Page 31 - ITLN January - February 2025

imports by incoming US President was “a perfect storm of challenges:
Donald Trump,” Hughes explained. geopolitical tensions, Red Sea
India’s electronics sector diversions, supply chain disruptions,
exemplifies this trajectory. Electronic and a massive spike in demand that
exports jumped 27 percent to $22 caught everyone off guard.”
billion in April-November of 2024- “For example,” she said, “airfreight
25, from $17 billion during the same rates jumped 180 percent from
period in 2023-24. Ruby Abidi, Director January to February last year. That
of Air Cargo at cargo-partner, credits kind of volatility can be tough to
government initiatives like Make manage, especially when there's an
in India and the Production Linked inconsistency of rates, and track and
Incentive (PLI) scheme for these trace information.”
advancements. “The manufacturing “Logistics hubs, airports, and
prowess that India has developed is warehouses were stretched to their
gaining strides,” she said. The growing demand for limits, and many processes had to shift
On the same line, Anupama fast, reliable deliveries offline, ushering a surge of manual
Kachhap, Head of Commercial, has opened opportunities intervention and lack of transparency
Worldwide Flight Services (WFS), that led to delays and uncertainties
confirmed that India has seen a rise for value-added services regarding the total cost of ownership
in electronics manufacturing, “with and optimised supply for overseas importers,” Tai added.
companies like Samsung, Apple, and chain solutions. Following these trends, IndiGo,
Xiaomi setting up factories.” “These Arun Chandra the biggest airline in India by market
types of exports need to be shipped Bangalore International Airport share, has reported the intention to
globally within tight deadlines and grow cargo volumes on both domestic
securely, making air cargo a preferred as well as international routes.
mode of transportation,” she said. geo-political conflicts. However, the IndiGo has an extensive domestic
Adding to these, Jagannarayan international cargo volumes have seen network of 88 stations, accepts cargo
Padmanabhan, Senior Director & a healthy expansion of 18 percent in H2 in 66 destinations and serves many
Global Head – Consulting at CRISIL, FY2024, amid the Red Sea crisis, which Tier 2 and Tier 3 cities. Mark Sutch,
emphasised the role of geopolitical started in October 2023,” he said. Chief Commercial Officer - Cargo of
shifts. “The Red Sea crisis and other For instance, Kempegowda IndiGo informed that most of their
maritime disruptions have shifted some International Airport Bengaluru (BLR cargo flows are between Tier 1 cities
cargo from sea to air, further boosting Airport) reported its highest-ever and then Tier 1 to Tier 2 cities.
India’s air cargo volumes,” he observed. annual cargo tonnage of 496,227 “We are always looking to grow
Vinay Kumar G, Vice President & tonnes, during the calendar year our volumes and capacities in Tier 2
Sector Head - Corporate Ratings at 2024 (CY 2024), a 17 percent increase to Tier 3 cities. We do target this and
ICRA, explained this impact of the compared to CY 2023. International intend to put more focus on this area
Red Sea crisis and pointed out that cargo saw a 23 percent growth at the to grow incremental volumes in 2025,”
the international cargo volumes have airport driven by increased demand for he also added.
increased by 18 and 19 percent YoY perishables, spare parts, engineering International operations are a key
during H2 FY2024 and eight months of goods, and e-commerce shipments growth strategy for IndiGo – both point
FY2025 respectively and are expected to while domestic cargo volumes of sales (POS) ex India and POS into
increase by a further 11 to 13 percent increased by 9 percent. India, informs Sutch.
YoY to touch new highs in FY2025. The Indian air cargo sector has been IndiGo operates a majority narrow
“The international cargo volumes through a lot recently, but it's emerging body passenger fleet which means International Airport
have seen a muted YoY rise of 1 percent stronger than ever. According to Joyce they are very sensitive to passenger Photo: Bangalore
in H1 FY2024 on the back of the Tai, EVP Worldwide Partnerships, load when it comes to available cargo
slowdown in the global economy and Freightos, what India saw in 2024 capacity. Also, Sutch notes that they

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