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Overcapacity prompts a fall in India's air cargo rates
POSTED: 8:54 a.m. EDT, June 1,2007
International air cargo rates have fallen in India because of a surge in imports has spawned overcapacity and a rise in competition has put pressure to cut rates to fill bellyholds.
Said Ravi Madhavan, Sri Lankan Airlines cargo manager: "There has been huge capacity, which has resulted in supply surpassing demand, resulting in a rat race and a drop in yields."
The UK's Air Cargo News also reported that fuel surcharges are a worry for Blue Dart Express' senior-vice president Tulsi Mirchandaney, who said: "Fuel prices are a concern as they are volatile and account for a significant part of our operating expenses."
Yields in India's domestic air cargo market have been flat or marginally up with the volume growth helping to compensate for the price falls. |
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