‘Global slowdown & recession impacting air cargo growth in India’

Tushar Jani, Group Chairman, Cargo Service Center shares, “In 2023 India has shown marginal growth, in the increase of air cargo throughput of 6.5 MMT, however, the growth has not been significant due to the recession in Europe and a slowdown in the United States. India’s major trade partners are the European Union and the United States. Indian imports from China have reduced by about 18%. India’s exports to Africa have reduced slightly. Overall, this has impacted the growth of air cargo throughput. The distribution between belly and freighter has now stabilized at 70% belly and 30 % freighter. The current trouble in the Red Sea will increase some air cargo volume however if the airline increases freight rate, then it will become counterproductive. The industry must work towards keeping a reasonable rate to achieve good growth and allow the supply chain to remain more productive and stable with air cargo compared to increased sea freight cost, provided air cargo remains affordable.”