Exporters take air route to tackle Red Sea crisis

NEW DELHI: Tension around the Red Sea has prompted several exporters, such as those in fast fashion and electronics, to take the air route to deliver goods to the US and Europe, often routing it via Gulf nations.
While companies such as Zara have been using freighters, exporters are now also using the space in the belly of passenger aircraft for the purpose.Even Bangladesh-based garment exporters are using Delhi airport, with DIAL open to allow more freighters to transport cargo faster.
While cargo headed to Europe and North America is not just moreredexpensive because ships are now taking a longer route, around the Cape of Good Hope, but the time taken to send the goods has also increased, prompting exporters to look at newer options, especially where the buyers are demanding faster delivery of goods. Shipping goods takes at least 30 days extra, said a large exporter.

“Many exporters are using sea and air transport to save both on time and cost, particularly of footwear, apparel, electronics and high-value low-volume engineering goods,” said an official at Fieo, the lobby group representing exporters. Even earlier, gems and jewellery were transported by air with some large buyers using freighters to collect their goods.
But the higher cost of goods and the time taken has made the deal more favourable for air cargo, although exporters claimed that the cost has increased due to more demand.
Exporters led by Apparel Export Promotion Council have also complained that garments from Bangladesh were eating into a part of the space in freighters and aircraft and urged the customs authorities to reverse the decision to allow these shipments from Delhi airport.
Govt officials said that around 20% of this type of cargo goes in the belly of the aircraft, while around 80% goes via freighters. At Delhi airport, the monthly capacity available in the belly of the aircraft was estimated at 95,000 tonnes with an estimated 20-25% used during Jan-March. While capacity utilisation may have gone up, cargo originating from Bangladesh was estimated to be using around 4% of the capacity available at IGI airport.
“It is possible that there is more pressure in planes that are headed to Europe and the capacity utilised on those aircraft is much higher. Govt has suggested that exporters could pool in resources to hire freighters and DIAL is willing to provide slots for that,” said a source familiar with the discussions.