Balagopal Balachandran, National Head, Air Freight, FEI Cargo, said, “Escalating tensions in the Gulf, airspace restrictions, and flight diversions have temporarily reduced global air cargo capacity by about 18 to 20 per cent, tightening space on Asia–USA–Europe corridors. Major Gulf hubs collectively handle nearly 20 per cent of India’s international air cargo, making Indian trade particularly exposed to regional disruptions. Air freight rates on some lanes have already risen 5 to 10 per cent. At Ocean, instability around the Strait of Hormuz, through which roughly 20% of global oil shipments pass, is adding pressure on fuel prices, insurance, and shipping operations. If tensions continue, Indian logistics could face higher freight rates, longer transit times, and tighter cargo capacity. When geopolitics reshapes skies and Ocean, logistics evolves to keep global trade moving.”
