Supply Lines

The Cost of Air Cargo Is Rising Amid Mideast War Disruptions

Ocean shipping is getting costlier, too, as war surcharges kick in
A Boeing Co. 747-8 cargo airplane, operated by Qatar AirwaysPhotographer: David Ryder/Bloomberg
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Air cargo rates are climbing and ocean container networks are showing signs of stress amid mounting capacity constraints during the first week of the US and Israel’s war with Iran.

According to the Freightos Air Index, rates to Europe from Southeast Asia have risen more than 6% to $3.82 per kilogram since last Friday — the day before the bombing started. Mideast-to-Europe rates increased 8% to $1.62 a kilo, and China-to-US prices jumped 15% to $6.90.