world-economy

Air Freight Rates Hold Firm as Hormuz Closure Redirects Supply Chains

Global air freight rates remain elevated despite a 4% month-over-month increase in freighter capacity. Shippers navigate persistent supply chain disruptions tied to the Iran conflict. The closure of the Hormuz Strait has forced Gulf importers to explore alternative routing, including all-road corridors and the TIR transit system, straining Middle East landbridges already under pressure. While airlines and freight forwarders continue expanding capacity in response to market demand, fuel costs and geopolitical uncertainty are preventing meaningful rate declines. Central banks across major economies remain divided on whether current conditions pose greater risks to inflation or economic growth. Shippers report adapting logistics strategies to account for extended transit times and route unavailability, with some shifting volume away from traditional maritime corridors.