‘Rerouting due to Pak airspace closure hiked freight costs’

Arun Kumar, President, AMTOI reacted on the ongoing India- Pak situation affecting global cargo trade, he said, “The rerouting due to the closure of Pakistani airspace has undoubtedly increased operating costs for Indian carriers such as Air India, IndiGo, and SpiceJet, potentially affecting their freight rates. However, India’s air cargo carriers have consistently demonstrated adaptability under pressure. While this puts them at a temporary cost disadvantage vis-à-vis some foreign carriers, the Indian logistics sector is quick to recalibrate. Moreover, in the event of a wider regional conflict, the impact will be universal across carriers. We’ve seen similar resilience in ocean freight, where Indian trade continues to thrive despite global disruptions like the Red Sea crisis, which forced ships to reroute via the Cape of Good Hope. The Indian logistics industry has consistently turned adversity into opportunity—and will do so again.” He added, “Any disruption in air traffic, including airport closures, does pose a challenge to air cargo operations and leads to an immediate spike in air freight rates—especially with the added burden of increased Security Surcharges in times of geopolitical tension. However, India’s logistics ecosystem has evolved significantly. Today, the country boasts a robust and agile multimodal infrastructure, with efficient road and rail connectivity acting as reliable alternatives. While international air cargo may feel the heat, domestic cargo movement will continue with minimal disruption. The system has proven its resilience in the past and is well-equipped to adapt swiftly in such scenarios.”