Emirates SkyCargo has made significant leaps towards its long-term strategic growth plans to double capacity in the next decade, and further cement its leading position in global air logistics. Nabil Sultan, Divisional Senior Vice President, Emirates SkyCargo said, “2023 was a pivotal year for Emirates SkyCargo. Despite ongoing fluctuations in air freight, long-term trends indicate that the industry is growing at a rate of 3 – 5% year-on-year. Emirates SkyCargo, however, continues to outperform the market growth, uplifting over 1,183,000 tonnes from January to mid-December, a solid 7% increase compared to last year. Looking to the future, we are well-positioned to steadily scale up operations in 2024, continuing our strategic growth to ensure we lead the industry in solutions that are fast, reliable, flexible, and efficient.”

In a strategic move to propel infrastructure development and minimize market borrowings for the National Highways Authority of India (NHAI), the Ministry of Road Transport and Highways has sought a 25 per cent increase in budgetary allocation for the year 2024-25. This proposal, amounting to Rs 3.25 lakh crore, reflects the government’s commitment to fortifying the country’s road network while strategically managing NHAI’s financial obligations, government officials said. The decision to seek a higher budget comes on the heels of a challenging year marked by obstacles, including project delays attributed to unpredictable weather conditions and state elections. The Ministry is gearing up for a proactive approach in the upcoming fiscal year, with a focus on substantially increasing the number of project awards to fortify capital expenditure, said an official.

Harshit Shrivastava, CEO and Co-Founder, Intugine shares, “India has emerged as an important global manufacturing player, and the backbone of this evolution will be the supply chains. We are committed to continuing our partnership with the government and enhancing our network of integrations. By 2024 end, we plan to increase our long-haul coverage from the current 24 percent to 60 percent and also increase our PTL coverage from 60 to 90 percent. We aspire to expand into the Middle East, forge partnerships, and widen our reach to new global markets. We are also excited to announce the launch of our new product in 2024, Ecotrace – a carbon emission management tool for enterprises to measure their emissions from logistics, contributing to 14% of global emissions. We will also launch the Ecotrace Transporter Index and the Carbon Visibility tool’s first version, which will be available for free to SME transporters by Feb 2024. Intugine is dedicated to a transformative journey of constant innovation and expanding its reach while contributing to a greener future.”

Pranav Agarwal, Head of Supply Chain Solutions & IT at Rhenus Logistics, shares his outlook for 2024, “At Rhenus, the growth strategy for 2024 is intertwined with customer-centricity and technological innovation. Our focus has always been to provide our customers with integrated logistics services there by creating an ecosystem for suppliers, vendors, and partners. Leveraging our system integration capabilities and strong business processes, we can provide our customers with predictive analytics, real time visibility across supply chain events, purchase and indent order management systems, real time track and trace and so on. The outlook is to harness digital platforms to streamline operations and improve client interaction, ensuring seamless, transparent communication. We will also embrace cloud technologies for scalability and agility. The outlook includes fostering strategic partnerships and exploring new market segments. These steps aim to solidify Rhenus Logistics as a leader in innovative, customer-focused logistics solutions in the rapidly growing Indian market.”

SkyDrive Inc., a leading Japanese eVTOL aircraft manufacturer based in Japan has signed a memorandum of understanding (MOU) with Technology Innovation Hub on Autonomous Navigation (TiHAN) Foundation, Indian Institute of Technology Hyderabad (“TiHAN”) to collaborate on unmanned drone technology to expand the drone market in India. With the mission of “taking the lead in the once-in-a-century mobility revolution,” SkyDrive is developing accessible eVTOL aircraft for daily passenger transportation and heavy-lift drones for cargo transportation. Indian Institutes of Technology Hyderabad (“IITH”) has been consistently ranked in the top 10 institutes in India for Engineering according to the National Institutional Ranking Framework (*2) issued by the Ministry of Education, Government of India, and top-notch engineers conduct research on cutting-edge technologies. SkyDrive will be collaborating with TiHAN, India’s first autonomous navigation testbed facility at IITH for developing and carrying out activities related to heavy-lift drones. Explaining TiHAN-IITH efforts in Autonomous Navigation, Professor P. Rajalakshmi, Project Director, said, “TiHAN IIT Hyderabad is excited to announce a strategic partnership with SkyDrive Inc. to collectively develop and execute activities about heavy lifting drone technology. This partnership marks a significant step forward in the advancement of drone capabilities, focusing on the design, development, and deployment of innovative heavy-lifting drone solutions.” India faces various challenges in its land-based logistics system and the development of drones as a new means of logistics holds significant meaning. With a shared goal of creating a market for logistics drones in India, the two parties will be sharing expertise and exploring the market opportunities. This collaboration was possible with the support of Suzuki Innovation Centre (SIC), a collaborative initiative between Suzuki Motor Corporation Japan (SMC) and IIT Hyderabad with a mission to build …

“The Year 2024 shall see major developments taking place in Logistics infrastructure throughout the country,” says V Raju, Head of Contract Logistics, Allcargo Supply Chain sharing his outlook for the year 2024 and his views on the performance of the logistics industry in 2023. He adds. “Sufficient capital outlay will be allotted for the developmental works in the budget by the Centre. Multimodal transport, warehousing and logistics parks will be leading the way in the sphere of infrastructure development, supported immensely by aggressive road construction. On the supply chain front, we shall see aggressive work being initiated in the field of Digitization and Sustainability. India shall be the leaders globally in these fields. We will see an increase in investment in Technology implementation by logistics players, while lot of innovation and speed in manufacturing of EV, alternate fuel and battery technology will be the front runners in 2024. Logistics ecosystem will hear a lot more on geopolitical disruptions in 2024, thus increasing the work in areas of developing robust resilient measures to survive these difficult times. While auto and e-com businesses shall continue to boom in 2024, the same cannot be said about chemical logistics, as most of the global chemical companies are passing through a severe recession, coupled with energy and oil crisis forcing them to go defensive. Food and pharma sectors will need continued support from the government to boost their trading numbers. Start ups will see lot of traction and last mile delivery in the field of e-com shall assume tremendous importance.”

The industrial and logistics sector witnessed significant growth both in terms of absorption and supply. In 2023, the sector witnessed absorption of 49.4 mn sq. ft. indicating a 6.7% increase compared to the 46.3 mn sq. ft. absorption in 2022. Notably, tier I cities witnessed 75% of the absorption while tier II and III cities accounted for the remaining 25% according to International real estate advisory firm, Savills India. Tier II and III cities are growing significantly as sourcing hubs, aiding efficient distribution. The absorption is being led by a surge in demand from the manufacturing and retail sectors, as well as continued sustained demand from the 3PL sector. The report suggests that the sector witnessed a fresh supply of 62 mn sq. ft. in 2023 of which 46.2 mn sq. ft. (75%) was from tier I cities and 15.8 mn sq. ft. (25%) from tier II and III cities. The surge in supply was due to the delivery of projects across the cities by major developers in response to growing demand. Absorption (mn sq. ft) across cities Note: Tier I city includes Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, Delhi-NCR, and Pune. Tier II and Tier III cities include Guwahati, Bhubaneshwar, Patna, Hosur, Coimbatore, Rajpura, Lucknow, Jaipur, Nagpur, Surat, Indore, Kochi, Hubli, Vizag, Belgaum and Anantapur. The overall Grade A space accounted for 53% of the supply in 2023 up from 48% in 2022, while overall Grade A absorption accounted for 54% in 2023 up from 42% in 2022, indicating a significant increase in the supply and demand for graded and compliant buildings. “Fueled by rising domestic demand and expanding distribution networks in tier II and III cities, the industrial …

Horizon Industrial Parks, a portfolio of Grade A logistics parks in India owned and managed by Blackstone Real Estate funds, has welcomed Flyjac Logistics to its new built-to-suit logistics space. Flyjac Logistics, a 3PL service provider company, will be maintaining leading electrical and electronics company V-Guard’s warehousing operations in Horizon’s facility at Farukhnagar, Gurugram. Horizon Industrial Park Farukhnagar is a state-of-the-art, 108 acres grade A facility near IMT Manesar and Gurugram. It is an emerging premier gateway to North India’s logistics and warehousing market. The new facility of Flyjac will encompass 330,000 square feet in area alongside Amazon, LF Logistics, Rhenus and Reliance within the Industrial Park. Urvish Rambhia, principal at Blackstone, said: “Our commitment is building exceptional logistics space in prime locations so our tenants can better serve their customers and stay competitive.” AV Ravikumar, MD, Flyjac Logistics, said: “We have seen tremendous demand from customers who are increasingly going online and want faster deliveries. We are excited to expand our presence in India through Horizon Industrial Parks’ new state-of-the-art facility in Farukhnagar and continue to deliver excellent service to our tenants and their customers.” Antony Sebastian K, executive director, SCM, V-Guard Industries, said: “We are impressed with the facility provided by Horizon Industrial Parks to Flyjac for maintaining V-Guard warehousing operations. The operations are smooth, and it will help us to strengthen our business.”

Global air cargo demand increased three per cent in December compared to December 2022, according to the latest Air Freight State of the industry report by DHL Global Forwarding. Despite a slight increase in output price inflation observed in November 2023, it remained among the lowest levels seen in the past three years, contributing to an environment of relative stability. “PMI index increased to 50.4 in November from October’s 50.0, indicating a slight revival in production growth. Global demand remains low, leading to a decline in demand-driven price pressures towards their long-term average,” the report added. The report emphasises an upswing of 10 percent in air cargo capacity compared to December 2022. The growth is attributed to a 17 percent increase in passenger belly cargo capacity. However, certain regions experienced capacity constraints during Q423 due to higher seasonal demand, resulting in industry backlogs.

Global average air cargo rates are now 50 percent above their pre-Covid levels following the significant rebound in the last few months in demand and pricing, especially ex-China, according to the latest figures from WorldACD Market Data. Preliminary figures for week 50 (December 11-17) indicate that global tonnages and average worldwide rates have been stable compared with the previous week after recovering more quickly than last year from the seasonal post-Thanksgiving dip last month based on the more than 400,000 weekly transactions covered by WorldACD’s data. “Comparing weeks 49 and 50 this year with the preceding two weeks (2Wo2W), overall tonnages increased one percent and overall global average rates continued to rise, by two percent, with capacity up one percent. The figures indicate that demand and pricing are levelling off, as they usually do in the second half of December, after rallying in the last three months. Although the main driver for the recent increases has been a surge in tonnages and rates ex-Asia Pacific, especially China, volumes ex-Asia Pacific have now flattened although there have still been some modest rises in average rates ex-Asia Pacific, especially to North America (up four percent), on a 2Wo2W basis.” Tonnages to and from North America, and in some cases prices, have continued to recover in the last few weeks after dropping significantly for much of this year, especially outbound, the update added. “Notable tonnage increases in the last two weeks from North America include to Asia Pacific (13 percent), Europe (12 percent) and Central & South America (11 percent).”