Air cargo rates on key trade lanes from Asia to Europe and out of India have hit record highs due to the ongoing Middle East conflict and rising jet fuel costs. Spot rates from Hong Kong to Europe now exceed US$ 5.15 per kg, up nearly 30 per cent from pre-conflict levels, while rates from India to the USA have jumped by around 60 per cent and to Europe by 80 per cent. Data from TAC Index shows uneven rate patterns, with some Asian routes, including Vietnam, Seoul, and Taiwan, experiencing sharper increases. Analysts warn of further increases as fuel surcharges are applied, with jet fuel prices doubling. The disruption is straining capacity and adding significant costs to global supply chains, particularly for exporters relying on Asia–Europe routes.
