Air freight rate levels from India to the Middle East, which have shot up dramatically since the US-Iran war began, have begun to moderate as airline schedules regain some normality, according to industry sources.
Gulf carriers, enjoying historical dominance in the market, have reopened most of their scheduled services out of major Indian cities, providing much-needed relief to exporters, especially those dealing in perishables.
Air freight rates had jumped in the region of 250% from pre-crisis levels over the past month. And sources expect airline pricing to drop further as more flight services return to the network.
Mumbai-based industry veteran Joy John told The Loadstar: “All airlines on this route, including freighter operators, are almost back on track.”
But he added that fuel surcharges by airlines would remain a concern, as the conflict kept adding new dimensions and peace talks made little progress. And the market still remains susceptible to supply chain shocks, industry stakeholders believe.
Pradeak Krishnamurthy, joint MD at Chennai-based Ligi Logistics, said growing demand across fashion, retail, and general cargo segments from India to the Gulf faced the risk of insufficient or reliable capacity, on top of elevated freight rates. He suggested shippers plan their shipments at least a week in advance to mitigate those risks, as operations at many Middle East airports continued to be volatile.
“Air freight markets remain extremely tight and dynamic across India, Bangladesh, South-east Asia, and APAC,” he said.
Amar More, CEO of Mumbai-based Kale Logistics Solutions, told The Loadstar a more-balanced supply/demand equilibrium would bode well for the trade. “The Middle East is well-positioned to strengthen its role as a global cargo hub, supported by infrastructure investments and increasing digital adoption,” he explained.
An improving Middle East air freight capacity situation is also good news for Indian mango exporters and associated traders as the harvest season has begun. Indian-grown mangoes, locally regarded as the “king of all fruits”, are traditionally exported to the Gulf region in sizeable volumes. Perishable and time-sensitive freight to other global markets is also transshipped via Middle East hubs.
In another boost, Canada recently approved imports of Indian fresh fruit, including mangoes, following New Delhi’s government-to-government trade outreach efforts, according to industry updates.
Meanwhile, Indian policymakers continue to liberalise trade regulations to support trade impacted by the Middle East crisis. The latest step is resetting customs rules regarding cancellation of shipping bills and re-routing of consignments for exports out of special economic zones.
“These measures will provide much-needed flexibility in managing shipments, reduce congestion at ports, and help exporters mitigate delays and additional costs,” said A Sakthivel, chairman of the Apparel Export Promotion Council.
Source: https://theloadstar.com/india-m-east-airfreight-rates-ease-as-capacity-returns-but-volatility-threatens/
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