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 one billion dollars could also be affected.
Every year, exports worth 10 billion dollars are sent by air via European air routes. Goods worth one billion dollars 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, experts say.
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.
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.
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