Freight costs for air shipment of fresh produce have increased some 25-30 per cent following the shutdown of Indian-based airline, Jet Airways.
The shutdown has made a particular impact on fresh produce exports from India to Europe and the UK, according to The Economic Times. Daily, around 50 tonnes of vegetables were being shipped out of Mumbai to London, Amsterdam, Paris and Singapore before the shutdown, and Jet Airways would operate three flights daily.
Emirates and Dubai had the second-largest share of fresh produce exports, and as a result of the shut downs, exporters are unable to fulfil volume and price commitments.
Kaushal Khakhar, CEO at Kay Bee Exports told The Economic Times the debacle has not only effected fresh fruit, but vegetables like okra and chillies, headed for European markets.
“With our in-house freight forwarding division, we are able to fulfil the volumes and maintain the service levels but at a significant jump in freight rates,” said Khakhar.
Exporters are concerned over the potential long-term impacts this could have on air shipments as there is a strain on not only cost but capacity.