The Hindu Business Line : Rise in export cargo jacks up freight costs

Exports, imports
Last month, 8,004 tonnes were exported from Chennai airport while 7,718 tonnes were exported in last February.
Imports during last month were 6,414 tonnes compared to 4,814 tonnes in February last year.

Chennai , March 23

A sudden increase in volumes of export cargo through the Chennai airport in the last few weeks has pushed up the freight costs and some airlines have also introduced express rates.

With the demand for air capacity going up, some airlines are charging flash rates of Rs 168 per kg for London and Rs 210-213 per kg for New York. Other airlines are offering negotiated rates at Rs 85 per kg for Europe and anything between Rs 120 and Rs 140 per kg for New York.

However, airline sources said the published tariff for Europe was about Rs 110 per kg. When the market was dull last November and December, the rates were around Rs 70-75 per kg for Europe.

Meeting summer demand

Large volumes of ocean freight have been converted to airfreight to meet buyers' deadlines and to make it in time for the summer sales. Compared to ocean freight, sending cargo by air is five times costlier, industry sources said.

Most of the shipments are garments, which are meant for the summer sales. The surge in volumes is mainly because many of the garment exporters in Tirupur were not able to send the shipments in November and December because of labour problems, sources said. Garment exporters said the unprecedented rains during this period also affected production.

On the import side the cargo is lying on the tarmac, as the import infrastructure is inadequate. The cargo includes computer parts, laptops, chemicals and heavy machinery. The average time taken to hand over cargo is about 72 hours, airline sources said. Imports during last month were 6,414 tonnes compared to 4,814 tonnes in February last year.

Freighter airlines

Besides the belly capacity on passenger aircraft, Chennai airport is served by 10 freighter airlines (see table).

Cargo from Tirupur and Bangalore is also trucked to Chennai. Last month, 8,004 tonnes were exported from this gateway airport while 7,718 tonnes were exported in last February. SIA Cargo's summer schedule effective March 26 to October 28 this year has five freighters operating via Chennai.

Of this, three flights are westbound and two eastbound.