Air Customer Advisory

Dear Valued Customers,

We hope you; your family & colleagues are safe and best in health.

India continues to face a dynamic and challenging situation that has an impact on Air Freight needs. In this newsletter, we would like to update you regarding the present situation of Air Freight in India.

Overview of Air Freight

The global capacity has declined by -26% in August 2020. Industry-wide Cargo Tonne Kilometre (CTK) has fallen to -13.3% YoY in July 2020 along with international belly cargo capacity which is down 70.5% YoY.

Despite growing uncertainty in COVID-19 developments, economic activity continued to recover in July 2020. Indicators such as manufacturing output and new export orders are improving but Chinese golden in October 2020 first week has strained capacities further and created backlogs at major hubs - PVG, HKG, PEK, SZX, CAN etc. While Middle Eastern carriers continue to recover at a slow and steady pace since the peak decline but carriers from China and Hong Kong have slowed down again after an initial uptick in May 2020.

COVID – 19 Vaccine Impact on Air Freight

Apart from global capacity reduction in the present situation, we are also expecting similar situation in the near future due to distribution of COVID – 19 vaccine. Some of the highlights regarding this are :-

  • In 2019, vaccines for humans accounted for 13,500 MT of Air Freight with six countries (USA, Belgium, India, France, Netherlands and UK) accounting for 80% of total Air Export
  • Global vaccine production capacity expected to hit 10 billion in 2021 (65000 MT of Air Freight)
  • 5 billion vaccine doses are already ordered by the top three locations (EU, USA and China)
  • Considering the pandemic all produced vaccines are expected to require air transport which will face also other challenges and opportunities such as cool facilities and required accessories

Situation at Major Indian Airports

  • Delhi International Airport Limited (DIAL) has launched India’s first paperless and contactless QR-coded E-gate pass facility with an aim to minimize human contact in the challenging COVID-19 times.
  • Bengaluru International Airport Limited (BIAL) opens 10,000 sq ft ‘On-Airport Public Bonded Warehouse’ for a faster transit to storage.

Current Air Import Capacity

We have a dedicated capacity for import from various countries for which the schedule along with our available capacity is mentioned below:

Region

Weekly Capacity (Approx.)

Major carriers

CN (PVG)-IN

100 MT

CX,ET,CI,EK

HK-IN

125 MT

CX,SQ,ET

AP-IN(TW/TH/SG)

80 MT

EY,CX,5X,SQ,QR,MH

DE-IN

200 MT

LH,QR,CX,EY

US-IN (ORD/LAX/ATL)

200 MT

QR,DL,TK,EK,BA,LH

Current Air Export Capacity

We have a dedicated capacity for export to various countries for which the schedule along with our available capacity is mentioned below:-

Region

Weekly Capacity (Approx.)

Major carriers

IN-CN(PVG)

120 MT

CX,SQ,MH,QR

IN-HK

120 MT

CX,SQ,MH,QR

IN-AP(TW/TH/SG)

150 MT

CX,SQ,MH,QR,AI

IN-DE

300 MT

LH,QR,CX,EY,SQ,EK,TK

IN-US (ORD,LAX,ATL)

200 MT

QR,EK,EY,LH,AF,BA,CX,SQ

Trucking Situation

The market share of road transportation stood at 80% during August 2020. It also has witnessed traction with a gradual increase in the availability of trucks along with the supply of laborer’s but due to increasing diesel prices, the average freight rates are witnessing an upward trend.

If you need specific information on this topic kindly contact your respective account manager or sales contacts.