Rising tensions in the Middle East are disrupting global trade routes and pushing air freight costs sharply higher, as airlines and shipping companies adjust their operations to avoid conflict zones.
According to a report by Reuters, air cargo rates have surged on several international routes after airlines began rerouting flights away from risky airspace in the region. The changes have reduced available cargo capacity and increased the cost of transporting goods.
Some air freight routes, especially those connecting parts of Asia with Europe, have seen prices climb by up to 70%. Logistics companies say the sudden increase reflects both limited capacity and higher operating costs.
The conflict has also affected shipping lanes in the Middle East. Important maritime routes near the Strait of Hormuz, one of the world’s most critical oil and trade passages, have faced disruptions due to security concerns. Several shipping companies have slowed operations or diverted vessels to safer routes.
As a result, many businesses are increasingly turning to air transport to move goods quickly and avoid delays. However, air cargo is significantly more expensive than sea freight, sometimes costing several times more. Industries that rely on fast delivery, such as electronics, pharmaceuticals and fresh food, are among the most affected.
Higher fuel prices have also added to the rising freight costs. Jet fuel has become more expensive as oil prices rise amid the geopolitical tensions. Airlines are also flying longer routes to bypass dangerous airspace, which increases fuel consumption and reduces the amount of cargo they can carry.
The impact of the conflict is also being felt in financial markets. Rising oil prices have affected commodities such as gold. Although gold is usually considered a safe investment during global uncertainty, analysts say stronger oil prices could slow expectations of interest rate cuts in the United States, putting pressure on gold prices this week.