Indian manufacturers switch to air freight to meet festive demand
Indian manufacturers are switching to air freight to keep up with festive season demand, as the crisis in West Asia slows down sea shipping.
Electronics companies are flying in parts like chips and circuit boards because shipping delays have stretched lead times by two to three weeks for PG Electroplast, while Bhagwati Products is flying in memory chips.
Auto companies are managing sea-freight disruption, and an auto-component company is using a mix of road and air transport.
Indian contract manufacturers pass freight costs
Shipping costs have shot up fivefold since the crisis began, and air freight rates are now three times higher.
Contract manufacturers are passing on the higher freight costs fully or partially to their clients, while companies manufacturing in their own plants may have to take a hit on margins.
Hyundai Motor India is also working with its logistics partner to manage the disruption in sea freight, with the recent reopening of Sharjah port may help improve supplies in the coming days.