Current Status of Cargo to India and Factors affecting it

It is no arguing that with the globalisation of the world economy, trade pattern has been changed entirely and structural changes have also occurred in this regard. It is worthwhile to point out that economical, political and technological trends are driving the global trade.

Likewise, the cargo industry is reshaping itself with time to conform itself into a new era. It is pertinent to mention here that business factors of cargo industry leveraging the world trade include; world logistic models of hypermarkets, distributing system, requirements of shipper, carrier strategies and integration of transportation.

The cargo industry in India is prospering well and it is having all the desired facilities in this context. The government is providing all the need-based facilities to the cargo especially to Air Cargo to India.

As we know, there is a network of Container Freight Stations (CFS), Inland Container Depots (ICD), ports and airports that have appropriate custom clearance facilities for the importers as well as for the exporters to avoid any kind of hindrance.

It is quite appropriate to understand what is happening with Freight Shipping. Some mistakes that get it wrong normally in freight forwarding are the miscalculation of package weight and the wrong choice of the shipping carrier. No doubt these minor mistakes cost you too much in sending common goods.

But while having bigger shipments, mode of transportation, shipping carriers, and shipping service have the major role to play. Mostly this freight shipping is done by use of rail, road and for heavy luggage, ships are used.

If we look at the shipping of freights in Cargo to India, it comes out that various factors affect its movement in one or other ways like Shipping Mode, Fuel Cost, Tariff Rates, Weight of the Shipment, Density of the Shipment, Distance between Source and Destination, Freight Classification, And Negotiated Rates.

Ways of Freight Shipment

Full Truckload:

This suits to the shipment that are weighing above 15000 lbs.

Less than Truckload:

This is best for shipment whose weight ranges between 150- 15000 lbs.

Partial Truckload:

It is helpful to split the cost of a truck with other shippers and this is great for shipment weighing above 5000 lbs.


This encompasses the multiple modes of transportation like rail, raid or van.

Expedited Freight:

Such freight is faster, but a little bit costlier shipping mode.

Factors Affecting Air Freight Rates


This is of the prime importance affecting the shipping rates as all the force which is engaged in shipping assignments are employed at a high cost and obviously, this will increase the cost of goods shipment.

Consequently, for larger shipments, you have to engage more workers that will increase the cost of operating the goods. On the other hand, the professionals taken from this cargo work demands more amount.

Air freight containers

These unit load devices are the main component of air freight carrying the goods from the airport to the far-flung areas of India. These containers are very boon and blessing as these provide extreme protection to the freight being carried in the transit.

The requirement of the container varies differently for different freight volumes. And one thing more, for some fragile or sensitive freight, special containers are needed. All these add the cost to the cargo deliveries.

Speed of shipping

The swiftness of the carrier mode is of prime importance as everyone is concerned about the time taken to reach the destination place of the freight booked. Accordingly, companies offer rates in this connection and speed and duration hence determines the criteria for fixing the rate of Frieght Transport.

Upcoming Brexits’ Shift

Everyone associated with the cargo industry is very keen about the upcoming cargo shift as a result of post Brexit period. Most shippers are much worried in this context and asking about the impacts the Brexit and no doubt the Brexit has become the talk of the town.

As planned and agreed that the UK would leave the European Union on March 29 and after that, it would work independently for having import and export trade.

Custom Clearance in India 

The Customs Department of India bounds the cargo industry to pay customs duty as soon as the goods are landed at the airport or seaport. To ease it further, arrangements are also made if the goods are being carried to other airports or ports or ICD/CFS, then you need not pay duty at the port of landing.

This is facilitated for the goods carried from one port or airport to other airport or port or ICD or CFS and these can be transported in any means like road, rail, air or vessel or through intermodal i.e. by the combination of these. As per custom rules, imported cargo can be transported to another port or ICD or CFS.

The transhipment would be carried out through Transhipment Permit which is merely permission by the Customs authorities to carry the shipment in response to the application rendered by the shipping agent. Furthermore, a bank grantee and an execution bond are also desired for the shipment.

This aims at to give guarantee by the agent that such imported cargo that is imported and does not entitle duty at the importing port, will not be pilfered on the way to the other port/airport/ICD/CF.

Furthermore, a bond along with the guarantee of the bank @ 15% of the bond value is also taken from the agent to ensure about the safely of this imported cargo.

Leave a Reply

Your email address will not be published. Required fields are marked *