Air Cargo imports into Mumbai airport rise

Air cargo imports into Mumbai airport rose 32% to 13,336 tons in November ’06, compared to November ’05, as per the latest available airports authority of India data. Exports from Mumbai dropped 1.9% in the same month, over last year, to 12,405 tons. On the imports side, Air India maintained its lead, with 1,925 tons imported in November ’06, a rise of 24% over November ‘05, followed closely by Cathay Pacific, with 1,407 tons, showing a 164% year on year growth, aided by the increase of flights to China from August ‘06. Singapore airlines came in third, with 1,376 tons, up 19% and Lufthansa was fourth with 1,020 tons, up 20%. The line up is interesting. In all cases, high industrial activity and demand for materials is showing up in rising imports cargo tonnage and origin.

With China-India opening up to trade with each other, imports of machines, tools, garments, raw material, samples is rising exponentially, which benefits Cathay Pacific as the largest Hong Kong/ China based carrier. Singapore connections worldwide mean cargo is routed through its network. Lufthansa has always been one of the largest cargo carriers in India. Data from Air Cargo Customs, Mumbai shows that Electrical machinery paid Rs 1,177 crore as import duty in 2005-06, leading the pack, followed by machinery, at Rs 926 crore. Interestingly, telcom major Reliance Infocomm was the second highest import duty payer in 2005-06, at Rs 146 crore – as a result of the rapid growth in mobile subscribers whose demand is being met by imports of handsets mainly from China and Korea. Air India was the top carrier in exports out of Mumbai, with 2,424 tons in November ’06, up 1%. In the year 2005-06, it held 18% market share of air exports from Mumbai, which has already moved up to 19.5% in November ’06.

Taking second slot is Emirates, with 1,176 tons, up 4% over November ’05.It held 9.5% share in November ’06. Garments, textiles, gems, food items form major chunks of the cargo for both Air India and Emirates. The logistics majors FedEx and UPS turned in a 43% and 25% increase in cargo exported in November ’06 over November ’05. The exports composition is tilted very much now in favour of pharma (Rs 2,887 crore Free-On-Board, FOB value in 2005-06) organic chemicals (Rs 2,481 crore), electrical machinery (Rs 1,696 crore) and apparel (Rs 1,673 crore), as India becomes the preferred hub for the production of many world-class products. In fact, pharma majors Cipla and Lupin were the top exporters out of Mumbai airport in 2005-06, with value worth Rs 1,244 crore and Rs 613 crore respectively. The top ten exporters list in 2005-06 has no less than six pharma companies.

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