London, April 10 (SANA) Global shipping companies are turning to unconventional routes as disruptions intensify due to the ongoing US-Israeli-Iranian war, accompanied by a sharp rise in transport costs.
With no clear signs of a breakthrough in the Strait of Hormuz crisis, companies have begun seeking alternatives to avoid congestion in vital maritime corridors and reduce mounting expenses. According to US freight agents cited by Reuters, some clients transporting electronics and consumer goods from Asia to Europe via Middle East hubs are shifting to longer routes passing through Los Angeles, taking advantage of lower costs compared to direct air freight or routes around the Cape of Good Hope.
Flexport CEO Ryan Petersen said the new route is significantly faster than maritime transport around Africa and less expensive than direct air freight, particularly amid rising fuel prices and reduced capacity.
Air cargo market data firm WorldACD reported that air cargo capacity to the Middle East declined by more than 50 percent over the past two weeks due to the closure of the Strait of Hormuz and continued regional tensions. Air freight rates from Vietnam to Europe nearly doubled to $6.27 per kilogram.
Meanwhile, air cargo rates from Los Angeles to Paris increased by 8 percent as airlines expanded passenger flights to meet demand, providing additional cargo capacity.
As tensions persist, pressure is mounting on airlines and ports, with global air cargo capacity, initially expected to grow by 5.5 percent this year, declining by 1 percent so far. Major Gulf carriers, which account for nearly half of regional air cargo capacity, may be forced to reduce passenger flights even if the conflict ends, affecting cargo operations. European airlines are also feeling the impact, with British Airways announcing plans to scale back Middle East routes upon resuming services due to reduced demand.
M.Q.R
