Airfreight rates jump 95 per cent as Iran war hits global supply chains

International airfreight rates surged by as much as 95 per cent between February and March, as reduced cargo capacity and higher fuel prices linked to the Iran war pushed prices closer to the record levels seen during the Covid-19 pandemic, according to Drewry Airfreight Insight.

In one of the sharpest moves, airfreight rates from Shanghai to Dubai jumped 95 per cent since the start of the war to $8.60 per kg, Drewry said, adding that rates could move beyond the 2020 pandemic peak of $9.40 if fuel surcharges continue to climb.

The increase has been accompanied by steep rises in pricing components on specific trade lanes. Fuel surcharges rose by as much as 290 per cent month-on-month in March on shipments from Singapore to London, while security surcharges increased 44 per cent month-on-month on cargo moving from Dubai and Abu Dhabi to Amsterdam.

A similar, though less severe, pattern is also emerging on routes from Mumbai and Delhi to Madrid, where March all-in rates increased by an average of 27 per cent month-on-month, including a 21 per cent rise in fuel surcharges.

According to Drewry, the market is being hit from two directions at once, with available capacity shrinking while jet fuel prices move higher.

“The airfreight market has been dealt a two-fold blow of reduced effective available capacity and increased fuel costs,” said Philip Damas, head of Drewry’s logistics practice.

He added that airfreight costs are rising at a time when three of the world’s top 20 airfreight airlines, Qatar Airways, Emirates and Etihad, have seen their flight operations reduced to varying degrees because of the hostilities.

Damas also said that “about one-half of the international airfreight routes monitored by Drewry have witnessed a month-over-month price increase of 20 per cent or greater in March 2026.”

Beyond that, airlines transiting the Middle East have also faced operational restrictions.

Taken together, Drewry said, airfreight routes connected to the region account for 15.6 per cent of airfreight traffic and 18.2 per cent of airfreight capacity, meaning the conflict is affecting trade lanes well beyond those originating in the Middle East itself.

Drewry said the disruption is not confined to one region or one group of carriers. Instead, it is spilling across the wider market, raising transport costs and putting further pressure on shippers already dealing with an increasingly volatile operating environment.

Drewry said timely rate data and market intelligence have become more important for beneficial cargo owners trying to manage rising airfreight spending. Better visibility over fuel and security surcharges, it said, can help shippers anticipate cost increases and limit the overall impact on freight budgets.

The group added that full benchmarking data on airfreight rates, including fuel and security surcharges where applicable, is available through Drewry Airfreight Insight, while its broader freight data offering can also be used by shippers seeking more economical transport solutions across their supply chains.