Global Air Freight Rates Climb Amid Conflict, Capacity And Fuel Spike

Air freight rates continue to rise after the closure of key Gulf airspace and major transit hubs, coupled with a surge in jet fuel prices.

The ongoing conflict in the Middle East has significantly reduced available cargo capacity on critical global routes, particularly those linking Asia and Europe, where Gulf hubs have traditionally played a central role in connectivity.

Uncertainty surrounding a ceasefire, coupled with faltering peace negotiations, is prolonging the instability. Airlines are now being forced to reassess their operations, not due to a shortage of jet fuel, but because of the rapidly escalating cost of it.

Jet fuel prices have surged dramatically—from approximately $99 per barrel at the end of February to over $200 by the beginning of this month—placing financial pressure on carriers.

As a result, many airlines have begun cutting lower-yield services and restructuring their networks to prioritize more profitable routes. This strategic scaling-back is further tightening available capacity, compounding the upward pressure on freight rates.

Industry data indicates that global air freight costs are now 15–20% higher on average than the same period last year, with fuel surcharges also continuing to rise. The Asia–Europe corridor has been particularly affected, rising by an average of 30% year-on-year depending on the route.

While a much needed peace agreement would help stabilise fuel prices and perhaps restore capacity, it may take several weeks for the air freight market to rebalance even if geopolitical tensions improve in the near future.

The team at Westbound is monitoring developments closely and working extremely hard to mitigate the impact where possible.