Apparel Exporters Call for Demurrage Waivers Amid West Asia Airspace Crisis
The Apparel Export Promotion Council has formally appealed to the Union government to implement demurrage charge waivers for export consignments that have been immobilized due to severe flight disruptions, airspace restrictions, and operational constraints stemming from the escalating tensions in West Asia.
Urgent Representation to Civil Aviation Ministry
Dr A Sakthivel, chairman of the AEPC, has dispatched a detailed letter to the secretary of the Union civil aviation ministry, highlighting the critical challenges emerging from the ongoing Iran-US conflict in the Middle East and West Asia. In his communication, Sakthivel emphasized that the volatile situation has profoundly disrupted international flight operations, leading to widespread route limitations, airspace closures, flight diversions, schedule irregularities, and operational hurdles at numerous overseas airports.
These unforeseen developments have directly impeded the timely movement of export cargo from Indian airports to various international destinations, Sakthivel stated. He further explained that export consignments are currently stranded at multiple airport cargo terminals across India, with delays solely attributable to external and uncontrollable factors beyond the influence of exporters, customs brokers, freight forwarders, or air cargo agents.
Financial Strain on Exporters
Under the current tariff framework of cargo terminal operators, demurrage charges are levied when cargo remains in terminal facilities beyond the designated free period. However, Sakthivel argued that the present circumstances represent an exceptional and unavoidable disruption in the global air logistics chain. Imposition of demurrage in such cases will place an undue financial burden on exporters who are already grappling with shipment delays, contractual uncertainties, and market-related challenges, he noted.
The AEPC chairman has specifically requested the Directorate General of Civil Aviation to consider issuing appropriate instructions to cargo terminal operators to grant demurrage charge waivers on export consignments that could not be lifted due to flight disruptions, airspace restrictions, or related operational constraints arising from the ongoing international developments.
Broader Implications for Trade
This appeal underscores the broader economic impact of geopolitical conflicts on global trade networks. The apparel export sector, a significant contributor to India's economy, faces heightened risks as logistical bottlenecks threaten to erode competitiveness and strain financial resources. Industry experts warn that without timely intervention, such disruptions could lead to:
- Increased costs for exporters, potentially passed on to consumers.
- Delays in fulfilling international orders, risking contractual penalties.
- Long-term damage to India's reputation as a reliable trading partner.
As tensions in West Asia continue to evolve, stakeholders are closely monitoring government responses to mitigate these challenges and safeguard export interests.
