Congestion And Spiralling Rates On Indian Subcontinent Services

Airlines are currently dealing with large cargo backlogs in India's major international airports as volumes and rates spike, most notably at Delhi and Mumbai airports.

The traditional air freight peak season is now in progress from the Indian subcontinent and diversions from ocean freight, due to Red Sea issues, have added to the high volumes of cargo moving out of the region, leading to what has been described as acute capacity issues.

Air freight from India itself is the most affected and rates have been spiralling recently as backlogs of a few days have impacted many airports.

Exports from Delhi rose by over 40% last month, and demand for exports to Europe has been especially high. The airport is also being impacted by a growth of ready made garments that arrive from Bangladesh for transhipment, which is currently around 20-30 trucks per day.

Air freight is not the only transport mode that has been impacted by spiralling rates and congestion, as ocean freight services to and from the Indian subcontinent have been impacted by the Houthi attacks on commercial shipping in the Red Sea since the turn of the year.

With many containership carriers avoiding the shorter Suez Canal route, ocean freight rates are considerably higher than they were in December of last year. Meanwhile, several Indian ports continue to be impacted by slow vessel turnarounds and congestion that has been ongoing for months.

The Croft Cargo team are monitoring the situation and are working tirelessly to avoid delays to client's supply chains.

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