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As the Middle East tension goes into a second month, fuel supply continues to be tight and rising prices are limiting both air and sea freight capacity worldwide
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In its Asia Pacific Freight Report for April 2026, global logistics service provider Dimerco said rates for both air and sea cargo transport will remain elevated
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Beyond air and sea movements, the escalating Middle East tension will continue to impact the entire global supply chain
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For the Philippines, capacity for both air and sea freight to Asian destinations remain soft, tight to Europe, and at a backlog for air and on an upturn for ocean to the US
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Overall, Dimerco recommends that shippers plan earlier than usual and build buffer periods, diversify routing as well as carrier options, and look into multi-modal solutions around the supply chain disruptions
As the Middle East tension goes into a second month, fuel supply continues to be tight and rising prices are limiting both air and sea freight capacity worldwide even as overall global demand remains moderate, according to global logistics service provider Dimerco.
In its Asia Pacific Freight Report for April 2026, Dimerco noted that jet fuel prices have rapidly spiked to US$197 per barrel as of March 20 from about $95/barrel in late February.
“Such sudden fuel spikes are particularly disruptive for airlines and air cargo operators, often leading to fuel surcharge increases, reduced flight frequencies, and tighter air cargo capacity as carriers adjust operations,” the report said.
This translates to higher airfreight costs, increased rate volatility, and the need to pre-book earlier given continued uncertainties and risks.
READ: Asia-Europe air freight capacity, prices strained by airspace curbs
“Logistics providers may implement emergency surcharges amid rising fuel costs and operational uncertainty. While demand remains flat or below last year, capacity constraints and higher fuel costs are expected to keep air freight rates elevated,” said Kathy Liu, Dimerco Express Group vice president for Global Sales and Marketing.
Airlines, especially those from countries that depend heavily on fuel imports, have also been adjusting flight frequencies in line with the limited supply.
For ocean cargo, the disruption has not only been in terms of shipping schedules and delivery delays but also on fuel cost and port congestion.
Beyond air and sea movements, the escalating Middle East tension spawned by the US and Israel’s attack on Iran on February 28 will continue to impact the entire global supply chain, Dimerco said.
“This extends beyond ocean freight to rail and road, and even without a demand surge on east–west trades, overall shipping costs are expected to trend upward due to increased fuel related cost instead of the trade hitting a peak season. Shippers should also monitor equipment availability, as any imbalance could further tighten conditions across Asia Pacific,” said Dimerco Express Group director for Ocean Freight Ted Chen.
PHILIPPINE OUTLOOK
In the Philippines, capacity for both air and sea freight to Asian destinations remain soft, which means supply is still higher than demand. Rates for air transport is stable, but rising for maritime movement.
For cargo to Europe, air capacity is tight and rates are rising, while ocean freight is on an upturn and rates are also rising.
For the US east and west coast markets, rates for both air and sea are on the rise. Air capacity is already at a backlog while sea capacity is still able to cover rising demand.
Meanwhile, Dimerco also highlighted that US trade enforcement continues to expand with multiple developments that signal a broader regulatory tightening, which may impact sourcing strategies and cost structures.
“US trade policy is shifting from temporary measures to sustained enforcement,” said Daniel Lee, Dimerco Express Group senior manager for Trade Compliance.
“Companies should no longer view these as isolated developments, but as part of a broader regulatory tightening that requires immediate strategic alignment across sourcing, compliance, and cost management,” he added.
Overall, Dimerco recommends that shippers plan earlier than usual and build buffer periods, diversify routing as well as carrier options, and look into multi-modal solutions around the supply chain disruptions.
READ: Global logistics face major disruption as Middle East crisis escalates
