Due to a spillover of maritime freight to air routes during a crisis in the Red maritime that began in October 2023, international air cargo from India has had a rebound, with double-digit growth during the past year.
In the midst of the continuing Middle East conflict, the situation involves attacks on commercial vessels in the Red Sea, which handles about 30% of the world’s container traffic. The international aviation freight traffic has benefited from the seaborne cargo taking a longer route through the Cape of Good Hope.
After slowing down in 2022–2023, air cargo growth accelerated in the second half of 2023–2024. Air cargo volumes increased 18% year over year to around 1.7 million tonnes between October 2023 and March 2024. Between April 2024 and August 2024, air cargo volumes increased to 0.967 million tonnes, representing a 20% year-over-year increase.
The Red Sea problem has forced exporters to pick air cargo for an increasing number of products, including smartphones, other electronics, and footwear, in order to secure timely deliveries, despite the fact that air freight rates have soared by up to 300% in the last year.
In FY2024, the total size of the Indian air freight market is 3.36 million tonnes. According to Vinay Kumar G., vice president and sector head of corporate ratings at ICRA Limited, the amount of foreign freight accounts for 60% of this, or 2.04 million.
The ICRA predicts that India’s air cargo volume will expand by a robust 9–11% annually, reaching 3.6–3.7 million tons in FY2025. This expansion will probably be further bolstered by the 11–13% annual rise in international air cargo, which is likewise anticipated to hit new heights in FY2025.
