International airfreight rates have surged dramatically between February and March, driven by reduced cargo capacity and escalating fuel prices linked to the ongoing Iran conflict. Industry analysts warn that rates may soon approach — or even surpass — record highs last seen during the COVID-19 pandemic.
According to Drewry’s latest Airfreight Insight (AFI) report, rates on key global routes have risen sharply. Notably, airfreight prices from Shanghai to Dubai have climbed by as much as 95% since the onset of hostilities, reaching $8.60 per kilogram. Should fuel surcharges continue to rise, rates could exceed the 2020 pandemic peak of $9.40.
Cost pressures are intensifying across multiple trade lanes due to significant increases in surcharge components. In March alone, fuel surcharges surged by up to 290% month-over-month on shipments from Singapore to London, while security surcharges increased by 44% on routes from Dubai and Abu Dhabi to Amsterdam.
Other regions are experiencing similar, though less pronounced, upward trends. Routes from Mumbai and Delhi to Madrid saw all-in airfreight rates rise by an average of 27% month-over-month, including a 21% increase in fuel surcharges.
“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. “Not only are airfreight costs increasing, but operational disruptions are compounding the issue.”
Several major carriers, including Qatar Airways, Emirates, and Etihad Airways, have reduced flight operations due to the conflict, further constraining capacity. Collectively, airfreight routes connected to the Middle East account for approximately 15.6% of global traffic and 18.2% of capacity, underscoring the widespread impact of regional disruptions on global supply chains.
Drewry reports that approximately half of the international airfreight routes it monitors experienced month-over-month price increases of 20% or more in March 2026. The ripple effects extend beyond the Middle East, affecting global air trade lanes and increasing volatility across the market.
In light of these developments, Drewry advises beneficial cargo owners to closely monitor rate movements and leverage timely market intelligence to manage rising transportation costs effectively. By anticipating fluctuations in fuel and security surcharges, shippers can better mitigate the financial impact of current market conditions.
Comprehensive benchmarking data on airfreight rates, including detailed surcharge analysis, is available through Drewry Airfreight Insight (AFI). When combined with Drewry’s ocean freight data solutions, shippers are equipped with the tools needed to secure cost-effective transportation strategies in an increasingly challenging environment.
