Air Cargo Logistics in India
Air Cargo Logistics plays a vital role in the economic development of a nation. Cargo Terminal is the Centre of Air Cargo Logistics. Air Cargo Logistics means using aircraft and warehousing services for the transport of goods quickly from point of origin to point of consumption for satisfying the requirements of customers. The cargo industry incorporates an industrial supply chain, which includes airlines, customs, ground services, air cargo forwarders, brokers, domestic transportation, air cargo terminals, distribution centers, and integrated international express services. Of these, air cargo terminals are basic noticeable all around the payload production network.
A typical air cargo terminal has three main users – airlines, air cargo terminal operators and forwarders/ cargo-agents who are the vital supporters for the revenue of air cargo terminals. The aviation industry displays a broad diversity of service providers coming together to move goods both domestically and internationally with a single-minded purpose of faster and efficient delivery. These business substances in Cargo logistics industry thus cooperate with various cross-border regulatory agencies the principal among them is the Customs establishment. “ Cargo represents about 10% of the airline industry’s revenues”.
As 35% of the value of goods traded internationally is transported by air, air cargo is a barometer of global economic health Cargo growth rates.In general, are seen to be highly receptive to the instability in the GDP growth rates of India and more so in the international Cargo segment. In fact, the downshift in cargo seems to be preceding the slowdown of the economic growth in many cases. Due to which air cargo sector is known to be the barometer of the economic health of a country.
Air cargo in India got its underlying catalyst from the 1986 consent
Wherein air taxi administrators were permitted to give on-request benefits essentially to help the travel industry on real courses. Subsequently, the ‘ Air Cargo Open Sky Policy ’ was adopted in 1990 initially for 3 years and further extended in 1992 on a permanent basis, where any airline whether Domestic or Foreign carriers which met particular operational and safety requirements. Were allowed to operate scheduled and non-scheduled cargo services to/from any airports in India wherever customs facilities are available.
In addition, regulatory administration over cargo rates for major export commodities was abolished so that carriers are free to set their own rates. Today the aviation logistics in the country is assault with the multitude of serious problems like inordinate dwell times, absent and non-traceable cargo, damaged cargo, lengthy cargo processing times and queues at the cargo terminals, etc. Cargo infrastructure in India is infrequently planned for medium and long term requirements and thus is hardly insufficient and overloaded. It is widely acknowledged that the existing processes at the airports for cargo act as a stumbling block for the growth of this industry.
However, it’s the most costly form of freight service and airlines do not accept goods mentioned in IATA’s Dangerous Goods Regulation (DGR) like explosives, certain chemicals, etc.
IATA’s Dangerous Goods Regulation (DGR)
Freight forwarders advise shippers of estimated freight costs, port charges, costs of special documents, insurance costs and terminal handling fees. Freight forwarders can also assist companies with initial pickup (depending on the Incoterm), interim storage and consolidation of freight.
The original function of the forwarder was to mastermind for carriage by contracting with various carriers. Forwarder obligations included advice on documentation and customs requirements in the country of destination. His correspondent agent overseas looked after his customers’ goods and kept him informed about matters that would affect the movement of goods..
Air transport is a part of innumerable worldwide coordination organizes, overseeing and administer the progression of merchandise, energy, data and different assets like items, organizations, and individuals, from the wellspring of creation to the commercial center. Logistics includes the geographical repositioning of raw materials, work in procedure, and completed inventories.
Recommendations for air Cargo Logistics in India are:
The contribution of the air cargo sector needs to be satisfactorily and appropriately recognized so that India’s fast-growing International. Domestic trade by air is facilitated, enabled, integrated and expanded.
ii) Air Cargo Policy and Regulatory Framework governing Cargo operations should be enabling and facilitating India’s International and domestic trade for ensuring efficient, safe and streamlined cargo services. From every part of the country so as to achieve competitively positioning with efficiency. Value addition and yield. Providing industry status to Air Cargo logistics sector would assist in the development of the sector, bring down the current logistics costs.
“Industry” status if corresponding to the Cargo logistics sector would encourage easier access to finance through the availability of the organized financing and establishment of insurance rules and regulations, robust regulatory mechanism and certainty. Industry status to Air Cargo logistics sector also encourages Private Equity funds participation as they are clear that Government policy will not change frequently once the status of Industry is accorded.
The cargo logistics sector in India has not been accorded any industry status. Presently it is being handled by multiple Ministries such as Ministry of Civil aviation, Ministry of Roads, Ministry of Commerce, etc. Cargo logistics operations require skilled manpower, proficient with the knowledge of customs procedures and IT systems. Warehouse management, logistics, and freight forwarding are separate subjects in themselves and require specialized training.
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