I Air cargo mar­ket in In­dia: Grad­ual im­prove­ment in sight

Grad­ual im­prove­ment in sight

Cargo Talk - - Contents -

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

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