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Global air cargo rates have begun to stabilise after weeks of sharp increases triggered by geopolitical tensions in the Middle East, offering cautious relief to shippers and logistics providers navigating volatile supply chains.
According to recent market data from the TAC Index, the overall Baltic Air Freight Index (BAI00) declined by 4.9% in the week ending May 18, signaling the first notable easing in freight prices since conflict-related disruptions tightened global air cargo capacity earlier this year. Despite the weekly correction, rates remain significantly elevated compared to last year, underlining the fragile balance between supply and demand in the air freight sector.
The softening trend has been largely attributed to a decline in jet fuel prices during early May. Fuel costs, which account for a substantial share of airline operating expenses, had surged amid fears of prolonged disruption around major Gulf transit corridors. However, easing oil prices and improving market sentiment have reduced immediate pressure on carriers and shippers alike.
Freight rates from major Asian export hubs, including Hong Kong, Shanghai, India and South Korea, registered week-on-week declines. Outbound Hong Kong rates fell 2.4%, while Shanghai slipped 1.7%. India-origin air freight rates also eased after experiencing some of the steepest increases during the height of the disruption. Nevertheless, pricing on many trade lanes remains well above year-ago levels due to ongoing capacity constraints and rerouting challenges.
Industry analysts note that the recent moderation does not necessarily indicate a return to pre-crisis stability. Earlier this year, Middle East airspace disruptions forced carriers to reroute flights, cut frequencies and absorb higher fuel burn, leading to severe capacity shortages across Asia-Europe and India-Europe corridors. In some cases, spot rates doubled within weeks as demand outpaced available lift.
The easing of rates is also being supported by gradual network adjustments and the return of limited capacity into the market. Airlines have started introducing alternative routings and additional freighter services to stabilize operations, although backlogs continue to affect several global gateways.
Market observers believe air cargo demand will remain resilient through the second half of 2026, particularly for high-value and time-sensitive shipments such as electronics, pharmaceuticals and e-commerce goods. However, uncertainty surrounding fuel markets, geopolitical risks and supply chain disruptions could continue to drive periodic volatility in freight pricing.
For logistics providers and shippers, the latest decline in air freight rates may offer temporary cost relief, but the broader market remains highly sensitive to global economic and geopolitical developments.
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Emirates SkyCargo has reported an 11% increase in export volumes from the United Kingdom, underscoring the growing global demand for high-value and time-sensitive cargo such as aerospace components, pharmaceutical products and premium food items. The growth reflects the airline’s expanding role in facilitating international trade while strengthening supply chain connectivity between the UK and key markets across the Middle East, Asia, Africa and Australasia. The carrier currently serves the UK through a combination of scheduled passenger flights and dedicated freighter operations, linking seven major gateways with its global network via Dubai. This extensive connectivity has enabled British exporters to move critical shipments efficiently to more than 145 destinations, supporting industries that rely on speed, reliability and product integrity. According to Emirates SkyCargo, aerospace shipments have emerged as one of the fastest-growing cargo segments, driven by increasing global demand for aircraft components, engines and maintenance parts. The airline has continued to invest in specialised logistics capabilities for the aerospace industry, ensuring secure handling and rapid transportation of high-value equipment. This aligns with the broader recovery and expansion of the global aviation sector, which continues to fuel demand for precision logistics solutions. Pharmaceutical exports have also witnessed robust growth, with UK manufacturers leveraging Emirates SkyCargo’s temperature-controlled infrastructure and certified cold-chain services to transport vaccines, medicines and life sciences products. The carrier has consistently expanded its pharma logistics capabilities to meet stringent quality and compliance requirements for healthcare shipments worldwide. In addition to industrial and healthcare products, premium British food exports, including fresh berries, seafood, dairy products and gourmet ingredients have seen rising demand across international markets. Fast transit times and dedicated perishables handling have enabled exporters to preserve product freshness while reaching consumers in distant markets within short delivery windows. Hence, the latest growth in UK exports highlights the increasing importance of resilient air cargo networks as businesses seek faster and more dependable logistics solutions for high-value goods. For Emirates SkyCargo, the performance also reinforces its strategy of investing in specialised cargo products, expanded freighter capacity and industry-focused logistics services to support evolving global trade patterns. 𝐒𝐭𝐚𝐲 𝐓𝐮𝐧𝐞𝐝 𝐭𝐨 CARGOCONNECT 𝐟𝐨𝐫 𝐥𝐚𝐭𝐞𝐬𝐭 𝐮𝐩𝐝𝐚𝐭𝐞𝐬!
The International Air Transport Association (IATA) has appointed Saadia Zahidi as its next Director General, making history as the first woman to lead the global airline body in its more than 80-year history. Effective 1 November 2026, Zahidi will become IATA’s ninth Director General, succeeding Willie Walsh, whose tenure concludes on 31 July. Until Zahidi assumes office, Sandrine Le Borgne, IATA’s Chief Financial Officer and Senior Vice President for Corporate Services, will serve as Interim Director General. The appointment comes at a pivotal time for the aviation and air cargo industries, which are navigating a rapidly evolving landscape shaped by geopolitical uncertainties, digital transformation, sustainability commitments and shifting global trade patterns. Representing more than 370 airlines across over 120 countries, IATA accounts for approximately 85% of global air traffic, making its leadership decisions highly significant for the wider aviation, logistics and supply chain ecosystem. Zahidi joins IATA from the World Economic Forum (WEF), where she served as Managing Director and Member of the Managing Board for more than two decades. During her tenure, she led the Forum’s Centre for the New Economy and Society and spearheaded initiatives focused on the future of work, economic growth, technological transformation and workforce development. Her background in economics and public policy is expected to bring a broader strategic perspective to an industry facing unprecedented technological and regulatory changes. Welcoming the appointment, IATA Board Chair Roberto Alvo said Zahidi’s extensive international experience would strengthen the association’s role as the voice of the global airline industry. He noted that aviation is entering a period where technology, sustainability and geopolitical developments will fundamentally reshape global connectivity, requiring collaborative leadership and long-term vision. For the supply chain and logistics sector, Zahidi’s appointment carries particular significance. Air freight remains a critical enabler of global commerce, supporting high-value manufacturing, pharmaceutical distribution, e-commerce and time-sensitive cargo movements. As airlines continue to invest in digital cargo solutions, operational resilience and decarbonisation, IATA’s leadership will play a crucial role in driving industry standards, regulatory advocacy and cross-border collaboration. In her first statement following the appointment, Zahidi described aviation as essential infrastructure that underpins economic growth, trade, tourism, employment and investment. She emphasised that IATA’s mission of representing, leading and serving the airline industry is more important than ever as global challenges demand stronger cooperation across governments, airlines and supply chain stakeholders. Beyond breaking a long-standing gender barrier, Zahidi’s appointment signals a strategic leadership transition for IATA as the aviation industry prepares for its next phase of growth. With sustainability targets, digital innovation and supply chain resilience topping the industry agenda, her tenure is expected to shape how global aviation responds to future economic and operational challenges while strengthening its role in facilitating international trade and logistics. 𝐒𝐭𝐚𝐲 𝐓𝐮𝐧𝐞𝐝 𝐭𝐨 CARGOCONNECT 𝐟𝐨𝐫 𝐥𝐚𝐭𝐞𝐬𝐭 𝐮𝐩𝐝𝐚𝐭𝐞𝐬
IAG Cargo is significantly strengthening its India operations by increasing its UK-India network to 70 weekly flights, underscoring the country's growing importance in global air cargo. The expansion includes the launch of a third daily London Heathrow–Delhi service from September 19, 2026, creating additional capacity for exporters shipping high-value and time-sensitive cargo. The new year-round service will be operated by British Airways using a Boeing 787-8 Dreamliner. With the addition, IAG Cargo will operate three daily services each to Delhi and Mumbai, alongside increased frequencies to Bengaluru, taking its total India schedule from 56 weekly flights in 2025 to 70 this winter. The capacity expansion comes at a strategic moment, just days after the UK-India Free Trade Agreement (FTA) came into force on July 15. The agreement is expected to accelerate bilateral trade by lowering barriers and boosting exports across multiple sectors, creating fresh opportunities for air cargo operators serving one of the world's fastest-growing trade corridors. According to IAG Cargo, demand on the Delhi route has been particularly robust. Between January and May 2026, outbound cargo volumes from Delhi increased 12.6%, while inbound volumes grew 14.4% compared with the same period last year. The airline expects the additional frequencies to support rising shipment volumes while offering businesses improved connectivity to Europe, North America, Latin America and the Middle East through its London Heathrow hub. India continues to be a major export market for high-value air freight, including pharmaceuticals, aerospace and automotive components, fashion, perishables and rapidly growing e-commerce shipments. Industry data also indicates that India's export air cargo volumes increased by around 5% during the first five months of 2026, reinforcing the country's expanding role in international supply chains. Commenting on the expansion, Camilo Garcia Cervera, Chief Sales and Marketing Officer at IAG Cargo, said India remains one of the airline's most important markets, with demand continuing to rise across key trade lanes. He noted that the additional Delhi frequency will provide customers with greater cargo capacity and stronger global connections via London Heathrow. The latest expansion reflects a broader trend among international carriers increasing investments in India as manufacturing, pharmaceuticals, electronics and e-commerce exports continue to drive demand for reliable long-haul air freight capacity. With stronger trade ties between India and the UK and improving global connectivity, airlines are positioning themselves to capture the next phase of growth in one of the world's fastest-expanding cargo markets. Follow CARGOCONNECT for more such updates.
