Middle East Conflict Reduces Global Airfreight Capacity

Airfreight capacity in the Middle East has declined sharply since the Israel-Iran conflict began, leading to a global reduction in available space. According to data provider Rotate’s database, widebody capacity for both belly and freighter has fallen by 100% in Iran and Syria. Iraq is down by -84%, Israel by -78%, Jordan by -43%, and Lebanon by -40%.

Demand for shipments into the region is nearly nonexistent. Air Charter Service reports no requests, even for humanitarian aid, as the security risk remains high. Major carriers, such as Lufthansa Cargo, have halted operations to multiple cities and flights to Tel Aviv, Amman, Erbil, and Beirut have been stopped.

Kim Ekstroem, Global COO, Air at Shipco Transport, reports there are a significant number of cancellations into the region. He expects that this trend will continue, stating, “As the demand from passengers is expected to subside further, we anticipate an increase in cancellations, which will create a cargo backlog in the region.”

Ekstroem cautions that even if an airline services a destination, they may only accept cargo at ‘priority’ or similar services. He advises checking in with logistics partners who are monitoring the situation closely. “Given that the situation is fluid, it’s important to check in with your service providers for the latest updates. They are best positioned to provide current information and practical guidance to ensure your shipments remain safe and continue to move,” he says.

The disruptions have forced longer flight routes. WorldACD data showed a -9% decline in tonnage from the Middle East and South Asia (MESA) region for the week ending June 15. This followed an -8% drop the previous week. Intra-MESA volumes decreased by -26%, while tonnage to Africa decreased by -17%.

Levant-area nations experienced a -21% week-over-week drop in tonnage, accounting for 12% of the global decline. South Asia also saw significant drops, with Bangladesh down -43% and Pakistan down -30%.

While the UAE and Qatar experienced minor capacity reductions of -6% and -2%, respectively, they reported growth in exports, especially to West Africa and Kenya. Turkey and Saudi Arabia saw a 4% and 5% rise in capacity, respectively.

Globally, freighter capacity dropped 2% from the four-week average. However, Trans-Pacific and Trans-Atlantic lanes showed resilience. Asia – North America capacity rose by 4%, and Trans-Atlantic Westbound traffic increased by 6%.

Source: The Loadstar, Shipco Transport

 

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