New Delhi, Oct 11 (FN Bureau) Growing at a healthy pace of 9-11% year-on-year, overall Indian air cargo volume could rise to 3.6-3.7 million tonnes in the current financial year 2024-25, research and rating firm ICRA said on Friday. The growth is likely to be supported by 11%-13% expansion in international cargo as the Red Sea crisis impacts seaborne cargo movement. The rating agency said that international cargo volumes saw a muted YoY rise of 1% in the first half (April-September period or H1) of previous financial 2023-24 on the back of the slowdown in the global economy and geo-political conflicts.
“However, the international cargo volumes have seen a healthy expansion of 18% in H2 FY2024, amid the Red Sea crisis, which started in October 2023. Consequently, the seaborne cargo traffic was impacted, which in turn benefitted international air cargo traffic,” it said. Vinay Kumar G, Vice President & Sector Head – Corporate Ratings, ICRA said that while the growth in cargo volumes slowed down during the FY2023-H1 FY2024 period, it has bounced back handsomely in the last 12 months since the start of the Red Sea crisis. “The international cargo volumes have increased by 18% YoY and 20% YoY during 5M FY2025 and are expected to increase by a further 11%-13% YoY to touch new highs in FY2025,” he said.