According to ICRA’s latest reports, “Industrial and warehouse logistics park (IWLP) supply is estimated to grow 13-14% year-on-year at around 424 million square feet this fiscal in the eight primary markets, driven by strong demand.” The report stated, the absorption is likely to be 47 million square feet in FY25 as compared to 37 million square feet in the previous fiscal. The sector continues to witness a sustained demand from third-party logistics (3PL) and manufacturing sectors, which together accounted for around 65% of the total leased area as of March 2024 while the share of e-commerce stood at 15%. The growth projections are based on a sample set of ICRA’s rated-portfolio that includes 58 entities across 17 cities having total leasable area of around 34-million sq ft. It also said that among the eight primary markets, around 42 of the warehousing stock as of March 2024 was contributed by Mumbai and Delhi-NCR while the overall occupancy remained healthy at around 90%. The vacancy in the eight primary markets stood at 10% in FY24 and is likely to remain at a similar level in FY25, the report said.

  The Pune Airport will soon be launching its new terminal building, starting July 14, according to officials from the Airports Authority of India (AAI). Currently, eight airlines operate from the Pune Airport. Air India and Air India Express will be the first to shift operations to the new building on July 14, said reports. The inaugural flight from the new terminal will be Air India’s AI – 858, heading to Delhi. Minister of State for Civil Aviation, Murlidhar Mohol, will personally hand over the first boarding pass to mark this milestone, reports added.

Adani Ports and Special Economic Zone (APSEZ) is set to win the rights to run a 5.7 million tonne(mt) capacity terminal for handling clean cargo including containers at Deendayal Port for 30 years by placing the highest royalty of Rs200 per ton when the price bids were opened last week. “The contract win will help APSEZ strengthen its presence in Deendayal Port (formerly Kandla Port) – India’s second biggest state-owned port by volumes handled – where it runs a dry bulk cargo terminal at Tuna Tekra, a satellite facility, says release.

“India’s high logistics costs, 14-18% of GDP compared to 8% for other global leaders, inflate domestic product prices,” says Sandeep Chadha, Founder and CEO, Warehouster. He adds, “These costs also hinder Indian exports and national logistics policy can streamline operations and reduce expenses, making Indian products more competitive internationally. A well-developed logistics network, stemming from a policy framework, can minimise the spoilage of agricultural products, a crucial mainstay of our supply-side economy, by ensuring quicker movement from farms to consumers, benefiting both farmers and consumers. The e-commerce boom, which thrives on fast deliveries, necessitates improved infrastructure for efficient warehousing and last-mile delivery. The success of e-commerce, with an estimated market size of US$57-60 billion in 2023 and projected to grow to US$300 billion by 2030, a CAGR of 20-22%, hinges on efficient logistics. Last-mile delivery, a crucial aspect here, benefits from the National Logistics Policy and advancements in coordination, offering faster deliveries, improved tracking, and greater reach, especially in remote areas.”

The global air cargo market is heading towards a ‘hot Q4’ of rate increases after a sixth straight month of double-digit demand growth in June, with a warning that shippers and forwarders ill-prepared for this year’s peak season may find themselves ‘at the mercy of the market,’ according to the latest analysis by Xeneta. Demand in June, measured in chargeable weight, was +13% year-on-year, continuing the upward trend seen throughout the first half of 2024. In contrast, cargo supply grew at its slowest pace in 2024, edging up only +3% year-on-year. As a result, the global air cargo dynamic load factor – Xeneta’s measurement of capacity utilisation based on volume and weight of cargo flown alongside available capacity – increased by +4% pts year-on-year.

According to a report by Shriram Finance Ltd, the heatwave, delayed monsoons, elections, coupled with high interest rates led to stress in rural hinterlands impacting logistics sector in June 2024. Providing details on the current status of the automobile and logistics sector, Shriram Finance in its July 2024 bulletin said that passenger vehicle sales experienced a notable decline of 6.77% YoY. Motor car sales declined by 9%. Truck rentals degree by 2.6% on the Mumbai-Kolkata-Mumbai route but saw a 4.1% increase on the Kolkata-Guwahati-Kolkata route.

  Dadri in Greater Noida will soon get a multimodal logistics hub as the UP government has plans to invest Rs 7064 crore to boost the trade in the region, said reports. Spread over 823 acres, the hub will include 455 acres designated as the core development area. The govt aims to make it the largest in the country, the reports added. The MMLH will work like a dry port where fast transit of goods and raw materials will be ensured. It will serve as a central hub for services such as container handling, warehousing, cold storage, processing, de-stuffing, stuffing, and value-added packing. It will also offer seamless rail connectivity and feature essential amenities including rail platforms, customs clearance, cargo segregation, truck parking areas, and extensive green spaces, said reports.    

Integrated fund and development management platform Welspun One has raised a second fund worth Rs 2,275 crore, inclusive of co-investment commitments, to strengthen logistics infrastructure in the country. The funds were raised from a diverse pool of approximately 800 Limited Partners (LPs), including high-net-worth and ultra-high-net-worth individuals, family offices, corporates, and domestic institutions. Combined with ‘Fund 1’, Welspun One’s investor base now comprises approximately 1,000 unique investors, a company statement said. Welspun One had raised Rs 500 crore as part of its first fund in early 2021.  “Our commitment to advancing critical logistics infrastructure is in perfect alignment with India’s strategic objective of reducing logistics costs from 14 per cent to 8 per cent, thereby enhancing the global competitiveness of our industries,” said Chairman in a statement.

Mangaluru International Airport has commenced international cargo operations from its integrated cargo terminal with flight IX 815 ferrying 2,522 kg of fruits and vegetables to Abu Dhabi. The inauguration was done in the presence of the AAHL Cargo team, the leadership team of MIA, and representatives from Customs, Airline – IndiGo and Air India Express – and Airport Security Group of CISF, said reports. The airport officials said in a statement that international cargo operations will enable exporters from coastal Karnataka and Kerala and the hinterland to export perishables items, including fresh fruits and vegetables, food, tropical fish, frozen and dry fish, etc. in the form of belly cargo. IndiGo and Air India Express, with their connectivity, will enable exporters to send cargo to Dubai, Doha, Dammam, Kuwait, Muscat, Abu Dhabi, and Bahrain.    

  Airbus has reportedly received potential orders from customers in Asia and the US and the aircraft manufacturer is geared up for growth with A350F this year. Both Asia and the US hold promise for new orders of the A350 freighter, according to the aircraft manufacturer. Airbus has witnessed a steady stream of A350F orders, now totalling 55 from 10 customers, many of them combination carriers that already have the A350 passenger model in their fleet.