Gujarat’s exporters are increasingly relying on air cargo, a response to the persistent disruptions in global sea routes, notably the ongoing crisis in the Red Sea. This strategic pivot comes at a significant cost but promises timely deliveries, giving businesses a lifeline amidst growing delays in maritime shipping.
From April to October 2024, international air cargo volumes from Ahmedabad have surged by 33%, reflecting a marked shift from sea to air freight. The Sardar Vallabhbhai Patel International Airport, which houses two major air cargo complexes, handled a staggering 31,600 metric tonnes (MT) of cargo during this period, compared to 23,600MT in 2023. The export volume alone saw an impressive increase, rising from 23,600MT last year to 29,600MT, signalling a dramatic rise in air freight dependency. The underlying reason for this air freight boom is the growing delay in maritime shipping. Once able to transit from India’s ports in 20-25 days, vessels now take upwards of 70 days due to the rerouted Red Sea traffic. “A 70-day delay is simply not feasible for businesses that rely on timely shipments,” explains Manoj Kotak, president of the Mundra Customs Brokers Association. “So, around 25% of shipments that were once carried by sea are now opting for air freight.”
This transition is especially notable in sectors like pharmaceuticals and chemicals, where time sensitivity is paramount. The pharmaceutical sector, in particular, finds air freight crucial in maintaining product integrity and meeting international deadlines. However, this shift comes with its own set of challenges — primarily the steep increase in air cargo costs. Despite air transport being more expensive, the faster turnaround times are outweighing the financial strain for many exporters. The logistics industry, especially in Gujarat, which accounts for 20% of India’s export volumes, is undergoing a transformation. With the state’s ports handling 40% of the nation’s total cargo, these delays have left exporters with few choices but to endure the higher cost of air transport. As much as this surge in air cargo may seem unsustainable, the focus on rapid, reliable deliveries means that businesses are prioritising efficiency over expense, illustrating the evolving dynamics of global trade.
The sustainability aspect, however, presents a paradox. On one hand, air cargo provides a crucial solution to disrupted sea routes and slow-moving global supply chains. On the other, the environmental impact of increased air freight cannot be ignored. The carbon footprint of air transport far exceeds that of sea shipments, making this rapid shift less sustainable in the long run. Businesses must strike a balance between the immediacy of air freight and the environmental consequences of such a decision. Despite these challenges, Gujarat’s exporters are adapting, embracing the shift towards air cargo as a means of survival in an increasingly unpredictable global trade environment. This trend underscores the human side of business—companies are prioritising their relationships with clients, maintaining supply chains, and ensuring the timely delivery of essential goods. Yet, the cost, both financial and environmental, remains a point of concern, highlighting the complex decisions companies must make in these uncertain times.
