E-commerce on edge as airport closures disrupt delivery services
Summary
India Post’s parcel and mail operations have already seen disruptions, while delivery service providers are struggling to maintain timelines due to cargo flights being grounded or diverted
New Delhi: With the government shutting down operations at 24 airports across northern and western India amid escalating tensions with Pakistan, ripple effects have been felt across logistics networks and e-commerce supply chains, according to two government officials familiar with the matter.
State-owned India Post’s parcel and mail operations have already seen disruptions, while delivery service providers are struggling to meet deadlines due to cargo flights being grounded or diverted, the first official cited above said on condition of anonymity.
The second official cited above noted that the broader supply chain could face additional stress if road or rail movement is also disrupted.
Industry players warn that if the closures are prolonged, the impact on essential goods, perishables, and time-sensitive deliveries could deepen.
An executive from the e-commerce industry said that Indian supply chain systems are built such that most warehouses and fulfilment centres will have the inventory to cater to immediate needs, which is over a week or 10 days.
Border areas are also less dependent on air services for delivery and if a city has no curfew, deliveries can be made over road or through the railway network.
There may be a maximum delay of 4-8 hours, the executive said. However, a longer period of disruption or war could hit supply chains, at which point local warehouses may not be able to fulfil the demand.
The first sign of disruption would be if employees in the border areas feel safe enough to go to work, the executive added.
Key players in India's e-commerce sector include Amazon, Flipkart, Reliance Retail, Meesho, and Tata. Queries sent on Friday to Amazon, Flipkart, Tata, Reliance Retail, and the ministries of commerce and civil aviation remained unanswered till press time.
“The closure of airports may disrupt the supply chain of e-commerce companies in maintaining their committed delivery timelines and maintaining the inventory," said C.K. Govil, president of The Air Cargo Agents Association of India (ACAAI).
However, there is no impact on cross-border cargo movement and all international airports remain operational, he added.
Buying patterns changing
Meanwhile, consumer buying patterns in border areas have started shifting. “People are prioritizing essential items like food products over non-urgent categories such as electronics and gadgets," a senior executive from a leading e-commerce company said.
“We haven’t observed panic buying or stockpiling so far. While areas close to the border are beginning to procure essential goods in higher quantities, other parts of the country remain calm. We are ensuring that all products are sufficiently stocked, and prices remain stable," the person added.
Another e-commerce executive said that border areas had seen a post covid-like spike in stockpiling of essential groceries and staples. In some pockets like Jammu, the stockpiling of grocery items had been higher.
On the supply chain side, it is “still too early to say", this executive said. “It would depend on the kind of restrictions that the government imposes going ahead."
Mint earlier reported that the government is considering invoking the Essential Services Maintenance Act (ESMA) to regulate the availability and pricing of essential commodities. ESMA empowers the government to prohibit strikes and ensure the uninterrupted delivery of essential services vital to public welfare.
Although exports and imports remain unaffected due to operational international airports, the impact of these closures is starting to be felt in domestic commerce and logistics. If the shutdown continues, it could challenge the resilience of India's retail supply chain just ahead of the monsoon season.
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Airports closed
A total of 24 airports have been closed for civil flight operations in view of the current security situation. These include major facilities such as Chandigarh, Srinagar, Amritsar, Jammu, Leh, and Jodhpur, along with smaller airports like Ludhiana, Patiala, Shimla, Kangra-Gaggal, and Bhuntar. Other affected airports are in Rajasthan and Gujarat, including Jaisalmer, Bikaner, Kishangarh, Mundra, Jamnagar, Hirasar (Rajkot), Porbandar, Keshod, Kandla, and Bhuj.
Several of these are operated by the Airports Authority of India (AAI), Civil Enclaves (CE), or under Indian Air Force (IAF) control, depending on jurisdiction.
The Bureau of Civil Aviation Security (BCAS) has issued nationwide instructions to enhance security protocols at all airports. “All passengers will now undergo a secondary ladder point check (SLPC), visitor entry to terminal buildings is banned, and Air Marshals will be deployed accordingly," said a senior official.
The NORTAM on airport closure been extended to 14 May night, as per the ministry of civil aviation.
The e-com market
The e-commerce market in India is thriving and is expected to reach $350 billion by 2030. Online sales are projected to account for 37% of the total retail market by that time, according to a report by the India Brand Equity Foundation (IBEF), which is an entity under the ministry of commerce.
This growth is fuelled by increasing internet penetration, more widespread smartphone usage, and shifts in consumer behaviour, particularly in tier-II and tier-III cities.
