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Growth of Indian Air Freight Industry on E-Commerce and Perishable Cargo Transportation

The potential of growth that the Air Cargo Industry encompasses has been immense and ever-evolving. The aviation industry has considered the most favourable mode of cargo transportation as compared to land and sea, owing to reasons like smooth transportation without any external hindrance, on-time delivery, and products transportation to every part of the world. This makes it easier for the consumers both in terms of time consumption and financial expenditures. Moreover, the industry has also increased employment opportunities bringing in advanced technologies. According to the reports, around 400,000 people were working in the aviation industry in 2019.

The pandemic witnessed by the entire world had an unforgettable impact. The virus, affecting the economy as well, drained more and more countries. But, the crucial aspect was delivering pharmaceutical products and essentials even during these times. This is where the Cargo Industry emerged and took charge. Various airlines decided to carry cargo shipments, being the only source of income and helping out in this outbreak. However, post lockdown the recovery of the Indian Air Cargo Industry has been slow and progressing at a reduced speed. It is assumed that with time, the market will pace up and lead towards technological growth.

The Mumbai and Chennai Airports, considered as two of the fastest-growing airports in terms of cargo, constitute around 30% of the growth together (as estimated in 2018). Witnessing this growth, the Indian government also announced investing EUR 55 billion to construct approximately 100 airports in the coming years. This would act as an added advantage in the Air Cargo industry by increasing the revenue and providing technological advancement.

Emergence and Growth of E-commerce Sector

There have been expansion, growth and improvements in the Air Freight Industry in terms of infrastructure, technological improvements as well as the rise in the competition between the airlines. The market fueled up and it all rolled down to the provision of quality service with favourable and minimal prices. Moreover, the growth witnessed in the domestic sector has been tremendous over time. The two booming sectors giving an advantage to the Cargo Industry has been pharmaceuticals and E-commerce. In the coming years, the industry is estimated to witness growth in the global retail E-commerce business, depending on the investment and focus on the quality of the service. 

There may be fluctuations in the estimated growth and crisis like worldwide pandemic hampering it yet the aviation sector tends to grow through the hardships and evolve to do better. According to the International Airport Transport Association (IATA), Indian air transport has potential in terms of growth, development and increasing the chances of revenue, globally as well as in the domestic sector. The growth has evaluated to increase approximately five times by 2036, leading to an increase in the per capita income. 

Though Air Cargo might be considered an expensive mode of transportation, the demand for perishables, especially during the pandemic, has risen. It is crucial to deliver the chemicals and other valuables timely so that they can be resourceful. The rising E-commerce sector has built competitiveness for faster and better delivery. The technological additions in the warehouse and other logistics processes have made the process swifter. Both the B2B and B2C markets have brought in their paradigms of growth to the aviation industry. Even third-party companies have started offering multiple services keeping intact the view of the rising Air Cargo Industry. The growth globally has further boosted the demand whilst India have envisioned expanding the air E-Commerce sector. There have been innovative methods debarring the traditional techniques and adapting to new and technological advanced strategies. One of the key competitors is Amazon, with Amazon Flex, Seller Flex, Amazon Prime Air Program leading the race. This retail giant has been dominating by providing its service and swift deliveries all over the world.

This has resulted in various benefits like reduced expenses, lesser services that consume time and these service providers ensure delivery with full precautions, easy return and punctuality. Exceptional services have also increased the demands of these resources and led to the growth of the entire E-Commerce sector. Aiding in such a demand-laden situation, the Door to Door Express System, by Cargoflash, is devotedly helping the freight carriers with the management of their vehicle's assignment, along with mapping the right hubs and warehouses for total accuracy. This integrated, fast, and handy cloud-based tool lets airlines delve into the territory of B2C deliveries, exploring new streams of revenue.

Focusing on the perishable goods, especially the vaccines during such times have been delivered worldwide without many casualties. The Air Cargo sector has proved to be an important as well as a worthy mode of transportation. Cargoflash aims to back this demand up with the utmost and immediate answers.

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