The escalating Middle East crisis is rapidly turning into a global airfreight shock

Disruption to Gulf hub operations tightens capacity, sends rates soaring on key Asia-Europe lanes and forces forwarders to devise unconventional routing solutions. Dubai is among the world’s largest cargo airports and is a critical hub for Asia-Europe freight flows.

According to WorldACD Market Data, global airfreight traffic in the week ending 8 March fell 4% week on week and was 12% lower year on year. The Gulf region was hit particularly hard, with outbound volumes falling 62% week on week, on a 70% capacity reduction.

As capacity disappeared, rates quickly moved higher. WorldACD said the average global airfreight rate rose 6% week on week, to $2.40 per kg, with spot rates jumping 10%.

Spot market data suggests the squeeze is even sharper on Asia-Europe lanes. Freightos FAX terminal figures show rates from southern Asia to Europe rising from $2.57 per kg on 3 March to $4.37 by 12 March, a jump of roughly 70% in nine days. South-east Asia-Europe prices also climbed sharply, increasing from $3.14 per kg to $4.46 over the same period.

Forwarders say the disruption is now spreading across the global network as cargo is forced onto alternative routings.

Customers are strongly advised to plan shipments 7–10 days in advance.

With Gulf hubs still operating below normal levels and fuel costs surging, the Middle East crisis is increasingly reshaping global air cargo flows, forcing shippers to pay more, reroute freight, and search for creative ways to move time critical goods.

Source: theloadstar.com