“Adoption of sustainable practices is the need of the hour” 

The World has recovered after two years of the pandemic but still some unexpected challenges are prevailing, including Russia-Ukraine war, which led to airspace restrictions and logistics complexity. However, digitalisation, automated systems, adoption of sustainable practices are the ray of hope for the industry, shares Kamesh Peri, CEO, Çelebi Delhi Cargo in an exclusive interview with APACE DIGITAL CARGO. 

In your opinion, what has been the disruption/challenge to global supply chains in 2022?

The world hoped to recover after two years of the pandemic, but we faced the most unexpected challenges in 2022. One of the most impactful factors was the Russia–Ukraine war, which started on February 24. It has created an environment of uncertainty and has hit global trade and commerce hard. The airspace restrictions between the West and Russia have added to the logistical complexity. Fuel prices have increased, which is a high cost for airlines. Global peace and harmony are the necessities for healthy economic growth, boosting the entire trade and cargo industries.     

What is your view on the way the supply chain industry has invested in tech adoption for better operations over the last year?

Digitalisation is inevitable for supply chain operations; the pandemic has accelerated the transition of manual and paper-based processes to digital and automated systems. All stakeholder groups will have to invest in advanced technologies to bring transparency, efficiency, and ease of doing business. E-commerce is the future, and the logistics industry must adopt best industry practices to meet their and their users’ expectations. Logistic and aviation stakeholder groups are also responsible for making the industry carbon-neutral in the coming years. A calculated and consistent investment in sustainable technology will pay off in the long run.        

Do you think there has been an increased focus on maintaining sustainable operations in the supply chain industry this year? 

Adoption of sustainable practices is the need of the hour. Human activities have been the main driver of climate change, which cannot be reversed overnight. Global policies and the mandatory adoption of sustainable practices will protect our environment from further damage in the coming years. The aviation ministry aims to net zero emissions for all Indian airports by 2030. The focus on sustainable practices has increased, and our responsibility is to embrace environmentally friendly practices and achieve the target of net zero emissions in the near future.

The year 2022 has particularly been harsh for the air cargo industry, which was characterised by falling demand and soaring rates. What according to you led to this downturn?

The cascading effects of the Russia-Ukraine war lead to rising fuel prices, inflation, airspace restrictions, supply chain challenges, and overall uncertainty. These are the main factors contributing to the air cargo downturn. Indian aviation faces challenges in procuring engine spare parts, directly affecting the carrier’s capacity. Falling demand and soaring rates are linked. Global harmony is the foundation of international trade and commerce, and the future of the air cargo industry’s recovery and growth depends on the same.