Air Cargo : Today & Tomorrow


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Air Cargo : Today & Tomorrow

  1. 1. Today to TomorrowAir CargoThanks ACFI For Supporting FFFAI Outreach InitiativesShantanu BhadkamkarChairmanWithDushyant MulaniMember – Airfreight CouncilFederation of Freight Forwarders Associations in India
  2. 2. Why Are We Here We Are Doing Fine We Want More We Have Challenges We Have Differences We Are Optimistic Of Future We Are Willing To Change We Are Willing To Lead TheALL OF IT
  3. 3. Wide Spectrum Of Stakeholders Air Transport Carriers & Intermediaries Airlines Flight Handling Agencies Ground handling Agents Custodians Air Cargo Agents Customs house Agents & Other Forwarders Last Mile Carriers Vendors Aircrafts Equipment Fuel Software professionals Regulatory Authorities Air Cargo Related Customs Other Customers Employees
  4. 4. Contributions To The Economy Efficient supply chain management Lower inventory Lesser intermediary costs Just in time manufacturing Simplicity in order placement Resilience Additional growth in GDP Creation Of Markets Cost Efficiency For Costly Cargo Agricultural Produce Emergency Medical Employment To Professional Manpower Higher Capital Employment & FDI inflows Safer? Better Handling?
  5. 5. Competition With Other Modes Ocean – Scheduled – Fix Time Rail – Cargo Initiatives, Green Logistics Multimodal IWT Road – Express Ways+Paperless (Documents, Drawings, Magazines…)+Courier Vs. Cargo Competition
  6. 6. Concept - Confluence Many Studies Lot Of Statistics Varied Interest Many ViewsMeeting Point - Way Forward - Strategic
  7. 7. TrendsAir Cargo - Barometer of Economic health
  8. 8. International Air Trade to GDP RatioAir Cargo to GDP Ratio has increased from 4% to 8% in the past 2decades
  9. 9. ForecastMore than 1/3rd of the value of goods traded are transported by Air
  10. 10. Dwell TimeMeasure Of Ease Of Doing Business & Efficiency
  11. 11. India - Reality Check Size Of Economy: Maharashtra (USD 173 Billion)– Qatar (GDP 52 : Size 164 : Population 148) Economy Must Grow, International Trade MustGrow – Standalone Approach Will Not Work Manufacturing Sector Must Grow Double Digit Growth vs. Indian & GlobalEconomic Environment Customer On Top Competitiveness Ease Of Doing Business Second Tier Cities, Centres Of Growth AndExcellence
  12. 12. Way Forward Issues Challenges Globalisation Regulations Technology Infrastructure Policies Stakeholder Issues Airlines Custodians Manufacturing Sector Revival
  13. 13. CHALLENGES Sustainability Of Double Digit Growth Global Economy Resources Cargo Shrinkage Dis-intermediation Competition Or Attrition, Rules Of Game Manufacturing Moving Back, Localisation Logistics Integration of Supply Chains Emergence of 4PL Changed Customer Relationship
  14. 14. Vital For India’s CompetitiveEdge Adequate & Efficient Logistics Infrastructure Better Planning, Ahead Of Requirement Ease Of Doing Business Competitive Costs Trained Workforce Reliability & Predictability Pan-National Initiatives
  15. 15. Globalisation - Impact Global Companies Have Increased Presence Global Forwarders Have Increased Presence National Carrier, Indian Carriers, Role And Share SME Backbone Of EconomyDecision In India & Decisions ForIndia
  16. 16. Regulations – Global Concerns Environmental Issues Security Concerns Safety Standards Fuel Costs Policy – Fast Track
  17. 17. Regulation Either regulated regime Or market forces Private Monopolies Oligopoly AERA Power, Arbitrary Charges Demarcation Point (Telephone Model) Costs and charges need to be Competitive Commensurate With Service Quality Economic Purchasing Power Parity
  18. 18. Technology Realise True Potential Of E-Freight : E-AWB Uplift & Such Initiatives Community System Better Handling Systems & Equipment Better Designed Facilities – Layout
  19. 19. Infrastructure Equipment upgrade Cargo Village - Forwarders Warehouses Hub Only After We Have Capacity, IndianShippers Will Suffer Airports To Realise The Need To Provide WorldClass Cargo Facility Privatisation & PPP
  20. 20. Actions Envisioned Airfreight Stations (AFS) Direct Reach to Markets and Production Centers Identifying & Dealing With Bottlenecks Regulatory Procedural Infrastructure Financial Coordination Training, Education Research
  21. 21. Airlines issues Long Term Policies Consistent Pricing Coherent Pricing And Surcharges Smaller Agents Generate Profit Better Service Levels, Transit Times - ShippingLines Are Lot More Reliable In Shipped AsBooked And Schedules Including TranshipmentI.E. Relay Proper Handling, Ocean ParticularlyContainerised Has Less Claims Odd Dimension Cargo Claim Settlement, Doesnt Exist
  22. 22. FFFAI Actions State Of Industry Report Thought Leadership Initiative Training: Indian Institute Of Freight Forwarders Egalitarian Growth & Widening Resources Base Youth Wing Women’s Wing SME Sector Backbone Of Economy - WCO Golden Jubilee Knowledge Series National Wide Facilitation Seminars In AssociationWith FICCI Newsletter
  23. 23. FFFAI Collaborative Model Interaction International Intergovernmental Organisations Like WCO Trade Bodies: FIATA, IFCBA, SAFFA Overseas Port Authorities etc Indian Trade Bodies Logistics Sector: ACAAI, AMTOI, AFCI… National Bodies:FICCI, ASSOCHAM, FICCI, FIEO, ICC Local: State Chambers, Member Associations Authorities: CBEC, MOC, MOCA, MOS, PlanningCommission and Local Bodies OnPolicy, Planning, Procedure
  24. 24. Manufacturing Shift Of Manufacturing Growth Revival Special Focus On Export & Import PotentialIndustries Garment IT Equipment Engineering Leather Products
  25. 25. Federation of Freight Forwarders Associations in India•Sustained•Regular•Structured•Follow Up Action•ProliferationFFFAI Appreciates The Initiative