Air cargo exports from Gujarat increased by 28% in the 2024 financial year, according to data from the Ahmedabad Air Cargo Complex, which dispatched 43,854 metric tonnes (MT) of exports in FY 2024 compared to 34,141 MT in 2023.
Sources attributed the increase to multiple reasons. Increased demand for products from sectors such pharmaceuticals and engineering goods were a key reason, a senior AACC official said.
The cargo terminal run by Gujarat Agro Limited has been shut for nearly a year due to contract renewal issues and consequently perishables and goods such as pharma and chemical products have been diverted to the AACC, a top official said.
At least 77% of the cargo exported through AACC comes from four sectors: engineering goods, pharmaceuticals and medicines, fabric, yarn and textiles and chemicals. The top five categories posted a cumulative 43% increase in exports in FY 2024. This came despite a contraction in the volumes of chemicals and textiles.
An overall shift in export dynamics due to factors such as the Red Sea crisis also led to the increase in air cargo exports from Gujarat. The Red Sea crisis diverted a lot of sea cargo to the air, in sectors where manufacturers had to meet delivery deadlines.
“The Red Sea crisis led to a significant increase in sea freight costs and turnaround times. Many exporters thus turned to air cargo. Pharmaceutical companies largely export via air only. Given the high demand, volumes increased this year. A part of the cargo that used to be shipped by sea had moved to air cargo this year,” a senior AACC official said.
Commodities which posted high export growth rates on low bases included tobacco products (794 MT), electronics and computers (433.7 MT), mangoes (91.5 MT), marine products (19.1 MT), fruits, vegetables and flowers (34 MT), gold and gold jewellery (10.7 MT), silver and silver jewellery (8.6 MT), gems and jewellery (5.22 MT) and agricultural seeds and products (1.5 MT).