Stock Markets April 26, 2026 07:29 AM

Global Logistics Tightness Persists as Iran Conflict Enters Third Month

Air and ocean freight costs remain elevated, trucking rates climb and industry capacity growth outpaces demand forecasts

By Marcus Reed FDX UPS
Global Logistics Tightness Persists as Iran Conflict Enters Third Month
FDX UPS

Supply chains worldwide are still feeling the effects more than 50 days into the Iran conflict, with air spot rates up about 30% and key ocean freight benchmarks substantially higher than pre-conflict levels. Capacity reductions by major Middle Eastern carriers, rerouted ocean services and rising oil prices are boosting transport costs across modes, while trucking spot rates and carrier earnings show signs of a supply-driven recovery.

Key Points

  • Air spot rates have risen roughly 30% and the composite airfreight rate reached about $3.30/kg in January 2026; capacity reductions from Qatar Airways and Emirates have tightened available lift.
  • Major ocean freight indexes have jumped since mid-February - the Shanghai Containerized Freight Index is up 42% and the Drewry World Container Index is up 18% - while ocean volumes fell 3% in January and February combined.
  • Spot truckload rates excluding fuel rose sharply year-on-year (24% in February, 19% in March, 25% so far in April), reflecting tighter oversight and higher fuel costs; carrier commentary points to a supply-driven freight recovery.

Global trade flows and freight markets are operating under continued strain more than 50 days into the Iran war, with notable cost pressure across air, ocean and truck transport, according to analysis from Bernstein.

Air cargo spot rates have climbed roughly 30% overall, driven in part by capacity cuts from carriers in the Gulf. Qatar Airways and Emirates - together responsible for around 11% of global ton-kilometres in 2024 - have trimmed operations to roughly 60% and 74% of their normal levels respectively, while jet fuel costs have nearly doubled. Those dynamics have helped lift some air lanes to near-double rates and pushed the composite airfreight rate to about $3.30/kg in January 2026.

On the ocean side, headline indexes have moved materially higher versus mid-February levels, Bernstein reports. The Shanghai Containerized Freight Index is up 42% since mid-February, and the Drewry World Container Index has climbed 18% over the same interval. Ocean volumes fell 3% across January and February combined, a decline Bernstein notes is partly influenced by tough year-earlier comparisons ahead of tariff announcements in April 2025.

Despite the conflict, only roughly 2% of global container traffic transits the Strait of Hormuz, limiting the direct exposure of container shipping compared with tanker markets. Dubai’s Jebel Ali is the principal container port affected by disruptions tied to the conflict. Container operators have largely continued to steer Asia-Europe services around the Cape of Good Hope rather than through the Red Sea. Bernstein highlights that a quick, large-scale return to Red Sea routings appears unlikely in the near term given the Houthis’ alignment with Iran, which delays any immediate release of capacity back into the market.

Bernstein’s supply outlook for industry capacity shows growth of 2.4% in 2026, accelerating to 6.9% in 2027 and 9.6% in 2028 - figures the firm describes as well ahead of structural demand.

Trucking markets are also tightening. Excluding fuel, spot truckload rates rose 24% year-on-year in February, 19% in March and 25% so far in April, with Bernstein pointing to stricter government oversight and fuel-price pressures that are squeezing carriers. Those changes are consistent with carrier commentary: J.B. Hunt Transport Services said on its first-quarter earnings call, "As we moved through the first quarter, the freight environment felt meaningfully different than what we’ve operated in over the past several years," adding that "a predominantly supply driven freight recovery continued to gain steam."

Air cargo weight that is chargeable fell between 5% and 10% in March and April, yet revenues for airfreight grew in the low-to-mid teens year-on-year in April, Bernstein said, reflecting higher yields that incorporate fuel, insurance and staffing surcharges.

Economic indicators through March offered mixed signals for demand, Bernstein noted. Purchasing Managers’ Index readings cited by the firm were 52.7 for the U.S., 50.8 for China and 51.6 for Europe - the latter its highest in nearly three years, according to ISM and Eurostat data referenced by Bernstein.

Energy prices have also fed through to transport costs. Bernstein reported oil is trading $25-$30 per barrel higher since the conflict began, adding to modal cost pressure.

On equities, Bernstein assigns an "outperform" rating to DSV with a DKK 2,100 price target, arguing that synergies from DB Schenker are not fully reflected. The firm assigns an "underperform" rating to Maersk with a DKK 10,700 target, citing a challenged container outlook and a growing fleet orderbook. FedEx and UPS are both rated "outperform" with targets of $470 and $130 respectively.

Risks

  • Persistent disruption in Middle East routes could delay a return of capacity to markets, sustaining higher freight rates and affecting shipping and air cargo sectors.
  • Rising oil prices - up $25-$30 per barrel since the conflict began - increase operating costs across aviation, ocean shipping and trucking, pressuring margins for carriers and logistics providers.
  • Industry capacity growth projected to outpace structural demand through 2028 introduces the risk of excess supply for shipping lines if demand softens, impacting container carriers and related equity valuations.

More from Stock Markets

American YouTuber Leads Foreign Visitors Through China’s High-Tech EV Showcase Apr 26, 2026 Saudi Stocks Tick Higher as Petrochemicals and Real Estate Lift Tadawul Apr 26, 2026 South Korean Memory Makers Poised to Top Global Profit Rankings by 2027 Apr 26, 2026 Supreme Court Review Could Reshape the Roundup Litigation Landscape for Bayer Apr 26, 2026 Analysts Increase Conviction in AI-Linked Names: Upgrades for Palo Alto, AMD and More Apr 26, 2026