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Air freight prices skyrocket, Middle East cross-border sellers' business comes to a standstill
How does the increase in AI fuel surcharges affect global supply chain stability?
On March 23, according to CCTV Finance, the ongoing escalation of Middle East geopolitical conflicts has significantly impacted the air freight market. As crude oil prices rise sharply, jet fuel costs have surged. Recently, many airlines announced suspensions of Middle East routes and implemented fuel surcharges, causing air freight prices to continue climbing. It is reported that jet fuel costs typically account for over 30% of an airline’s total operating costs. Facing rising costs, many airlines worldwide have announced increases in fuel surcharges. On the other hand, due to the large number of cancellations of freight flights on Middle East routes, capacity is severely tight, and air freight prices are soaring. A sales manager from an import-export trading company stated that due to the significant increase in transportation costs, logistics on their Middle East routes are currently suspended, and both they and their Middle Eastern clients are waiting for the conflict to resolve.