ports

Middle East Conflict Drives Air Cargo Rates to 36% Year-Over-Year Surge

Air freight rates climbed 36% in May compared to the same month last year, driven by geopolitical tensions in the Middle East. The escalation began in early March, with rates rising 12% that month before accelerating to 30% in April and 36% in May. Year-to-date, global air cargo revenues increased 16%, combining a 12% rise in rates with 4% growth in volumes. Despite the disruption, cargo volumes remained resilient. Inbound shipments to the Gulf region dropped approximately 60% immediately after the conflict began but recovered to year-earlier levels by May. Specific trade lanes experienced dramatic price increases, with Amsterdam-Dubai routes recording gains approaching 200%. Current global average rates stand at $3 per unit, approximately 30% below the December 2021 pandemic peak of $4.43.