The war launched by the United States and Israel against Iran on Saturday is already disrupting air cargo traffic in the Middle East, a key freight corridor between Asia and Europe where two of the world’s largest cargo airlines are based, and raising the potential for a rise in air freight rates.
Airlines are suspending flights, rerouting traffic around the conflict zone and unable to use key transload hubs in Dubai, Abu Dhabi and Qatar because of retaliatory missile attacks by Iran. More scheduling changes are anticipated in the days ahead.
Longer routes require more fuel, reducing the amount of cargo aircraft can carry so as not to exceed weight limits. Some airlines are expected to add refueling stops.
“We are expecting some potentially significant move in rates, especially Asia-Europe, if the situation continues with large-scale flight cancellations,” said Neil Wilson, editor of global price reporting agency TAC Index, said in an email exchange.
FedEx has suspended flights to and from Bahrain, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, Qatar, United Arab Emirates and Saudi Arabia.
“The safety and well-being of our team members is our highest priority. As a result, pickup and delivery services in Bahrain, Kuwait, Iraq, Qatar and United Arab Emirates have been temporarily suspended until further notice. Shipments to and from other markets throughout the region may experience extended transit times,” the company said in a service alert. “We are closely monitoring the situation and will resume services as soon as it is safe to do so.”
UPS has not announced any operational changes, but said in a statement provided to FreightWaves, “We are closely monitoring this fluid situation and using established contingency plans to manage our operations safely and efficiently.”
Qatar Airways, which operates 29 Boeing 777 freighter aircraft and carries huge volumes of cargo on widebody passenger planes, has temporarily halted flights to, and from, Doha due to the closure of Qatar’s airspace. Qatar Airways Cargo offers shippers 13 tons of capacity per day.The airline warned customers to expect flight delays once the airspace re-opens and it resumes operations there. In the meantime, tendered cargo is being held at its hub and other stations around the world.
Emirates Skycargo, the fourth-largest cargo airline by traffic, has similarly suspended flights through Dubai. It operates nearly a dozen Boeing 777 freighters and leases several crewed Boeing 747-400s from third-party carriers. The United Arab Emirates has closed its airspace and Dubai International Airport sustained minor damage to a passenger concourse from an Iranian attack, according to news accounts from the region.
Hellbound and Down 