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Ash clouds affect monthly $1 bn Indian goods exports

21
Apr '10
Thousands of businessmen, globally, are suffering due to volcanic ash clouds that continue to spread across the European skies.

According to Federation of Indian Export Organisation (FIEO), exporters are nervous about their huge losses and also fear delay in payments and large-scale cancellation of orders. Due to air travel crisis, it is expected that exports of high-end products from India worth $1 billion could also be affected.

Every year, exports worth $10 billion are sent by air via European air routes. Goods worth $1 billion are exported to the European Union (EU), every month,. This is likely to get affected, but it will only be known after evaluation. However, this problem will worsen if the crisis continues for long, opine experts.

Further more, bulk orders for low-cost goods are shipped whereas the high-end luxury goods and those easily perishable are sent by air cargo service from India. Exporters dealing with new clienteles are at the receiving end as they will lose business, delivery of goods will be rejected and order bookings will get cancelled.

While airspace over Germany, Netherlands, Spain and Ireland closed due to ash cloud, airports like Brussels, Charles De Gaulle, Frankfurt, Heathrow and Schipol, too were shut down.

Cargo costs have almost doubled owing to change in air route by a couple of airlines such as routing the flights via Athens and South Africa, thereby, charging higher cargo costs. Many consignments are also stranded due to delay in timely delivery.

According to Airports Council International (ACI) Europe, a total of 313 airports have turned redundant with over 63,000 flight cancellations since April 15. This had led to a near standstill of the intra-European mobility by air.

Fibre2Fashion News Desk - India


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