Redington Shifts to Air Cargo Amid Gulf Conflict Disrupting Sea Routes

Indian IT goods distributor Redington has significantly increased its reliance on air freight to maintain supply chains into the Middle East, as ongoing conflict in the region has disrupted traditional sea routes. The closure of the Strait of Hormuz, following the escalation of the U.S.-Israeli war on Iran, has forced the company to pivot from sea to air transport despite surging freight rates and fuel costs. V.S. Hariharan, Redington’s Managing Director and Group CEO, stated that the company is redistributing inventory and securing alternative insurance after war-risk coverage was withdrawn. To mitigate risks, Redington is rerouting supplies via Saudi Arabia and Oman, utilizing road transport for final distribution, which is deemed safer. Although demand in key markets like the UAE and Saudi Arabia has softened due to supply constraints and cautious spending, Redington expects revenue to grow by 10% to 15% in fiscal 2027. The company, which distributes products for major vendors including Apple, Dell, and Samsung, is passing most of the increased logistics and insurance costs, estimated at 0.20% of revenue, onto customers to protect profit margins.