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Vol. 24 No. 6 | Friday
February 14,
2025 |
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India Air Cargo Strategic National Asset |
![]() Specializing in providing tailored logistics solutions to multiple sectors across India, Europe, the USA, and Korea, Krishnan pointed out that his role encompasses steering business operations, building teams, and developing new logistics products for customers. He is also the Chairman of the Southern Region of the Air Cargo Agents Association of India (ACAAI). In this capacity, he works with federal, state, and international cargo agencies on logistics policies, trans-national customs regulations, and ease of doing business initiatives. FT: How do you see air cargo in 2025? How do you see demand and capacity playing out in 2025? DKK: All airport data reported a volume of 334,251.1 tons in October 2024. The overall air cargo volumes are likely to witness growth of around 9-11 percent year-on-year, reaching approximately 3.6-3.7 million tonnes in FY2025, supported by an 11-13 percent expansion in international cargo and a 4-6 percent growth in domestic cargo. FT: Will India be impacted by U.S. tariff rules? DKK: We have yet to see any India-specific tariff rules from the USA, (Prime Minister Modi is in Washington, D.C. right now in talks with President Trump). However, higher tariff rules on Chinese goods will positively impact exports from India in the short term, especially in sectors where India serves as the second supply chain source for many products made in China. Stable tariffs and adherence to international trade regulations (WTO rules), without political motives for punitive rates among nations, form the basis for sustainable trade and achieving the UN Millennium Development Goals by 2030. FT: How do you see innovation and quality shaping the cargo journey from India? DKK: Indian logistics continues to be price-driven, as 80% of users (exporters/importers) are small and medium-sized enterprises (SMEs) focused on secondary goods. However, as we move up the value chain of goods handled, quality becomes more of a focus. Tech-enabled innovations are rapidly improving the quality and scope of logistics services in the industry. However, regulatory compliance with legacy laws poses a challenge that the government is working to address in the medium and long term. FT: How important will technology investment be for you? DKK: Technology is the way forward. It is developed in India, and its adaptation is essential to maintaining ease of doing business for us and our customers. We are making significant investments in areas ranging from paperless processes to digital data management systems with AI support. This will continue to drive industry efficiency and offer enhanced logistics solutions to EXIM customers across this vast country. FT: Your take on the development of infrastructure in India? Do you feel that the government has finally recognized the importance of air cargo in the country? DKK: India is undergoing aggressive infrastructure development to unlock the full potential of its economy. The Logistics Excellence and Performance Standards (LEAPS) established by the Government of India to annually assess and award various logistics sector performances has been a great success in elevating the logistics sector's standards in the country. Air cargo is a strategic national asset, and the government has recognized its important role as a critical trade enabler and national security asset. It is now heavily investing in the development of this sector across the country to address the needs of the air cargo industry in India. Tirthankar Ghosh Last week at Orlando, Florida where the Greater Orlando Aviation Authority: Orlando International (MCO) and Executive (ORL) Airports was making all the right moves to emerge as a major force in global logistics are from left Vicki Jaramillo, GOAA– Executive Vice President & Chief Development Officer; Brandon; Tim Weisheyer, GOAA Chairman of the Board; Kendra Tanner, MBA- AfA Board Director and CEO of Allstates WorldCargo; Tod Willman, GOAA Assistant VP of Cargo Development and Kevin Thibault,GOAA Chief Executive Officer. All were part of a day-long immersion session that unpacked an interesting and wide-ranging discussion titled, “Navigating the Dynamic Landscape of Air Cargo.” “Brandon’s involvement”, Tod noted, "was vital to move discussions and important issues and emerging air cargo industry trends.” Looking ahead, Tod will be taking the Orlando story farther as a featured voice in Dallas, Texas at Airforwarders Association (AfA) and their partners, AEMCA (Air and Expedited Motor Carriers Association) and ACI North America, delivering their Annual AirCargo Conference March 1-3 to a big domestic and international audience. Tod will be featured in an opening day session titled “State-of-the-Art Cargo Facilities in North America: Why Not?” scheduled for Monday, March 3, 2025 at 3:30 PM - 4:30 PM. |
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Publisher-Geoffrey Arend • Managing
Editor-Flossie Arend • Editor Emeritus-Richard Malkin |
Send comments and news to geoffrey@aircargonews.com
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