Indian IT goods distributor Redington has dramatically increased its use of air freight to maintain product supply chains as regional conflict disrupts traditional sea routes. According to reports from Reuters, V. S. Hariharan, managing director and group CEO, explained that 'a good chunk of the product used to come by sea and a smaller chunk by air. A lot of it has moved by air because the Strait of Hormuz is closed'. The company serves customers across more than 40 markets including the United Arab Emirates and Saudi Arabia, with the 'rest of the world' segment contributing nearly half its revenue. The conflict has disrupted sea routes and forced Redington to adapt its logistics strategy quickly.
The logistics disruption has resulted in increased operational costs for Redington. As reported by Reuters, Hariharan stated that 'the increase in insurance and freight costs is roughly 0.20 per cent of revenue'. The company is passing on most of these additional costs to customers while implementing alternative strategies to manage supply chain risks. Redington has had to redistribute inventory across warehouses and arrange alternative insurance coverage after insurers withdrew war-risk coverage. Air freight rates have surged since the U.S.-Israeli war on Iran began at the end of February, as higher fuel costs and disrupted sea shipments squeeze capacity.
The conflict has forced Redington to rework its entire logistics network, with supplies now routed via Saudi Arabia and Oman. According to Reuters, Hariharan explained that 'for Apple, we picked up product from the Netherlands, brought it in by air and then we have distributed by road. The road seems safer'. The company, which counts Apple as roughly a third of its revenue along with Dell, Samsung, Lenovo and HP among its vendors, is adapting to the new operational reality while maintaining supply chain integrity. Redington is also reworking its logistics network as disruptions around the Strait of Hormuz force it to route supplies via Saudi Arabia and Oman and rely more on road transport within the region.
Despite current challenges, Redington maintains optimistic growth projections for the fiscal year. As reported by Reuters, the company expects revenue to increase 10 per cent to 15 per cent in fiscal 2027, with profit growth broadly tracking topline gains. However, demand in key markets including the UAE and Saudi Arabia has declined due to supply constraints and more cautious consumer spending patterns, reflecting the broader impact of regional conflict on business operations. The company anticipates revenue growth despite some demand dips in the Middle East markets.
