Airfreight Rates Surge Amid Conflict and Rising Fuel Costs

Airfreight rates are climbing toward peak-season levels as disruptions from Middle East conflict and soaring fuel costs strain the cargo market. Recent TAC Index data shows the global Baltic Air Freight Index rose 9.3% week on week and stands 10% higher year on year. Jet fuel prices have doubled, suggesting further rate increases. Asian export hubs including Hong Kong, Shanghai, and Seoul report rising or elevated prices. Rates to Europe and North America remain high, while trends across Asia show mixed but generally upward momentum overall. Market participants expect volatility persist as supply constraints and demand shifts influencing pricing dynamics.