Rise in freight rate leads to a drop in air cargo movement from Tiruchy

Several cargo operators said the drop happened as many exporters avoided sending cargo to Singapore from Tiruchy due to the high freight fare.
Air cargo operator SpiceJet. (File Photo | PTI)
Air cargo operator SpiceJet. (File Photo | PTI)

TIRUCHY: The cargo movement from the Tiruchy international airport recorded a slight drop last month.

Several cargo operators said the drop happened as many exporters avoided sending cargo to Singapore from Tiruchy due to the high freight fare. But, most of the exporters are expecting that the airport would record a hike in cargo movements this month if they get more orders from the Middle East.

In March, the airport recorded a cargo movement of 534.13 tonnes. It was this year's highest air cargo movement. Though there was a high expectation among the sector about an increase in April, the airport handled only 517.59 tonnes.

"Usually, there would be increased export of fruits and vegetables in March due to Ramzan. We would have recorded more than 534.13 tonnes in March if the freight rate for Singapore was about `80 per kg. From Tiruchy, we have more air cargo movement towards the Middle East and Singapore. At present, the charge to send 1kg of cargo from Tiruchy to Dubai or other middle eastern countries is about Rs 70 per kg. But, the rate for sending 1 kg of cargo from Tiruchy to Singapore is about Rs 150. If the rates to Singapore come down, our cargo movements would increase.

Otherwise, the airport is likely to see a drop in cargo movement. This is because the air cargo rate from Bengaluru to Singapore is only Rs 70 per kg," said SA Sayeed, president of the Express Courier Operators Association.

Sources said talks were on to reduce the freight rates between Tiruchy and Singapore. "We are expecting more orders for fruits and vegetables from the Middle East this month. Thus, even if those sending cargo to Singapore chose Bengaluru airport, those sending cargo to the Middle East would send them from Tiruchy. Since the cargo movements to the Middle East are likely to increase this month, we may not face a drop in cargo movement in May," G Mahalakshmi, a fruits and vegetable exporter said.

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