‘With route diversion, Western & Southern airports may see load hike, congestion’

C K Govil, President, ACAAI said, “The temporary closure of airports in Northern India and the suspension of airline operations will have a significant ripple effect on both domestic and international cargo movement. Northern India, particularly cities like Delhi, Amritsar, and Srinagar, serves as a vital hub for cargo consolidation and distribution. The disruption of air traffic in these sectors leads to delays in time-sensitive shipments: Industries such as pharmaceuticals, perishables, and e-commerce will face delays, affecting supply chains and commitments. Airports in Western and Southern India may see increased load, leading to congestion and resource strain. Logistics costs are likely to rise due to extended trucking routes, storage at transshipment hubs, and rerouting charges by airlines. Disruption of International Freight Schedules: Freighter operations and belly cargo in passenger flights connecting to international destinations will be impacted, potentially affecting exports and imports, especially to Europe, the Middle East, and the Americas. Customers and forwarders will need to adjust to rapidly changing schedules, which could cause temporary inefficiencies. The closure of Pakistani airspace has forced Indian airlines to take longer routes for international flights, leading to increased fuel consumption and extended flight durations. This has resulted in additional operational costs estimated at approximately ₹306 crore per month. Longer flight paths necessitate carrying more fuel, which in turn reduces the payload capacity for cargo. This limitation affects the volume of goods that can be transported, thereby impacting supply chains and increasing costs. The ongoing Red Sea crisis has disrupted maritime shipping routes, prompting exporters to shift to air freight for timely deliveries. This surge in demand has further strained air cargo capacity, contributing to higher freight rates. While specific figures for the recent weeks are not available, historical data indicates a significant increase in air freight rates due to similar disruptions. For instance, air freight from Chennai to Munich rose from ₹96 per kg to around ₹250 per kg within a three-month period during the Red Sea crisis . Given the current geopolitical tensions and operational challenges, a comparable escalation in freight rates is plausible.  The combination of extended flight routes, increased operational costs, and heightened demand due to maritime disruptions is likely to keep air freight rates elevated in the near term. Stakeholders in the logistics and supply chain sectors should anticipate continued volatility and plan accordingly.”