By Eamonn Ryan
For temperature-sensitive goods, the integrity of the cold chain depends not only on refrigeration technology but also on reliable, predictable logistics. When geopolitical tensions disrupt shipping lanes and air corridors, the impact is felt immediately in the movement of perishables such as food, pharmaceuticals, and chemicals. Recent volatility in global freight markets is now placing additional cost and timing pressures on cold chain operators worldwide.
Freight rates for spot allocations on key North Europe and Mediterranean sea freight routes remain elevated, hovering around 15% above the most recent dip recorded in October, when demand was at a six-month low.
At the same time, airfreight rates have surged to roughly 30% above pre-conflict levels, intensifying cost pressures for high-value and time-sensitive cargo.
According to Air Cargo Week (ACW), North Europe sea freight rates stood at USD2 668 per 40-foot equivalent unit (FEU) on April 29. This represents an increase of approximately 8% compared to levels prior to February 28, when escalating military action involving the United States and Israel targeting Iran heightened tensions and turned the Strait of Hormuz into a critical supply chain chokepoint.
Mediterranean sea freight rates were reported at USD3 527 per FEU around midday on Wednesday, slightly below late-February levels but still reflecting ongoing instability.
Carriers, including Maersk, are once again deploying capacity management strategies such as blank sailings to support rate levels amid uncertain demand and disrupted routing.
In the Transpacific trade, West Coast rates have climbed to USD2 675 per FEU – up 45% since disruptions in the Persian Gulf began – while East Coast rates are approaching USD4 000 per FEU.
Container flows through the Gulf region are increasingly being rerouted via alternative corridors, leading to congestion and uneven equipment availability. Additional services are being channelled through hubs such as Jeddah to alleviate pressure on primary routes.
Airfreight markets are also reflecting the strain. Rising jet fuel prices, combined with reduced short-haul capacity from carriers such as Lufthansa and KLM, are contributing to sustained rate increases. United Airlines has introduced cargo surcharges, while some Southeast Asia long-haul operations now require additional refuelling stops, further driving up costs.
Although global air cargo capacity has dipped slightly below pre-conflict levels, the Freightos Air Index indicates that rates remain firm. Current pricing shows China–North America routes at USD6.40/kg, China–Europe at USD5.07/kg, and South Asia–Europe at USD4.94/kg, with Southeast Asia–Europe lanes rising modestly but still below recent peaks.
Overall, airfreight rates are now nearly one-third higher than before the onset of the current Middle East conflict, underscoring the mounting logistical challenges facing global supply chains – including those critical to maintaining cold chain continuity.
Reference: tawatchai07Freepik