Vivek Juneja, Founder & Managing Director, Varuna Group opines, “Inefficient Transportation Management remains a challenge. Selecting appropriate transport modes and optimising routes can be complex. Partnering with top logistics companies in India can help overcome these challenges by optimising routes, reducing transit times, and minimising costs. Advanced warehouse services and robust inventory management is essential but often lacking. Modern technologies like automated storage systems, barcode scanning, and warehouse management systems (WMS) can significantly enhance inventory tracking and order fulfilment. Managing inventory levels to meet customer demand without incurring excessive costs is challenging. Advanced inventory management software can automate processes, provide real-time data, and help businesses maintain optimal stock levels. Lack of visibility in the supply chain can lead to delays and inefficiencies. Using GPS, RFID, and IoT technologies, top logistics companies offer real-time updates on shipments, improving planning and customer satisfaction.”

Vipin Vohra, Chairman, Continental Carriers shares, “One of the foremost challenges is infrastructure inadequacy, including outdated facilities and limited capacity at airports and terminals, leading to congestion and delays. This directly affects our ability to efficiently handle and transport goods. Despite the advancement of customs processing into fully online systems, the persistence of physical scrutiny of documents remains a notable bottleneck. The reliance on manual verification prolongs the clearance timeline, increases the risk of errors, and adds unnecessary costs for both businesses and customers. Furthermore, the lack of standardization and digitalization in processes across the industry creates inefficiencies and hampers interoperability among different stakeholders. This results in manual errors, communication gaps, and difficulties in tracking shipments, leading to customer dissatisfaction and operational challenges. Lastly, talent shortage and skill gaps in the workforce present ongoing challenges in maintaining high-quality service standards and innovation in our operations. Addressing these pain points requires collaborative efforts from industry stakeholders, and regulatory authorities to invest in infrastructure upgrades, streamline regulatory processes, and invest in talent development initiatives to drive growth and competitiveness in the Indian air cargo and logistics industry. Only through such concerted efforts can we unlock the full potential of the Indian air cargo and logistics industry, driving growth and competitiveness in the global market.”

Chaitaly Mehta, Director, EKF Global Logistics says, “There are many significant challenges faced by the Indian air cargo industry such as inadequate airport infrastructure and facilities, labour management, cargo capacity issues, compliances and regulatory requirements and their complexities, growing competition from other modes of transportation. This apart, Electronic Data Exchange (EDI) and Indian Customs EDI Gateway issues with frequent breakdowns, space issues, majorly fluctuating freight rates for air shipments, decreased margins and increasing competition for every industry stakeholder, geopolitical issues, route planning problems, which continue to affect the air cargo industry.”

Sanjay Gupta, CEO AISATS says, “To enable efficient cargo handling, storage and processing, crucial pain points such as limited transparency and lack of infrastructure need to be addressed. The AISATS Multi-Modal Cargo Hub (MMCH) and the AISATS BLR Logistics Park have been designed to address the pain points such as and The Integrated Cargo Terminal (ICT) at the MMCH will provide comprehensive cargo handling services under one roof and serve as a single point of contact for our customers while the MMCH’s Integrated Warehousing & Logistics Zone (IWLZ) will offer improved logistics and warehousing efficiencies through access to consolidation centers, a bonded warehouse, a dedicated trucking zone, light manufacturing and assembly facilities. With direct connectivity between the ICT and IWLZ, we can serve our clients with faster response times, greater operational efficiencies, lower transportation costs and reduced administrative overheads. The AISATS BLR Logistics Park will cater to the diverse needs required at Kempegowda International Airport and help the EXIM community, freight forwarders, supply chain companies etc. transport cargo from key catchment regions to domestic and international markets. Our MMCH and Logistics Park aim to make air cargo handling more transparent through enhanced visibility of cargo movements while offering greater cargo handling speed and flexibility to our customers through our state-of-the-art infrastructure.”

“We see that there is a greater demand for perishables from southern Indian points to Europe and North America. However, capacity for the mentioned points are constrained,” says Chaminda Perera, Head of Cargo, SriLankan Cargo “The carrier operates daily to India, with over 50 weekly flights. We serve nine points including main destinations such as Chennai, Delhi and Mumbai covering both the North and South regions. We contribute to the Indian air freight market by carrying pharma, courier and general cargo out of India and e-commerce freight into India for the northern and central Indian markets whilst uplifting perishable produce out of the southern region. We have been a strong connector of Indian and Japanese markets supporting both directions,” he adds.

According to a latest report by CRISIL Ratings, Revenue growth of road transport fleet operators is expected to double to 9-11 per cent this fiscal. It is driven by better domestic demand, and despite tepid exports. The operating margin is seen improving 75-100 basis points on better fleet utilization and steady fuel costs, the report adds. The credit profile of operators should remain strong as well, as they may look to moderate capital expenditure (capex) towards fleet expansion, following strong additions in the past three fiscal years, even as new guidelines for air-conditioned driver cabins kick in next fiscal. It said that steady working capital is also providing support. CRISIL analysed 45 large fleet operators in its portfolio, which account for a quarter of the industry’s revenues, to reach the findings. Nearly a third of freight demand emanates from export-oriented sectors, which, after decelerating last fiscal, is showing signs of improvement, in line with growth trends in India’s key export destinations – the eurozone and the US, stated CRISIL.

Multinational retail company, Lulu Group International is planning to open a logistics and food processing centre in Amritsar, Punjab. “Our group is intending to have a logistics and food processing centre in Amritsar for the storage, processing, grading and packing of various local agriculture and other produce,” said Salim M A, director of Lulu Group, in a press release. “Amritsar is known for its vibrant business environment and especially for its thriving small and medium enterprises (SMEs). The city will now be a part of our sourcing of local products which will greatly help SMEs, local farmers, agricultural cooperatives and farmers producer organisations,” he added. Lulu Group officials will be soon visiting Amritsar to discuss with SMEs and other suppliers to finalise this collaboration at the earliest, the release added. In India, Lulu has its logistics and procurement centres in different states from where it annually exports Rs 10,000 crores worth of more than 45,000 megatonne of agriculture and other products for its 270 retail stores spread across the Middle East, Far East and Africa.

From 2025, Virgin Atlantic Cargo will have 42.1M kg of space available on routes to and from India increasing capacity by +336.4% vs 2019. The addition of the recently launched Bengaluru flights will boost 2025 space available by +38.7% compared to 2023 capacity, with 20 tonnes available on each flight. This presents new opportunities for companies looking to export and import goods such as fresh produce, pharmaceuticals, and textiles between prime markets in the UK, the US, and India.

To promote Nashik’s agricultural business, air cargo services have commenced from Ojhar Airport, says reports. The inaugural shipment, comprised 100 kg of roses bound for Delhi. “The initiation of air cargo operations fulfills a longstanding request from Nashik’s populace, especially those involved in industrial and agricultural endeavors. Local businesses are anticipated to reap substantial advantages from this development, as it offers a dependable and streamlined method for transporting goods,” reports add. According to reports, IndiGo Airlines is spearheading the initiative, operating around six flights to various destinations including Delhi, Indore, Hyderabad, Ahmedabad, Nagpur, and Goa. In addition to these passenger flights, special cargo flights are regularly departing from Ojhar Airport.

The Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) has announced plans to set up international air cargo and cold storage facilities, following the announcement of Air India of launching a direct flight between Vijayawada and Mumbai, says reports. AP Chambers president Potluri Bhaskara Rao said in reports that the AP Chambers has been relentlessly giving suggestions to the Airports Authority of India (AAI) and the Vijayawada airport authorities for the development of the airport and for the improvement in flight connectivity between Vijayawada and other major destinations.