India’s air cargo rates fall

International air cargo rates have fallen in India. The fall follows a surge in imports that has resulted in abundant capacity. Increasing competition is putting pressure on yields as carriers are forced to slash rates to fill bellyhold capacity.
"There has been an ingestion of huge capacity due to growth in imports and anticipation of an export boom which has resulted in supply surpassing demand, resulting in a rat race, and consequently a drop in yields," said Ravi Madhavan, cargo manager, Sri Lankan Airlines.
Besides an excess in supply, fuel surcharges are also more of a concern. "Fuel prices are a concern as they are volatile and account for a significant part of our operating expenses,” commented Blue Dart Express’ senior-vice president Tulsi Mirchandaney.
Yields in India’s domestic air cargo market have been flat or marginally up with the volume growth helping to compensate for the price falls.
29/05/07 Air Cargo News.net, UK

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Categories: Cargo May 2007, Foreign May 2007