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Air cargo rates continued to rise sharply in May as ongoing tensions in the Middle East disrupted global supply chains and prompted airlines to adjust their networks and capacity deployment. According to the Loadstar, citing data from market intelligence provider WorldACD, worldwide air cargo rates in May were 36% higher than a year earlier. The increase reflects the significant impact that geopolitical developments continue to have on global air freight operations and pricing.

The latest figures suggest that the market has undergone a rapid transformation since early March, when tensions in the Gulf region escalated. While global air cargo rates were still 2% below year-earlier levels in January, rates increased by 5% in February before accelerating sharply in the following months, reaching annual growth rates of 12% in March, 30% in April and 36% in May.

The disruption has required airlines to reroute aircraft, reallocate capacity and adapt their networks to changing operating conditions. These adjustments have placed upward pressure on rates across a number of major trade lanes while creating new operational challenges for shippers and logistics providers.

The impact has been particularly visible on certain trade lanes. Routes such as Amsterdam–Dubai, Hong Kong–Riyadh and Mumbai–London have experienced some of the most significant rate increases since the beginning of the year, reflecting both capacity constraints and shifting demand patterns.

Source: Theloadstar.com