Australia
New Zealand Service Update
Global air freight conditions are tightening as ongoing disruption across the Middle East continues to impact capacity, routing and network reliability.
Airspace restrictions and operational constraints across key Gulf hubs including Dubai, Doha and Abu Dhabi have reduced available capacity and disrupted established cargo flows. Carriers are operating reduced schedules, adjusted routings and phased service resumptions, impacting both freighter and passenger belly capacity across major long-haul trade lanes.
Market data indicates that global air cargo capacity has reduced materially since the escalation, with some estimates suggesting a reduction of over 20% at peak disruption. At the same time, air freight rates have increased sharply on certain lanes, reflecting tightening space and reduced network efficiency.
This is no longer a contained regional issue. It is now impacting the broader global air freight network.
For Australia and New Zealand, the most significant impact is being felt on Europe and Middle East-linked lanes, where reduced capacity through traditional hubs is forcing freight into alternative routings. This is tightening uplift availability, extending transit times and reducing schedule reliability.
As volumes are redirected, we are now seeing backlogs building across key transshipment hubs, including Singapore. This aligns with broader market conditions, with congestion and delays being reported across Southeast Asia as capacity is displaced from traditional Middle East gateways.
Longer flight paths and elevated jet fuel costs are also increasing operating costs for airlines. While not yet consistently applied across all lanes, this is creating upward pressure on pricing and increasing the likelihood of further surcharge adjustments.
Current Market Impacts
- constrained capacity on Europe and Middle East-connected lanes
- tighter uplift availability across key international corridors
- longer and less predictable transit times
- increased risk of re-routing, rolled cargo and schedule disruption
- growing cost pressure driven by fuel and reduced network efficiency
Seabridge Perspective
The key issue is not just lost capacity. It is reduced network fluidity. As aircraft are re-routed and schedules are adjusted, overall network efficiency declines, tightening available space and extending transit times across multiple trade lanes.
That is why the disruption is now being felt well beyond the Middle East itself, with flow-on effects across Asia, Europe and broader international supply chains.
What This Means for Your Supply Chain
- Europe-bound cargo should allow additional transit time and routing flexibility
- time-sensitive shipments may require prioritised uplift or alternative routing strategies
- customers should expect continued schedule variability and potential delays
- cost volatility is likely to persist while fuel and operating conditions remain unstable
Our Advice
Plan ahead wherever possible and build additional buffer into supply chain timelines, particularly for shipments moving via or into Europe.
Seabridge is actively working with carriers and our global network to secure the most reliable routing options and prioritise critical shipments.
