Air cargo services crippled by Iran-US conflict, exporters demand govt action

The Iran-US conflict has disrupted the air cargo system, causing a massive backlog of goods at airports across Pakistan, including Lahore’s Allama Iqbal International Airport. Thousands of tons of cargo are stuck in airport warehouses, and major air cargo service providers have raised their prices, with some charging double or triple the usual rates.

The conflict has severely impacted air cargo services. According to sources working within the airport, over the past five days, more than 700 flights have been cancelled at Allama Iqbal International Airport and across the country. Shipments containing food items, fruits, vegetables, meat, and other goods have been unable to leave the region for the past five days. Goods that were supposed to be shipped via air cargo from airports like Lahore, Islamabad, Karachi, Multan, Faisalabad, and Sialkot are stuck in warehouses.

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At Lahore Airport, around 200 to 300 tons of goods were previously shipped daily via air cargo to destinations like Dubai, Abu Dhabi, Sharjah, Bahrain, Kuwait, Qatar, Saudi Arabia, and other countries. Now, cargo is not moving, and exporters are frustrated.

The companies handling these shipments have also significantly increased their rates, adding another difficulty for exporters.

Customs clearing agents are also facing unemployment, as many agents previously handled 200 to 300 tons of cargo daily. According to a customs clearing agent in Riyadh, no shipments have been sent for the past five days, and agents are waiting in the hope that air routes will be restored soon. However, as the Iran-US conflict intensifies, no clear resolution is in sight.

Mansoor, a director at an air cargo service company, said that their goods have been sitting in their offices and airport sheds for the past five days.

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Bookings were made, but flights were cancelled at the last minute and, as a result, goods have not reached Saudi Arabia or the UAE. The few airlines that are still providing air cargo services have more than doubled their rates, making it almost impossible to ship goods. These soaring costs are making it financially unfeasible to send the cargo.

Mansoor urged the government to take immediate action and reinstate air cargo services to allow the thousands of tons of goods that are stuck at Lahore, Karachi, Islamabad, and other airports to be sent out. If these shipments are not sent soon, the exporters will face losses in the millions of dollars. The air cargo companies have also demanded that the government consult with airlines and work to resume cargo services to prevent the mass unemployment of thousands of families relying on air cargo.

Mansoor said that only a few shipments to European countries, the US, and Canada have been sent, but they too were dispatched at double the normal rates out of necessity.

Alongside the losses faced by airlines and cargo service providers, the government is also suffering a loss of billions of rupees in customs duties and taxes. While garments and other items can be held up for one or two weeks, the situation with perishable goods is critical, and the long delays are causing goods to spoil.