Cargo Breaking News
errxes
Xerrxes Master, Managing Director, Master Group of Companies said, “The rerouting of flights to avoid Pakistani airspace has resulted in longer flight paths, increased fuel consumption and higher operational costs. For instance, Air India anticipates incurring approximately $600 million in additional expenses over the course of a year due to these detours, prompting the airline to seek government compensation. These increased costs are often passed on to customers, leading to higher freight rates. Additionally, the extended flight durations necessitate adjustments in crew duty times and aircraft utilisation, further escalating operational complexities and costs. The cumulative monthly operational impact on Indian airlines could exceed ₹306 crore, with added costs per flight ranging from ₹5 lakh for Middle Eastern routes to ₹29 lakh for North American routes. The increased freight rates and operational challenges have a cascading effect on the supply chain, potentially leading to delays in cargo delivery and increased costs for businesses relying on air freight. Industries dependent on timely delivery, such as e-commerce, pharmaceuticals, and perishable goods, are particularly affected. In summary, the closure of Pakistani airspace has significantly disrupted cargo operations for Indian airlines, leading to increased freight rates and broader supply chain challenges.”
He added, :Delays in time-sensitive goods such as perishables (e.g., fruits, vegetables, dairy, seafood) and pharmaceutical shipments (like vaccines or temperature-sensitive drugs) will face delays or spoilage. E-commerce Slowdowns – companies like Amazon, Flipkart, and logistics partners will struggle to fulfill orders, especially in Northern markets. Manufacturing and inventory bottlenecks: industries depending on just-in-time inventory (like automotive and electronics) will experience raw material shortages or production delays. Redirection to alternative airports: cargo intended for major North Indian hubs like Delhi, Amritsar, or Lucknow may be rerouted to airports in central or western India (e.g., Mumbai, Ahmedabad), increasing turnaround time and ground transport costs. These alternate airports might not have the warehousing or cargo handling capabilities to manage sudden volume increases, leading to bottlenecks. Goods from North India meant for international markets—such as garments, leather, spices, and handicrafts—may miss shipping windows, affecting customer relationships and contract obligations. International shipments bound for North Indian distribution hubs (e.g., electronics, machinery) will face delays in customs clearance and final delivery. There will be a shift to road or rail transport—longer timelines and higher costs. Air freight rates may also spike due to constrained capacity. Companies may need to rework supply chains, including changing warehousing points or using multi-modal transport. Companies may diversify their logistics strategy to avoid over-reliance on one region. Increased focus on cold chain logistics, warehouse distribution, and alternate routing infrastructure.”
