Category Archives: Aviation

The International Air Transport Association (IATA) released data for October 2024 global air cargo markets.  The demand growth measured in CTKs (cargo tonne-kilometers) grew by 9.8 per cent in October 2024, in comparison to the corresponding period of 2023. This is the 15th month of consecutive growth for the global air cargo sector. The ACTKs (available cargo tonne-kilometers) levels rose by 5.9 per cent YoY during the same period. “Air cargo markets continued their strong performance in October, with demand rising 9.8% year-on-year and capacity up 5.9%. Global air cargo yields (including surcharges) continue to rise, up 10.6% on 2023 and 49% on 2019 levels. While 2024 is shaping up to be a banner year for air cargo, we must look to 2025 with some caution. The incoming Trump Administration’s announced intention to impose significant tariffs on its top trading partners—Canada, China and Mexico—has the potential to upend global supply chains and undermine consumer confidence. The air cargo industry’s proven adaptability to rapidly evolving geopolitical and economic situations is likely to be tested as the Trump agenda unfolds,” Willie Walsh, Director General, IATA, said.  

The much awaited, and India’s biggest Air Cargo Agents Association of India’s (ACAAI) 48th annual convention kicks off today in Baku, Azerbaijan. The inaugural ceremony will begin with welcome address by Manoj Kumar Jain, Convention Chairman, followed by the presidential address by C K Govil, President, ACAAI. HE Sridharan Madhsudhan, Indian Ambassador to Azerbaijan and Piyush Shrivastava, Senior Economic Advisor, MoCA, have been invited as the Guest of Honors for the evening. Samir Gogia from Deloitte will deliver the keynote address and vote of thanks will be given by Dinesh Krishnan, Convention Co-Chairman. ACAAI members will also be releasing Convention Souvenir 2024. The event scheduled to be held from Dec 5th-8th will also have insightful panel discussions on various topics such as infrastructure upgradation, digitalisation, sustainability, cyber-security and lot more. The event will have experts participating from all across the globe.

Kamal Jain, Director, Cargomen Logistics says, “Free Trade Agreement (FTA) shipments shipped by air cargo are given priority in customs clearance due to their time-sensitive nature, promoting seamless trade under FTAs. Air cargo often involves high-value, urgent, or perishable goods where delays can lead to significant losses. Prioritising these shipments aligns with trade facilitation goals, reduces supply chain disruptions, and enhances economic competitiveness. Faster customs clearances encourage businesses to leverage FTAs, boosts trade between partner countries, and supports strategic sectors like high-tech and pharmaceuticals. Faster clearance minimises congestion at airports, improves cargo flow, and strengthens international trade relations by fostering smoother and more efficient customs processes.”

Satish Lakkaraju, CEO, NexGen Logistics, Garudavega says, “FTA ensures trading of certain commodities which is beneficial for countries with surplus and this increases the trade between the country. It is not important that air cargo is given priority as once 2 countries decide to increase trade and FTA there will be certain goods that would only go by Air. Commodities like Perishable, High Tech and Automotive pharma etc. this commodities specifically should be given priority in the FTA and the overall trade between the countries will grow. Resulting in increase of air Cargo.”

Cyrus Katgara, Partner, Jeena & Company says, “The primary objective of FTAs is to ensure seamless cross-border trade eliminating the setbacks such as duties and trade barriers. As air cargo plays a pivotal role in the movement of goods across borders, prioritising air cargo in FTAs is of paramount importance. Any kind of bottlenecks existing in the current air cargo landscape that are posing as hindrances could be dealt with upon prioritizing the discussions on air cargo in FTAs. The more it is talked about, the more viable solutions are expected to surface. The government needs to promote air cargo as a product in the FTAs and strive for unrestricted skies policy which has the potential to leave a positive impact on cross-border trade. Currently, the dependence on ocean cargo with respect to the Indian EXIM trade is way more than that on air cargo. There are countries who have been immensely benefited by introducing air cargo in their FTAs. It won’t be incorrect to predict that if India walks the same path, it will not only give a great boost to the country’s EXIM trade but also increase investments and participation. Prioritising air cargo in FTAs implies promotion of the product at a global pedestal, igniting more discussions around it and ultimately, driving more foreign investments and participation from global players. Furthermore, when the sector is prioritised, a lot of roadblocks are most likely to get the attention of the concerned bodies and banished with time leading to an improvement of the sector and fostered EXIM trade.

Keku Bomi Gazder, MD and CEO, Aviapro Logistic Services says, “Air cargo should indeed be considered a priority in Free Trade Agreements (FTAs). Prioritising air cargo in FTAs can have a significant positive impact on cross-border trade for several reasons. Firstly, air cargo offers unmatched speed and efficiency in transporting goods, reducing lead times, and allowing for quicker delivery of products. This efficiency can lead to a boost in trade activities. It enhances accessibility to a wider range of markets, making it easier for businesses to engage in international trade and reach consumers globally. Secondly, Air cargo is particularly crucial for perishable and high-value goods that require swift transportation to maintain quality and value. Prioritising air cargo can open opportunities in sectors such as agriculture and electronics. Including provisions related to air cargo in FTAs can help reduce trade barriers, such as customs delays and bureaucratic procedures, further facilitating trade. Therefore Yes, prioritising air cargo in FTAs can streamline cross-border trade, boost economic activities, and help nations fully harness the benefits of international commerce. Prioritising air cargo in FTAs can offer several advantages to India’s EXIM (Export-Import) trade, investments, and participation in global markets. India’s exports, especially in sectors like pharmaceuticals, textiles, and electronics, can benefit from quicker and more reliable transportation through air cargo. This can open new markets and increase export volumes. A robust air cargo infrastructure can make India more attractive to foreign investors looking to establish supply chains or manufacturing operations in the country. It enhances India’s position as a favourable investment destination. Participation in global value chains becomes more accessible when there’s efficient air cargo connectivity. Indian businesses can become integral parts of international production …

Balasubramanian, Founder & CEO, Air Cargo Consultancy International Services (ACCIS) says, “According to IATA, 1% increase in air cargo connectivity is associated with a 6.3% increase in total exports and imports. We need not go back into history but simply recall the recent critical role played by air cargo during the Covid. The value of air cargo in saving lives and livelihoods was felt globally and recognized accordingly. Given that air cargo moves more than one third of the global trade by value, a recent study has established a direct relationship between air cargo connectivity and increased participation in global trade. It is obvious that the speed of air cargo plays a critical role in a business’s quest for quicker and faster access to competitive markets and to establish themselves as a long-term player. The direct correlation between air cargo and boost to EXIM trade by 1:6.3 is well supported by the results of the study quoted earlier. Access to more markets and expansion of global footprint is enabled by governments entering into agreements with other countries – be it in the traditional sector such as textiles, garments, leather or gems and jewelry or in the new age technological products such as electronics involving semi-conductors, microchips, other hardware equipment/accessories and the list is long. Bilateral and multilateral trade agreements bring in foreign direct investment (FDI) leading to both setting up of new facilities and enhancement of existing capacity. One of the key objectives of such enhancement of production capability is to boost export trade to narrow the gap of balance of trade. These specific steps play a key role in increased participation of India in the global arena and in …

C K Govil, President ACAAI shares, “India has been promoting ease of doing business, and FTAs are a testimony to that effort. India has been promoting FTAs with bilateral and regional partners to boost export-oriented domestic manufacturing. Last year, India carried 2.2 million tonnes of air cargo, 70% of which was to international sectors. This is one-tenth the size of the American air cargo market and one-fifth of China’s. This figure can increase if air cargo is prioritized under the FTAs. India currently has 13 FTAs operational and 8 under negotiation. These are bound to uplift Indian trade on the global platform. In the past five years, India’s merchandise exports have grown by 20.75% to countries with which it has signed FTAs. It will go up if FTAs focus on air cargo. While the National Logistics Policy and Gati Shakti gave the recognition to air cargo, now it needs the boost that prioritization in FTAs can provide. FTAs reduce trade barriers and remove export regulations, thus facilitating EXIM traffic. India’s exports to ASEAN Countries have increased from US$25.13 billion in 2016 to US$31.49 billion in 2021. Our exports to SAFTA nations have grown from $18.60 billion in 2016 to $22.08 billion in 2021, and to South Korea from $3.52 billion in 2016 to $4.68 billion in 2021. Our FTAs have brought in a cumulative investment of $89.54 billion in just five years. And that is just the beginning. We have seen a similar trend whenever an FTA has been signed, and the number of Indian trade partners is increasing. This will attract further foreign investments and participation in our country. Air cargo cannot be left behind amid all this action.”

Sunil Kohli, MD, Rahat Cargo says, “In the current global context, a free-trade policy leading to a Free Trade Agreement (FTA) between two nations may simply be termed as the absence of any trade barrier between them. However, the respective governments having entered into such FTAs do not necessarily abandon all control of imports and exports or eliminate all protectionist policies which may also have exceptions in regard to import of specific drugs not approved by its regulators, pharmaceuticals or processed foods, fruits & vegetables, not in conformity with their approved standards. Therefore, in light of the availability of a free exchange of goods between two countries, it can be undoubtedly surmised that air cargo can play a vital role in transporting assorted commodities between them at an accelerated pace. And hence formulating a policy prioritising the air cargo on FTAs can yield an extremely positive outcome which may facilitate the countries to experience faster & unhindered growth while better meeting the needs of their consumers. Further, a free exchange of export/import of cargo by air between two nations would definitely enhance quantum of such activities thereby leading to a boost in the cross border trade with mutual commercial advantages.”

Lufthansa Cargo and Maersk have signed an agreement to promote the decarbonization of airfreight with SAF (Sustainable Aviation Fuel). It will use 400 metric tonnes of SAF on behalf of Maersk in the remainder of 2024. The expected cut down of CO2 emissions corresponds to at least 1,200 metric tonnes. “SAF is a decisive technological key to more sustainable flying and essential for the energy transition in aviation. With Maersk we are jointly making a valuable contribution with the new agreement. At the same time, more sustainable flying also requires major efforts for a modern fleet and increased efficiency in flight operations. It is only through this interplay that change can be achieved sustainably,” Ashwin Bhat, CEO, Lufthansa Cargo, said.