Category Archives: Aviation

C K Govil, President, The Air Cargo Agents Association of India said, “The recent 25 per cent tariff imposed by the U.S. on Indian exports underscores the urgent need for India to accelerate its journey toward self-reliance. Under the visionary leadership of PM Narendra Modi, the Atmanirbhar Bharat initiative aims to make India a globally competitive, resilient economy by 2047. This move by the U.S. reinforces the importance of building strong domestic manufacturing capabilities, diversifying export markets and reducing import dependencies—especially in sectors like electronics, energy and defence. Rather than viewing this tariff as a setback, India can seize it as a catalyst to fast-track reforms, strengthen its industrial base and become a trusted global alternative. A self-reliant India is not about isolation—it is about resilience, innovation, and global integration on India’s own terms.’

Gautham R, Senior Manager – Global Air Freight, Head – Air Freight, India, WIZ said, “With the 25 per cent tariff imposed by the US on Indian goods effective August 1, we anticipate a negative impact on market demand. To retain volume in a sluggish trade environment, air freight rates from India could drop by 20–35 per cent, especially if the situation persists. Sectors exporting high-value goods are likely to see a decline in demand. However, the smartphones, pharma and energy is kept out of 25 per cent tariff radar as per White house report. Additionally, we’re observing a potential shift in freighter routings, with carriers optimising for destinations that offer better yields, responding to evolving demand signals. Businesses should start planning for rate fluctuations and explore alternate strategies to mitigate the impact.

Vipin Vohra, Chairman, Continental Carriers said, “The move is expected to hit key Indian export sectors—gems, jewellery, textiles, pharmaceuticals, electronics and auto components—by making them less competitive in the US market. Indian equities tumbled on related fears, while trade and government leaders emphasise that ongoing bilateral talks may help limit the damage. Indian industry voices call to diversify trade, turning attention to Europe and ASEAN as alternatives.”

With the festive season around the corner, LinkedLogi, an AI-powered multimodal freight platform, is streamlining upstream logistics for e-commerce and quick commerce players by addressing first and middle mile inefficiencies. The company tackles key pain points such as fragmented logistics, limited route visibility, manual documentation and delayed lane bookings  all of which often lead to delivery delays before the last mile. Through advanced RFQ automation, verified provider matchmaking, route optimization, and streamlined documentation and invoicing workflows, LinkedLogi enables faster movement of goods from factories, suppliers, and warehouses to dark stores, fulfilment centers, and micro-hubs. This is particularly beneficial for brands looking to scale operations in Tier 2 and Tier 3 markets, where logistics fragmentation remains a significant challenge. By automating RFQs (Request for Quotes), reducing response time by up to 40%, and enabling verified provider matchmaking, LinkedLogi ensures faster movement of goods from factories, suppliers, and warehouses to dark stores, fulfilment centres, or micro-hubs.

          Preliminary figures released by the Association of Asia Pacific Airlines (AAPA) show demand rose in the region last month as manufacturing picked up and front loading continued. International air cargo demand, as measured in freight tonne kilometres (FTK), grew by 5.6% year on year in June.  The recovery came on the back of a rebound in global manufacturing activity, notably in consumer and intermediate goods. Traffic was also underpinned by front loading and rerouting of shipments ahead of possible US tariffs and other uncertainty over global trade. However, load factors declined as offered freight capacity increased by 7.1%, resulting in a 0.8 percentage point decline to an average of 62.1% for the month. AAPA director general, Subhas Menon described demand as “relatively resilient”. He added: “Cargo volumes are also growing as demand for air freight services, particularly in the e-commerce and time-sensitive segments, is still very strong.”

Delhi International Airport Limited (DIAL) crosses 1 MMT in cargo handling, consequently becoming India’s No.1 cargo airport, two years in a row. In FY’25 alone, Delhi Airport handled 1.1 MMT, with a YoY growth of 11 per cent, maintaining the top spot in India. With world-class infrastructure and the capability to manage everything from perishables to high-value cargo, Delhi Airport continues to strengthen India’s air cargo network.

The first dedicated cargo air corridor from Zhejiang, China, to Central Asia commenced operations. A Boeing 767 freighter from Uzbekistan’s carrier, My Freighter, left Hangzhou Xiaoshan International Airport for Tashkent carrying over 50 tons of essentials and apparel. The route marks Hangzhou Xiaoshan’s second foreign cargo pathway this year, pushing regular international routes to 20, and almost 100 weekly flights. Airports in Zhejiang manage 53 international cargo routes. The service runs on Wednesdays and Sundays, taking roughly six hours per trip. Return flights are set to deliver fresh produce from Uzbekistan back to China. Xu Jie from Zhejiang Donglixin Supply Chain Management Co., Ltd. stated, “More flights will be added to the route in the future in response to strong market demand.” Hangzhou customs highlighted plans to refine customs operations and cut logistics expenses.

The International Air Transport Association (IATA) released data for June 2025 global air cargo markets showing Total demand, measured in cargo tonne-kilometers (CTK), rose by 0.8 per cent compared to June 2024 levels (1.6 per cent for international operations). Capacity, measured in available cargo tonne-kilometers (ACTK), increased by 1.7 per cent compared to June 2024 (2.8 per cent for international operations).  “Overall, air cargo demand grew by a modest 0.8% year-on-year in June, but there are very differing stories behind that number for the industry’s major players. Trade tensions saw North American traffic fall by 8.3% and European growth stagnate at 0.8%. But Asia-Pacific bucked the trend to report a 9.0% expansion. Meanwhile disruptions from military conflict in the Middle East saw the region’s cargo traffic fall by 3.2%,” said Willie Walsh, IATA’s Director General. “The June air cargo data made it very clear that stability and predictability are essential supports for trade. Emerging clarity on US tariffs allows businesses greater confidence in planning. But we cannot overlook the fact that the ‘deals’ being struck are resulting in significantly higher tariffs on goods imported into the US than we had just a few months ago. The economic damage of these cost barriers to trade remains to be seen. In the meantime, governments should redouble efforts to make trade facilitation simpler, faster, cheaper and more secure with digitalization,” said Walsh.

US President Donald Trump has announced his decision to impose 25 per cent tariffs on goods imported from India along with an unspecified penalty on India for buying Russian oil and weapons starting 1 August.  “Remember, while India is our friend, we have, over the year done relatively little business with them because their tariffs are far too high, among the highest in the world and they have the most strenuous and obnoxious non-monetary trade barriers of any country,” Trum said in a post. Reacting on how the decision will impact the trade, Sunil Kohli, MD, Rahat Cargo said, “The sudden announcement of a 25 per cent tariff on Indian goods, while higher than anticipated, broadly falls within the 15–20 per cent range that markets had been bracing for. This could well weigh on near-term export competitiveness and trigger currency volatility if sentiment deteriorates. What is more concerning is the penalty clause, which remains unquantified at this stage. However, if the tariffs stay at 25 per cent for an extended period, the impact could be significantly negative. The agricultural and dairy product protections remain primary concerns, as these sectors are politically and economically sensitive for India. Hence, India is negotiating with the US against any tariff reductions on dairy, rice, wheat and genetically modified (GM) crops like corn and soybeans citing the livelihoods of over 700 million rural citizens, including 80 million smallholder dairy farmers. Many Indian exporters are now preparing for the worst. The newly imposed tariff could affect products like gems and jewellery, auto parts, seafood, textiles and chemicals as these are major exports to the US. In 2024, India exported goods worth $87 billion to the US …

Rajkot International Airport has finally received the formal approval to commence cargo operations through its passenger terminal, as the airport’s dedicated cargo terminal remains under construction. The move comes as a major relief for local silver, gold and imitation jewellery manufacturers, who are among the primary users of air cargo services in the region and were facing difficulties.