International general airfreight rates surged by up to 95% between February and March, as reduced airfreight capacity and higher fuel prices caused by the Iran War threatened to bring prices back to COVID record levels.
According to Drewry Airfreight Insight, airfreight rates from Shanghai to Dubai have soared 95% since the start of the war, to $8.60. Rates could exceed the 2020 pandemic record of $9.40 if fuel surcharges continue to rise.
Cost pressures are being amplified by sharp increases in pricing components across specific routes: Fuel surcharges jumped by as much as 290% MoM in March from Singapore to London, while security surcharges rose 44% MoM on shipments from Dubai and Abu Dhabi to Amsterdam.
In addition, airlines that transit the Middle East have seen curbed operations. All told, airfreight routes connected to the Middle East constitute 15.6% and 18.2% of airfreight traffic and capacity, respectively, while the ongoing conflict impacts air trade lanes beyond those originating from the Middle East.
Read more in a press release from Drewry.