Core Insights - The ongoing conflict involving the United States and Israel against Iran is significantly disrupting air cargo traffic in the Middle East, a crucial freight corridor between Asia and Europe, leading to potential increases in air freight rates [5][12][20] Airline Operations - Emirates Skycargo has suspended flights through Dubai due to the closure of UAE airspace and minor damage to Dubai International Airport from an Iranian attack [1] - Qatar Airways has temporarily halted flights to and from Doha, warning customers of expected delays once operations resume, while holding cargo at its hub [2] - UPS has suspended pickup and delivery services in Bahrain, Kuwait, Iraq, Qatar, and the UAE, with potential extended transit times for shipments to and from other markets [3] - Etihad Airlines has suspended all flights through Abu Dhabi until Monday morning, with the possibility of extending suspensions [6] - Cathay Group has suspended all operations in the Middle East, including passenger and freighter services [8] - Air India has suspended all flights to the Middle East and many to Europe and New York [10] - United Airlines has canceled all departures to and from Tel Aviv and Dubai through early March [11] Cargo Capacity and Rates - Global air cargo capacity has decreased by 18% from the previous week due to flight suspensions by Middle Eastern carriers and others avoiding the region [9] - Air cargo rates in and out of the Middle East have remained stable so far, but significant delays are expected for shipments [12][13] - Immediate increases in air cargo rates may be moderated by slow Chinese exports and the availability of passenger aircraft for cargo [14] Ocean Shipping Impact - Major container shipping lines are ceasing services to the Strait of Hormuz and the region, with emergency surcharges being introduced for services to the area [15][16] - Disruptions in ocean shipping are also affecting Australian supply chains, with significant conflict-related surcharges imposed by international carriers [18]