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

The conflict has made air transport from Keralam much more expensive. Air freight is crucial for moving export goods quickly, especially when delivery time affects freshness or market value. Higher charges directly increase the cost of sending products overseas.

The article links the conflict to sharply rising air freight charges. That increase has made spices, coir, perishables, vegetables, rubber and rubber products less competitive. Overseas buyers are becoming more reluctant to place orders because the delivered price is now higher.

The effect is visible in airport cargo activity. Exports through Keralam’s four international airports reached 27,425 tonnes in July-September 2026, but this was only 3.8% higher than a year earlier. That growth was far below the sector’s usual 5-10% annual range, showing how freight costs are restraining trade.

The article identifies spices, coir, perishables, vegetables, rubber and rubber products as affected exports. These goods depend on overseas transport because their buyers are outside Keralam, so exporters must move them across borders efficiently. Transport charges become part of the final price paid by international customers.

Perishables and vegetables usually need fast movement to preserve freshness and quality. Spices, coir, rubber and rubber products may have more shipping flexibility, but they still depend on reliable international cargo routes. If air freight becomes costly, exporters may need to raise prices or accept smaller profits.

The article does not rank the products by damage or specify which use air freight most. It shows that all face weaker competitiveness as freight costs rise. Buyers are increasingly reluctant to place orders, so the pressure affects both time-sensitive goods and products competing mainly on price.

During July-September 2026, Keralam’s four international airports handled 27,425 tonnes of exported cargo. This figure covers cargo sent through the State’s international airports during the second quarter mentioned in the article. It provides a clear measure of export activity during the period.

In the corresponding period of the previous fiscal year, the airports handled 26,416.7 tonnes. The difference was 1,008.3 tonnes. That produced year-on-year growth of 3.8%, according to the article. The increase was real, but modest.

The comparison matters because the sector usually records annual growth of 5-10%. The latest result therefore signals a slowdown rather than strong expansion. The article connects this weaker performance with sharply higher air freight charges caused by the ongoing conflict in West Asia, which has made Keralam’s exports less competitive.

Freight is part of the delivered cost of an export. When air transport becomes more expensive, the product reaches the overseas buyer at a higher total price. That can erase Keralam exporters’ price advantage, even if the goods themselves have not become more expensive.

For example, a spice, rubber product or vegetable shipment may need the same packaging and production cost as before. If its air freight charge rises sharply, the final invoice increases. An exporter can pass on the added cost, but the buyer may reject the higher price. Absorbing it instead reduces the exporter’s margin.

The article reports that Keralam products have become less competitive in overseas markets. Buyers are increasingly reluctant to place orders. This weakens demand and helps explain why cargo exported through the four international airports grew only 3.8%, below the sector’s traditional 5-10% annual growth.

Expensive transport creates pressure across the entire export chain. Exporters must choose between charging more, accepting lower profits, or sending fewer shipments. Each choice makes it harder to compete in overseas markets. The article says buyers are increasingly reluctant to place orders as freight costs rise.

The mechanism is straightforward. A higher air freight bill increases the delivered price of spices, vegetables, rubber and other products. Overseas buyers may compare that price with alternatives, postpone purchases, or order smaller quantities. Exporters then face weaker demand and less predictable business.

Airports feel the effect through slower cargo movement. The article reports 27,425 tonnes of exports in July-September 2026, against 26,416.7 tonnes a year earlier. Growth was only 3.8%, compared with the sector’s traditional 5-10% annual growth. Thus, higher costs affect sellers, customers and cargo volumes together.

Exporters can sometimes replace air freight with sea transport or other routes, but the choice depends on the product. Ships generally suit goods that can tolerate longer journeys, while air transport remains more suitable when speed, freshness or delivery certainty matters. The article itself does not detail alternative routes.

Coir, rubber and rubber products may often be better candidates for slower shipping because they are not usually as time-sensitive as fresh produce. Some spices may also use sea transport if buyers accept longer delivery times. Perishables and vegetables face tighter limits because delays can reduce freshness, quality and sale value.

A switch is not automatic. Exporters must consider journey time, handling, reliability and the buyer’s requirements. Moving some goods away from airports could reduce air freight exposure, but it may create other delays or costs. The article only establishes that air charges have risen and weakened competitiveness; it does not report any actual shift to ships.

Freight prices are generally set by the space available, shipment demand, fuel and handling costs, distance, timing and route risk. Carriers charge more when many customers compete for limited capacity. Prices can also rise when a shipment requires special handling or a faster service. The article does not provide a price breakdown.

A regional conflict can affect distant trade by making routes less direct or less predictable. Aircraft may be rerouted, flights may be reduced, and carriers may face higher fuel, insurance or security costs. If available cargo space falls while exporters still need to ship, the market price of air freight rises. These are established logistics effects beyond the article’s numerical detail.

The article directly connects the ongoing West Asia conflict with sharply higher air freight charges affecting Keralam. Those charges have reduced competitiveness and made buyers more cautious. Unless costs ease or exporters find workable alternatives, cargo growth may remain weaker than the sector’s usual 5-10% range.