As global air cargo tonnages for December 2023 are expected to be up five percent year-on-year, Q4 will be the first quarter of 2023 showing positive growth (up three percent) compared to last year, coming from Q1 at -11 percent, Q2 (down eight percent) and Q3 (down three percent) despite all uncertainties in the last months. “This means that global tonnages for the full year 2023 end up being five percent lower than in 2022,” says the latest update from WorldACD Market Data. “While the first half of 2023 was down nine percent, the second half was characterised by an improving YoY performance for each consecutive month and closing at flat YoY growth.” Weekly analysisPreliminary figures for week 51 (December 18-24) show a drop of eight percent in global tonnages and a decline of six percent in average worldwide rates compared with the previous week after recovering more quickly than last year from the seasonal post-Thanksgiving dip last month. “This slide in tonnages and rates follows the typical pattern seen in the second half of December,” the update added. Comparing weeks 50 and 51 this year with the preceding two weeks (2Wo2W), overall tonnages decreased four percent, and overall global average rates were down three percent with capacity up one percent. “While volumes went down across all regions, we saw that the global decrease in average rates has mainly been driven by origin region Asia Pacific (down six percent) that recently showed a surge in rates, especially China.” On a regional level, a drop of 15 percent in tonnages was recorded on key flows ex-Asia Pacific to Europe, ex-North America to Europe and ex-Europe to Africa, the update added. “On …

Expressing his views, Sunil Kohli, Managing Director, Rahat Cargo said, “The government has made an attempt to plug the loopholes, whereby the instances of hit and run have been rampant which resulted in deaths of the accident victims which could be averted if a timely medial aid was provided by the errant drivers instead of running from the scene, by introducing a stringent penal provision entailing imprisonment of 10 years added with a fine of 7 lakh. Thus, the intent of the government, by and large is welcome which seems to curb the ongoing malice. However, it would have been preferable if such provisions were pre-deliberated with the AIMTC before their introduction. Needless to add that a proposed widespread national agitation by the drivers may severely hit all quarters of trade including the exports and also leading to crunch of the items essential for a common citizen hence the government should negotiate with the union across the table to achieve an amicable solution and avert a possible situation of transport disorders all over the country.

Snowman Logistics has initiated operations at a newly leased multi-temperature-controlled warehouse in Guwahati, Assam. The total capacity of the warehouse is 5,152 pallets and this facility features eight chambers and four loading bays, equipped with the latest infrastructure. Specifically designed to accommodate products from ambient temperatures to minus 25 degrees Celsius, the warehouse will primarily focus on providing storage, handling and transportation services for ice cream, poultry, ready-to-eat food, dairy products, confectionery, bakery products, seafood, fruits and vegetables. Other products include pharmaceuticals, specialised chemicals and various commodities. Sunil Nair, CEO, Snowman Logistics said “The inauguration of our latest facility in Guwahati signifies a momentous achievement for Snowman Logistics. This establishment marks our initial venture into a fully leased cold storage facility, aligning with our strategic move towards becoming asset-light. With this expansion, our overall pallet capacity has soared to an impressive 1,41,000+ pallets, strategically distributed across 20 cities, thereby expanding our foothold in Northeast India.

Vipin Vohra, Chairman, Continental Carriers, says, “In the year 2024, we will maintain a forward-thinking approach and adapt to changing market conditions and customer expectations. We will persist in collaborating with customs at the highest echelons to hasten the deployment of customs officers at our Air Freight Station. We plan to further expand our ‘Warehousing’ vertical with ‘State of the Art’ facilities, on pan India basis. We will fortify our ties with existing clients while forging new partnerships through implementation of CRM system which will facilitate the tracking of client interactions and preferences, enabling the provision of personalized services.

Mahendra Shah, Chairman and Managing Director, V-Trans (India) shares, “As we bid farewell to 2023, the logistics industry has continued its transformative shift in the year gone by. Implementing the National Logistics Policy has been a catalyst for fostering an ecosystem for conducive growth addressing long-standing logistical challenges and ease of doing business. Looking forward to 2024, we anticipate sustained momentum, focusing on reducing logistics costs, streamlined processes, enhanced infrastructure, and a collaborative industry-government approach. Technology will continue to be pivotal in bringing efficiency and optimizing cost. We remain committed to driving innovation, sustainability, and efficiency in the logistics landscape. We envision a year of dynamic growth, marked by seamless connectivity and optimized resource utilization, propelling India towards becoming a global logistics powerhouse.”

Ayesha Katgara, Head – Corporate Strategy, Jeena & Company shares, “In 2024, we are brimming with optimism as we spot potential in contract logistics, warehousing & distribution, and pharma logistics. We are actively expanding our footprint in India with strategic expansions in our Coastal vertical and geographical diversification.” She adds, “2023 has been a transformative year for the ever-evolving Indian logistics landscape. The sector witnessed a rise in investment – within the country and outside. The warehousing sector experienced a boom as new facilities came up to address the need for storage. Amidst this dynamic environment, Jeena & Company explored new arenas in defense and automotive sectors. We experienced the transformative power of technology by introducing a CHA software built on AI to improve efficiency.”

Fletcher Samuel, Senior Manager – Cargo Business, Bangalore International Airport (BIAL) highlights, “The Indian air cargo industry is going through an exciting phase. With the government taking a keen interest in the sector and India’s Young Logisticians geared up to innovate and propel change, 2024 looks promising. At BLR Airport, we are further working towards consolidating our position and the brand image of BLR Cargo in the industry. Our aim is to emerge as the ‘New Gateway To India’ and BLR Cargo plans to develop a comprehensive logistics hub that will take us closer to our goal. This logistics hub will offer robust infrastructure that will cater to the burgeoning demand in the Air Cargo sector, that’s expected to witness a surge of 6 million MT by 2030. With Government of India’s National Logistics Policy aiming for a 10 Million MT growth by 2030, we at BLR Cargo are preparing and getting ready to deliver world-class experiences for all our customers and stakeholders, contributing to the dynamic growth of Air Cargo in the country.

Xerrxes Master, President, Association of Multimodal Transport Operators of India (AMTOI) says, “In 2024, the logistics industry is poised for transformative shifts driven by sustainable practices, widespread technology adoption, and accelerated digitization. The integration of eco-friendly initiatives will redefine supply chains, emphasizing sustainability. In 2024 the shipping industry will grapple with reduced demand and more supply, potentially leading to fierce competition and reduced profits and possible mergers and acquisitions. Although container schedule reliability is improving, persistent challenges will remain. Rates will remain low for the first 9 months of 2024 with the potential for growth and return with a true big shipping season in quarter four. However ongoing global disruptions such as the Israel –Palestine and Russia-Ukraine conflicts could create fluctuations in oil prices and in market rates as the year progresses.

Ramesh Mamidala, Head- Cargo, Air India, shares, “I expect the industry will go more than above average this year in proportion to the GDP of the country. I am also expecting that the concerned regulators help the industry with the growth of transshipment volumes by easing the much sought after and long-awaited regulatory changes and automation of current paper-based approval process. I also look forward to manufacturing for export friendly policies to further bolster the growth of export volumes in the country. Looking forward to further policy changes related to single bond for use of bonded trucking by airlines and revisit of GST policy for airfreight, in line with global practices.”

C K Govil, President, The Air Cargo Agents Association of India (ACAAI) shares his outlook for 2024, “After a lukewarm 2023, we are quite hopeful for 2024, expecting a growth of around 4.5% for the global air cargo industry. We saw global air cargo capacity surpass the pre-covid levels in April 2023. 2024 will give us an opportunity to be a part of India’s success story of becoming one of the global superpowers, driven by a young population, an increased demand for exceptional logistics services, and technological advancement in supply chain management with a prime focus on sustainability and efficiency in the transportation industry. Besides, I feel factors like climate change and artificial intelligence will drive many of our everyday decisions. Now, the industry needs to grab the opportunity and be part of the India’s success in becoming number two globally with the young team of population and with increased demand for logistics services potential advancement in technology for supply chain management, a focus on sustainability and efficiency in the transportation industry.”