Although, the global cargo industry has scaled up its capabilities, collaboration and readiness amidst the COVID-19 gloom, in order to succeed, the global service firms/players need to continue working together as a TEAM in full transparency to ensure integrated, fast, secure and reliable delivery of cargo, concretely. The industry needs to work hand-in-hand and connect with each other to be agile enough and leverage each other’s capabilities, experience and assets to deliver according to market demand and specifications, especially COVID-19 vaccinations, safely and efficiently at scale. Stakeholders should now work towards lifting each other up by enhancing their overall performance, as delivering cargo and time-critical and efficient logistics calls for an absolute teamwork. The time has come, when a collaborative approach can only charter a pathway for growth by adopting new trends and technologies and rescue the industry from this unprecedented crisis. This also holds importance of an overall mix of cargo transport.
CARGOCONNECT
As we look back over the past 19 months, when the COVID-19 pandemic instigated and just began to unfurl around the globe, resulting in the devastating effects on the mankind and the industries alike, the global air cargo industry stayed in the “Spotlight” for the crucial role it played in delivering essential commodities, medical equipment, PPE items, pharmaceutical products, etc. worldwide.
Despite the massive decline in the passenger traffic, especially during the initial 10 months of 2020, the industry witnessed noteworthy trivial growth in the “cargo volumes” partly due to the high demand for e-commerce goods, and a recovering industrial sector, particularly in Asia and the Middle-Eastern countries – serving as a well-known indicator for global air cargo.
According to the Airport Council International (ACI) Annual World Airport Traffic Report (WATR), the initial months of 2020 saw passenger traffic dropped by 63 per cent but the reduction in cargo growth was less dramatic, falling only by 11 per cent. Since then, cargo growth has proven to be resilient in comparison with passenger traffic.
Throughout 2020, the impact of the crisis on the aviation business was so deep and austere that passenger aircraft remained grounded in the deserted airport bays because of 80 per cent reduction in the passenger demand. While cargo demand increased considerably.
However, tight capacity has been looming since the onset of COVID-19. Capacity for ground and ocean cargo was swamped. And that demand for capacity spilled over into air cargo.
Besides consumers’ change in shopping habits, manufacturing was at record levels. The purchasing manager’s index (PMI) came in at a reading of 53.4 in January 2020, up from 51 in December 2019. A reading above 50 indicates a growth trend. This indicates economic growth may run for a while as pent up demand unleashes.
The retrofitting and manufacturing of cargo planes is one example boosting the PMI.
In a report by CNBC published in May, Boeing is converting passenger fleets to cargo jets. Along with building new air cargo planes, Boeing is converting outdated 737 passenger planes for companies like Amazon to meet e-commerce’s growing demand. It is doing the same for Chinese airlines in Shanghai, Guangzhou, and Jinan.
The growth of e-commerce and the general economic recovery are likely long-term trends. Fed by new technologies and new business practices, we can expect long-term growth. And that will further challenge the trend of scarce air cargo capacity.
Therefore, combating all the challenges thrown upon by the ongoing pandemic, the world of air cargo continues to rise to the challenge.
For the first time in the history of aviation, many parked aircraft were brought back into service by converting it into cargo freighters by removing its cabins and passenger seats to enhance the available payload. Air cargo experts say, mobilisation of more than 2,500 parked passenger aircraft for cargo-only operations was the historic and most innovative of all the decisions taken in order to defeat the crisis, followed by automation of internal operations which immensely helped in attaining transparency, resiliency, and efficiency in the value chain.
This digitalisation of operations and business transactions is changing how products are designed, fabricated, used, operated, and serviced post-sale, just as it’s transforming the functional and energy footprint of factories and the management of manufacturing supply chains. This convergence of digital technologies with service industries also promises to recast the landscape of global trade.
No doubt, digitalisation literally rescued the air cargo industry from the severe impact of COVID-19. From giant companies to SMEs and start-ups, the industry stakeholders readily embraced and invested in latest technologies for smart working.
The next key growth driver which chartered the pathway for growth amidst the pandemic is domestic and cross-border e-commerce trade. Following all the COVID-19 protocols, customers preferred purchasing everything online—from groceries to apparel, consumer durables, and even medicinal products.
Even the exports of immunity boosting spices like turmeric and ginger from India saw a considerable hike.
Comprehensiveness and collaboration: Smart, Creative, Effective
The only way global air cargo industry can move forward is through a collaborative approach—by being united, working in unison with each other—towards developing customised delivery models and handing over freight to the final-mile receiver—faster, safely and efficiently. Overall, the approach at this point of time is to lift each other up and work together as a strong force.
Pressured by customer demand, a rising trend toward an omnichannel strategy is afoot. Airlines are seeing a need to look beyond traditional airport-to-airport service. Now, airlines and other stakeholders see opportunities in providing end-to-end services. This trend is particularly taking shape in Europe.
For instance, to optimise delivery, Swiss WorldCargo has partnered with the Swiss Postal Service. In the US, Amazon is expanding its Amazon Air Services and combining it with its ground transport services. Amazon’s goal, like Swiss World’s to provide seamless end-to-end service.
In North America, FEDEX and UPS comprise 80 percent of the air cargo market. Now, Amazon is snapping up air cargo space to meet its needs. That leaves only a small percentage for others to expand into air freight services.
As this trend unfolds, partnerships between airlines and shippers will likely increase. Likewise, shippers and airlines may also increase partnerships with integrators/3PLs.
Experts believe greater collaboration and cooperation can only determine success in these times. Earlier the industry faced challenges such as national lockdowns and border shutdowns; these are now replaced with vaccine distribution followed by consequent recovery of global trade and world economies.
And in order to cope up with the challenges, it’s highly commendable to see industry stakeholders—airlines, airport communities, supply chain partners working more closely together, communication is more open and transparent and greater focus is on the common goal of providing a connected, secure and efficient environment to move freight across and beyond territories.
Abu Dhabi’s The HOPE Consortium is one such example of successful cross-sectoral collaboration.
“Vaccinating the world against COVID-19 is a tremendously complex task, for governments, NGOs, vaccine manufacturers and distributors worldwide. This is an extraordinary crisis and requires a collective effort to help emerge from this crisis in the shortest possible time. The HOPE Consortium is a commitment to the global battle against the COVID-19 pandemic. It was formed with six founding partners— Abu Dhabi’s Department of Health, Etihad Cargo, Abu Dhabi Ports, Rafed, Maqta Gateway and SkyCell. The initiative aims to tackle the various logistical and infrastructural challenges of global vaccine distribution as well as the implementation of appropriate deployment strategies, plans and policies to ensure a complete global distribution of the COVID-19 vaccines,” said the Etihad Cargo spokesperson featured as part of ‘Terrific Together in Connecting Continents’ chapter.
“So far, leveraging its end-to-end supply chain, The HOPE Consortium has delivered over 47 million vaccine doses in 35 countries and isfurther planning to expandits resources to handle the storage and the distribution of 18 billion doses per annum. This has been achieved via a unique and collaborative approach which has linked both the physical and digital supply chain from production to patient,” highlighted the spokesperson.
Air cargo industry analysts like Glyn Hughes, the present Director General of TIACAhad already said, that looking at the current situation, community-based collaboration will be needed more than ever, as the passenger side of the industry will face several challenging years ahead to resume previous levels of global network connectivity and passenger numbers.
“This means the air cargo will continue to operate in a capacity challenging environment, with increased volumes of air cargo demand. Especially, in the area of special cargo which bring enhanced requirements for handling quality, facilities and focus on timelines. Successful airport communities will be those which can anticipate these enhanced demands and have effective response plans in place. Long-term infrastructure investments in specialised facilities also dictate the need for collaborative and open community dialogue,” Hughes mentioned.
“As we have seen with the first few months of COVID-19 vaccine distribution, those airport communities which already had demonstrated expertise in the safe and secure movement of precious cargo, have been the first to which this new cargo has been routed,” he further added.
Lastly, Hughes said, the industry is being encouraged to adopt a local air cargo community approach in executing these specific requirements. “Digitalisation is also a critical enabler, as real-time, accurate information sharing is imperative. This will also enable communities to connect with other communities, creating global networks of trusted partners.”
Disrupting the Cargo of Things marketplace
Amidst the pandemic, air cargo is definitely on the course for growth, but is facing volatility in demand, supply and prices. For the first time, leaving behind the fierce competition, the air cargo industry stakeholders— airlines, airports, ground handling firms, freight forwarders, GSAs, etc. are unanimously working towards achieving a common goal of attaining pre-COVID-19 growth levels, by adopting various competent and reliable strategies, be it making effective use of technology, aircraft conversion, or expanding networks and freighters.
The idea is to support, motivate and encourage each other to perform better, while dealing with demand supply constraints and price hikes.
As long as demand for cargo space exceeds supply, rates will continue to rise. Currently, international travel is 88 per cent below pre-crisis levels. That’s significant because passenger planes transport 60 per cent of all air cargo.
In May this year, IATA reported that more air cargo planes are flying today than in pre-crisis times. In total, 1,100 air cargo planes are operational—240 more planes than in January 2020. Yet, the industry still has a 39 per cent capacity shortage.
To ease capacity constraints, manufacturers are building more cargo planes and retrofitting passenger planes. While helpful, it takes time to manufacture and retrofit planes.
So, stable rates remain elusive for the long-term. As distribution of vaccines shifts to international deliveries, rate volatility will likely persist. Also, the uneven opening of economies should further delay stabilisation of rates.
According to IATA, Asia-Pacific airlines saw demand for international air cargo rise 10.5 per cent in February 2021 compared to the same month in 2019. As the main global manufacturing hub, the region has benefited from the pickup in economic activity. The region’s airlines reported the highest international load factor at 77.4 per cent. While, North American carriers posted a 17.4 per cent increase in international demand in February 2021. Economic activity in the US has been reported to recover, supported by the rising demand for e-commerce amid lockdown restrictions. Similarly, European carriers posted a 4.7 per cent increase in demand in February compared to same month in 2019. Cargo demand was largely unaffected by the new lockdowns in Europe and the operating conditions remain supportive for air cargo.
Middle Eastern carriers also posted an 8.8 per cent rise in the international cargo volumes in February versus February 2019. Of the region’s key international routes, Middle East-Asia and Middle East-North America have provided the most significant support, rising 27 per cent and 17 per cent respectively in February compared to February 2019.
The only region whose carriers recorded decline in cargo activity during 2020-2021 is Latin America. The carriers reported a decline of 20.5 per cent in international cargo volumes in February compared to the 2019 period asthe drivers of air cargo demand in Latin America remain relatively less supportive than in the other regions.
Even African carrier’s cargo demand in February increased a massive 44.2 per cent compared to the same month in 2019, the strongest of all regions. Robust expansion on the Asia-Africa trade lanes contributed to the strong growth.
For example, one of the largest multinational pan-African carriers, Ethiopian Airlines has converted 25 passenger aircraft to “preighters” in addition to the existing freighter fleets to support countries across the globe in their fight against COVID-19.
According tothe Ethiopian Airlines’ spokesperson featured as part of ‘Terrific Together in Connecting Continents’ chapter, the carrier has invested heavily in cargo infrastructure development in terms of warehouse facility, fleet size/mix, as well as cargo expertise development. “During the COVID-19 outbreak, Ethiopian was therefore well-equipped to deal with the new normal,” the official said.
“In general, airlines have learnt a lesson that investing in cargo business is very important, especially in a situation like COVID-19, where passenger operations almost ceased and the aspect of cargo took the lead to rescue airlines from a complete collapse. That said, Ethiopian has rewarded itself from the investments it has made over the years in its cargo infrastructure development, fleet, manpower as well as ICT to successfully navigate through the crisis period. In FY 2019-20, the carrier transported more than 525,374 tonnes cargo, achieving an average of 24.76 per cent growth rate for the past three years,” the official added.
For the near future, the carrier has planned to add more new freighter destinations in order to increase global coverage. The carrier is also planning to add B737-800F and B777-200F freighter aircraft in the coming year.
In fact, since March 2020, Swiss WorldCargo has been transporting goods using its cargo-only passenger aircraft. “In this sense, we have been able to effectively meet the strong demand for cargo during this time period. However, our core offering as a belly cargo carrier—is that we transport goods in the bellies of our aircraft, wherein we are able to supplement our passenger transport efforts. Our capacity both in ‘preighters’ as well as bellies is particularly strong on our intercontinental flights. Our flagship Boeing 777-300ERs as well as our Airbus A340-300s and Airbus A330-300s offer large amounts of cargo space. As already mentioned, we have established ourselves with the focus around transportation of care-intensive, high-value goods, such as valuables, engineering components, and pharmaceuticals,” the senior-level spokesperson from Zurich-based carrier said to CARGOCONNECT.
Meanwhile, the Volga-Dnepr Group spokesperson noted that the group managed to cope with the challenges by adjusting flight schedules, planning charter flight programmes, operating urgent charters to guarantee delivery of much-needed cargo worldwide and assisting the regions and nations in their battle against COVID-19 spread.
“Throughout 2020, our planes were up in the sky delivering much-needed cargo with PPE, vaccine equipment, medical supplies and other cargo aimed at overcoming COVID-19 consequences. We continued to follow market sentiments and customers’ needs and introduced new products within Volga-Dnepr Group, which are long-term regular charter and ACMI programmes, as well as scheduled and charter operations. Of course, we do leave space for free sales (though various channels, including e-bookings), urgent charter options and prioritising healthcare shipments such as vaccines. This product and service range is allowing us to follow our growth strategy and we are confident to achieve pre-COVID-19 volumes soon,” said the official.
Canada’s flag carrier Air Canada is nowhere behind.
As a belly carrier, Air Canada had to pivot rapidly at the start of the pandemic to capitalise on the airline’s passenger fleet for cargo-only flying. That programme kept volumes high in 2020 and the trend has continued in 2021. In fact, in July, the carrier said it marked its 10,000th cargo-only flight, which is a remarkable accomplishment given that the first such flight was launched in March 2020.
“The cargo-only flights allowed us to put scheduled flights on routes where passenger flights were grounded, and to add capacity on routes where passenger flying continued (for example: London, Paris, Frankfurt),” said the carrier’s spokesperson while speaking to CARGOCONNECT.
“As for post-pandemic growth, our focus for the rest of 2021 is adapting to cargo-only flying and ramping up operations for the integration of our first Boeing 767 freighter arriving in the ‘Fall’ 2021. The programme is key to our post-pandemic strategy, as it will enable us to provide consistent capacity in markets where there is fluctuations in terms of passenger operations. It will allow us to sell main-deck capacity and feed our widebody passenger belly routes,” the senior-level official informed.
“Our pivot to cargo-only flying was one of many steps the leadership team took in an effort to limp through the challenging times. As the world reopens and passenger activity begins to resume, the biggest untapped opportunity lies ‘within the talent we have at this great airline to ensure we continue to foster and encourage the environment’, embracing the creative culture and driving change by thinking beyond the norms to solve problems. We have so many great examples of employees jumping in and finding new ways to run the business better. Therefore, it is our duty to continue to empower and support the entrepreneurial spirit that has helped us get through the worst of 2020,” he expressed.
For the largest European carrier Lufthansa Cargo, preighters are a special solution in special times. They are especially helpful when a large amount of medical protection equipment, such as masks need to be transported around the globe fast. Due to its light weight, such cargo can be transported in the passenger cabin very well.
According to the Lufthansa Cargo spokesperson featured as part of ‘Terrific Together in Connecting Continents’ chapter, the carrier is planning to expand its freighters to 15 long-haul freighters and two converted freighters on continental routes across Europe that complement the bellies of its passenger airlines— Lufthansa Airlines, Austrian Airlines, Brussels Airlines, Eurowings Discover, and SunExpress.
Most importantly, access to space-efficient and secure shipment solutions is absolutely vital, and for that Envirotainer has launched an industry-latest and most innovative container solution—the Releye® RLP, as the company is currently seeing an increased demand both for regular temperature-sensitive shipments as well as for the COVID-19 vaccine shipments.
“As the market leader in secure cold chain solutions for air transportation of pharmaceuticals, we have already facilitated transportation of more than 250 million doses of COVID-19 vaccines. But we are not stopping there; we have increased production of our RKN e1 and RAP e2 containers. We also recently launched the Releye® RLP temperature-controlled container that we believe will revolutionise the market. It is stronger, safer, better for the environment and more connected than all other competing solutions combined—with fully integrated live monitoring, and a unique airflow technology for maximum temperature stability in the cargo bay,” the spokesperson from Envirotainer highlighted.
“Our objective is to help our customers deliver life-saving medicines to the right people, in the right time and in the right condition. We are working with all our partners and customers to make the solution available so that they can benefit from the increase in available capacity, performance and functionality,” the official added.
Cargo and ground handling firms are also leaving no stone unturned and working 24x7 to ensure highly efficient cargo handling and transportation operations.
Turkey-headquartered Çelebi Aviation,one of the largest independent ground handling companies in India and present since a decade now, carrying out ground handling operations at seven major airports of the country, including Mumbai, Delhi, Bengaluru, Hyderabad, Kochi, Ahmedabad and Kannur, tackled the plethora of challenges brought in by the pandemic and now geared up to capture additional opportunities with India Inc scaling up the largest ongoing vaccination drive.
“I feel it’s all in understanding the kind of opportunities that exists, how the business can be expanded, how the sector could be made attractive for both domestic and international players. Once the economies of scale come into play, players would be more interested to step into this sector as it has the potential to grow and develop into a decent preposition,” the top-level official said to CARGOCONNECT.
“We foresaw the need to adopt GDPR compliance norms in India and initiated measures towards it to ensure that we were safeguarding not just ourselves but also looking at the needs of our European customers where such compliance is the norm. While we drove a host of enhancements on our core cargo management software, the focus was on improving the efficiency of our operations without halting projects. As such, we will try to do more things which are intelligent and systems-driven and more automised.”
“As Çelebi looks forward to 2022 and beyond, we continue to push the boundaries of technology initiatives like automated storage and retrieval system (AS/RS) for cargo handling and management, evaluating the use of autonomous vehicles, pursuing accelerated digitisation as the standard while leveraging intelligent technologies like Blockchain, AI and IoT as the blueprint for survival,” he said.
The BEST FOOT forward
The supply chain industry is transforming, and so is air cargo. And, emerging trends will reshape the air cargo industry from its pre-pandemic operations.
Some of these trends will take effect before others. But what’s notable is that these trends will have lasting effects. That is, they will change best business practices as well as technologies. That should result in improved operational effectiveness and efficiency.
As the global cargo industry transforms, supply chains must transform with it.
Airlines are starting to devote more space to COVID vaccine shipments. As immunisation levels rise, more vaccines are being designated for less developed countries. Seabury Consulting forecasts vaccine shipments moving by air will peak in mid-to-late summer.
Therefore looking ahead, we can see the entire logistics and cargo handling industry accomplishing the task of distributing COVID-19 vaccines worldwide—as it undoubtedly has to be the foremost priority at the moment.
Ecom Express Limited, India’s sole pure-play B2C e-commerce logistics provider as of the Financial Year 2024, has introduced a new brand identity, underscoring its commitment to customer-centricity. This rebranding reflects a focus on addressing specific customer needs, prioritising customer-facing metrics, and integrating innovative technology across its nationwide express logistics network. The goal is to enhance speed, agility, and network reach, ensuring a customer-focused approach. The rebranding includes a dynamic logo and a refreshed visual identity, symbolising Ecom Express’s pursuit of excellence. The new logo features a forward-moving arrow within a square, representing the company’s dedication to delivery. The letter "E" in the logo stands for Expression, Innovation, and Progress, while the bold magenta colour signifies bravery, self-expression, and strength. This vibrant magenta reintroduction reflects Ecom Express's renewed commitment to customers, partners, and team members, as the company aims to simplify and democratise logistics for all. Ajay Chitkara, CEO and MD of Ecom Express, elaborated on the transformation, stating, “Our refreshed brand identity reaffirms our customer-first approach as we continue to integrate technology and innovation to provide reliable, high-speed services with the widest network reach. This transformation also underscores our commitment to our employees and delivery partners, who are essential to our business.” The new logo embodies Ecom Express’s dedication to its core values, focusing on customer welfare and fostering a diverse, inclusive environment. This rebranding signifies a promise to redefine logistics through advanced technology, making life easier for all types of customers.
Building a visionary company requires one percent vision and 99 percent alignment. This analogy resonates deeply when we compare the process of building a company to conducting a symphony orchestra. Just as a conductor leads musicians to create a harmonious masterpiece, a successful business and its management fosters alignment among team members to achieve extraordinary success. In the business world, this vision translates into a clear understanding of where the company wants to go and what it aspires to achieve. The one percent of vision acts as the guiding force that sets the stage for greatness. However, a conductor alone cannot create a symphony. The true magic lies in the collective effort of the musicians, each playing their part to perfection. Similarly, in a visionary company, alignment becomes paramount. Every team member needs to be facing in the right direction, equipped with the right skills, and focused on delivering the right results at the right time. By fostering alignment, harnessing the diverse talents within the team, and continuously fine-tuning performance, savvy teams and visionary leaders carry the potential to transform their companies into harmonious and successful organisations that resonate with greatness. Embracing the power of alignment, inspiring teams with a clear vision, and actively cultivating an environment where every member can contribute their unique talents, RE Rogers India has over the years formed an indispensable pillar of business triumph. Most recently, the company orchestrated a symphony of success handling over 300 events in the fiscal year 2023. Four of these were mammoth events taking place in four different cities at around the same time frame. And these were not merely gatherings, they were milestones. The four gigantic events (CPHI and PMEC 2023 – 28 to 30 November at India Expo Centre, Noida; ENGIMACH 2023 – 6 to 10 December at Helipad Exhibition Centre, Gandhinagar, Gujarat; EXCON 2023 – 12 to 16 December at Bangalore International Exhibition Centre, Bengaluru; PLASTIVISION 2023 – 7 to 11 December at Bombay Exhibition Centre, Mumbai) entailed approximately 650 on-ground manpower, 4300 packages, 370 equipment display, and 3600 vehicles. The symphony of greatness bubbled up in RE Rogers India's operational procedures and functions, and the teams and management leadership soared to create a masterpiece of lasting success as always. "To our heroes who faced the challenges head-on in handling their jobs with total finesse, and to our valuable customers who trusted us blindly during our busiest period pan-India: A HUGE THANK YOU!," the RE Rogers India team was quoted expressing in a LinkedIn post. As the demand for large-scale events and exhibitions continues to rise, the need for comprehensive and reliable exhibition logistics services has never been more critical. In India, where the exhibition industry thrives, one name stands out among the rest — RE Rogers India — who have been delivering unparalleled logistical solutions tailored to the unique demands of the exhibition sector. RE Rogers India have years of first-hand, specialist experience in handling every aspect of exhibitions, ranging from freight forwarding, transportation, customs formalities, secure handling of materials, on-time delivery and site assistance and supervision. Remember that logistics is not just about getting your materials from point A to point B; it’s about ensuring a seamless and stress-free experience for everyone involved in your exhibition, from exhibitors to attendees. So, if you partner with RE Rogers India, you’re not just hiring a logistics company; you’re bringing a dedicated and reliable team on board to ensure your exhibition materials reach their destination in perfect condition and on time. Having served a variety of clients from both the domestic and international arena, the company has developed deep understanding of the unique challenges of delivering time-critical goods in the face of huge crowds, open day pressure, and complex logistical requirements. RE Rogers India fully understands the value of complete exhibition sets in terms of the clients’ reputation and market standing, ranging from trade show booths, exhibits, and other equipment, which include wooden panels, steel frames, prefabricated designs, bunk houses, E-houses, printed material, lights, electronic items and other display resources. The company therefore takes utmost care to pay close attention to critical things like packing, loading, storing, lifting, etc. so as to eliminate any chance of damage. Due diligence is also exercised in choosing optimum and fastest mode of transport to enable the materials to reach the venue well in time, so as to facilitate timely set-up by the clients team at the venue. Post-exhibition, pick-up and delivery back to the shipper is also handled. With RE Rogers India as your esteemed logistics partner, you can focus on wowing your audience and making the most of your exhibition experience. Under the astute leadership of Ravinder Sethi, RE Rogers India is not just reaching new heights; it is setting successive benchmarks. With the innate ability to see through the intricacies and a commitment to perfection down to the minutest detail, Sethi has steered the company towards a trajectory of unparalleled success. His visionary approach complemented by the team's meticulous attention to excellence have become the driving force behind RE Rogers' ascent in the events and exhibition logistics sector. The collective efforts of Sethi and his entire team continue to sculpt a legacy of precision and excellence in the world of logistics that remains exciting, challenging and rewarding.
The Federation of Freight Forwarders’ Associations in India (FFFAI) held its 6th EC Meeting for the term 2021-23 on May 27 and 28 in Bengaluru. The meeting was attended by the Office Bearers and 28 Member Association representative of FFFAI from across the country, there were many issues discussed and updates provided concerning customs, CBLR, EDI, Service Tax/GST, logistics, air cargo, sea cargo, skill development,importance of social media which FFFAI has expanded recently, technology developments, etc. The special focus of the 6th EC meeting was the updates on forthcoming 24th Biennial Convention of FFFAI to be held from August 12 to 14, 2022 in Chennai with the theme LOGISTICS RESHAPE, EMBRACE AND SURGE IN THE DIGITAL ERA. At this EC meeting, FFFAI also implemented Digital Learning platform for members and next generation for e-learning. It has been decided that FFFAI would initiate FIATA eFBL here in India to benefit the trade, which empowers customs brokers, freight forwarders and logistics service providers. In addition, updates on the recently held FIATA HQ Meet was also provided by the concerned members of FFFAI. FFFAI members present at this EC meeting stressed upon enhancing productivity on ICEGATE for trade facilitation and Ease of Doing Business. The FFFAI members also urged for creating a dedicated portal for LSP integration. As regard to skill development initiatives, IIFF’s (training arm of FFFAI) past and forthcoming training programmes (both online and classroom/physical) for the entire logistics industry were presented at the EC meeting. In addition, FFFAI’s various initiatives on capacity building through technology/IT also discussed withadequate importance. Recent activities of FFFAI Women’s Wing including organising interactive meetings with Government of India officials and industry experts were highlighted at this meeting which drew huge appreciation from the members. The members committed to expand the activities of the Women’s Wing in all the 28 member association locations to empower/encourage the women logistics practitioners. At this EC meeting FFFAI has signed an MoU with the National Institute of Industrial Engineering (NITIE) with an objective of skilling the aspiring candidates looking for opportunities in the logistics sector. Notably, a special session was organised at this 6th EC Meeting where N Sivasailam, former Special Secretary (Logistics), Ministry of Commerce, Government of India was present to address the FFFAI members and highlight the recent initiatives of the government in strengthening the logistics infrastructure, thereby leading in increase of international trade through multimodal connectivity and faster cargo clearance. He projected the ambitious growth potential of the logistics industry in India with a strong collaboration between government and industry people. Also speaking on the occasion was Bani Bhattacharya, IRS, who interacted with members of FFFAI on various initiatives of CBIC for the trade facilitation without human intervention. FFFAI Chairman Shankar Shinde thanked all the 28 associations for their support and appreciated the contribution of CBIC/DG systems trade facilitation measures. FFFAI Member Associations are: 1. Ahmedabad Custom Brokers' Association2. Aurangabad Customs House Agents Association3. Association of Custom House Agents Thiruvanthapuram4. Bangalore Custom House Agents Association5. Brihnamumbai Custom Brokers Association6. Calcutta Customs House Agents Association7. Chennai Customs House Agents Association8. Cochin Customs Brokers' Association9. Coimbatore Customs House and Steamer Agents Association10. Custom Brokers Association Hyderabad11. Delhi Customs Brokers Association12. Goa Custom Brokers Association13.Indore Customs House Agents Association14. The Kakinada Customs Brokers Association15. Kandla Custom Brokers Association16. Kanpur Customs Brokers Association17. Ludhiana Customs House Agents Association18. Mangalore Customs House Agents Association19. Mundra Customs Brokers Association20. Nagpur Customs House Agents Association21. Nashik Customs House Agents Association22. Nadia Custom Brokers Association23. Pipavav Custom Brokers Association24. Pune Customs House Agents Association25. Rajasthan Customs House Agents Association26.Tuticorin Custom Brokers Association27.Visakhapatnam Cusotms Brokers' Association28.West Bengal Custom House Agents Society FFFAI welcomes Women in Logistics/Youth in Logistics to participate on FFFAI forums and also invites membership application form logistics service providers in industry as this is a big national and international forum to network.
The past decade has been a transformative period for the Indian logistics sector, characterised by a blend of challenges and growth opportunities. Key milestones such as the formal recognition of logistics as infrastructure, the implementation of GST, and disruptions from COVID-19 have reshaped the industry landscape. During this time, technology adoption surged, sustainability became a focal point, and the sector prioritised agility and resilience. As a result, new business models emerged, and the sector registered a growth rate of 8%-9%. Throughout this period of growth, logistics companies have created significant value for their customers by offering innovative solutions, improving efficiency, and providing exceptional service experiences. However, the process of capturing and capitalising on this value is complex, requiring long-term investment and strategic focus. Companies typically follow one of two paths: competitive pricing or superior customer value. Yet, only a few have successfully extracted profits and solidified their competitive position, while others have faced decline. On a broader scale, while the logistics sector has made substantial progress in innovation, infrastructure, and technology, its financial returns and profitability have often fallen short of expectations. The challenge lies in the varied performance of subsegments such as express delivery, e-commerce logistics, and contract logistics. Each of these subsegments faces distinct challenges, influenced by factors such as market demand, regulatory policies, technological integration, and investment levels, leading to diverse outcomes across the sector. India's transportation sector is predominantly road-based, with nearly two-thirds of the market share. Among road logistics, Full Truck Load (FTL) remains highly fragmented, with a minimal presence of organised players. While the market has nearly doubled over the last decade, along with technology adoption in fleet and transport management, startups like Blackbuck have made attempts to drive the sector toward organisation, but no significant breakthroughs have emerged. As a result, FTL has struggled to create substantial value for customers, and profitability within the segment has remained stagnant. The second major segment in road logistics is Part Truck Load (PTL) services, where organised players have made gradual improvements. Companies like VRL and V-Trans India have established a national presence, supported by relevant infrastructure and technology. These organised players have delivered tangible value to customers, improving profitability alongside revenue growth through a cost-conscious approach. Rail logistics, on the other hand, has created significant value in specific subsegments, such as container train operators, private rail operators, and car carriers. While Indian Railways remains the primary infrastructure provider, private players like Adani, DP World, Gateway Distriparks, and Pristine have experienced profitable growth over the past decade. E-commerce logistics has been the most hyped segment in the last ten years. While e-commerce logistics started gaining traction in 2010, it exploded in 2014 with technological advancements and the emergence of new-age companies. This segment has grown into a US$6 billion market, creating immense value by reducing transit times, improving customer service, and offering tech-driven solutions. However, as these differentiators become industry standards, the rate of value creation has slowed. Despite significant investments to achieve profitability, most e-commerce companies are still either EBITDA-negative or marginally positive. While they have made strides in reducing losses, profitability remains below industry benchmarks. The express logistics segment, largely controlled by organised players, has also experienced incremental improvements in service offerings and customer service. Despite challenges such as declining document volumes, slow air cargo growth, and cost pressures, express logistics has achieved double-digit growth. However, the segment has failed to create significant new value, as many differentiators have now become standard offerings. This inability to create and capture value raises concerns for the future of express logistics. In contrast, the contract logistics segment has benefited from complex global supply chains and the post-GST momentum, providing significant opportunities for value creation through optimisation. Organised players, with their advanced solutions, technology, and automation, have been able to capture substantial value in this segment. Overall, while the logistics industry has created value across most of its segments, the ability to capture this value has been suboptimal. Factors such as technological advancements, sustainability trends, and evolving customer expectations will continue to influence value creation. However, value capture will hinge on effective pricing strategies, market positioning, and operational scalability. In the future, a balance between continuous innovation and profitability will be essential for long-term success in the logistics industry. Author: Vikash Khatri, Founder, Aviral Consulting
Singapore’s Changi Airport is sharpening its focus on pharmaceuticals and e-commerce shipments to navigate constrained cargo capacity until planned expansion in the 2030s. According to Lim Ching Kiat, Executive Vice President of Air Hub and Cargo Development at Changi Airport Group, current facilities face mounting pressure due to growing regional demand, necessitating strategic tenant and cargo type management. E-commerce continues to be a key growth driver for air cargo globally, fueled by major players like Shein, Temu, and TikTok Shop. At the same time, Singapore is solidifying its position as Southeast Asia’s preferred pharmaceutical hub, attracting investments from global biopharma giants such as Thermo Fisher, Sanofi, BioNTech, and MSD. Looking ahead, Changi Airport plans to launch a second logistics park by the 2030s, aiming to increase its annual cargo capacity from 3 million tons to 5.4 million tons. The new free trade zone will further expedite cargo handling and redistribution. In 2024, Changi Airport reported handling 1.99 million tons of airfreight, a 14.6% rise from 2023, driven by robust cross-border e-commerce demand, improved trade routes with China and the U.S., and recovering electronics exports. Top air cargo markets included China, Australia, the U.S., Hong Kong, and India.
Trade shows are mission-critical, high-investment events where logistics execution directly influences marketing ROI. Exhibitors spend months preparing for a few days on the floor, since a single missed delivery window can jeopardise the entire programme. In this environment, Less-Than-Truckload (LTL) trade show logistics is no longer just transportation; it is an orchestration of timing, compliance, risk control, and venue-specific expertise. While standard LTL carriers can handle general freight, elite trade show shippers excel because they are built for the ecosystem — understanding drayage, marshalling yards, target windows, live-loading rules, equipment constraints, and the high-value nature of exhibits. This updated guide unpacks the differentiators that set the best providers apart, enhanced with additional dimensions such as KPIs, risk mitigation frameworks, technology adoption, sustainability practices, and a practical vendor-evaluation checklist. The Key Differentiators of Elite Trade Show Shippers When shipping general freight, a standard LTL carrier may be sufficient. However, event logistics demand a higher level of specialised service. The top trade show shippers possess four key differentiators that distinguish them from the rest. Proactive and Specialised Support Trade shows operate on rigid move-in schedules tied to booth size, dock flow, and decorator rules. The strongest providers deploy dedicated trade show teams who can interpret show manuals, coordinate with decorators, and time deliveries to avoid re-handling fees. Best-in-class partners also: Pre-audit documentation and labels to avoid show-site rejections Manage drayage coordination to reduce dwell and material-handling charges Offer pre-receiving and staging at regional facilities for smoother Day-1 move-ins This advisory-driven model transforms logistics from a cost center into a risk-mitigation service. Flexible Coordination and Network Access Because no two events are alike, trade show logistics demand configurable access to LTL, FTL, hot-shot, air, and international capacity. Top providers match service levels, route constraints, and budget requirements by tapping into broad asset and partner networks. A sophisticated network allows for: Expedited or guaranteed-capacity moves for high-stakes shows Cost-effective options for booth materials that can stage early Lane-specific equipment (air-ride, liftgate, climate-controlled) This flexibility becomes essential during peak show seasons when capacity is tight and timelines narrow. Guaranteed Performance and Asset Protection Event deadlines are immovable. Leading providers commit to guaranteed on-time service, narrow ETA bands, and contingency planning across linehaul and last-mile execution. They also emphasise exhibit protection through: Air-ride suspension fleets Strapping, padding, and vibration-control practices Secure transport protocols for prototypes and LED/AV assets With show participation costs rising, damage and delay prevention become competitive differentiators. End-to-End Visibility and Services Real-time visibility is no longer optional. Tocay, exhibitors rely on it to make staffing, booth-build, and drayage decisions. The best LTL partners deliver: Live tracking from pickup to booth delivery API connectivity with exhibitor dashboards Pre-emptive exception alerts and delay recovery paths For international events, leading providers integrate customs documentation, Carnet handling, temporary import permits, and venue-specific rules, ensuring frictionless handoffs across borders. What Are the Best LTL Logistics Companies for Trade Shows? Several providers exemplify these differentiators. The following firms are selected based on their demonstrated strength in specialised show support, performance-oriented service design, event fluency, flexible coordination and comprehensive offerings that cover pre-show to teardown. 1. Green River Logistics Solutions A brokerage-led model with deep carrier reach, making it ideal for exhibitors with varied lane structures. Key strengths: Highly personalised coordination and single-point-of-contact support Flexible equipment sourcing — LTL, flatbed, refrigerated, heavy haul Real-time updates and precise timing for fragile builds 2. XPO Logistics A multinational leader with a controlled linehaul network and a dedicated Trade Show Desk. Key strengths: Tight schedule integrity Venue-specific coordination and dock navigation Strong performance management systems. 3. TWI Group A global exhibition logistics specialist excelling in international customs and venue compliance. Key strengths: ATA Carnet expertise and cross-border support On-site liaisons at major venues High-touch service model for global exhibitors 4. Averitt A time-definite, reliability-driven carrier focused on window compliance. Key strengths: Guaranteed performance Expertise with marshaling yards and dock appointments Rapid recovery for last-minute constraints 5. TTI Logistics A specialist for fragile and custom builds requiring maximum protection. Key strengths: Air-ride fleets and vibration-controlled handling Precision timing for target-move-ins Advanced security protocols Comparing the Top LTL Logistics Providers for Trade Shows These providers excel in different areas. This table offers a quick comparison of their key service features to help you align their strengths with your specific needs. New Strategic Enhancements Added for a Modern Exhibitor’s Playbook Technology Advancements Worth Evaluating AI-assisted ETA predictions Digital drayage coordination tools IoT-enabled condition monitoring for AV and prototype freight Automated warehouse cut-off compliance checks Risk-Mitigation Practices That Matter Pre-show risk audits Contingency rerouting plans Venue-specific compliance checklists High-value cargo insurance design Sustainability Expectations from Today’s Exhibitors Low-emission or EV linehaul and last-mile options Carbon-neutral freight programs Reusable or recyclable crating solutions Emissions dashboards linked to booth shipments Performance Metrics That Define Best-in-Class Providers On-time delivery to target windows Damage-free shipment percentage Visibility uptime SLA Drayage handoff accuracy Exception-resolution response time How to Vet Your Trade Show Logistics Partner Applying the key differentiators includes asking potential partners the right questions. When your program includes international stops, ask about their documentation process, how they manage Carnets and how visibility will work across handoffs. The following can further validate fit and execution discipline: What is your detailed experience with my venue and decorator? Can you guarantee delivery within target-window constraints? What risk-mitigation plan is activated if my freight misses staging cutoff? What specialised equipment will you use for fragile or custom exhibits? How do you integrate with drayage contractors and marshaling yards? Which visibility tools and tracking integrations are available? Can you manage international customs documentation end-to-end? What sustainability options can be applied to my show calendar? Your Partner Is Your Most Critical Exhibit A logistics provider is more than a freight handler; they are the enabler of your presence on the show floor. The right LTL partner combines timing discipline, technical fluency, equipment strength, and venue intelligence to protect your brand and maximise your event ROI. Elite trade show shippers don’t just move freight; they orchestrate flawless show execution.
The expansion of Dammam Port in Saudi Arabia has taken a significant step towards strengthening trade relations between India and the Gulf region. The enhanced infrastructure and capacity of the port are set to benefit businesses and industries on both sides, facilitating smoother trade and commerce. The expansion of Dammam Port opens up new opportunities for Indian businesses to engage in import and export activities with the Gulf nations. It also serves as a strategic gateway for goods traveling to and from India, further improving the logistics and transportation landscape for businesses. The project showcases the commitment of both India and Saudi Arabia to enhance economic ties and boost bilateral trade. The increased port capacity will help meet the growing demand for trade between the two regions, ultimately contributing to the economic growth and prosperity of both nations.
Air India is setting its sights on a promising future as the exclusive carrier for TATA's iPhone exports. This strategic partnership between the renowned Indian airline and the tech giant TATA promises to boost India's manufacturing and export capabilities. The collaboration will enable Air India to become the sole carrier for TATA's iPhone exports, facilitating the efficient transport of these popular devices to international markets. With a reputation for reliability and global reach, Air India is poised to play a crucial role in TATA's supply chain. The move not only strengthens the relationship between two major Indian companies but also underlines India's growing importance in the global technology and manufacturing sectors. Air India's role as the exclusive carrier for iPhone exports is expected to generate significant revenue for the airline and enhance India's position as a hub for high-tech exports.
