Air cargo markets are seeing renewed upward pressure on pricing as airlines worldwide adapt to a mix of rising fuel costs and persistent geopolitical instability.
Tensions in the Middle East are already reshaping global freight flows, particularly on key corridors linking Asia and Europe. Major transit hubs in the Gulf—long relied upon for efficient cargo connections—are experiencing a slowdown in activity. This disruption is tightening available capacity and contributing to delays across the network.
At the same time, carriers are grappling with a steep increase in operating expenses. Jet fuel prices have surged dramatically in recent weeks, climbing from roughly $99 per barrel at the end of February to over $200 this month. This sharp rise is placing significant financial strain on airlines.
In response, many operators are reassessing their route networks. Less profitable services are being reduced or suspended altogether, allowing airlines to better manage costs. However, these adjustments are also shrinking available cargo space, further intensifying capacity constraints.
The impact is clearly reflected in market rates. Since the escalation of conflict in the Middle East, global air freight prices have risen by an estimated 15–20% compared to the same period last year, according to an industry report. Fuel surcharges are also increasing. The report suggests the Asia–Europe corridor has been hit especially hard, with year-on-year rate increases averaging around 30% depending on the route.
Global Freight Services is closely monitoring market developments and adapting its operations, the company is working to reduce disruption for its customers as much as possible in an increasingly volatile environment.