The seasonal output of export-ready mangoes is here, but with the ongoing capacity constraints in the air cargo sector have turned up the heat on them, thereby, making it difficult to achieve the export targets for the fruit.
Highlighting the capacity pain point of the air cargo sector, Mohnish Arora, GM (Perishable Cargo Trade) at Mumbai based Jet Freight Logistics (JFL) said that the pressure on cargo capacity for air freight is not going to ease anytime soon, considering that the P2C flights are now being turned back to passenger carriers as air bubble agreements ended in March. He believes that the said conversation of P2C flights will reduce the cargo capacity by 50%.
JFL majorly handles mango shipments to the EU, UK, US and Middle East markets, and largely uses flight connections over London, Frankfurt, Milan and Paris. They are prepared to transport approximately 500 tons of mango shipments to these markets every week during this year.
According to Mohnish, another reason for current air freight setbacks is that most airlines had let go off a part of their workforce due to the pandemic and are now struggling to get more manpower on board. There is also the ongoing Russia-Ukraine factor that has been detrimental to air cargo industry throughout the world. The war has resulted in an unprecedented hike in the fuel prices, which will ultimately be passed down to the cargo owners using air freight services.
The mango exporters of India are, therefore, at a loss here due to the perishable nature of the fruit, making speed and reliability critical to their exports. However, even with multiple deterrents, exporters are willing to jump head on towards achieving their export targets, and the Government is equally determined to hit the merchandise export target for current fiscal year.
“Exports are now set to transform the Indian economy. What is more important is to build on it as we will have the benefits of new free trade agreements and comprehensive economic partnership agreements and the production-linked scheme backing us.” – A. Sakthivel, President, Federation of Indian Export Organisation
Credits: The Loadstar