‘Conflict may lead to reduced predictability, fragmented cargo flow & elevated costs’

Balagopal Balachandran, National Head, Air Freight, FEI Cargo said, “Just as global trade was stabilising with shipping returning to the Red Sea, the Iran-Israel conflict has reignited fears of oil price surges and trade disruptions. For India , which imports over 80% of its crude oil poses significant macroeconomic risks. The Iran-Israel conflict has directly translated into elevated costs, reduced predictability, and a fragmented cargo flow for Indian EXIM stakeholders. While freight forwarders and carriers have responded by introducing dynamic routing and premium service tiers, the longer-term solution lies in diplomatic stability and regional cooperation. For now, Indian exporters and importers must navigate this volatile environment through agile planning, contractual flexibility, and close alignment with airline and GSA partners. While demand remains relatively stable due to backlogged shipments and seasonal peak movements, available capacity has been moderate. Globally several freighter operators are now reallocating space on a yield basis, leading to priority being given to high-margin cargo. This has resulted in a skewed cargo mix and longer waiting times for general and low-yield freight.”