According to a latest analysis from WorldACD Market Data, “The growth of ‘general cargo’ air freight tonnages is outpacing that of ‘special cargo’ products so far in 2024. The demand from air cargo shipments requiring special handling and shipping, has broadly outperformed general cargo in recent years, reveals data. Analysis of the first five months of 2024 by WorldACD, based on the more than 2 million monthly transactions recorded via its database, indicates that total worldwide chargeable weight from January to May 2024 was up +12% compared with the equivalent period last year, with general cargo demand up by +13%, year on year (YoY), and special cargo growth trailing at +10%. “This contrasts with findings late last year by WorldACD that in the first eight months of 2023, general cargo tonnages fell by -12%, YoY, whereas tonnages of special cargo products as a whole grew by +3%, on a worldwide basis, at a time when the market as a whole was down by -7%, YoY,” states WorldACD. According to the analysis, “one factor for this is the strong growth since the start of last autumn in cross-border e-commerce traffic, which often flies in bulk as general cargo rather than within a special product category, as well as conversion of sea freight to air cargo and sea-air resulting from disruptions since last November to container shipping due to the attacks on vessels in the Red Sea. These two factors have contributed to significant YoY rises in chargeable weight in the five months to May 2024 (year-to-date May, or YtD May) from Asia Pacific (+20%) and Middle East & South Asia (MESA, +22%).  

“With the government’s Make in India program, & PLI schemes, there has been a huge push to make sure that there is a sizable increase in the production capacity out of India. We are trying to make India one of the factories of the world and for that, we need to create a larger logistics infra and air cargo must be part of it,” says Yashpal Sharma, President, ACFI and Managing Director, Skyways Group, at a curtain raiser event organised ahead of ACFI’s annual conclave on July 4 in New Delhi. He adds, “Air cargo ecosystem also needs to spread across the country. Under the Udaan scheme, government has rolled out various regional airports.  Over the last 10 years, we’ve seen a huge increase in the number of airports that are functioning in the country. And as these airports grow, it is important that each one of these airports are also looked at from an individual perspective. And their entire ecosystem is also built, which is in line with what the customer needs. So ACFI has been opening these regional chapters to address absolute local micro-level pain points and also share practices with each other, so that we are able to bring them to the standards that the customer needs from around the world.”

CargoAi has launched its latest innovative feature, Allotment, which simplifies & automates batch pre-booking & allotment for regular air cargo across more than 40 airlines across over 130 countries. This new addition to CargoAi’s comprehensive digital ecosystem further streamlines the operational booking process for freight forwarders looking to remove manual repetitive tasks & improved operators’ experience. In an industry where efficiency and precision are paramount, CargoAi’s allotment feature stands out by simplifying & automating the regular booking of cargo space, thus eliminating the repetitive manual shipment-by-shipment process and reducing the potential for errors. This cutting-edge feature allows freight forwarders to secure space in batches on flights seamlessly, ensuring timely and consistent shipment deliveries – cutting down the overall process from days, waiting for confirmations from multiple airlines, down to a few seconds thanks to their batch allotment upload solution & instant confirmation feature. The solution – already adopted by multiple small & large forwarders – offers a plug & play solution into existing processes and helps reducing the operational workload by up to 99% for allotment bookings. “We have been using the CargoAi Pre-Booking and Allotment’s feature since March 2024. This has simplified our pre-booking  process and we get automatic acceptance confirmation on our bookings ultimately saving time for our operations. We also no longer have to remember to chase confirmation on pre-bookings”, said Maxime Boucher, Chicago Export Gateway Manager at Flexport.

CMA CGM launches India East Coast Express (IEX 2), a new service connecting Asia to Southeast East India and Sri Lanka, says reports. This new service is set to commence operations with the departure of the vessel HANSA HOMBURG from Singapore on June 27th, 2024. “The IEX 2 will operate on a dedicated fortnightly schedule, providing a direct shuttle from Singapore to Chennai and Colombo. The port rotation for this service will include stops at Singapore, Chennai, Colombo, and then back to Singapore. IEX 2 will also facilitate the transportation of Chennai exports through Colombo, leveraging CMA CGM’s extensive network to provide enhanced connectivity and convenience for customers,” add reports.

Focusing on the current disruptions in the air cargo market, and how BIAL has responded to it by expanding its cargo capacity to meet demand, Satyaki Raghunath, COO, Bangalore International Airport (BIAL) shares, ”In April 2024, as per IATA, the global airline industry recorded 21.7 billion Cargo Tonne-Kilometers (CTKs) globally, which represents an 11.1% increase year-on-year (YoY). The industry counted 85.3 billion CTKs year-to-date (YTD) in April, indicating a 12.7% increase compared to 2023. The industry experienced a 7.1% annual increase in Available Cargo Tonne-Kilometers (ACTKs) in April 2024. Global international air cargo capacity also saw a significant increase of +10.3% in the month of Jan 2024. In 2023, the air cargo industry faced significant challenges with collapsing market demand and rates leading to revenue declines, forcing many all-cargo carriers to scale back operations. Supply chain disruptions and capacity constraints impacted demand despite economic conditions remaining favourable for the sector. BLR Airport has actively responded to these disruptions by expanding its cargo handling capacity to accommodate the potential rise in air cargo movement. In FY ’24, BLR Cargo continued its growth momentum, with several notable achievements including: In May 2023, BLR Airport achieved a significant milestone with the successful transition of two of India’s brownfield cargo terminals. The cargo terminals are now primarily managed by Menzies Aviation (Bengaluru) Private Limited (MABPL) and WFS (Bengaluru) Pvt Ltd (WFSBPL). Additionally, a new Domestic Cargo Terminal project initiated by MABPL is underway and scheduled to be operational within the year. Air India SATS Airport Services (AISATS) has taken on the development, financing, operation, and maintenance of a new greenfield logistics park at KIAB for a 15-year period. The 370,000 sq. ft. park will offer Grade-A warehouse space with features such as …

According to a latest report by Alvarez & Marsal (A&M), the demand for Grade A warehousing stock will grow at a compounded annual growth rate of 12.5 percent until FY30. At present, up to 70 percent of Grade A demand comes from Delhi NCR, Mumbai, Bengaluru, Chennai and Pune. India is witnessing an emergence of high-quality warehousing infrastructure, recognizing warehouses as crucial components in delivering exceptional customer experiences. Sectors which are primarily driving the demand are retail, third-party logistics (3PL) and ecommerce. According to the report, these sectors are projected to contribute approximately 80 percent of the total demand for Grade A warehousing over the next five years. To meet the demands of a rapidly evolving market, these warehouses are equipped with state-of-the-art facilities and are strategically located near key transport hubs for efficient distribution. With advanced storage solutions and temperature-controlled environments, these warehouses are well-positioned to cater to the evolving needs of various industries, contributing to the overall growth and efficiency of India’s logistics ecosystem. ‘

United Parcel Service (UPS) is all set to sell its Coyote Logistics business unit to RXO for $1.025 billion, the companies said. The transaction will be funded with a mix of equity and debt, including a $300 million equity investment from MFN Partners and a $250 million equity investment from Orbis Investments, North Carolina-based RXO said in a statement. “The decision to sell our Coyote Logistics business allows an even greater focus on our core business,” UPS Chief Executive Officer Carol Tome said. RXO helps shippers and carriers to move freight. UPS bought Coyote Logistics from private equity firm Warburg Pincus for $1.8 billion in 2015 to expand its full-truckload services.

Air Cargo Forum India (ACFI) launched its Goa Chapter under the chairmanship of Thakur Purushottam, Business Head – GMR Goa Air Cargo at Goa Chamber of Commerce & Industry (GCCI). “This collaboration with ACFI will ensure the successful implementation of our regional initiatives, fully supported by our ACFI President and esteemed members. My vision is to build strong connections between the ACFI Goa Chapter and key players in the Air Cargo and Supply Chain sector in Goa and adjoining region. I firmly believe that managing the complexities of supply chain management and distribution networks effectively in this evolving landscape calls for building a strategic roadmap for air cargo logistics. I assure that the entire Goa Chapter will strive towards bolstering development initiatives to boost trade not only within this chapter but across the country,” said Purushottam. Ahmad Raza Khan, Partner, Samuel Dias & Co., Vice Chairman of ACFI Goa Chapter was also present at the prestigious launch. Swetika Sachan IAS, Secretary Industries, Govt. of Goa was invited as the Chief Guest.  The event was also graced by Abhishek Pravimal, IAS, MD, GIDC, Dr. Pravin Khullar, President, GPMA and Manguirish Pai Raikar, Chairman, Goa State Council of ASSOCHAM. The ACFI Governing Board and ACFI Secretariat will select the Goa Chapter Board members with the goal of boosting air cargo trade in the region. This initiative will focus on advocating regulatory changes with authorities, upskilling our industry colleagues, organizing curated events, as well as workshops, and driving collaboration with fellow trade bodies to advance the Air Cargo Logistics sector both in Goa and nationally. The primary aim of the Goa Chapter is to align with the ACFI Head Office and work towards common …

  C K Govil, President, ACAAI shares, “There’s need to simplify regulatory procedures. Simplification of customs and clearance processes to reduce delays. Harmonization of regulations and standards with international norms. Streamlining of licensing and operational permits also necessary. There is a need to Invest in modernizing and expanding airports, cargo terminals, and warehousing facilities. Development of dedicated cargo airports or zones. Enhancing connectivity with multimodal transport networks (road, rail, sea) crucial. Encouragement of digitalization and the use of advanced technologies (e.g., blockchain, AI) to improve efficiency. Support for research and development in logistics and supply chain management. Introduction of policies that promote the growth of the air cargo sector. Financial incentives, such as tax breaks or subsidies, to attract investment and innovation. Support for small and medium-sized enterprises (SMEs) in the logistics sector. Policies and incentives to promote the use of green technologies and practices. Support for initiatives that aim to reduce the carbon footprint of air cargo operations. Training programs and educational initiatives to develop a skilled workforce for the logistics and air cargo sectors. Collaboration with educational institutions to ensure curriculum relevance to industry needs. Implementation and enforcement of robust security measures to protect cargo. Ensuring adherence to safety standards to prevent accidents and losses. Bilateral and multilateral agreements to facilitate smoother international cargo movements. Active participation in global forums to influence international logistics policies. By addressing these areas, governments can significantly enhance the efficiency, competitiveness, and sustainability of the air cargo and logistics sectors.”

Ketan Kulkarni, Chief Growth Officer, Allcargo Group  shares, “As India is aspiring to become a $7 trillion economy, the logistics industry is set to play the role of a growth catalyst which will usher in the new era of economic progress. For that, the logistics industry requires consistency in policy, technology and infrastructure-led reforms. It is extremely encouraging to note that the NDA government in its third consecutive term has emphasised on the continuity and stability in the decision-making and policy measures and we expect the reflection of that intent in the full Budget. The logistics industry is at the cusp of technology transformation and structural transition thanks to the launch of National Logistics Policy and PM Gati Shakti National Master Plan. The foundation has been laid to further strengthen the logistics competitiveness of our country so that it becomes a key global manufacturing hub and investment destination. The full budget needs to continue with the infrastructure push to add momentum to the transformation-led growth. The logistics industry requires a holistic infrastructure development push to build a stronger distribution network and global value chain linkages. Along with infrastructure development, the budget should announce fiscal stimulus to boost the entrepreneurial ecosystem and create employment opportunities to drive consumption.  As the country aims to become carbon neutral by 2070, the full budget should propose measures to increase e-mobility and renewable energy adoption. The logistics industry expects incentives and policy support to adopt sustainable practices to accelerate the country’s progress towards a green economy.  There should be policy continuity in developing economic railway corridor programmes to boost rail freight share and reduce carbon emission as well as enhance operational and cost efficiency.  A dedicated focus …