India Air Facing Congestion and Spiralling Rates

March 25, 2024

Airlines are currently struggling with sizeable air cargo backlogs at many major airports in the Indian subcontinent, as both volumes and rates are on the rise.

Volumes have increased year-on-year and the air freight peak season is now in full flow from the region. Red Sea issues have also contributed to the high demand, with exporters and importers diverting ocean freight orders to air.

Air freight from India is the worst affected, Delhi and Mumbai in particular, with backlogs impacting many of the country’s airports and rates spiralling upwards as a result. Delhi exports rose by 43% last month, mainly due to European destined business.

Rates have also been moving upwards on ocean freight this year due to the Houthi attacks on commercial shipping in the Red Sea, although this seems to have peaked more recently.

Your Freedom Logistics team are monitoring the situation closely. Should you require any further information, then please do not hesitate to contact a member of the team.

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