{"id":59113,"date":"2024-03-21T15:44:27","date_gmt":"2024-03-21T10:14:27","guid":{"rendered":"https:\/\/aviationa2z.com\/?p=59113"},"modified":"2024-03-21T15:44:33","modified_gmt":"2024-03-21T10:14:33","slug":"new-air-cargo-congestion-grows-in-delhi-and-mumbai","status":"publish","type":"post","link":"https:\/\/aviationa2z.com\/index.php\/2024\/03\/21\/new-air-cargo-congestion-grows-in-delhi-and-mumbai\/","title":{"rendered":"New Air Cargo Congestion Grows in Delhi and Mumbai"},"content":{"rendered":"\n

MUMBAI<\/strong>-According to industry reports, airlines are struggling with significant cargo backlogs at major international airports in India due to a surge in volumes.<\/p>\n\n\n\n

An Air India(AI)<\/a> <\/strong>source informed The Loadstar that the impact has been particularly pronounced at Delhi Airport(DEL)<\/a> and Mumbai airport(BOM)<\/a>.<\/p>\n\n\n\n

The source further highlighted that diversions in ocean trade, compounded by ongoing challenges in the Red Sea region, along with the traditional peak season for air cargo in March and April, have contributed to the current capacity overload.<\/p>\n\n\n\n

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India’s Air Export Growth <\/h2>\n\n\n\n

India’s air exports have showed strong expansion and registering a cumulative growth from April to February and encompassing the initial 11 months of fiscal year 2023-24, with a substantial 21% year-on-year increase.<\/p>\n\n\n\n

There has been a significant surge in volumes departing from Delhi Air Cargo, marking a notable 43% rise last month, primarily propelled by ready-made garment (RMG) shipments, as confirmed by sources. Particularly, the demand surge has been prominent on routes to Europe, with weekend flights operating at full capacity and carriers frequently facing the need to leave scheduled packages behind in recent weeks.<\/p>\n\n\n\n

Ligi Logistics, a Chennai-based forwarder, remarked in a market analysis, “Space congestion is observed across all Indian origins and transhipment points.” The forwarder estimated average transit times to the US at nine days and no less than five to six days for the EU due to substantial backlogs.<\/p>\n\n\n\n

Another forwarder noted that rates to Europe and the US have now reached parity, compared to the previous price differentials of 20% to 30%. However, an airline executive commented, “Following a series of upward swings, rates have now somewhat stabilized.”<\/p>\n\n\n\n

Vineet Malhotra, co-founder and director at Mumbai-based Kale Logistics Solutions, stated that “This possibly indicates a shift as more shippers opt for air cargo to mitigate challenges in ocean transport.”<\/p>\n\n\n\n

He added, “This transition underscores the importance of predictive capabilities within cargo community systems to anticipate delays, shifts in demand, and vulnerable trade routes, facilitating enhanced industry readiness.”<\/p>\n\n\n\n

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Photo: By Konstantin Von Wedelstaedt – Gallery page http:\/\/www.airliners.net\/photo\/Air-India-Cargo\/Airbus-A310-304\/1555111\/LPhoto http:\/\/cdn-www.airliners.net\/aviation-photos\/photos\/1\/1\/1\/1555111.jpg, GFDL 1.2, https:\/\/commons.wikimedia.org\/w\/index.php?curid=26823142<\/figcaption><\/figure>\n\n\n\n

Indian Exports Soars<\/h2>\n\n\n\n

One prominent factor contributing to congestion and increased air cargo rates at Delhi is the escalating flow of RMGs from Bangladesh for transhipment. Indian apparel exporters are urging the government to review cross-border logistics arrangements in the interest of domestic trade.<\/p>\n\n\n\n

Sudhir Sekhri, president of the Apparel Export Promotion Council, expressed concern, stating, “Nearly 20-30 loaded trucks arrive in Delhi daily, disrupting smooth cargo flow, and airlines are capitalizing on this situation disproportionately.” He emphasized that this trend is rendering Indian apparel exports through Delhi less competitive.<\/p>\n\n\n\n

Buoyed by typical end-of-fiscal-year cargo activity, overall Indian exports surged by 12% year-on-year last month, reaching an 11-month high, potentially defying supply chain disruptions linked to the Red Sea.<\/p>\n\n\n\n

“The consistent performance of exporters continues to drive export growth and contribute to the momentum of the economy,” stated the Federation of Indian Export Organisations.<\/p>\n\n\n\n

Moreover, the uptrend in air cargo isn’t confined to India. Dubai emerges as another significant sourcing hub for European importers, leading to noticeable conversions from ocean to air freight. Additionally, South Africa reports a surge in air cargo volumes, up by 35% this week, according to a forwarder association.<\/p>\n\n\n\n

Stay tuned with us. Further, follow us on social media for the latest updates.<\/p>\n\n\n\n

Join us on Telegram Group <\/a>for the Latest Aviation Updates. Subsequently, follow us on Google News<\/a>.<\/p>\n\n\n\n

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Amazon Air Takes Off In India With Debut Of Dedicated Air Cargo Network | Exclusive<\/a><\/blockquote>