Air freight operation loading cargo onto a plane on a sunny tarmac.
Indian IT distributor Redington is adapting its logistics strategy by increasing the use of air freight to serve the Middle East market. This pivot comes as ongoing conflict in the Gulf region has significantly disrupted traditional sea shipping routes, impacting the company’s supply chain operations.
The shift to air cargo is driven by the necessity to maintain product delivery timelines in a challenging geopolitical environment. However, this change is accompanied by increased operational costs, as air freight rates have reportedly risen due to higher fuel expenses and a reduced overall shipping capacity in the market.
In response to these logistical hurdles, Redington is also implementing rerouting strategies for its supplies and securing new insurance policies to mitigate potential risks associated with the altered transit methods. Despite these operational adjustments and some observed dips in demand, the company remains optimistic about its revenue growth prospects in the region.
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