Air freight rates on Asia-Europe and India trade lanes have surged to record highs due to the Middle East conflict and rising jet fuel costs, reported London's Air Cargo News.

Spot rates from Hong Kong to Europe have climbed above US$5.15 per kg, nearly 30 per cent higher than the $4 per kg charged before fighting began. Rates from India to the US have risen about 60 per cent, while India-Europe services have seen an 80 per cent increase.

TAC Index said the Baltic Air Freight Index gained 2.6 per cent in the week to March 16, though it remains 0.7 per cent lower year on year. The sharpest increases were seen on Asia-Europe lanes and out of India, with jet fuel costs now nearly double last year's level.

Rates from Vietnam, Seoul and Taiwan also rose strongly, while Bangkok saw week-on-week declines though still higher than a year earlier. India routes recorded the steepest impact, with 30 per cent weekly gains to both Europe and the US.

Forwarders in Hong Kong criticised airlines for sharply raising cargo fuel surcharges, with the Hong Kong Association of Freight Forwarding and Logistics calling the increases excessive. Oman Air Cargo has announced a war surcharge.

Global air cargo capacity last week was down 12 per cent compared with pre-Chinese New Year levels, according to Rotate. Asia Pacific-Middle East and Middle East-Europe lanes were hardest hit, down about 40 per cent, though Asia Pacific-Europe space rose 20 per cent.

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