26 July 2022 05:02 am
Sri Lankan exporters are set to experience increased air freight rates amid capacity constraints stemming from reduced frequencies and limits on payloads, caused by the acute jet fuel shortage in the country.
“There are capacity constraints. Air freight rates have increased slightly, due to the jet fuel shortage but the demand has been low as well. The demand is supposed to pick up from mid-August onwards. Then there will be some upward pressure on air freight rates,” Sri Lanka Logistics and Freight Forwarders Association Chairman Dinesh Sri Chandrasekara told Mirror Business.
A portion of the country’s apparel exports in particular is hit by the rising air freight rates, according to the Joint Apparel Association Forum Sri Lanka (JAAF).
“This is an issue. The air freight rates have gone up significantly, driving up costs,” a JAAF spokesperson said.
As the jet fuel shortage has forced airiness to limit the payload of each flight, cutting down both passenger and cargo capacities, the cargo capacities and rates naturally go up, based on the demand.
In contrast, Chandrasekara noted that the air freight rates are on a declining trend globally, with more aircraft coming into operations, which increases the belly space in allowing the aircraft to carry more cargo.
“Globally, air freight rates are expected to come down. But it’s hard to comment on Sri Lanka. As more airlines reduce their frequencies to Colombo, there will be pressure on rates,” he added. (Nishel Fernando)