pharmaceutical exports, and China +1 strategy benefitting India. However, there’s a growing emphasis on modernizing infrastructure. Further, investments in automation, safety & security, and sustainable practices are driving positive changes in the sector. Collaboration between stakeholders, including governments, airlines, and logistics providers, is crucial to bridge the gap and ensure the sector’s long-term competitiveness.”

Pramod Menon, Vice President – Cargo, Rainbow Aviation says, “The government has launched initiatives to modernise 150 underutilised airports and airstrips across the country, which will boost air cargo capabilities and regional connectivity. In terms of air cargo infrastructure, there are plans to establish dedicated cargo terminals, and cold storage facilities for perishables. Automated storage and retrieval systems, mechanised cargo handling systems, and Electronic Data Interchange (EDI) systems will also be introduced to enhance efficiency and transparency. However, despite these efforts, there is still a need for significant investment in logistics infrastructure, including basic requirements of warehousing, transportation, and technology upgrades. The Indian logistics sector is expected to grow significantly, driven by the e-commerce boom, Make in India Initiative (government initiatives), and investments in infrastructure. Overall, while there have been notable improvements in air cargo and logistics infrastructure, there is still a long way to go to meet the growing demands of the sector.”

Arun Chandra, BIAL, Vice President – Aviation Business, BIAL says, “To support the growing demand, Public-private partnerships should drive investment in green infrastructure, ensuring sustainability while expanding capacity.  Furthermore, the government, in collaboration with stakeholders, should evaluate existing procedures and processes, aiming to adopt global best practices. This will help streamline air cargo operations in India, making them more efficient and growth focused. BLR Airport with its enhanced connectivity and state-of-the-art infrastructure, has established itself as a key airport for air cargo operations in India, enabling seamless global trade. In FY 2023-24, BLR Airport handled 44% of South India’s total perishable cargo and contributed 28% to the national perishable cargo share, showcasing its pivotal role in supporting industries reliant on temperature-sensitive logistics. The standards of infrastructure in the air cargo and logistics sectors have witnessed significant progress in recent years, with technological advancements, cold chain facilities, and streamlined customs processes. However, India’s air cargo and logistics sector requires infrastructural advancements to accommodate growing demand and achieve global competitiveness specifically from sectors like the e-commerce.  Modernising the cargo terminals with state-of-the-art infrastructure, streamlined processes, and digital innovation is essential to unlocking the sector’s potential and meeting international standards.”

  Kaushalya Logistics (KLL) has received the approval of three new depots in Uttar Pradesh for JK Cement. KLL stated that these locations, Shahganj, Fatehpur, and Akbarpur, mark a significant step forward in its mission to strengthen logistics footprint in the cement industry. This expansion is expected to create new growth opportunities, enhance revenue streams, optimize resource utilization, and strengthen relationships with clients. It reflects the companys commitment to delivering seamless and efficient logistics solutions across India, it added. Uddhav Poddar, managing director, Kaushalya Logistics, said, We are delighted to announce the addition of three new depots for JK Cement in Uttar Pradesh, marking a significant milestone in our journey to strengthen our logistics network. This expansion reflects our dedication to providing efficient and reliable logistics solutions to our clients while supporting the growth of JK Cements operations.

Apeksha Gupta, Head of Skilling at VCJ Foundation says, “To tackle peak hour challenges and airport congestion, we should leverage advanced technology like AI-driven traffic management systems and real-time passenger flow analytics. Implementing smart queuing solutions and enhancing communication through mobile apps can streamline processes. Additionally, promoting staggered flight schedules and flexible check-in options can distribute demand more evenly, improving the overall passenger experience and operational efficiency at airports.”

Sunil Kohli, MD, Rahat Cargo says, “The congestion mainly at the airports of metro cities begins from the cargo offloading at the limited truck-doc areas due to departure schedules of flights of several carriers coinciding with each other followed by a delayed process of weighment by the custodian. An absence of regulated parking & offloading processes at the platforms results in bunching of huge cargo at any given time. The subsequent congestion occurs for the screening process wherein large quantum of cargo queues up for their turns incurring considerable delays. Thus, all the related agencies have to provide the requisite facilities commensurate with the growth of cargo tonnage facilitating hassle free timely handling of processes. The related agencies must install additional provisions and redesign their systems and processes, wherever needed to be in readiness for any peak demand scenario. They must also consider using technology, coordination, and best practices to optimize the use of resources and minimize delays and congestions.”

Naveen Shandilya, Co-founder & CTO at Kargo360 says, “The air cargo industry, valued at an impressive $146 billion, is undergoing a transformative shift from manual processes to digital solutions. Kargo360 is at the forefront of this revolution, offering a comprehensive SaaS platform designed to optimize air logistics for airlines and logistics providers. Kargo360 addresses key industry challenges such as underutilized cargo capacity, inefficient communication channels, and lack of data visibility. With a robust product suite, it provides end-to-end solutions, including real-time tracking, streamlined operations, and advanced analytics. Key features like a 360° customer platform, API integrations, and tailored scalability enhance operational efficiency, reduce costs, and drive revenue growth. As airlines continue to navigate the complexities of the air cargo industry, Kargo360 remains committed to delivering innovative solutions that drive tangible value. By leveraging Kargo360’s cutting-edge technology, stakeholders can achieve lightning-fast logistics management while unlocking untapped opportunities in air cargo, cost reductions and revenue optimisation. To learn more, visit www.Kargo360tech.com”

Vipin Vohra, Chairman, Continental Carriers said, “Efficiently managing peak-hour challenges and congestion at airports requires a multi-faceted approach. Implementing advanced digital tools like AI-powered slot management and real-time tracking can enhance operational flow. Collaborative planning, optimizing terminal layouts, and promoting off-peak cargo processing are critical. Additionally, considering the handling of cargo at off-airport locations, such as Air Freight Stations (AFS), can serve as an effective alternative to manage peak-hour challenges and ensure seamless operations.”