Air freight rates to the US and Europe have doubled from Chennai and surged nearly four times from Delhi over the past two days following the suspension of operations by Middle East carriers amid the Iran–Israel conflict.
With Gulf carriers suspending or reducing services, freight rates from Chennai to Europe have doubled to ₹400 per kg, while shipments to the US have risen to ₹600 per kg from ₹400 per kg, with cargo now being routed via the Far East and Europe, sources said.
All major Gulf airlines — including Emirates, Qatar Airways and Etihad Airways — operate extensively to India and together account for nearly 20 per cent of air cargo capacity carried in passenger aircraft belly space. In addition, some of these airlines deploy dedicated freighters from India, industry sources said.
West Asia airports have also placed temporary embargoes on inbound cargo, further tightening capacity.
Capacity hit
CK Govil, CMD of Delhi-based Activair Airfreight India Pvt Ltd, told businessline that freight rates have increased nearly four-fold across European and American airlines operating from Delhi.
The suspension or reduction of operations by major Gulf carriers has led to an immediate global reduction in air cargo capacity of around 18 per cent. This includes routes that typically connect Asia (including India) to Europe and the US through Gulf hubs, he said.
Several flights are being forced to take detours or shift to alternative hubs, reducing payload capacity and available lift on both freighter and belly-hold routes. A substantial portion of India–US and India–Europe cargo moves in the belly holds of passenger aircraft. Any tightening or rerouting of passenger networks directly impacts available cargo capacity, said Govil
While Gulf carriers account for about 13 per cent of global international air cargo capacity, the exposure varies significantly by country.
Tim van Leeuwen, Vice President and Head of Consulting at Netherlands-based Rotate, says that their data show that Sri Lanka is the most exposed market, followed by South Africa, India, the Netherlands and Saudi Arabia.
Published on March 3, 2026