Dimerco’s December Asia Pacific Freight Report shows India’s air cargo market under pressure from tight capacity, strong export demand and seasonal disruptions. Electronics, garments, and e‑commerce exports remain robust, but winter fog and hub congestion are limiting available space. Most US‑bound cargo is being routed via Europe, further squeezing direct lift from India.
Salient features
* Tight capacity: India’s air freight market is facing reduced space availability due to strong export volumes and regional demand.
* Seasonal disruptions: Winter fog in North India is causing delays and operational challenges at key airports.
* Strong export activity: Electronics, garments and e‑commerce shipments continue to drive outbound volumes from India.
* Hub congestion: Major Asia-Pacific transit hubs (Singapore, Hong Kong, Taipei, Incheon, Narita) are heavily utilised, limiting smooth flows.
* US-bound cargo via Europe: Much of India’s freight destined for the United States is being routed through European hubs, reducing direct India-US lift.
* Regional demand surge: Intra-Asia movements of raw materials and e‑commerce flows to the US are adding pressure across the network.
Scenario in the Asia-Pacific freight market
* Peak-season demand: December saw strong e‑commerce flows after Black Friday and holiday promotions, tightening capacity globally.
* Transpacific pressure: Asia-US lanes experienced the sharpest rate increases, spilling over into India’s export market.
* Intra-Asia flows: Raw materials circulating between China, Singapore, Thailand, Vietnam and Malaysia are keeping regional networks busy.
India’s exporters therefore are navigating a challenging environment: high demand but constrained lift. The reliance on European hubs for US cargo suggests limited direct connectivity, which could push rates higher and extend transit times. Seasonal weather disruptions add another layer of unpredictability, especially for time-sensitive shipments like electronics and apparel.