When a cargo craze took wings, SpiceXpress didn’t leave any stone unturned in exploring every opportunity available, from launching the cargo-on-seat concept to providing end-to-end logistics services. Sanjiv Gupta, CEO, SpiceXpress, shares how the carrier has ensured that the country’s supply chain remains intact and what the future holds for air cargo industry.
Q. Could you please share the vital trends that will shape the air cargo industry?
I will answer this with a few keywords, which are technological disruption, customer satisfaction, product innovation, cost competitiveness, and collaboration. The initial two batches of transportation of COVID-19 vaccine have taught us that the industry has now come into collaboration mode. There is collaboration between carriers, custodians, forwarders, government agencies and manufacturers. And, I am sure better collaboration is here to stay in the air cargo industry. This is a mega-trend because the collaborative approach that we demonstrated in India is being witnessed globally as well.
Q. How has COVID-19 impacted the air cargo supply chain of pharmaceuticals industry? What should be industry stakeholders’ strategy to ensure continuity of supply worldwide?
The pharmaceutical industry was already transporting cold chain cargo and vaccination pre-COVID-19. However, the ongoing pandemic has brought about a better sense of cognizance of the supply chain effort and has highlighted its importance. In my view, active collaboration is the name of the game. The industry stakeholders need to work with a collaborative strategy.
The entire COVID-19 vaccination effort cannot be undertaken without all stakeholders putting in their bit. Government agencies, ministries, handling agencies, freight forwarders, carriers, and custodians have to work even more closely to deliver the vaccination to the final point of inoculation. This is the time to collaborate with each other to achieve a seamless transportation experience for all rather than transporting in a competitive environment.
The first two phases of vaccine movement within India and to neighbouring countries in the month of January was done exceptionally well because of a collaborative approach between all the stakeholders. This needs to be repeated for the next phases of vaccine transportation within India. I also see it being replicated for international movement.
Q. What challenge do you see in the colossal task of moving vaccine worldwide?
The major challenges that we could foresee were of maintaining the product integrity by transporting at the right temperature. This came across as a challenge because we were initially not able to determine the exact temperature range required for stability of the vaccine. However, we have overcome this challenge by investing in the right areas and launching our product for temperature-controlled shipment – Spice Pharma Pro.
Spice Pharma Pro gives us the capability to transport temperature-sensitive cargo with 24×7 real-time tracking and temperature and humidity tracking. We are capable of transporting frozen (-40 degrees to 0 degrees), chilled (2 to 8 degrees) and controlled ambient (8 to 15 degrees and 15 to 25 degrees). With the experience that we have gained over the years, we are confident of being able to handle the vaccine movement without major foreseeable challenges.
Q. Please share the strategies the airline has adopted to sail through this difficult time.
We believe in keeping our business simple. We have been actively listening to our customers and adapting to the needs of the market. SpiceXpress has always been customers’ preferred logistics service provider. When the international market demanded capacity for international transportation, we were quick to invest in, and deploy our Boeing 737 freighters.
The domestic market required smaller-capacity aircraft and we were the first to convert our Bombardier Q400 aircraft to freighters to meet the need. When our air cargo partners demanded a real-time system, we provided them SpiceTag, an end-to-end track and trace system.
When our pharma clients asked us for last-mile delivery support, we strategically partnered with the leading logistics companies of the country to strengthen cold chain network and provide end-to-end logistics solution. Hence, the strategy at SpiceXpress is and will continue to be to make our customers’ lives simpler.
Q. According to you which are the emerging cargo gateways in the developing world?
There are a few developing cargo hubs in the Asian and Middle Eastern region. I feel that these could be upcoming cargo gateways to cater to the local needs. Also, a few that we have explored to cater to Central Asia in the last few months are:
- Almaty International Airport Kazakhstan
- Tashkent, Uzbekistan
- Manas International Airport, Bishkek, Kyrgyzstan
- Ras Al Khaimah, UAE
Additionally, Khartoum, Sudan is an emerging gateway into East Africa. As a gateway into Europe, we have been using Liege Airport, Belgium & Brussels. Apart from these, I feel that Dhaka, Yangon, Myanmar could be the upcoming hubs in the South Asian regions owing to the growing local consumption. Recent change in trade lanes has been supporting Bangkok, Hanoi and Kuala Lumpur.
The COVID-19 disruption has been such a leveller that any airport can aspire to be a cargo gateway.
Q. Which are the top markets for the carrier to which cargo can be transported?
Demand for airfreight has been increasing for the most improbable of destinations. We are open to the market demands and are completely flexible in terms of the sectors to which we operate our cargo freighters.
Q. Which verticals will you be focusing on in 2021?
The next five years should be high-growth years for the industry. This will be fuelled by pharmaceuticals, vaccines, e-commerce and some sectors that have bounced back like automotive after-sales. While these will be our focus sectors, we will not restrict ourselves to particular industry verticals.
Q. What is the volume of tonnage the airline has been carrying in India and globally?
In 2020, we have transported about 128,000 tonnes of cargo. We had set out to surpass our milestones that we had set in 2019. The COVID-19 related disruption certainly slowed us down but generated enough opportunity for us to exceed our targets for 2020 by a long way. We were the pioneers in launching ‘cargo-on-seat’ concept. Adapting to the conditions, we have also converted our Bombardier Q400 passenger aircraft into cargo carrying freighters. Our innovative and adaptive approach to the market conditions has paid dividends.
Q. What are your expansion plans?
So far we have inducted 17 freighters in our fleet – five Boeing 737, one Boeing 767, seven Bombardier Q 400 freighters, one Airbus A330 and three Airbus A340. However, we see a continuous surge in demand, and the plan is to be able to induct a freighter every few months.
Q. How do you see the future of the air cargo industry?
I had mentioned in one of my earlier interviews in May 2020 that I was expecting a U-Shaped recovery rather than a V-Shaped one. Our industry has taken a breather in 2020. The next five years will be high-growth years for the industry. With the end consumer becoming more tech-savvy and more demanding, the air cargo industry is poised to leap forward.
