India soars amid increased capacity

India’s air cargo sector is experiencing robust growth and recovery in 2024, largely driven by increased capacity and a reduction in freight rates, which have improved accessibility for businesses across the country.

As a result of this trend, the industry is seeing a rise in demand for air cargo services, particularly for perishable goods and time-sensitive shipments.

“The industry is adapting to these changes by optimising operations, focusing on efficiency, and enhancing customer service,” Girish Kunder, Country Manager India at ECS Group, noted.

In this evolving backdrop, ECS Group has strategically adapted operations to remain competitive and responsive to the changing dynamics of the airfreight market in India.

“At ECS Group, we understand that success comes from anticipating market needs and delivering unmatched value. In India, a market that epitomises economic and logistical growth, our performance this year has been nothing short of extraordinary, achieving 300 percent of our budget,” Adrien Thominet, ECS Group Chairman, stated.

“We’ve focused on enhancing our partnerships with airlines to ensure we can provide our clients with optimal capacity and services,” Kunder continued.

“This adaptability has allowed us to streamline our operations and improve efficiency in handling increased volumes. 

“Additionally, we’ve invested in digital tools to better understand shifting market demands, enabling us to offer personalised solutions to our customers.

“ECS Group is positioned to capitalise on opportunities that arise from the current trends, ensuring that we continue to deliver exceptional service to our clients in the region.”

“Our Indian subsidiary, GAC, has risen to become one of the top five contributors to our global results,” Thominet continued. “This success is a testament to the dedication of our local teams, our strategic investments in technology with CargoTech, and our unwavering commitment to providing tailored, sustainable, and connected solutions. India is not just a key market for us; it is a cornerstone of our global ambitions.”

Success factors

The key to growth for airlines and General Sales and Service Agents (GSSAs) in India’s current landscape lies in their ability to embrace a multifaceted approach that incorporates growth, digitalisation, sustainability, and specialisation.

“Airlines and GSSAs must remain agile, adapting quickly to market trends and customer demands,” Kunder expressed.

This requires capacity expansion, exploration of new routes, and investment in emerging markets. Furthermore, the aforementioned role of digitalisation is vital to operational efficiency and by adopting data analytics and automated systems, ECS Group enhances transparency across the supply chain and improves customer experience.

Implementing data analytics and automated systems can optimise processes, enhance decision-making, and create transparency throughout the supply chain.

“ECS Group has made significant investments in artificial intelligence and machine learning to improve service offerings, including predictive pricing and capacity management through tools like Apollo and Quantum,” he highlighted.

“We collaborate with CargoTech to integrate cutting-edge technologies that streamline operations and enhance data-driven decision-making at the service of all MDs. Those tools are being used by the Indian teams and strengthen the difference in term of added value when it comes to competition.”

From a sustainability perspective, ECS Group is clear that a unified industry approach is key to achieving necessary developments. ECS Group and TUI have partnered on a sustainable aviation fuel (SAF) initiative, which provides 1 percent SAF on all TUI flights since August 2022, with an option for clients to increase SAF content for their shipments.

“Prioritising sustainability alongside growth and digitalisation, and specialisation, stakeholders can address environmental challenges and drive long-term success,” Kunder stated.

The fourth pillar is providing specialisation, which focuses on niche markets, particularly pharmaceuticals, perishables, and e-commerce.

“By offering tailored services, companies can build strong relationships with clients and enhance service value,” he continued.

Driving demand

e-commerce has emerged as a major driver in India’s airfreight industry, with companies increasingly looking for quick and reliable delivery solutions; with a growing focus on health and wellness, the demand for temperature-sensitive pharmaceutical products is on the rise; the agricultural sector is thriving, with increased exports of fresh produce; and as India continues to strengthen its position as an automotive hub, there is increasing demand for the timely shipment of automotive components.

“These segments collectively contribute to a vibrant air cargo landscape in India, driving innovation, efficiency, and the overall growth of the industry,” Kunder outlined.

“The boom in e-commerce has significantly increased demand for fast and reliable air cargo services.

“India is a major player in the global pharma supply chain, and the need for efficient air transport is critical for timely delivery.

“Air cargo provides the necessary speed to maintain the quality and freshness of these goods as they reach international markets.

“Airfreight plays a crucial role in ensuring just-in-time delivery for manufacturers.”

Capitalising on opportunities

The airfreight industry in India is dynamic but faces several potential pitfalls and challenges that could unsettle the market, including global supply chain disruptions, rapid technological change, and capacity issues during peak seasons.

“By addressing these challenges proactively, we can strengthen our operations and continue to provide reliable airfreight solutions to our clients, regardless of external circumstances,” Kunder elaborated.

“Events such as pandemics or geopolitical tensions can disrupt supply chains and trade routes. To prepare for such scenarios, we maintain flexible contingency plans, allowing us to adapt quickly by leveraging alternative sourcing and routing options.

“We prioritise continuous training and development of our workforce thanks to our digital training platform discovery, alongside investing in cutting-edge technology to stay competitive.

“We strategise by maximising fleet utilisation and exploring partnerships with other carriers to ensure that we can meet demand effectively.”

With that set up, looking forward, ECS Group sees a significant opportunity in the evolving airfreight landscape across India and the surrounding regions.

“As regional economies grow, there is a rising demand for air cargo services. We are expanding our network to include emerging markets, enabling us to tap into new customer segments and strengthen our footprint in these regions,” Kunder expressed.

“New trade agreements between India and various countries can create opportunities for increased air cargo traffic. We are researching potential markets to strategically position ourselves to seize these export and import opportunities.

“By leveraging opportunities, we are well-prepared to expand our services and continue delivering value to our clients while contributing to the growth of the airfreight industry in India and the surrounding area.”