1. Today to Tomorrow
Air Cargo
Thanks ACFI For Supporting FFFAI Outreach Initiatives
Shantanu Bhadkamkar
Chairman
With
Dushyant Mulani
Member – Airfreight Council
Federation of Freight Forwarders' Associations in India

2. Why Are We Here
 We Are Doing Fine
 We Want More
 We Have Challenges
 We Have Differences
 We Are Optimistic Of Future
 We Are Willing To Change
 We Are Willing To Lead The
ALL OF IT

3. Wide Spectrum Of Stakeholders
 Air Transport Carriers & Intermediaries
 Airlines
 Flight Handling Agencies
 Ground handling Agents
 Custodians
 Air Cargo Agents
 Customs house Agents & Other Forwarders
 Last Mile Carriers
 Vendors
 Aircrafts
 Equipment
 Fuel
 Software professionals
 Regulatory Authorities
 Air Cargo Related
 Customs
 Other
 Customers
 Employees

4. Contributions To The Economy
 Efficient supply chain management
 Lower inventory
 Lesser intermediary costs
 Just in time manufacturing
 Simplicity in order placement
 Resilience
 Additional growth in GDP
 Creation Of Markets
 Cost Efficiency For Costly Cargo
 Agricultural Produce
 Emergency
 Medical
 Employment To Professional Manpower
 Higher Capital Employment & FDI inflows
 Safer? Better Handling?

5. Competition With Other Modes
 Ocean – Scheduled – Fix Time
 Rail – Cargo Initiatives, Green Logistics
 Multimodal
 IWT
 Road – Express Ways
+
Paperless (Documents, Drawings, Magazines…)
+
Courier Vs. Cargo Competition

6. Concept - Confluence
 Many Studies
 Lot Of Statistics
 Varied Interest
 Many Views
Meeting Point - Way Forward - Strategic

7. Trends
Air Cargo - Barometer of Economic health

8. International Air Trade to GDP Ratio
Air Cargo to GDP Ratio has increased from 4% to 8% in the past 2
decades

9. Forecast
More than 1/3rd of the value of goods traded are transported by Air

10. Dwell Time
Measure Of Ease Of Doing Business & Efficiency

11. India - Reality Check
 Size Of Economy: Maharashtra (USD 173 Billion)
– Qatar (GDP 52 : Size 164 : Population 148)
 Economy Must Grow, International Trade Must
Grow – Standalone Approach Will Not Work
 Manufacturing Sector Must Grow
 Double Digit Growth vs. Indian & Global
Economic Environment
 Customer On Top
 Competitiveness
 Ease Of Doing Business
 Second Tier Cities, Centres Of Growth And
Excellence

12. Way Forward Issues
 Challenges
 Globalisation
 Regulations
 Technology
 Infrastructure
 Policies
 Stakeholder Issues
 Airlines
 Custodians
 Manufacturing Sector Revival

13. CHALLENGES
 Sustainability Of Double Digit Growth
 Global Economy
 Resources
 Cargo Shrinkage
 Dis-intermediation
 Competition Or Attrition, Rules Of Game
 Manufacturing Moving Back, Localisation
 Logistics Integration of Supply Chains
 Emergence of 4PL
 Changed Customer Relationship

14. Vital For India’s Competitive
Edge
 Adequate & Efficient Logistics Infrastructure
 Better Planning, Ahead Of Requirement
 Ease Of Doing Business
 Competitive Costs
 Trained Workforce
 Reliability & Predictability
 Pan-National Initiatives

15. Globalisation - Impact
 Global Companies Have Increased Presence
 Global Forwarders Have Increased Presence
 National Carrier, Indian Carriers, Role And Share
 SME Backbone Of Economy
Decision In India & Decisions For
India

16. Regulations – Global Concerns
 Environmental Issues
 Security Concerns
 Safety Standards
 Fuel Costs
 Policy – Fast Track

17. Regulation
 Either regulated regime Or market forces
 Private Monopolies
 Oligopoly
 AERA Power, Arbitrary Charges
 Demarcation Point (Telephone Model)
 Costs and charges need to be
 Competitive
 Commensurate With
 Service Quality
 Economic Purchasing Power Parity

18. Technology
 Realise True Potential Of
 E-Freight : E-AWB
 Uplift & Such Initiatives
 Community System
 Better Handling Systems & Equipment
 Better Designed Facilities – Layout

19. Infrastructure
 Equipment upgrade
 Cargo Village - Forwarders Warehouses
 Hub Only After We Have Capacity, Indian
Shippers Will Suffer
 Airports To Realise The Need To Provide World
Class Cargo Facility
 Privatisation & PPP

20. Actions Envisioned
 Airfreight Stations (AFS)
 Direct Reach to Markets and Production Centers
 Identifying & Dealing With Bottlenecks
 Regulatory
 Procedural
 Infrastructure
 Financial
 Coordination
 Training, Education
 Research

21. Airlines issues
 Long Term Policies
 Consistent Pricing
 Coherent Pricing And Surcharges
 Smaller Agents Generate Profit
 Better Service Levels, Transit Times - Shipping
Lines Are Lot More Reliable In Shipped As
Booked And Schedules Including Transhipment
I.E. Relay
 Proper Handling, Ocean Particularly
Containerised Has Less Claims
 Odd Dimension Cargo
 Claim Settlement, Doesn't Exist

22. FFFAI Actions
 State Of Industry Report
 Thought Leadership Initiative
 Training: Indian Institute Of Freight Forwarders
 Egalitarian Growth & Widening Resources Base
 Youth Wing
 Women’s Wing
 SME Sector Backbone Of Economy - WCO
 Golden Jubilee Knowledge Series
 National Wide Facilitation Seminars In Association
With FICCI
 Newsletter

23. FFFAI Collaborative Model
 Interaction International
 Intergovernmental Organisations Like WCO
 Trade Bodies: FIATA, IFCBA, SAFFA
 Overseas Port Authorities etc
 Indian Trade Bodies
 Logistics Sector: ACAAI, AMTOI, AFCI…
 National Bodies:
FICCI, ASSOCHAM, FICCI, FIEO, ICC
 Local: State Chambers, Member Associations
 Authorities: CBEC, MOC, MOCA, MOS, Planning
Commission and Local Bodies On
Policy, Planning, Procedure

24. Manufacturing
 Shift Of Manufacturing
 Growth Revival
 Special Focus On Export & Import Potential
Industries
 Garment
 IT Equipment
 Engineering
 Leather Products

25. Federation of Freight Forwarders' Associations in India
•Sustained
•Regular
•Structured
•Follow Up Action
•Proliferation
FFFAI Appreciates The Initiative