‘Red Sea crisis will hike air cargo volumes, if rates stay same’

Tushar Jani, Group Chairman, Cargo Service Center (CSC) said, “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. We must learn the lesson of Covid where the air cargo rates became so exorbitant that some commodities moved their supply chain through maritime shipping. This is a golden opportunity for air cargo to convert those lost tonnages from maritime shipping back to air cargo, provided we keep the stability of the air freight rates keeping in mind the long-term advantage of growth. This will help in achieving the 10MMT target set up by the Government and Industry mutually.