Air cargo industry on the verge of a revolutionary transformation

Air cargo industry on the verge of a revolutionary transformation

As airport development became a priority globally, one sector that grew by leaps and bounds was ground handling. Buoyed by privatization and investments and now arming itself with rapid digital transformation, the sector is evolving to accommodate the high demand seen in verticals like perishables, pharma, and e-commerce. Where do you see this trend going?We have seen a gradual evolution of the air cargo industry. If one reflects on the past, the availability of goods and services was a challenge; however, now, the local market reflects the global market. The demand for cargo has increased over the last few months. IATA has stated that Air Cargo demand last year, saw a remarkable growth of 9.1% compared to pre-COVID times. We’ve observed the emergence of multiple new airports, with India alone doubling its airport count from 74 in 2014 to 148 in 2023. e-Commerce has been a key driving factor behind this expansion, leading to limited air cargo capacity during peak hours. The demand for various goods, ranging from daily essentials to heavy machinery, from perishables to pharmaceuticals, continues to soar. Airlines are investing in new aircraft to boost cargo capacity and curtail transportation costs. However, this will lead to a surge in volume, with the express business stepping in to mitigate any revenue losses. Amazon and DHL are prime examples set to significantly impact the transportation industry by taking charge of their delivery services. The company is focused on enhancing its air network to achieve this objective.

The Logistics industry is now placing more importance on sustainability. How is the air cargo industry contributing to this cause?