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Air Cargo Rates Slip Despite Fuel Surge and Capacity Expansion

Global air freight rates continued their downward trajectory in late July 2026, settling around $2.82 per kilogram. This marked a decline from May's peak of $3.35/kg, even as fuel costs climbed and Middle East tensions persisted.

Carriers moved aggressively to expand networks despite the rate pressure. DHL Express increased its Mammoth Freighters 777-200LRF order from nine to 13 aircraft. Qatar Airways Cargo added seasonal London services and capacity to Dallas, Brussels, Tokyo, Dhaka and Entebbe. Saudia Cargo launched Melbourne freighter operations and inked an interline agreement with Riyadh Cargo, while Royal Air Maroc introduced four new European destinations to its Casablanca hub.

Capacity redistribution favored specific tradelanes. Leipzig-Dubai, Hong Kong-Dubai and Muscat-Dubai logged significant weekly gains, as did Pacific routes Shanghai-Los Angeles and Los Angeles-Incheon. European lanes faced headwinds from the supply-demand imbalance.