Red Sea Crisis Affects Indian Exporters as Air Freight Cost Surges

Israr Ahmed of Farida Group highlights drastic air freight cost spikes for Indian exporters. Exporters face financial strain amid Red Sea crisis disruptions.

Israr Ahmed, Director at Farida Group, has drawn attention to the significant fluctuations in air freight rates impacting Indian exporters. 

Just three months ago, air freight charges from Chennai to Munich stood at INR 96 per kilogram. However, the current rates have skyrocketed to INR 250 per kilogram, marking a substantial increase.

Similarly, air freight rates from Chennai to the USA and Canada have surged to INR 400 per kilogram, compared to a modest range of INR 170 to 190 per kilogram three months earlier.

These sharp escalations in air freight costs present formidable challenges for Indian exporters, placing additional financial burdens on businesses already grappling with the disruptions caused by the ongoing Red Sea crisis.

The sudden spike in air freight rates underscores the need for exporters to reassess their logistical strategies and explore alternative transportation options to mitigate the impact of soaring costs.

As the situation continues to unfold, Indian exporters must adapt swiftly to navigate the evolving challenges posed by the Red Sea crisis and the resultant disruptions in global trade routes.

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Arshad

He is an engineer specializing in Leather Technology, known for his keen interest in analyzing global leather, footwear, and leather goods markets & his ability to make complex information clear & accessible. 

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