Indian exporters hit hard by higher air freight rates

EXPORTERS across India are being subject to higher air shipment costs following price increases by all airlines, including state-run flag carrier Air India.

The rate hikes, up 15 to 30 per cent, are largely viewed as a response to the recent volcanic eruption in Iceland, which caused airlines to suffer heavy losses.

According to a report by India's Business Standard, a number of carriers - including Jet Airways, Air India, Indian Airlines, Emirates, British Airways, Air Arabia, Gulf Air, KLM and Kingfisher - have started cherry-pick customers based on how much they are willing to pay.

Exporters of perishables, who traditionally operate on low-profit margins, are among the worst hit and have sought government subsidies.

The impact of rate hikes may have broader national consequences as Indian products would likely need to be priced higher than those from other countries.

(Source: www.schednet.com)