Prioritising Growth With Cost Reduction

Customers’ expectations for digital solutions are the new trend in the logistics industry from offering customized, tailor-made services to the client, be it in the form of hybrid model or giving digital solutions. Lockdowns were an eye-opener changing the thought process of customers and consumers.  Joy John, Director, Air and Sea Freight, JetFreight share the details:

Gurpreet Matharu

Q. Kindly elaborate on the current market position of your company, JetFreight, and what your future plans are.

For 36 years, Jet Freight has been a top freight forwarder in the logistic space. Joy added, “We have recently announced our business transformation initiative, “Mission Excel,” with a five-fold growth plan. We are hiring professionals and adapting to new-age technology to make sure our processes are in place for the path of growth.”

Q. What is your perception of the cargo and logistics industry globally, post-COVID? How have the dynamics changed?

The industry has started adopting digitisation and virtual communication. Customers’ expectations for digital solutions are the new trend. Our logistics industry is also offering customised, tailor-made services to the client, be it in the form of a hybrid model or giving digital solutions in a zap of seconds. Lockdown has been an eye-opener in the logistics industry, and the thought process of customers and consumers has changed. The new mantra for clients strategising for the pandemic is advance planning and warehousing solutions to cope with 3-6 months of planning in advance.

Q. What is the difference in the tonnage carried between pre-COVID and post-COVID?

In 2018-19, total air freight movement was 27,01,856 tonnes. In 2020–21, the figure was reduced to 17,01,215, and in 2021–22, the figure gained momentum with 23,72,611 tonnes of air freight movement, showing 39% growth. The challenges are still there, but with an increase in airfreight capacity, the shipper looks for some respite in airfreight rates, which had skyrocketed during the COVID era due to reduced capacity.

Q. Recently, a lot of impetus has been given to the cargo sector in the 2022–23 Budget. How do you see it helping the various sectors of cargo and what more is expected from the government to further streamline the sector?

The government has finally taken some initiatives to support the logistics industry, which is a welcome sign for the EXIM trade. With those drone deliveries expected soon, the development of logistics infrastructure and multimodal connectivity will be enhanced to a great extent. The open sky policy can bring positive signs for the industry. Joy added, “Costs are always a key industry challenge, especially in the supply chain movement.” Fuel surcharges, infrastructure development costs, labor, and interest rates are some of the key factors that are roadblocks to cost reduction. Our regulatory authorities and key operators must focus on cost reduction for aviation to achieve substantial growth in the near-term. “

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