Muscat-Delhi: Increased cargo rates
Cargo agents, who deliver goods at the door steps of Indian expatriates, have decided to raise their door-todoor air cargo charge. All the airlines operating in Muscat-New Delhi sector have a quota for cargoes.
The new door-to-door air cargo delivery charges from Muscat to New Delhi have been increased to RO1.300 per kg with effect from April 1. The price rise was announced by representatives of 35 cargo agencies in Muscat recently.
Increased cargo rates by airlines and hike in transportation costs are some of the reasons cited by agents for the decision. Besides, there has also been an increase in cargo handling charges at Muscat airport. India now allows such cargoes only at the New Delhi airport and the cargo agents have to dispatch their consignments to other states from Delhi airport.
Indian expatriates working overseas are making use of a government facility to send gift
`20,000 parcels not exceeding in total value to their friends and family members. The non-residents Indians depend on door-to-door agents for delivering such gifts.
It takes anywhere between 15 and 25 days for cargo agents to deliver a parcel, after booking in Muscat. Few industry veterans told how this is going to affect the trade between the two countries. “Compared to general cost of living the increase of 100 baisa is not a phenomenal increase in an industry which has been plagued with declining yields and increase in costs. I don’t think it will have any major effect on the trade between the two countries. At the most, for a few weeks, the traffic volumes might come down and then pick up again. The fact remains that New Delhi is a landlocked city and there are not many other direct alternatives without incurring more costs and time. At the end of the day, rates will find its own levels in a free market environment and will flow from and too via routes which are more cost efficient,” says Ram Menen, Retired Aviation and Air Cargo Executive.
“Today, embracing available technology can greatly simplify trade starting from production to logistics to transportation and the border clearance processes. Time is money and the more simplifications brought in, the better cost efficiencies it will produce. Taking the paper out of transactions in itself will go a long way in simplification of all aspects of commerce,” adds Menen.
On a similar note, Bharat Thakkar, Past President and Permanent Member–Board of Adviser, ACAAI and Joint Managing Director, Zeus Air Services, says, “Air freight is prime service between India and Oman and