India’s air cargo sector seeks demurrage waiver amid flight disruption

The Air Cargo Agents Association of India (ACAAI) has formally urged regulators to suspend demurrage charges on customs‑cleared export consignments stranded at airport terminals after international flight operations were disrupted by the Iran–US conflict.

ACAAI’s representation to Ministry of Civil Aviation (MoCA), Airports Economic Regulatory Authority of India (AERA) and AAI Cargo Logistics and Allied Services Company (AAICLAS) calls for immediate relief to exporters.

The letter pointed out that the prevailing situation has led to disruptions in international flight operations, including route restrictions, diversions, schedule irregularities, and operational constraints at certain overseas airports.

It reads, “Since it is a force majeure situation for all of us, we respectfully request your good office to consider issuing suitable guidance to Cargo Terminal Operators/ Custodians to defer application of the demurrage charges levy on export consignments that are unable to be uplifted due to flight disruptions or airspace constraints arising from the ongoing international developments, for the relevant affected period.”

ACAAI says the delays are “purely on account of external factors beyond the control of exporters, customs brokers, or air cargo agents,” and warns that levying demurrage under these circumstances would impose an “unjustified financial burden on exporters.”

The association’s leadership participated in an urgent Directorate General of Foreign Trade (DGFT) stakeholder consultation on Monday, March 2, 2026, where they pressed a range of operational and policy measures to ease the burden on exporters including the demurrage for cargo waiting at airports. They also urged customs to facilitate ‘Back to Town’ procedures and permit changes of airline or port where necessary.

Back to Town means returning export cargo to the shipper’s city or a local warehouse when it cannot be flown out as scheduled.

The delegation also called for opening more Indian airports to international carriers to create alternate hubs and routes, and proposed working‑capital support for exporters facing cash‑flow stress because of delayed shipments.

“The need for open skies all over the country to all accessible airports to attract more carriers, routes and freighters with faster clearances to create and run alternate hubs to Dubai, Doha, Abu Dhabi etc,” ACCAI’s communication with its members read.

Particular concern was raised about perishables and pharmaceutical consignments during Ramadan and the need to identify and activate alternate routing options. The group asked the government to monitor security, fuel and insurance surcharges and reported instances of steep freight rates, while noting the government’s acknowledgement that ships and tankers are stranded and require close, ongoing monitoring.

DGFT has constituted an Inter‑Ministerial Group (IMG) for Supply Chain Resilience under the Department of Commerce and also appointed Additional DGFT Abhinav Gupta as the nodal officer to coordinate further action and updates. The DGFT trade notice on March 2, 2026 reasons it as, “to assess the impact of ongoing geopolitical developments on India’s exports, particularly supply chain disruptions.”

The notice also instructs stakeholders to report specific supply‑chain issues for consolidation and monitoring, “Trade and industry stakeholders may bring to notice specific issues relating to supply chain disruptions for consolidation and monitoring at adg1‑dgft@gov.in for examination and appropriate coordination.”

In a separate move, the Apparel Export Promotion Council (AEPC) has also written to the Civil Aviation Secretary requesting waiver of demurrage.

A Sakthivel, Chairman of AEPC noted that “the prevailing situation has significantly disrupted international flight operations, resulting in route restrictions, airspace closures, flight diversions, schedule irregularities, and operational constraints at certain overseas airports. These unforeseen developments have directly impacted the timely movement of export cargo from Indian airports to various international destinations. As a consequence, export consignments are currently stranded at multiple airport cargo terminals across India. The delays are solely attributable to external and unforeseen factors beyond the control of exporters, customs brokers, freight forwarders, or air cargo agents.”