Global air cargo rates, despite a marginal 2% decrease last week, continue to hover approximately 25% above both pre-war and previous year's levels. This sustained elevation is largely attributed to geopolitical tensions, particularly renewed disruptions in the Strait of Hormuz, which are pushing up fuel expenses and imposing significant cost burdens on airfreight carriers.
In contrast to the ocean shipping industry, the air cargo sector demonstrates greater capacity flexibility. This adaptability allows carriers to adjust operations more readily, thereby limiting the extent of market volatility that might otherwise be observed. For freight forwarders and operations managers, this means that while airfreight rates are likely to remain high due to external cost pressures, the market may offer more stable capacity and less extreme rate fluctuations compared to sea freight. Shippers should anticipate continued elevated air cargo costs, primarily driven by fuel surcharges linked to regional instabilities, but benefit from more reliable service availability.
