Rising Jet Fuel Prices And Conflict Impact Air Freight Rates

Air freight prices are on an upward trajectory as carriers around the world reconfigure their operations in response to soaring jet fuel costs and ongoing geopolitical tensions.

The situation in the Middle East has already disrupted global air cargo networks, particularly along major routes between Asia and Europe. Gulf-based hubs, which have traditionally served as key transit points for these corridors, are experiencing reduced activity, leading to tighter capacity and slower cargo movement.

At the same time, airlines are facing mounting financial pressure due to a sharp spike in fuel prices. Jet fuel has surged from around $99 per barrel at the end of February to more than $200 this month—dramatically increasing operating costs across the industry.

To manage these rising expenses, many carriers are cutting back on less profitable routes and adjusting their network strategies. While these measures help control costs, they also reduce overall cargo space, further constraining capacity.

Market data highlights the extent of the impact. Since the onset of the Middle East conflict, global air freight rates have climbed by approximately 15–20% compared to the same period last year. Fuel surcharges have also continued to rise. The Asia–Europe trade lane has been particularly affected, with an average year-on-year increase of 30%, dpending on the route.

Amid these challenges, Croft Cargo continues to take a proactive approach. The team is closely tracking market shifts and implementing strategies to minimise disruption for customers where possible despite ongoing volatility.

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