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‘An anticipated decline in exports may cut air cargo volumes & value’

Vipin Vohra, Chairman, Continental Carriers said, “The new U.S. tariffs—26% on Indian imports and 10% baseline on all global goods—pose significant implications for India’s air cargo trade. High-value, time-sensitive sectors like textiles & apparel, gems & jewellery and pharmaceuticals will see reduced competitiveness, impacting air export volumes. An anticipated decline in exports may lead to a notable contraction in annual air cargo trade volumes and value. Freight forwarders and Airlines may face capacity underutilization and rerouting challenges as exporters explore alternative markets. On the import side, higher U.S. duties may affect goods routed through re-export hubs, reducing inbound air freight demand. However, India’s growing domestic consumption and diversification into Middle East, Europe, and Africa offer partial offsets.

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‘Air cargo volumes from India to the U.S. of pharma, gems, apparel, auto declined’

Nihar Parida, Director, Strategy & Development at Uniworld Logistics affirmed, “The U.S. tariffs on Indian goods—especially pharma, gems, apparel, and auto components—have led to a measurable decline in air cargo volumes from India to the U.S., as costs rise, and buyers adjust sourcing strategies. This may lead to a long-term restructuring of India’s export logistics, with a greater emphasis on cost-efficiency and diversification of trade partners.  Pharmaceuticals:  Many generics and APIs faced stricter compliance and the loss of GSP benefits earlier but are now under a broader 10–26% tariff range. Gems & Jewelry: Historically duty-free under GSP, now subject to full MFN tariffs plus possible additional duties (up to 26%). Textiles & Apparel: With the GSP revoked and new tariffs added, Indian garments face tariffs of 15–25%. Auto Components: Facing new 25% tariffs under Section 232. Leather Goods & Footwear: Tariffs raised to 20–30%, especially on leather wallets, belts, and shoes. Let’s wait and see how it evolves. India could be a gainer in this as Mobile phone exports will increase due to Vietnam and China having higher taxes. Textile might increase due to Bangladesh Tariffs. But at the same time are we poised for more manufacturing is a question.

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‘Companies seeking to diversify from China, Vietnam, may invest in Indian market’

V. Chandra Kumar, Founder & Managing Director Active Freight Logistics, India stressed, “With global manufacturers looking for tariff-friendly alternatives, India is well-positioned to capitalise on this shift. The country’s growing industrial base, improving trade infrastructure and government incentives make it an attractive destination for companies seeking to diversify away from China and Vietnam. Industry experts suggest that India must act swiftly to enhance manufacturing capabilities, streamline customs processes and attract global investment to cement its position as a leading trade and logistics hub in the evolving world order. As businesses realign strategies, the coming months will be critical for countries vying for a larger share of global trade. Whether India can fully seize this opportunity will depend on policy reforms, infrastructure development, and the ability to integrate into global supply chains efficiently.”  

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‘US imposed tariffs may enhance global competitiveness of Indian products’

Kamal Jain, Director, Cargomen Logistics shared, “The United States imposed reciprocal tariffs may appear concerning at first glance, the actual impact on India’s overall exports to the U.S. is expected to be limited. Key export categories such as pearls, precious metals, minerals, pharmaceuticals, and electronics already face low U.S. tariffs (0–5%), helping cushion the effect. Interestingly, in some cases, these tariffs may even enhance the competitiveness of Indian products, especially if global competitors face steeper duties. However, it’s important to remember that such unilateral reciprocal tariff actions are not aligned with WTO principles, which are designed to ensure free, fair, and rules-based global trade. The bigger question remain, should trade be governed by reciprocity or by cooperation?

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‘Tariffs may create short-term disruptions, India’s EXIM sector is diversifying markets & boosting resilience’

C K Govil, President, ACAAI said, “The impact of U.S. trade tariffs on Indian air cargo EXIM (Export-Import) trade is multifaceted, influencing both opportunities and challenges for the industry. Negative impact could be higher costs for Indian exporters as increased tariffs on Indian goods—such as steel, aluminum, and certain textiles make them less competitive in the U.S. market, potentially leading to a decline in export volumes via air cargo. Tariff uncertainty causes fluctuations in demand, impacting freight forwarders, air cargo handlers, and exporters. Volatility in trade policies forces businesses to frequently adjust logistics strategies. Some Indian exporters may shift focus to non-U.S. markets, affecting established air cargo routes and reducing volume on traditional U.S.-bound shipments. Positive impact could be Opportunities in trade diversion, as U.S.-China trade tensions continue, Indian exporters in sectors like electronics, pharmaceuticals, and engineering goods may benefit from increased demand. This could boost air cargo volumes from India to the U.S. India is increasingly exporting high-value goods like pharmaceuticals, IT hardware, and perishables. Despite tariffs, demand for such critical goods remains strong, sustaining air cargo movements. Companies are optimising supply chains by integrating multimodal logistics (air-sea, air-land) to offset tariff-related costs, leading to new opportunities for air freight operators. India has been proactive in negotiating trade agreements with the U.S. to mitigate tariff impacts. The India-U.S. trade dialogue and initiatives like the Indo-Pacific Economic Framework (IPEF) could lead to tariff relaxations, benefitting air cargo. Indian exporters and air cargo players are investing in agility, technology, and alternative trade routes to mitigate risks. Overall, while U.S. tariffs create short-term disruptions, India’s air cargo EXIM sector is adapting by diversifying markets and strengthening supply chain resilience.

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‘It may hit exports of agriculture, machinery, textiles, pharma, & auto parts’

Sunil Kohli, Managing Director, Rahat Cargo said, “The imposition of trade tariff by President Trump on India may adversely hit exports of agriculture, machinery, textiles, pharma, electrical, chemical, auto parts, gems & jewellery sectors apart from sizable volumes of seafood. However, the experts still anticipate silver lining in the above tariff in regard to India’s cargo trade interest as the US’s tariffs might actually open up opportunities through shifts in global supply chains. But simultaneously India needs to improve ease of doing business apart from investing in logistics & infrastructure to achieve optimal productivity and business advantages. The FIEO agrees that the tariffs do create challenges for Indian exporters’ yet India is still better placed than many of its global competitors. Further, the retarded pace of exports may accelerate the activities in the domestic market to the benefits of the manufacturer which might help them in offsetting the exports slowdown.

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SF Airlines entrusts Çelebi India with cargo handling at BIAL and Delhi

Çelebi India announced its selection as the ground handling partner for SF Airlines at Kempegowda International Airport (BLR), Bengaluru. SF Airlines will initially operate one weekly cargo flight connecting Bengaluru to Ezhou Huahu Airport – China, with plans to expand to two weekly flights starting April 2025. Çelebi India has a longstanding presence at Kempegowda International Airport, providing top-tier ground handling services to various airlines. In Delhi, SF Cargo is handled by Celebi Delhi Cargo Terminal Management India. SF Airlines has chosen Çelebi to support its growing operations in India, reinforcing a shared commitment to operational excellence and efficiency. The airline’s decision to partner with Çelebi for its ground handling needs at this critical juncture highlights Çelebi’s proven expertise in cargo handling and its reputation as the preferred partner for leading global air cargo carriers. Over the years, Çelebi has become the trusted ground handling partner for major international cargo airlines operating in India, including, Turkish Cargo, FedEx, UPS, Quikjet, Sichuan Airlines and Ethiopian Cargo. This latest collaboration with SF Airlines is a testament to Çelebi’s commitment to efficiency, safety, and service excellence. Tauseef Khan, CEO – Çelebi Ground Handling — India, commented on the expansion, “Çelebi is actively scaling up its capacity and investing in advanced processes and digitalization to ensure efficient handling of the increasing cargo volumes that BIAL envisions. We are honoured to be selected as the ground handling partner for SF Airlines at Bengaluru Airport. This collaboration underscores our reputation as a trusted name in Freighter Handling, both globally and in India. With SF Airlines expanding its operations in the region, Çelebi is committed to delivering seamless, high-quality services that meet the evolving demands of the …

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FIATA, ACAAI to host RAP meet from 21 to 24 May in New Delhi

CargoTalk proudly announces its appointment as an official media partner for the upcoming FIATA Region Asia-Pacific (RAP) Meeting being held in New Delhi from 21 to 24 May 2025. Jointly organised by the FIATA and The Air Cargo Agents Association of India, (ACAAI), the event serves as a premier gathering for logistics professionals, freight forwarders, and trade associations across the region. This event offers a platform to discuss supply chain innovation, industry challenges, and future opportunities. Key highlights include insightful discussions and networking opportunities with top industry professionals from across the globe.  

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New emerging markets for Indian trade: Africa, South America

With trade wars and geopolitical tensions affecting traditional trade routes like those between the US and China, the air cargo industry has diversified its operations to new and alternative regions for instance, cargo flows to emerging markets in Africa and South America, have increased,” said Delhi International Airport’s official spokesperson.  He added, “Airlines have had to re-route flights to avoid regions affected by geopolitical tensions, such as the Middle East. This has resulted in the search for more stable and predictable corridors, which may require longer or less direct flights, but ultimately ensure the continuity of services. Cargo flow through Indian airports have improved as it was found to be a more stable route. In response to tariffs and geopolitical tensions, many companies have sought to shorten supply chains by nearshoring production closer to end markets. For instance, companies have increasingly moved manufacturing from China to countries like Vietnam, India, and even Mexico, which has increased demand for air cargo services to these regions.”

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India Post to transform into logistics firm: Scindia

Our ministry’s goal is to transform India Post into India’s leading logistics organisation, serving both MSMEs and the largest e-commerce players, said, Jyotiraditya M. Scindia, Union Minister for Communications, recently while addressing the Head of Circles Conclave in Mumbai. Scindia noted that India Post had laid the foundation for the country’s communication system and is now undergoing a paradigm shift to become a profitable and future-ready organisation. Stating that India Post’s future lies in becoming a fast, reliable and economical service provider, playing a key role in the country’s vision of ‘Viksit Bharat,’ Scindia stressed the importance of adopting technology, process re-engineering and active collaboration from all circles in this transformation. The minister has further called for detailed business plans from all circles to address the Department’s financial challenges and shift towards profitability. The conclave was attended by Secretary Posts, Vandita Kaul; Director General Postal Services, Jitendra Gupta; Members of the Postal Board, Chief Postmaster Generals and other senior officials. The officers participated in four key group discussions, each aimed at addressing crucial areas such as mail and parcel services, financial inclusion, Postal Life Insurance and citizen-centric services.

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