India's Air Cargo Under Scrutiny Following Pakistan Airspace Shutdown

The Indian government is currently evaluating the effects of Pakistan's airspace closure on air cargo destined for the Gulf, Europe, and the US. Despite concerns, exporters believe the impact will be minimal.

Key Export Sectors Remain Unfazed

While the majority of cargo is transported by sea, approximately 3-4% of garments, along with some gems, jewellery, electronics, and perishables, are exported via air. Exporters assert that the volume is insufficient to cause significant disruption.

Government Measures to Stabilize Prices

A government-imposed ban on cargo transshipment from Bangladesh is anticipated to help stabilize prices in India. Anticipated pressure towards May's end is expected as shipments are front-loaded ahead of the July 9 deadline for reciprocal tariffs.

Global Freight Rates Experience Fluctuations

Following a 90-day pause on reciprocal tariffs by US President Donald Trump and a decline in Chinese shipments, freight rates have seen adjustments. The Drewry WCI composite index noted a 2% drop, with varying impacts on routes worldwide.

"Drewry anticipates continued rate declines due to tariff uncertainties," highlighting the volatile nature of current global trade dynamics.