Businesses are rushing to secure alternative airlift and brace for higher freight rates as the Iran war forces airspace and airport closures across the Middle East, reported New York’s FreightWaves.
Logistics experts said even if bombing ended this weekend, shipment backlogs would take days to clear and normal airline operations would take longer to restore. Cargo stranded on high-load routes could take weeks to move, leaving perishable or time-sensitive shipments unsalvageable.
Glyn Hughes, director general of The International Air Cargo Association (TACA), told a media call that the disruption would ripple across the global network. He warned that clearing stranded cargo would be a prolonged process.
The crisis could benefit airlines and logistics firms as shippers seek to bypass ocean shipping delays. Shipping lines have begun offloading Middle East-bound cargo in India, Sri Lanka and other locations, prompting a shift to air freight.
Kuehne+Nagel chief executive Stefan Paul said during an earnings presentation that the shift from ocean to air could support stronger air freight pricing as shippers look to avoid bottlenecks.
