CARGOCONNECT JULY2024 - Flipbook - Page 20
FOCUS : AIR FREIGHT
Gazder identifies several critical issues that need to be
addressed and emphasises key imperatives:
* Infrastructure Bottlenecks: Congested airports and
inadequate warehousing facilities significantly hamper
e昀케ciency. It is essential to invest in modernising and expanding infrastructure, including the development of dedicated
cargo terminals, enhancement of warehousing capabilities,
and improvement of ground handling operations.
* Data Integration and Visibility: Information silos across
the supply chain lead to inefficiencies and higher
operational costs. Implementing integrated digital
platforms that facilitate seamless data sharing
One approach
among stakeholders can enhance visibility,
adopted
by air cargo
improve coordination, and reduce delays.
firms to harness the shift
* Technology Adoption: A substantial
towards CBEC is the development
portion of the industry still relies on
of digital platforms and tools.
outdated processes and technologies.
These innovations enable them
Accelerating the adoption of advanced
to offer more flexible services
technologies such as AI, Blockchain, and
compared to traditional carriers. Such
IoT is crucial for optimising operations
advancements include real-time
and enhancing service quality. These
the Indian air cargo industry can unlock
tracking systems, integrated
technologies enable predictive analytics,
its true potential and achieve overarching
customer service portals, and
automate routine tasks, and provide realobjectives of value recovery, cost reduction,
automated document
time tracking and monitoring capabilities.
and supply chain optimisation.
processing solutions.
* Sustainability Practices: Embracing sustainPatel underscores the need to address critical
able practices is imperative to meet regulatory
issues and proposes remedies to enhance India’s
requirements and customer expectations. This
express delivery sector, emphasising its potential to
involves investing in fuel-e昀케cient aircraft, exploring
reduce logistics costs. He states, “An e昀케cient express delivery
alternative fuels, and implementing green logistics solutions.
sector can signi昀椀cantly reduce logistics costs in India, but to
Sustainable initiatives not only reduce environmental impact
achieve its full potential, barriers must be eliminated or reduced.”
but also lead to long-term cost savings.
Referring to the recent ICRIER report, Patel shines the light
* Workforce Skill Development: Equipping the workforce
on specific issues that need attention to improve efficiency,
with necessary skills to operate advanced technologies is
cost-e昀昀ectiveness, and the ease of doing business.
essential. Continuous training and development programmes
* Resolve Inconsistencies in the GST System: While GST
are crucial to ensure that the workforce remains adept at
has integrated the Indian market, challenges persist. Curleveraging technological advancements and adapting to
rently, separate GST registrations are required for each
industry trends.
state, contradicting the ‘One Nation, One Tax’ principle.
Echoing similar sentiments, Kamesh remarks, “The air
Implementing a uni昀椀ed pan-India GST registration system for
cargo industry in India faces signi昀椀cant challenges that need to
express logistics companies would streamline documentation
be addressed for sustainable growth and enhanced operational
processes. Additionally, uniform penalties for GST payment
e昀케ciency. Firstly, infrastructure bottlenecks such as inadequate
defaults by consignees or consignors are necessary to avoid
airport facilities, congested runways, and outdated cargo handling
discrimination.
systems lead to delays and increased operating costs. Addressing
* Fill Infrastructural Gaps: Despite mergers, acquisitions, and
these issues requires substantial investments in modernising
technological advancements, inadequate dedicated space for
airport infrastructure and optimising cargo handling processes
express service providers remains a barrier. To foster trade
to ensure smoother operations and improved service quality
momentum, focussed development of aviation infrastructure
for our clients.”
is essential. This includes establishing freighter bays near
“Secondly, navigating the complex regulatory landscape
express terminals, staging areas for unit load devices, and
poses a formidable challenge for air cargo companies. Cumberwarehouses with air and land side access. Ensuring su昀케cient
some regulatory approvals, intricate customs procedures, and
landside infrastructure, ample parking availability, and
extensive documentation requirements hinder operational
reducing cargo movement fees at express cargo terminals
e昀케ciency. Simplifying regulatory processes and fostering greater
will facilitate smoother export and import clearances.
collaboration between industry stakeholders and regulatory
* Strengthen Customs Clearance: India’s complex and
bodies are essential to facilitate smoother operations.”
time-consuming customs clearance processes contribute to
“Lastly, intense competition within the air cargo sector, both
delays and increased costs. Continued reforms are necessary
domestically and internationally, creates pressures for continuous
to simplify and streamline these procedures. Measures such
innovation and e昀케ciency improvements. Collaborative e昀昀orts
as implementing a single-window clearance system and
among industry players to standardise processes, share best
leveraging digital technologies for faster processing are
practices, and explore innovative solutions are crucial for driving
critical to enhancing e昀케ciency.
growth and maintaining competitiveness.”
* Promote Sustainability: Organisations must collaborate to
Kamesh perceives that by proactively addressing these critical
promote green solutions, aligning with consumer expectations
challenges through concerted e昀昀orts and strategic initiatives,
and achieving environmental goals. Consumer studies under20 | CARGOCONNECT JULY 2024
