According to a latest report jointly released by CREDAI and CRE Matrix, the warehousing sector is set to cross the 300 million square feet-mark by 2025. Currently, the overall Grade A warehousing stock in the country stands at 216.2 million square feet. “With e-commerce, retail expansion and global companies entering India, we foresee a robust demand and supply growth for Grade A warehouses,” Boman Irani, President, CREDAI said that India’s favourable policies, competitive manufacturing costs and labor availability make it a prime investment destination. “Demand continued to surpass supply in the first quarter of the ongoing calendar year with an absorption to supply ratio of 1.4, alongside a 5% increase in rentals. Meanwhile Grade A/A+ vacancy levels declined 1.2% year-on-year across the top-6 cities,” the report added.

“In the next three years, we have got significant capacity coming in. IndiGo will be going into wide-body space with the A350, which presents a greater opportunity for cargo,” says Mark Sutch, CCO- Cargo, IndiGo. He adds, “The challenge I see in the short term is the imbalance between trade flows in India. For example, from the east, from China and North Asia, there’s a lot of import into India, and less export. To the west, there’s a lot of export out of India, particularly perishables and pharma into the west but on the import side, it’s slightly lighter. I think in the medium to long term, this will change significantly. Indian manufacturing is going to go up the value chain. Let’s take high-value goods such as mobile phones or tablets. China has been the center of manufacturing for those. But you now see quite a lot of China plus one strategy where organizations are moving their manufacturing to India. A lot of that is now for Indian domestic consumption. But in the next few years, that will also be for export purposes.”

The Agra Development Authority (ADA) will soon begin the construction of a logistics hub worth Rs 570 crore in Mudhera village, situated southeast of the Gwalior Road in Agra. The project aims to significantly enhance the region’s logistics and transportation capabilities, says official reports. Shraddha Shandilya, Secretary of ADA said in a statement, “The board has passed the proposal for the logistics hub in Mudhera. Seed Capital is needed for the purchase of land, and the proposal will be sent to the government for approval. Once the necessary approvals are obtained, the land acquisition process will begin, paving the way for this transformative project.”

Prediman Koul, Executive Director & Chief Operating Officer, Jeena & Company says, “Air cargo is much faster than sea cargo. While sea shipments can take weeks or even months to reach their destinations, air cargo can typically arrive within a matter of days, sometimes even hours. Air cargo is generally more reliable in terms of adhering to schedules. Sea cargo can be significantly impacted by weather conditions, port congestions, and other logistical challenges, leading to delays. For high-value or time-sensitive goods, such as pharmaceuticals or urgent automotive parts, air cargo is a more secure and expedited option.”

Vipin Vohra, Chairman, Continental Carriers says, “The disruptions in sea freight due to the ‘Red Sea’ issue will significantly affect the air cargo market by increasing volumes and placing strain on capacity. This will result in higher transportation costs and logistical challenges. Shippers and carriers will need to adapt to these changes by adjusting their logistics strategies, possibly increasing their reliance on air freight in the short term while navigating the associated challenges and costs.

Kunal Maheshwari, Chief Growth Officer, Soflink Global says, “Strong demand for air cargo is outpacing available capacity, creating a squeeze. This imbalance leads to difficulties in securing space, simultaneously raising freight rates. While overall volumes are high, some specific routes might face temporary limitations due to logistical constraints.”

Satish Lakkaraju, Global Head Air Freight and Pharma and Senior Vice President at WIZ says, “Despite disruptions in air freight market, air cargo is being preferred over sea cargo due to its speed, reliability, and better access to remote destinations. Ongoing sea trade disruptions in critical areas like the Red Sea and Panama Canal have caused significant delays, making the faster and more reliable air freight a more attractive option for businesses needing timely delivery of goods. with longer transit through cape of good hope the containers shortage has even begin.”  

Huned Gandhi, MD Air and Sea Logistics, Indian Subcontinent, Dachser India says, “The delays in sea freight have affected productions lines and the industry has no choice but to bridge the gap with airfreight. This has also caused a capacity crunch and increased costs for airfreight. Much of the overflow seen into airfreight is Sea LCL shipments which are getting diverted by air freight, and occasionally, some bigger shipments (FCLs) are also being converted to air freight mode.”

AerCap has signed lease agreements for four 737-800 Boeing Converted Freighter (BCF) aircraft with JD Airlines, the cargo airline of JD Logistics, says press release. Scheduled for delivery in 2024, the aircraft will be operated on behalf of JD Logistics, the subsidiary of JD.com, a major supply chain-based technology and service provider in China. The aircraft will be based in Nantong Xingdong International Airport and will operate routes between the major economic hubs of Nantong, Beijing, Shenzhen, Wuxi, as well as across Asia. Dublin-headquartered AerCap currently has three 737-800BCF aircraft on lease to JD Airlines.

ECU Worldwide, Allcargo Logistics’ wholly-owned global subsidiary has partnered with ShipBob to offer its ocean and air freight services to ShipBob’s receiving hubs and fulfilment centres in the United States, Europe, Canada and Australia-allowing for a more streamlined inbound flow of inventory from their suppliers and the opportunity for their clients to have complete end-to-end distribution.  ECU has facilitated ShipBob’s clients in exporting segments of their primary inventory from the US to ShipBob’s facilities in other countries. As per the association with ShipBob, ECU Worldwide will become an integral part of FreightBob, an end-to-end managed freight and inventory distribution program of ShipBob. ECU Worldwide will bring in its vast network spread over 180 countries, more than 2,400 direct trade lanes and door-to-door deliveries Giving Shipbob the speed and agility to manage ecommerce inventory for their merchants in over 50 markets, as a part of its LCL offering. This will benefit ShipBob in speed and agility to manage ecommerce inventory for their merchants. Commenting on the association, Niels Bach Nielsen Regional Head- USA and Canada ECU Worldwide said, “We are thrilled to partner with ShipBob, a global eCommerce enabler and look forward to working with them.  Our new-age tech-driven booking platform ECU360 has redefined the global supply chain efficiency with convenient features, continued product innovation and world-wide network. The association with ShipBob will help us further deepen our delivery capabilities across regions.  We look forward to helping their clients do business globally.” Melissa Nick, Supply Chain Officer, ShipBob said, “We are excited to join hands with ECU Worldwide to enhance our freight offerings to our merchants. ECU Worldwide is one of the leading players in the global logistics domain and the association will …