Why soaring freight costs amid West Asia conflict are squeezing Keralam exports

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Exports of spices, coir, perishables, vegetables, rubber and rubber products from Keralam continue to face headwinds as the ongoing conflict in West Asia has driven up air freight charges sharply. The steep rise in transportation costs has made Kerala products less competitive in overseas markets, with buyers increasingly reluctant to place orders. Air cargo volumes handled by the international airports in the State have declined considerably during the last quarter in the current fiscal year, reflecting the impact of rising freight costs on export shipments.

During the July-September quarter of 2026, the total volume of cargo exported from Keralam through the four international airports stood at 27,425 tonnes, compared with 26,416.7 tonnes in the corresponding period of the previous fiscal, registering a meagre growth of 3.8%. The sector has traditionally recorded year-on-year growth of 5-10%.

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