AIR CARG O WEEK


WEEKLY NEWS BY Ajinkya GURAV


THE resumption of direct flights between India and mainland China marks more than the return of passenger connectivity—it signals a strategic realignment in regional air cargo and trade logistics. IndiGo’s decision to relaunch daily non-stop services from Delhi and Kolkata to Guangzhou from 26th October 2025 reopens a trade artery that has remained dormant since 2020. The reopening of this corridor offers the potential to restore supply


chain resilience, reduce dependency on third-country hubs, and re-anchor India and China as pivotal logistics nodes within the Indo-Pacific. It also arrives at a time when both nations are recalibrating trade strategies amid tariff volatility and the ongoing US–China trade dispute—making this move as politically significant as it is commercially strategic.


Trade corridor reconnected Prior to the pandemic, India–China air cargo flows exceeded 120,000 tonnes annually, according to the Airports Authority of India and Chinese customs data. The majority of these shipments moved in the bellyholds of passenger aircraft operating from Delhi, Mumbai, and Kolkata to major Chinese gateways such as Shanghai, Chengdu, and Guangzhou. When services were suspended in 2020, shippers were forced to divert cargo via transhipment hubs in Bangkok, Singapore, and Hong Kong—adding up to 24 hours to transit times and increasing costs by as much as 15–20 percent. The reintroduction of direct capacity—approximately 10–12 tonnes


per flight on IndiGo’s Airbus A320neo aircraft—restores efficiency to a corridor underpinning more than US$10 billion in air-freighted goods within a bilateral trade relationship valued at US$136 billion in 2024. Key export categories include Indian pharmaceuticals, chemicals, iron and steel, and marine products, while China’s exports to India comprise electronics, telecommunications equipment, solar cells, and industrial components. With pharmaceuticals alone accounting for nearly US$800 million in


India’s annual exports to China, direct connectivity will strengthen cold chain reliability for temperature-sensitive cargo such as vaccines and APIs. In return, Chinese electronics and renewable energy components— critical to India’s solar and EV manufacturing sectors—will benefit from shorter, more predictable supply chains.


Gateway to the Pearl River Delta Guangzhou’s position within China’s Pearl River Delta—home to the world’s most extensive electronics and manufacturing cluster—makes it an optimal hub for re-engaging with India’s industrial base. The airport handled over 1.8 million tonnes of freight in 2024, ranking among the top five in China for cargo throughput. For Indian exporters, this connectivity opens direct access to one of


Asia’s densest logistics ecosystems. For Chinese shippers, it enables entry into India’s emerging industrial corridors such as the Delhi–Mumbai Industrial Region and the Eastern Dedicated Freight Corridor, both designed to enhance multimodal efficiency. IndiGo’s CEO Pieter Elbers described the route as a step toward


“seamless movement of people, goods, and ideas between two of the world’s most dynamic economies.” He added, “As we take steady strides toward becoming a global aviation player, this move strengthens our international footprint while contributing to trade resilience.” With conservative bellyhold utilisation rates of 70 percent, IndiGo’s


twin routes could add 3,000–3,500 tonnes of annual cargo capacity, alleviating regional constraints and reducing pressure on legacy hubs such as Singapore and Hong Kong.


Geopolitical context With the United States escalating tariffs on both Indian and Chinese exports, Asia’s two largest emerging markets are increasingly exploring alternative routes and partnerships to sustain trade momentum. India’s Production-Linked Incentive (PLI) and Make in India programmes, combined with China’s focus on high-value manufacturing and green technology, create a complementary foundation for supply chain integration rather than competition. “The reopening of direct air links between India and China is not just


operational—it’s a geopolitical signal,” commented a Mr. Piyush Goyal, Union Minister for Commerce and Industry, Government of India. “For both nations, it creates a logistics bridge that reinforces economic pragmatism even amid political complexities. Trade, after all, cannot afford paralysis.” With airfreight representing only 3 percent of total bilateral trade by


volume but nearly 25 percent by value, this connection could serve as a catalyst for high-value,


low-weight goods such as semiconductors,


medical devices, and electronics. The service also supports both nations’ ambitions to strengthen South–South trade corridors under the Indo- Pacific Economic Framework (IPEF) and BRICS+ cooperation frameworks.


www.aircargoweek.com 13 OCTOBER 2025 ACW INDIGO RETURNS TO GUANGZHOU


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