09-05-2025
E-commerce on edge as airport closures disrupt delivery services
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 people familiar with the matter.
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, said one of the two people cited above.
Several courier firms, including Blue Dart and Delhivery, are working on alternative routing through unaffected airports, but longer transit times may be unavoidable.
Industry players warn that if the closures are prolonged, the impact on essential goods, perishables, and time-sensitive deliveries could deepen.
'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.
A senior executive from a leading e-commerce company said consumer buying patterns have started shifting. 'People are prioritizing essential items like food products over non-urgent categories such as electronics and gadgets," the executive said, speaking on condition of anonymity.
'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.
The broader supply chain could face additional stress if road or rail movement is also disrupted, the second person noted.
The government is considering invoking the Essential Services Maintenance Act (ESMA) to regulate the availability and pricing of essential commodities, Mint earlier reported.
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Logistics challenges
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.
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-2 and Tier-3 cities.
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 by press time.
A total of 24 airports have been closed for civil flight operations in view of the 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.
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