Growth factors of air cargo service and challenges faced by it

The demand for air cargo services has increased manifold in India. The demand has increased because of short product life and demand for delivery of the product on the time. The growth in trade in perishable products has accelerated the growth of air cargo. The perishable cargo cannot be transported by ships. The changing business models and global outsourcing has also lifted the air cargo movements in India. The companies are now reaching to the market in faster paces. The import of components, sourcing of parts and inputs and delivery the final products is part of the value added chain. The companies cannot wait for months to receive the parts or components from ships to deliver the final products. The export of fruits, vegetables, and horticulture products needs air cargo services. The supply of critical parts of industry or manufacturing units also goes through air cargo. The documents are sending through air parcel services.  

The demand for air International Parcel Service in Kandivali cargo will continue to increase as the growth of the economy will take the economy to higher trajectory. The growth of airlines business in India, after the latest government policy to allow low cost airlines with less than five years of experience to fly abroad will create more belly space for air cargo. 

The issues which are blocking the growth of air cargo in India at present are lengthy process of cargo delivery, lack of auto processing for shifting the cargo from one part of the terminal to another and queues at the terminals. 

The infrastructure of the air cargo industry needs to be modernized, so that the industry is able to match the growth of the economy. Of all the parts of the air cargo operations, the cargo terminals are critical part. The loading and unloading of cargo takes place at the terminals. The three main part of the air cargo terminal, are airlines, forward cargo agents and air cargo terminal operators.

The development of International Courier service in Church gate new exclusive terminals is essential to make sure that time spent at the terminals is less and cargo is put on the airlines without waste of time. The modernization of air terminal for cargo will clear the cargo for export without logistic hurdle.  

The government has to give proper thought to the air cargo sector. The sector needs fast clearance for any up gradation and introduction of automation processes.  The proposals to increase direct foreign investment in the sector will enable the sector to handle increasing air cargo.