India, as an investment and trade destination, has potential in APAC region, says Coen van der Maarel, MD, Kuehne+Nagel India, Sri Lanka, and the Maldives. Its evolving logistics ecosystem and focus on digitization, govt policies, and business competitiveness can transform India into international trade and investment hub.
Ritika Arora Bhola
Kuehne+Nagel has flown its first Boeing 747-8F as part of the long-term charter pact with Atlas Air Inc. Please elaborate?
At Kuehne+Nagel, we follow an asset-light model and do not own an aircraft fleet. Working with our carrier partners, we have established a robust capacity network. This year, it was expanded further as we chartered the capacity of the past two 747-8Fs from their delivery by Boeing. The aircraft will be operated by Atlas Air, exclusively for Kuehne+Nagel and its customers. The new Boeing 747-8F accentuates the firm’s commitment to providing reliable solutions to its customers worldwide. In addition to transpacific routings, the new service will be linked to the intra-Asian network, providing customers with improved connectivity dependable service, shorter transit times, and reduced risks within the growing APAC region. The Boeing 747-8F plays a vital role in global air freight, thanks to advanced technology that allows for lower fuel consumption, increased capacity, and a unique nose-loading capability. Thanks to its advanced design and engines, the 747-8F offers a 16 per cent improvement in fuel use and CO2 emissions per tonne, as well as a 30 per cent lower noise footprint than the previous generation.
Throw light on new routes, destinations covered, and cargo that will be ferried?
To support customers with long-term planning and high-quality service, we added strategic weekly charter flights on our new Boeing 747-8F “Inspire.” There are three rotations per week departing Wednesday, Friday, and Sunday with the following routings:
- ORD-ICN-HAN-HKG-ORD
- ORD-ICN-HKG-DFW-ORD.
With Kuehne+Nagel-controlled operations, customers benefit from highly reliable service, reduced risk of cargo loss or damage, shorter transit times vs commercial flights, and full flexibility globally.
How do you see APAC become a global cargo market?
Asia has been the heart of world trade and Intra-Asia trade accounts for over 1/3 of the volume now and has the potential to grow substantially. We have confidence when such a good solution coupled with Intra-Asia connectivity can create value to our customers in Asia. Like any other industry, the growth driver is strong consumer demand. The surge in demand was evident in the post-pandemic era when there were signs of a shift in the pattern of consumer spending across the world. Economic growth, increasing consumption, and the growth of various businesses and MSMEs are likely to influence increased movement of air cargo across Indian airports. As economic activities pick up, the air freight movement will lead to higher growth turning APAC into a global cargo market.
How do you think of India as an investment and trade destination?
India, as an investment and trade destination, has potential in the APAC. As businesses recover from the pandemic slump, India’s evolving logistics ecosystem is focusing on digitization, government policies, and business competitiveness in terms of cost and operations has created the required landscape for India to become a global trade and investment hub. Our air freight solutions include fully integrated systems and procedures, data-driven insights, and cutting-edge technological advancements. We provide specialized charter options through our air freight services to give urgent shipments the priority they require. Our air freight shipments are organized and measured in accordance with Cargo iQ norms. We offer Full Truck Load (FTL) and LTL shipping services. integrating a digital trucking ecosystem to streamline routine road logistics ops. Businesses can manage their fleet of truck vendors and increase the effectiveness of their supply chain with the help of our eTrucknow Road Logistics Private Cloud Solution.
How vital has it become for logistics firms to design the future supply chains?
India’s supply chain industry has a bright future ahead as tremendous growth is anticipated and past disruptions are estimated to settle. The logistics sector, which includes supply chain and operations, may expand at a CAGR of 10 per cent, increasing from US$200 billion in 2020 to US$320 billion in 2025. In a Supply Chain 4.0 world, ‘smart factories’ are forecast, which will use technology such as real-time analytics, automation, and other concepts to make the process easier and outcomes more profitable. The firms will be able to complete tasks quickly and maximize business potential by integrating AI and ML resulting in increased operational efficiency. Excellent data accuracy and value-added services are being provided by technological integration of business processes, translating into rich customer experiences.
Logistics is drifting towards sustainability and how does your organization contribute toward it?
The industry has a responsibility to safeguard the environment. Ssustainability is the foundation of everything we do. For Kuehne+Nagel India, we have launched green initiatives such as tree planting, subsidizing the use of biogas stoves, and investing in electric vehicles for our local movement of goods. When it comes to office and warehouse space, we choose more sustainable options. Our main office in New Delhi uses solar panels and energy-efficient double glass to reduce solar gain. In terms of challenges in setting up goals for carbon neutrality, there are factors businesses must consider before developing strategies for a reduced carbon footprint.
What are the takeaways from 2022 and how do you see yourself growing in 2023?
We are planning to expand our footprint to tier II and III cities where we want to make sure that we ensure customer proximity to large companies, SMEs, and start-ups in India. We want to expand our logistics presence and invest in additional solutions there. We will invest in the training manpower. The market is experiencing lot of volatility, and we foresee the situation will persist in 2023 also. We will ensure we embrace such challenges, stay close to our customers, and continue to add value.
