Air freight rates on key routes to the United States and Europe have risen sharply after several Gulf-based airlines temporarily suspended or scaled back services amid escalating regional tensions.
Exporters and freight forwarders said the sudden withdrawal of belly cargo capacity from major Middle Eastern hubs has tightened space availability, pushing up spot rates for shipments bound for the US and key European destinations.
Industry sources pointed to operational disruptions involving leading carriers such as Emirates, Qatar Airways and Etihad Airways, which collectively handle a substantial share of India’s transshipment cargo through Gulf hubs. Even partial service suspensions have had an outsized impact due to the region’s central role in connecting Asian exporters with Western markets.
Freight forwarders reported that rates to the US have climbed by 15–25% over the past week, while Europe-bound shipments have also seen double-digit increases. Time-sensitive cargo such as pharmaceuticals, perishables, electronics and high-value engineering goods have been particularly affected.
With capacity constrained, some airlines are prioritising essential and long-term contract cargo, leaving spot market shippers scrambling for space. Exporters are exploring alternative routings via Southeast Asia and direct services where available, though these options often involve longer transit times and higher costs.
Trade bodies warned that sustained disruptions could erode price competitiveness for Indian exporters, especially small and medium enterprises operating on thin margins. Industry representatives have urged authorities to engage with airlines and logistics stakeholders to mitigate the impact and ensure continuity of supply chains.
As geopolitical uncertainty lingers, the air cargo market remains volatile, with stakeholders bracing for further fluctuations in rates and capacity.