IATA released data for global air freight markets showing that 2022 full-year demand for air cargo took a significant step back from 2021 levels but was close to 2019 performance. Global full-year demand in 2022, measured in cargo tonne-kilometers (CTKs*), was down 8.0% compared with 2021 (-8.2% for international operations). Compared with 2019, it was down 1.6% (both global and international). Capacity in 2022, measured in available cargo tonne-kilometers (ACTKs), was 3.0% above 2021 (+4.5% for international operations). Compared with 2019 (pre-COVID) levels, capacity declined 8.2% (-9.0% for international operations). December saw a softening in performance: global demand was 15.3% below 2021 levels (-15.8% for international operations). Monthly cargo demand tracked below 2021 levels from March 2022. Global capacity was 2.2% below 2021 levels (‑0.5% for international operations). This was the tenth consecutive monthly contraction compared with 2021 performance. 2022 ended with mixed signals:​ Global new export orders, a leading indicator of cargo demand, have stayed at the same level since October 2022. For major economies, new export orders are shrinking except in Germany, the United States, and Japan, where they grew. Global goods trade decreased 1.5% in November, down from a 3.4% increase in October. The Consumer Price Index for G7 countries indicated inflation tracking at 6.8% for December. The 0.6 percentage point drop compared with November (7.4%) was the largest over the course of year. Inflation in producer (input) prices reduced to 12.7% in October, its lowest level so far in 2022. “In the face of significant political and economic uncertainties, air cargo performance declined compared with the extraordinary levels of 2021. That brought air cargo demand to1.6% below 2019 (pre-pandemic) levels. The continuing measures by key governments …

The e-commerce giant, Amazon is scaling back on flights this year, citing lower demand and slower economic growth. Air Transport Services Group, which runs a significant portion of Amazon’s air cargo fleet, said it expects to operate Boeing 767 freighters dedicated to servicing Amazon and DHL at reduced schedules and less flight time per aircraft. “Both companies are adjusting their ground and air distribution and fulfillment networks in the United States to conform to reduced U.S. economic growth and consumer spending levels in the first half of 2023,” ATSG said. Air cargo rates, which surged in recent years due to port congestion and high demand for fast deliveries, have slumped. The Baltic Air Freight Index was down more than 33% on Jan. 30 from a year earlier. The International Air Transport Association said last month that air cargo demand in November was down nearly 14% from the year-ago period, while capacity fell 1.9%. Meanwhile, passenger airlines have said travel demand has held up as consumers prioritize trips and other experiences. But coming off Amazon’s weakest year for growth in its quarter century as a public company, CEO Andy Jassy has taken steps to curtail expenses. That includes cutting more than 18,000 jobs, pausing warehouse expansion and shuttering some projects.

Kale Logistics Solutions (Kale) has gone live with its state-of-the-art cargo management system, GALAXY, at GMR Goa Air Cargo (GGAC), completing implementation of 100 percent digital domestic cargo operations at the new Goa airport. Kale’s web-based solution, GALAXY, is enabling end-to-end digital processing for all domestic outbound cargo at GGAC, from acceptance to loading and departure, as well as for domestic inbound cargo from flight arrival and flight check through to cargo delivery at the warehouse. GMR Goa International Airport Limited (GGIAL), a subsidiary of GMR Airports Limited (GAL), was inaugurated in December 2022 by Prime Minister Shri Narendra Modi, and the domestic air cargo operations went live from an interim facility at the airport with Kale’s solution in January. “GMR Goa Air Cargo has set a new record, going digital from the start button,” said Vineet Malhotra, Co-Founder and Director, Kale Logistics Solutions. “Our longstanding strategic partnership with GMR Cargo and deep understanding of their business, challenges, and market dynamics positions Kale well to help them meet higher customer expectations. “Supported by our fully digital solution, we are confident that GGAC will exceed its cargo handling estimates, and look forward to supporting its commitment to sustainable operations.” The GALAXY cargo management system is used by several hub airports and cargo terminals all over the world and is currently operating at more than 100 air cargo stations globally. The solution also covers processing for transshipment and direct delivery, as well as for inbound and outbound cargo. The newly launched Goa International Airport looks to become a hub for cargo movement alongside Mumbai and Bengaluru in Western India.

Deepak Tiwari, COO, KSH Logistics said, “Budget 2023 is prioritizing the logistics and supply chain sector with a significant allocation of Capex of 10 lakh crore in infrastructure, roads, and railways which will help the industry to accelerate its growth. We believe that this initiative taken by the government will ensure the timely creation of exceptional transportation infrastructure and improve logistics throughout the country. On the other hand, the emphasis on green energy and skill development demonstrates a commitment to sustainability and growth, positioning the industry for a more efficient, environmentally conscious, and skilled future.”

Debajyoti Bagchi, VP, Trucking and Air Cargo Charters, TT Aviation Handling Services Pvt Ltd. said, “The ‘Bright Star’ 2023 budget of the world’s 5th largest economy reveals people centric agenda and facilitate sustainable economic development. It’s a progressive thought process of new India that has aimed at artificial intelligence, MSMEs as a growth engine, women empowerment, digitization, and most importantly Indian start ups which is the 3rd largest ecosystem globally. The vision of 50 additional airports & aerodromes will expedite the abundance of regional connectivity including passenger and cargo. In addition to that, the prioritization of 100 identified critical transport projects will be a crucial factor for NLP deliverables. Revision of the income slabs in the proposed income tax regime will allow some definite breather for people. However, the budget doesn’t mull anything on the lowering of the fuel/LPG prices to reduce overall inflation.

B Govindarajan, Founder and COO, Tirwin Management Services said, “The big push to Capex would certainly help the logistics sector to grow. It shoukd be kept in mind, mere brick and mortar as infrastructure is not sufficient. The country can not afford to depend on foreign operators for both air and sea cargo capacities. The focus should be on developing national capacities in order to ensure sustainable growth.”

Sharing his views on the Union Budget 2923, Deepak Shrivastava, MD Indian Sub-continent, UPS said, “The Union Budget for 2023 recognises the strides taken by the Indian economy to be the fifth largest in the world and reinforces a sustainable economic development agenda for the future. Action on strengthening infrastructure and supporting MSMEs will help speed up supply chain growth and boost cross-border trade. Plan to set up more airports and heliports, proposed urban infrastructure investment for tier two and three cities will strengthen regional connectivity, which is important to facilitate trade.” He added, Exports are key for global trade and for the logistics sector to be globally competitive in order to support India’s target of a $5 trillion economy. Reduction in customs duties for certain sectors will support the government’s target of an exponential jump in goods and services exports. “MSMEs are crucial not just for the logistics industry but also for the overall economic growth of India. Therefore, it’s good news that the government has focussed on their finance requirements with a revamped credit guarantee scheme and access to collateral free loans. It’s also extremely encouraging to see the push towards green growth. It signals a clear shift and focus on sustainability and the environment. Overall, integrated planning, co-ordinated implementation of projects and a supportive policy framework will be extremely important and will likely have a positive long-term impact for the logistics sector.”

Locus launches ‘Last-Mile Maturity Assessment’ – an industry-first benchmarking tool designed to help enterprises evaluate strengths, uncover hidden inefficiencies, and identify new growth opportunities in their last mile. To help businesses evaluate the maturity of their last-mile operations, the free interactive online assessment conducts an in-depth analysis through well-researched questions spanning five fundamental performance indicators: • Last-Mile Excellence: How robust last-mile capabilities are in the face of exceptions, unpredictable volumes, and profitability • Customer Experience: The quality and consistency of the customer experience an organization’s last-mile offers • Workforce Empowerment: Employees’ abilities to handle last-mile challenges • Advanced Analytics: The opportunity to leverage last-mile data and make more informed decisions on the supply chain • Sustainability: How environmentally sustainable a company’s last-mile function is today The assessment then scales enterprises on a 5-point rating system and categorizes them as businesses in the Emerging, Growth, or Optimized stage. Assessment takers walk away with a 360-degree comprehensive report that delivers personalized recommendations and actionable insights on how to unlock new revenue, & make delivery experiences a differentiator for enterprises. “Last-mile is the face of the modern customer experience, and while many companies are starting to prioritize this function more than ever before, not all know exactly where to start to successfully and strategically improve their operations in impactful ways,” said Nishith Rastogi, Founder and CEO of Locus. “What Locus’ Last-Mile Maturity Assessment brings is the power of knowledge – not at the execution level where many of our customers are currently focused, but in the planning and back-end stages that shape critical roadmaps. We’re arming enterprises with actionable insights on not just where they can level up these processes but how they …

Anshuman Singh, Chairman & Managing Director, Stellar Value Chain Solutions said, “The budget attempts to pave the way for a long-term and sustainable economic growth for the country. The expected economic growth is expected around 7% by maintaining macro-economic stability amid geopolitical developments and facilitating employment generation. New age technology adoption right down to the grassroot level, green energy transition along with infrastructure focus are some of the highlights of the budget. Infrastructure is the foundation of any economic growth as it facilitates trade and commerce and the government’s commitments towards this are clearly evident. This is the third consecutive year of the government’s investment in infrastructure. INR 10 lac crore has been earmarked which is up by 33%. The government is also offering interest free loans to states for infrastructure development. The proposal to develop transport infrastructure will develop critical linkages to facilitate multi-modal transportation, which is extremely critical. Green initiatives coupled with EV infrastructure development working towards net zero emissions has a favourable impact on the logistics and supply chain industry as it helps the industry expand while still saving cost and most importantly keeping the environment green. The proposal to set up centres of excellence for artificial intelligence and introduce Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 4.0 will not only help the economy leverage the power of youth but also set the stage for a large-scale rollout of smart logistics equipped with data-driven technologies. With all the infrastructure investment, technology enablement initiatives, environment friendly focus and employment generation and consumption, India is poised for the next phase of growth in its endeavour to be a strong force to reckon with globally.”

Abhijit Verma, Founder & MD, Avinya Logistics & Industrial Parks said, “The 2023 budget of India is a beacon of hope for the working class, who form the backbone of our nation. The focus on job creation, skill development and providing social security to the working class is commendable. The emphasis on strengthening the technology adoption through payments infrastructure and Digilocker will go a long way in making a big impact in the lives of millions of Indians. The allocation of funds for skilling programmes, start-up ecosystem, and tax sops will benefit businesses and individuals alike. The budget strikes a perfect balance between economic growth and social welfare, making it a step towards a more equitable and prosperous India for all.”