Indian Subcontinent: Congestion And Rates Spiralling

March 21, 2024

Indian Subcontinent: Congestion And Rates Spiralling

Importing from the Indian Subcontinent is not without its difficulties right now, as congestion and spiralling rates have had an impact on both air freight and ocean freight during recent times.

Airlines have been dealing with cargo backlogs in India’s major international airports, with both volumes and rates spiking at the moment. Air freight export volumes have increased from the country year-on-year, and the traditional air cargo peak season from the region is currently in progress. Diversions of orders from ocean freight have also influenced the high volumes since commercial shipping attacks started in the Red Sea.

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, particularly Delhi and Mumbai.

Air exports from Delhi rose by 43% last month and a lot of that extra volume has been headed towards European destinations. Transhipment cargo from Bangladesh is understood to be adding to the problems, as about 20-30 trucks of garments arrive at Delhi airport every day.

Ocean freight from the Indian subcontinent has also had its issues due to containerships avoiding the shorter Suez Canal route, with rates being way higher this year than they were prior to December.

For further information on the above, please do not hesitate to contact a member of the Unique Forwarding team.

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