CK Govil, CMD, Activair Airfreight said, “Freight and insurance costs are coming under more pressure due to geopolitical instability around the Strait of Hormuz and the Red Sea/Bab el-Mandeb corridor. This area has heightened risks for global shipping lines, resulting in higher freight rates and marine insurance premiums. Several carriers are rerouting vessels away from traditional Red Sea corridors and going around the Cape of Good Hope, which is delaying transit time and adding to fuel expenses. These longer sea voyages, coupled with rising insurance costs, are inflating logistics expenses for Indian exporters and importers. At the same time, exporters are reporting shipment delays, port congestion, and operational uncertainty because of cargo disruptions. Changes in airspace usage and route adjustments are also affecting capacity, pushing up cargo rates, while demand for commodities such as engineering goods is already feeling the strain as schedules slip and transportation reliability weakens.”
