India’s pharmaceutical and electronics exporters are facing mounting pressure as spot air freight rates have surged up to 400% in recent days, following escalating tensions in West Asia that have disrupted key aviation corridors.
Industry executives said the sharp spike in cargo rates stems from capacity constraints after several Gulf carriers scaled back or suspended operations, tightening space on major transit routes linking India to the US and Europe. The Gulf region serves as a critical hub for high-value, time-sensitive shipments.
Companies dependent on carriers such as Emirates, Qatar Airways and Etihad Airways reported severe space shortages, forcing them to pay steep spot premiums to ensure timely deliveries.
Pharmaceutical exporters warned that delayed shipments could impact supplies of life-saving drugs, particularly generics and specialty formulations destined for regulated markets. Many temperature-sensitive consignments rely on predictable air connectivity to maintain cold-chain integrity.
Electronics manufacturers, especially those exporting high-value components and finished devices, said the surge in logistics costs could erode margins and disrupt just-in-time supply chains. Smaller exporters are reportedly the hardest hit, lacking long-term freight contracts that offer some protection from spot market volatility.
Freight forwarders noted that alternative routings via Southeast Asia or direct long-haul services are being explored, but limited availability and longer transit times continue to strain supply chains.
Trade bodies have urged the government to engage with airlines and logistics stakeholders to stabilise capacity and consider temporary relief measures if volatility persists. With geopolitical uncertainty lingering, exporters remain cautious about further spikes in freight rates and potential knock-on effects on order flows.