Why soaring freight costs amid West Asia conflict are squeezing Keralam exports
Steep rise in transportation costs has made Kerala products less competitive in overseas markets
The ongoing conflict in West Asia has led to a surge in air freight charges, which are now impacting the exports from Kerala. This has made the state's products, such as spices, coir, perishables, vegetables, rubber, and rubber products, less competitive in international markets. Consequently, buyers have become less inclined to place orders, resulting in a decline in air cargo volumes transported by the state's international airports.
In the July-September quarter of 2026, the total volume of cargo exported from Kerala through the four international airports amounted to 27,425 tonnes, marking a mere 3.8% growth compared to the same period in the previous fiscal year, which saw 26,416.7 tonnes exported. Historically, the sector has witnessed year-on-year growth rates ranging from 5 to 10%.
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