Ms Latha Narayan, Director Commercial APAC, Australasia and ISC, Etihad Cargo, elaborates on a range of issues in an exclusive interaction with Exim India ACE
- Could you give us a brief about Etihad Cargo’s global operations, the capacity offered, volume growth in the last two years, and the number of freighters it operates?
Etihad Cargo offers freighter services to 11 destinations with over 70 weekly rotations, including key locations like Amsterdam, Ezhou, Shanghai and Johannesburg. Additionally, we provide belly capacity to 68 destinations via more than 790 weekly rotations, soon increasing to over 850 rotations to more than 90 destinations, including over 30 weekly flights to nine new destinations. We operate five of the latest generation of Boeing 777 freighters, which we use to add capacity to our network. We offer 18 weekly scheduled freighters from China and Hong Kong per week, plus three weekly charters from Ezhou and Guangzhou to Europe. Additionally, Etihad Cargo operates weekly freighters from Hanoi, Vietnam. The expansion of our freighter network supports our growing passenger network.
- What are the salient features of Etihad Cargo’s operations to and from India, the volumes and key commodities handled to and fro, and the primary hubs?
Etihad Cargo operates a combination of wide-body and narrow-body flights to and from India, covering 10 origins within the country. From June 8, 2024, Jaipur will become the 11th destination, served by narrow-body aircraft. On average, Etihad Cargo operates 120 narrow-body aircraft and 48 wide-body aircraft weekly. Our primary hubs in India are Mumbai (BOM), Delhi (DEL) Bangalore (BLR) and Hyderabad (HYD). We uplift approximately 1,000 tonnes of cargo weekly from various origins in India. Key commodities handled include electronics, including mobile phones and semiconductors, garments, pharmaceuticals, perishables, e-commerce, automobile components and courier shipments, reflecting the diversity and strength of India’s manufacturing and export sectors. Our robust network and significant cargo capacity highlight Etihad Cargo’s extensive operations and strategic presence in the Indian market.
- What are the major destinations that Etihad Cargo covers from India? Is it mainly bellyhold cargo or are there freighters too in the mix?
Etihad Cargo’s major destinations from India primarily include Europe, which accounts for 70% of the cargo. The remaining cargo is destined for the US, the Far East and Africa. Our operations are predominantly belly hold cargo, with the majority of the freight being transported in the belly compartments of passenger aircraft rather than dedicated freighters.
- How do you see the potential in the Indian air cargo market going ahead? What are your short- to medium-term plans for this market, especially given the competition from other major domestic and international players?
The potential in the Indian air cargo market is substantial, driven by the country’s ambitious plans to position itself as a major player in the global cargo industry. India aims to handle 10 million tonnes of air cargo by 2030, a goal that requires concerted efforts from all stakeholders, including significant upgrades to infrastructure such as airports. At Etihad Cargo, we recognise that this growth will extend beyond cargo to include the passenger business as well. Our short- to medium-term plans are to align with and positively contribute to this ambitious growth strategy, tailoring our operations to complement the policies and initiatives of the Indian government. Despite the competition from other major domestic and international players, we are committed to supporting the expansion of India’s air cargo capabilities and enhancing our presence in this dynamic market.
- Has air cargo benefited from the disruption to ocean container shipping in the Red Sea? What impact has it had on the freight rates globally and to/from India?
The disruptions in ocean container shipping in the Red Sea, which began to be evident from early to mid-February, have impacted the air cargo industry, albeit slowly initially. India was one of the countries affected, and within a month, freight rates out of India doubled. This increase in demand was driven by large lots of cargo, indicating clear sea-to-air conversions. Additionally, there was a significant positive impact on air freight prices out of India due to the transhipment of garments from Bangladesh. These factors have collectively led to a substantial rise in air cargo activity and rates globally and specifically to and from India.
- How do you view the current global air cargo scenario, especially with regard to capacity/demand and rates? Where do you see it going during the rest of the year?
The global air cargo market is currently influenced by a shortage of ships in ocean freight, which has led to a price increase of over 16%. If this shortage continues, air freight prices will likely stay high. In India, the end of the mango season and the start of the monsoons in mid-June, along with potential supply chain disruptions from election results in early June, could affect cargo volumes. However, we expect general cargo volumes to stay stable. Prices might drop slightly, but this will happen slowly over time.
- What are some of the value-added offerings of Etihad Cargo?
Etihad Cargo has strategically enhanced its PharmaLife and FreshForward products, and perishables and pharmaceuticals account for 15-20% of our origin cargo in Asia. Our CEIV Pharma-certified PharmaLife product offers precise temperature control and advanced packaging for the safe transport of high-value pharmaceuticals, meeting the stringent requirements of the healthcare industry, especially from India, an emerging healthcare hub.
To support the expanding consumer electronics and high-tech industries in Asia, we introduced SecureTech, an IATA CEIV Li-batt-certified product for high-value electronics, resulting in a 51% increase in electronics shipments in 2024 and a 900% rise in semiconductor volumes in 2023. We also offer FlightValet for car transport and AirMail for postal shipments. Highlighting our commitment to local culture, we are the official sponsor of the Chennai Super Kings, engaging with millions of cricket fans in India. These enhancements ensure Etihad Cargo remains the air cargo partner of choice, meeting the evolving needs of our customers.
- How have you incorporated digitisation and automation in your operations?
Etihad Cargo has integrated digitisation and automation into its operations through several key innovations. Sales Cockpit, our sales optimisation tool, uses advanced algorithms to analyse data and generate recommendations for strengthening customer relationships. Etihad Cargo’s online booking portal has been expanded to include bookings for pets and dangerous goods, improving efficiency and user experience. In 2023, 44% of all bookings were made via the portal, reflecting a 5% increase from the previous year, with India being one of our top countries for adoption. Additionally, our Instant Offer Rate (IOR) tool has streamlined the booking process by reducing pricing transaction times by up to 70%. The IOR tool instantly generates prices based on key parameters, enhancing the booking experience for customers.
- What would your message be to the Indian trade?
At Etihad Cargo, we understand the pivotal role an airline can play in India’s air cargo growth vision. We are strategically committed to India and will focus on increasing our capacity and connectivity to both tier-one and tier-two cities. We will continue to collaborate with stakeholders to help India realise its ambitious vision for air cargo. We express our heartfelt gratitude to our valued customers for their unwavering support. Moving forward, we remain dedicated to creating cutting-edge products and solutions that enhance the efficiency and seamlessness of air cargo transport.