I Air cargo market in India: Gradual improvement in sight
Gradual improvement in sight
If recent trends are indicators, the air cargo market is definitely heading north. Speaking to Cargotalk, Manoj Singh, Vice President (Cargo), MIAL, explains the reasons for being optimistic.
According Singh, the global air cargo market has witnessed reasonable year-to-date growth of around one per cent in 2013, whereas the Indian market that witnessed a sharp decline since mid-2012, managed to register flat growth in 2013. The increase in passenger business affected the yield and load factors of airline operators by the surplus belly capacity and intense competition. Airline load factors continue to fluctuate since mid-2012, despite performing better in a few parameters in March and October.
The Indian market has been consistent since March 2013 and October has been encouraging with noteworthy performance in both air exports and imports. Consistent growth in exports in the second half of 2013 has offset the flat performance of imports due to fluctuating rupee versus the dollar, drop in orders, weak demand for electronics and diversion to ocean freight. Rise in exports of pharmaceuticals and textiles, improved performance of manufacturing sector, increase in export orders and policy decisions by government to stabilise rupee has supported Indian air freight market to
maintain the levels of 2012.
He also pointed out improved demand in Q3, better trading performance with Asia-Pacific, European, Middle East & US markets and reduced jet-fuel prices compared to the Q1 levels, forecast an optimistic outlook for Indian air freight market in the coming months. However, the growth could be moderate in 2014 as anticipated by many emerging economies and by IATA. Appreciation in Indian rupee will definitely support India. Efforts put in place by the Indian government towards stabilising the rupee and bridging the trade deficit needs to be appreciated.
Manoj Singh Vice President (Cargo), MIAL