‘Red sea crisis impacts transit time, costs, exporters turn to air transport’

Multinational logistics companies and shipping lines are now moving towards air transport and expecting more demand for air transport due to the ongoing Red Sea crisis, despite significantly higher costs. Recently DB Schenker has secured additional air freight space to be able to service the expected switch from shipping to air freight. ‘We expect the impact on air freight to occur in around two to three weeks,” the company said in a statement. “A combination of sea and air freight shipping could prove best, – for example goods could be shipped from China and unloaded just before the crisis-affected area to then be transported by air,” it added. According to the reports, Indian exporters especially those who are in the textiles and apparel sectors have not encountered widespread rejection of export consignments or demands for contract re-negotiation due to the Red Sea blockade, concerns are growing over potential business disruptions if the crisis prolongs. They are mainly witnessing extended transit times and increased freight costs, prompting worries about the sustainability of their operations. In many cases, buyers bear the transportation costs. However, sensing potential delays, some buyers, especially those dealing with seasonal fashion items, are opting for air cargo to avoid missing sales opportunities, said reports.