Ajay Singh, Chief Supply Chain Officer & Vice President, Hindustan Platinum, delves into the transformative trends, challenges, and sustainability efforts shaping the air cargo sector for automotive parts amidst evolving global and technological landscapes.
Technological revolutions and sustainability shifts are not trends; they’re the future
Ajay Singh highlights the evolving dynamics of air cargo in the automotive sector, emphasising its critical role in today’s supply chain. As technology drives change, automotive parts have become lighter and more advanced, with heightened focus on quality parameters. “Air cargo for automotive parts has transitioned from a requirement to a necessity,” Singh notes, pointing to the surge in demand for hybrid and electric vehicle components, which often require imported technological spare parts. Moreover, the increased need for after-service parts has further amplified international air cargo movement in this sector.
Navigating complex challenges
Shipping automotive parts by air comes with its own set of hurdles. Singh describes these challenges as “multifaceted,” citing cost per kilogram, statutory compliance, and the geopolitical landscape as key factors. For instance, sanctions and regulations due to geopolitical tensions impact the industry significantly, increasing costs and turnaround times. Additionally, the rise of electric vehicles has introduced complexities in handling hazardous cargo, such as batteries and other components. Singh also underscores the rising packaging norms and reliance on specialised cargo carriers, which drive up costs due to limited availability in specific sectors.
Mitigating risks amid global tensions
Global political and economic tensions add another layer of complexity. Singh explains how route adjustments and air traffic rerouting, driven by sanctions or other restrictions, inflate both turnaround times and costs. To counter these risks, companies are exploring strategies such as developing local vendors and maintaining higher inventory levels. However, the latter brings its own challenges, notably increased inventory carrying costs.
Dispelling misconceptions
A common misconception about air cargo for automotive parts is its unsuitability for larger, bulkier components due to cost concerns. Singh believes this mindset is changing. “Technological advancements in spare parts and growing air freighter capacity are driving a shift in perception,” he states. Organisations now seek economical alternatives while balancing cost and efficiency.
Sustainability in air cargo
The air cargo industry is actively addressing environmental concerns, particularly in the movement of automotive parts. Singh highlights innovations in packaging as pivotal. Primary and secondary packaging solutions now optimise environmental stability. Furthermore, multimodal transport is emerging as an alternative, striking a balance between operational efficiency and carbon neutrality.
The road ahead
The air cargo industry for automotive parts is at an inflection point, balancing innovation, cost-efficiency, and environmental responsibility. As Singh concludes, “Technological revolutions and the shift towards sustainability are not just trends—they are the future.”
This forward-looking perspective ensures that air cargo remains integral to the ever-evolving automotive supply chain, meeting both current demands and future challenges.
