world-economy

Air Cargo Rates Slide Despite Middle East Tensions, Fuel Cost Pressures

Global air freight rates continued their downward trajectory, with benchmark pricing settling near $2.82 per kilogram. The decline persists despite renewed Middle East tensions, signaling weakened demand across several trade lanes. Rising fuel costs have emerged as a countervailing pressure, squeezing carrier margins even as rates soften. Carriers are announcing network adjustments to balance supply against shifting demand patterns. The divergence between rate momentum and fuel expenses has left the air cargo sector in rebalancing, benefiting shippers through lower fees while carriers contend with elevated operational costs.