News / Dramatic rise in air cargo rates as India braces for G20 and e ... - theloadstar.com

After a year of weakening demand, Indian airfreight forwarders are starting to see an increase in volumes and rates due to resurgent e-commerce shipping and seasonal holiday sourcing. However, supply disruptions during the G20 summit could dampen optimism. Fuel surcharges and increased baggage demand from Indian students have also pushed up pricing and tightened belly space availability. Export demand for the US and EU has seen rates increase drastically, but inbound flows to Mumbai and Delhi may be affected by the monsoon season. The government's restrictions for the G20 summit could lead to flight cancellations or rescheduling, as well as restrictions on truck and train movements. Despite the disruptions, forwarders believe the impact on cargo flow will be short-lived. Air freight rates from India to Europe have risen by 13% since August 21, and to the US by 2.3%.

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