This document discusses the air cargo industry in India and its challenges and opportunities. It makes the following key points: 1) The air cargo industry involves a wide range of stakeholders and contributes significantly to the Indian economy through efficient supply chains and job creation. 2) However, the industry faces challenges from factors like globalization, regulations, infrastructure issues, and competition from other transport modes. 3) For India to further develop its air cargo industry, issues around regulations, technology, infrastructure, policies, and stakeholder collaboration must be addressed. Initiatives are needed to improve efficiency, costs, and the business environment.

1. Today to Tomorrow
Air Cargo
Thanks ACFI For Supporting FFFAI Outreach Initiatives
Shantanu Bhadkamkar
Chairman
With
Dushyant Mulani
Member – Airfreight Council
Federation of Freight Forwarders' Associations in India

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 The
ALL OF IT

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. 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. 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. Concept - Confluence
 Many Studies
 Lot Of Statistics
 Varied Interest
 Many Views
Meeting Point - Way Forward - Strategic

7. Trends
Air Cargo - Barometer of Economic health

8. International Air Trade to GDP Ratio
Air Cargo to GDP Ratio has increased from 4% to 8% in the past 2
decades

9. Forecast
More than 1/3rd of the value of goods traded are transported by Air

10. Dwell Time
Measure Of Ease Of Doing Business & Efficiency

11. India - Reality Check
 Size Of Economy: Maharashtra (USD 173 Billion)
– Qatar (GDP 52 : Size 164 : Population 148)
 Economy Must Grow, International Trade Must
Grow – Standalone Approach Will Not Work
 Manufacturing Sector Must Grow
 Double Digit Growth vs. Indian & Global
Economic Environment
 Customer On Top
 Competitiveness
 Ease Of Doing Business
 Second Tier Cities, Centres Of Growth And
Excellence

12. Way Forward Issues
 Challenges
 Globalisation
 Regulations
 Technology
 Infrastructure
 Policies
 Stakeholder Issues
 Airlines
 Custodians
 Manufacturing Sector Revival

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. Vital For India’s Competitive
Edge
 Adequate & Efficient Logistics Infrastructure
 Better Planning, Ahead Of Requirement
 Ease Of Doing Business
 Competitive Costs
 Trained Workforce
 Reliability & Predictability
 Pan-National Initiatives

15. Globalisation - Impact
 Global Companies Have Increased Presence
 Global Forwarders Have Increased Presence
 National Carrier, Indian Carriers, Role And Share
 SME Backbone Of Economy
Decision In India & Decisions For
India

16. Regulations – Global Concerns
 Environmental Issues
 Security Concerns
 Safety Standards
 Fuel Costs
 Policy – Fast Track

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. Technology
 Realise True Potential Of
 E-Freight : E-AWB
 Uplift & Such Initiatives
 Community System
 Better Handling Systems & Equipment
 Better Designed Facilities – Layout

19. Infrastructure
 Equipment upgrade
 Cargo Village - Forwarders Warehouses
 Hub Only After We Have Capacity, Indian
Shippers Will Suffer
 Airports To Realise The Need To Provide World
Class Cargo Facility
 Privatisation & PPP

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. Airlines issues
 Long Term Policies
 Consistent Pricing
 Coherent Pricing And Surcharges
 Smaller Agents Generate Profit
 Better Service Levels, Transit Times - Shipping
Lines Are Lot More Reliable In Shipped As
Booked And Schedules Including Transhipment
I.E. Relay
 Proper Handling, Ocean Particularly
Containerised Has Less Claims
 Odd Dimension Cargo
 Claim Settlement, Doesn't Exist

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 Association
With FICCI
 Newsletter

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, Planning
Commission and Local Bodies On
Policy, Planning, Procedure

24. Manufacturing
 Shift Of Manufacturing
 Growth Revival
 Special Focus On Export & Import Potential
Industries
 Garment
 IT Equipment
 Engineering
 Leather Products

25. Federation of Freight Forwarders' Associations in India
•Sustained
•Regular
•Structured
•Follow Up Action
•Proliferation
FFFAI Appreciates The Initiative