Current status of air cargo services in India

With the growth of Indian economy the demand for air cargo operations have increased significantly in India.  The need for faster delivery and globalization of economy has created more demand. Changing nature of business, like just in time manufacturing and global outsourcing models have also played a major role in the demand creation.

The business means speed to market and movement of inventory is no longer compartmentalized process. The sourcing of inputs, parts and delivering of the final product has become part of the continuous value adding chain.

The air cargo has about 10 percent share in the revenue of the airlines .The air cargo is also barometer of the general health of the economy. The growth of the Indian economy is expected to be in the higher trajectory. This will create immense demand for more air cargo services and infrastructure in coming years.

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The air cargo operation involve industrial supply chain of airlines , ground services , customs , forwarders, air cargo terminals , distribution centers and international express services . Of all these, criticality of the air cargo terminals cannot be overemphasized.  The air cargo terminals are used by airlines, air cargo terminals operators and cargo agents. The air cargo agents are the main contributors to the revenue of the cargo terminals.

The major reason for comparatively low demand for air cargo is the cost of the service. The cost is at least 4-5 times the cost of the road transport and 15 times the cost of the sea transport. But the cost also differs from season to season and for product to product.

The cargo transported by air International Courier Service in Kandivali has higher value per unit and most of the products, which are traded by air, are time sensitive. The products traded by air are pharmaceutical, flowers, vegetables, perishable commodities, emergency supplies, spare parts and seafood. The companies are now using exclusive chartered cargo planes for trade. The small part of the cargo goes by commercial airlines.

The door to door delivery of the products is done by private express companies. These express services are also using air services for faster delivery.  The domestic cargo companies are concerned with the delivery the cargo within the country, while the international cargo service companies take cargo out of India and also bring the cargo at major international airports in India.  Some companies International Parcel Service in Kandivali operate both domestic and international segments of air cargo services. The growth of the industry has created job opportunities for people at various levels in the operational chain. 

Role of air cargo in the economy development of a nation

Air cargo allows a nation to connect with the global supply chain effectively and efficiently. The geographical location of a nation has no impact on the growth of air cargo services .The land locked country can also have the more efficient air cargo infrastructure.  Only an air cargo service will enable a landlocked country to connect to the global market.  The growth of economy in several developing countries depends on the air cargo services. The market reach of a nation and its products increases with the reach of air cargo service.

The trade in fruits, seasonal vegetations, and different types of flowers gives employment to hundreds of thousands of people in several developing countries. The air cargo services play a vital role in small tropical countries in the Caribbean, as they can connect with advanced markets of the North America efficiently. The least developed countries of the Africa and Latin America   can overcome the inadequate land infrastructure to gain export markets in Europe and America.

The speed and reliability International Parcel Service in Kandivali of the air services is the reason why relief supplies, medical supplies and emergency aid are always provided through air cargo services. The delivery of vital industrial parts, medical organs for transplantations are done only through air cargo services. Efficient air cargo services are the only mode to connect the remote part of India like north east and ladakh in Jammu and Kashmir during winter months.

Many small nations depend on air cargo services for exports of perishable products. For example, in Kenya, an east African country, the horticulture is third major source of foreign exchange. The flowers are exports to the Europe and Netherlands is the major market of the horticulture sector of the country. Since followers are the highly perishable commodity, they must reach the end user within short period of time. The flowers are exported in the morning and reach the Amsterdam market at evening.

The largest economy International Parcel Service in Borivali benefit of the air cargo service is that it increases the overall productivity level of the economy. It also boosts exports; increase the size of markets, and at the same time increases competition, which reduces the cost for end consumers. 

The increase in exports and opening up of new markets creates new jobs in the local economy. When air cargo services increase between destinations, the chances of increase in foreign direct investment also goes up. The investment of capital and technology creates a new cycle of growth and prosperity for the region and subsequently for the nation.   

Role of seaborne trade in overall trade in India

India has long coast line of more than 7 thousand kilometers, from west to east. This long sea shore makes it the 16^th largest maritime power in the world. The foreign trade of the country moves through ships to different parts of the world. The volume wise about 96 % and value wise about 75 % of trade is done by ships. And this role is going to increase in future. The development of economy is closely linked with the growth of sea trade of a nation .Many foreign companies have Indian seaman operating their ships and containers. 

The government also wants to encourage the growth of shipping industry by give single window clearance to the 100 percent investment in ports and harbor construction and maintenance projects .The government also gives 10 year tax holiday to companies to come and invest in harbor and inland water transport development. The sea trade plays in major role in the prosperity of a nation.

The companies involved in international parcel service take the goods from interior of the country and put them at port for international movement.  The movement to ports is done by road transports. The companies involved in transport of good have their own fleet or they have linked with transporters to help them in parceling service. The international trade in commodities, raw material, vehicles, heavy engineering goods, and agriculture products is conducted through ships. Only few perishable vegetables, horticulture items, and some medicines are transported through air.

The goods are shipped through 12 big ports and 187 non major ports.  The kind of ship, which will be used for the trade, also depends on the nature of product involved in trade. For example, for petroleum products, mostly the chemical tankers are used. These ships have tanker like space for liquid petroleum products. Cargo ships are used for cargo and agriculture products. Containers are used to take containers. Each container may be containing many single items from various parties or companies.

Generally, the International Parcel Service in Kandivali eastern cost is used for trading with south East Asian countries. The west ports are use for petroleum imports from west Asia countries.  The most of the oil importing countries are in the west Asia and separated by only Arabia Sea. The shipping is the only cost effective transport mode to take the energy supply to India.

An important role that shipping trades plays is that it creates job opportunity for millions in direct or indirect form.  The cargo handling at ports is done by freight forward companies, which employ International Movers in Kandivali many people to handle different aspect of cargo handling like import and expert documentations, resupplying the ships with kitchen items, and clearing goods for inland movement to different cities in India.  At every stage in delivery of cargo from a port to a door many persons are involved and all of them depend on sea trade directly or indirectly.