Air cargo agents seek waiver of demurrage charges amid West Asia crisis

ACAAI urges Civil Aviation Ministry to direct cargo terminal operators to waive demurrage as export consignments remain stranded due to West Asia airspace curbs

Air cargo agents have urged the Ministry of Civil Aviation (MoCA) to direct cargo terminal operators (CTOs) to waive demurrage charges — fees levied when goods remain at airport terminals beyond the free storage period. 

 

This comes as export consignments remain stranded due to flight disruptions following military strikes by Israel and the United States on Iran. 

In a letter dated March 2, the Air Cargo Agents Association of India (ACAAI) said exporters and air cargo stakeholders are facing “pressing challenges” due to the recent geopolitical tensions in West Asia. 

The association noted 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.” 

Last Saturday, Israel and the US launched military strikes on Iran, prompting retaliatory action and halting commercial air traffic across parts of the West Asia. These include strikes targeting neighbouring nations such as Kuwait and the United Arab Emirates (UAE).

 

Several countries have shut or restricted portions of their airspace, forcing airlines to cancel flights.

 

ACAAI said the fallout has resulted in export cargo “remaining stranded at airport cargo terminals across India.” This is because scheduled upliftment — the loading of cargo onto aircraft for international transport — has been adversely affected.

 

“The delays in upliftment are purely on account of external factors beyond the control of exporters, customs brokers or air cargo agents,” the letter said.

 

Under the existing tariff framework of CTOs, which manage cargo handling facilities at airports, demurrage charges become payable when cargo remains in terminal facilities beyond the stipulated free storage period.

 

However, ACAAI described the situation as “an exceptional and unavoidable disruption in the global air logistics chain.”

 

It cautioned that levying demurrage “would impose an unjustified financial burden on exporters.”

 

The association has requested the MoCA to issue suitable guidance to CTOs to grant waiver of demurrage charges on export consignments that are unable to be sent due to flight disruptions or airspace constraints for the affected period.

 

“Such a facilitative measure would provide timely relief to the exporting community and help maintain continuity and confidence in India’s air cargo trade during this challenging phase,” it said.