RESURGENCE in India’s air cargo is expected to continue as Red Sea crisis crosses one-year mark, reports Delhi's ThePrint.

International air cargo from India has seen double-digit growth over the past year due to a spillover of sea cargo to air routes amid a crisis in the Red Sea since October 2023.

The crisis involves attacks on commercial vessels in the Red Sea, which channels roughly 30 per cent of the global container traffic, amid the ongoing Middle East conflict.

Seaborne cargo now travels a longer route via the Cape of Good Hope-which has benefitted the international air cargo traffic.

Air cargo growth slowed down 2022-23 onwards but surged in the second half of 2023-2024. From October 2023 to March 2024, air cargo volumes grew 18 per cent year on year to nearly 1.7 million tonnes. The growth was 20 per cent from April 2024 to August 2024, with air cargo volumes growing to 0.967 million tonnes.

Even though air freight rates have increased by up to 300 per cent in the past year, the Red Sea crisis has been making exporters choose air cargo for more and more products, such as smartphones, other electronics, and footwear, to ensure timely deliveries.

Overall, the Indian air cargo market size is at 3.36 million tonnes in FY2024. Of this, 60 per cent, that is, 2.04 million, is driven by international cargo volume, Vinay Kumar G., the vice president and sector head of corporate ratings at ICRA Limited, told ThePrint.

According to the ICRA, India's air cargo volume will likely witness a healthy 9-11 per cent year-on-year growth, reaching 3.6-3.7 million tonnes in FY2025. This growth will likely get a further boost from an 11-13 per cent year-on-year growth of international air cargo, also expected to reach new highs in FY2025.