How the Energy Crisis Affects Air Freight Costs

The energy crisis is significantly changing the rules of international logistics. Rising oil prices, fuel supply instability, restrictions on raw material extraction, disruptions in oil refinery operations, and increased electricity costs are directly impacting air freight. Air transport is traditionally considered the fastest way to deliver goods between countries; however, it remains one of the most sensitive to changes in fuel prices.

For businesses, this means that the cost of air delivery can fluctuate even when the route, weight, and volume of the cargo remain the same. Carriers are revising fuel surcharges, adjusting rates, changing flight schedules, and optimizing aircraft loading. As a result, the shipper faces not only an increase in the base shipping price but also additional costs for warehousing, customs clearance, ground transportation, and insurance.

Understanding the mechanisms behind tariff formation is especially important for companies that regularly use international air transport. Recognizing the impact of the energy crisis helps in budgeting, selecting the appropriate mode of transport, and reducing logistics risks. In this article, we will explore why shipping costs are rising, the role of aviation fuel, how air freight is changing, and what solutions can help control expenses when dealing with international routes.

What the Energy Crisis Entails

The energy crisis is a situation where the demand for energy resources exceeds the available supply, or where supplies become unstable and excessively expensive. This often pertains to oil, natural gas, coal, electricity, and petroleum products. For the aviation industry, the aviation kerosene market is crucial, as fuel constitutes a significant portion of airlines' operating costs.

The causes of the energy crisis can vary. They include geopolitical conflicts, sanctions, accidents at oil refineries, natural disasters, reduced extraction, disruptions in maritime and land supplies, as well as a sharp recovery of the global economy after crisis periods. When demand for transportation increases while the available amount of fuel decreases, the cost of resources begins to rise rapidly.

Main Reasons for Rising Energy Costs

One of the most common reasons is the increase in crude oil prices. Aviation fuel is produced from oil raw materials, so changes in oil quotes affect the cost of flights. However, the price of kerosene depends not only on the cost per barrel. It is also influenced by processing, transportation, storage, insurance, and delivery costs to airports.

Additional pressure comes from currency factors. International transactions in the oil market are most often denominated in US dollars. If the sender's national currency weakens, purchasing fuel and paying for air transport become more expensive even with relatively stable global quotes. For Russian, European, and Asian companies, currency fluctuations can significantly alter the final shipping cost.

Another factor is the rise in electricity costs. Airports, terminals, refrigerated warehouses, sorting complexes, and customs zones consume a large amount of electricity. Increased energy tariffs raise the cost of cargo handling, warehouse equipment operation, lighting, security systems, and temperature control.

Why Aviation is Particularly Sensitive to the Crisis

Aircraft consume a significant amount of fuel to cover long distances in a short time. Unlike maritime or rail transport, aviation cannot fully offset rising costs through low energy consumption per unit of cargo. Therefore, changes in aviation kerosene prices quickly reflect on tariffs.

This is most noticeable in international air freight over long distances. The longer the route, the higher the fuel component in the cost structure. Additionally, costs are influenced by weather conditions, the need for refueling, airspace restrictions, airport congestion, and flight route changes.

The Role of Aviation Fuel in Tariff Formation

Aviation fuel is one of the main elements of the cost structure for air freight. Even if an airline uses modern aircraft and optimizes routes, it is impossible to completely eliminate the impact of kerosene prices. Fuel costs are included in the tariff structure either directly or through a special fuel surcharge.

Typically, the carrier sets a base rate per kilogram or volume of cargo and then adds additional charges. These may include fuel surcharges, security fees, airport charges, terminal handling fees, and documentation fees. If fuel prices rise, the airline reviews the corresponding surcharge to maintain the economic viability of flights.

What is a fuel surcharge

A fuel surcharge is a variable part of the tariff that depends on the cost of aviation kerosene and other market conditions. Its amount can be calculated using the airline's internal formula or set for a specific route and period. In some cases, the carrier updates the surcharge monthly, while in others, it may be more frequent if the market is highly volatile.

It is important for customers to understand that a reduction in the base rate does not always mean a real decrease in shipping costs. Sometimes, the airline lowers the base tariff but simultaneously increases the fuel surcharge. Therefore, it is essential to compare offers based on the total cost, including all mandatory fees.

How the fuel surcharge affects shipping costs

If the cargo is lightweight but occupies a significant volume, the carrier calculates the payment based on dimensional weight. In this case, the increase in the fuel surcharge applies not to the actual weight but to the dimensional weight, which can significantly raise the total amount. This is particularly relevant for light but bulky items: packaging, furniture, textiles, advertising structures, and certain types of equipment.

The nature of the cargo also affects the cost. Hazardous, temperature-sensitive, valuable, or urgent shipments require additional handling and special conditions. During an energy crisis, costs for maintaining refrigeration, operating specialized equipment, and ensuring security may rise faster than standard rates.

How air freight costs change

The cost of air freight is formed from several groups of expenses. In addition to air transportation, it may include cargo pickup from the sender, packaging, delivery to the airport, export clearance, terminal handling, customs clearance in the destination country, storage, delivery to the recipient, and insurance. An energy crisis can impact almost every stage.

If fuel prices rise, carriers increase rates for the main air segment. At the same time, the cost of ground logistics rises, as the cargo needs to be transported by road to the airport or from the airport to the final recipient. Increases in electricity prices raise expenses for warehouses and terminals. As a result, the final shipping price consists of several interconnected increases.

Impact on base rates

The base rate depends on the route, type of aircraft, flight load, season, and competition among carriers. During an energy crisis, airlines strive to offset rising costs not only through the fuel surcharge. With low flight loads, the carrier may raise the base rate, reduce the number of flights, or consolidate several routes through a transit airport.

This increases delivery times and may sometimes lead to additional warehousing and terminal costs. If the cargo needs to be stored until the next flight, the customer pays for the corresponding services. For urgent shipments, the alternative becomes ordering a more expensive priority space or charter transport.

Impact on dimensional cargo

When calculating the cost of international air freight, the greater value is used: actual or dimensional weight. Dimensional weight is determined based on the package dimensions and a factor set by the carrier. Therefore, a large box with a light item may cost more than a heavy but compact cargo.

During periods of rising fuel prices, optimizing packaging becomes especially important. By reducing box sizes, eliminating voids, using appropriately sized pallets, and properly distributing the cargo, it is possible to lower the calculated dimensional weight. This helps reduce not only the base rate but also the fuel surcharge.

Impact of the energy crisis on cargo air transportation

Cargo air transportation depends not only on fuel costs but also on the overall organization of the air transport system. When expenses rise, airlines review their route networks, fleet composition, and flight frequencies. On some routes, direct flights may be reduced, and cargo is redirected through transit hubs.

For shippers, this means changes in timelines, the number of transshipments, and risk levels. The more intermediate airports the cargo passes through, the higher the likelihood of delays, damage to packaging, or the need for additional storage. On the other hand, consolidating shipments helps the carrier save fuel and maintain acceptable shipping costs.

Reduction of Flight Frequency

If the operation of certain routes becomes unprofitable, the airline may reduce the number of flights. This is especially common on routes with low occupancy or during seasonal declines in demand. For businesses, a reduction in flight frequency means that cargo cannot always be shipped on the desired date.

Urgent goods must be transported on an alternative flight at a higher rate. Some companies opt for charter air delivery, but this option requires a significant budget and is justified only for large shipments, expensive equipment, or products with strict delivery deadlines.

Increase in Transit Shipments

Transit routes allow airlines to consolidate cargo flows and use aircraft more efficiently. However, for the customer, this scheme may mean longer delivery times. Additionally, there are extra operations: transloading, re-sorting, document control, and possible temporary storage.

When planning international logistics, it is essential to consider not only the distance between countries but also the actual route configuration. Sometimes a direct flight turns out to be more expensive but faster and more reliable. In other cases, the transit option allows for significant cost savings without critically extending delivery times.

Impact of the Crisis on International Logistics

The energy crisis is changing not only air freight rates but also the entire system of international logistics. Manufacturers and importers are reevaluating supply chains, seeking new warehouses, changing procurement geography, and combining different modes of transport. While air delivery was previously used for most urgent shipments, companies are now more frequently prioritizing deliveries.

High-value goods, those with a short shelf life, or critical components for production are still transported by air. Less urgent shipments are sent by sea, rail, or road transport. This multimodal approach helps reduce costs and decrease business dependence on sharp fluctuations in aviation fuel prices.

Changes in Logistics Routes

Companies can choose different departure and destination airports if they offer more favorable rates or maintain a stable schedule. Sometimes it is economically justified to transport cargo by road to a neighboring country and then send it by air from a major international hub.

However, such a scheme requires careful calculation. Savings on the air segment can be offset by costs for additional road transport, transit document processing, transloading, and storage. Therefore, the route must be evaluated based on total costs and timelines, not just the price of the flight.

Growing Importance of Warehouse Logistics

With unstable air services, businesses need additional warehouse capacity. Cargo may need to wait for consolidation, available space on a flight, or customs procedures. If the warehouse is equipped with refrigeration units, security systems, or specialized equipment, rising energy costs directly increase storage expenses.

The optimal solution is a pre-agreed delivery schedule. The more precisely production, packaging, pickup, and the flight are synchronized, the lower the risk of cargo delays at the terminal. A logistics operator can help reserve space, prepare documents, and organize delivery on a "door-to-door" basis.

Which Categories of Cargo Are Rising the Most in Cost

Not all types of goods are equally sensitive to the energy crisis. The increase in rates has the most significant impact on heavy and bulky shipments, as fuel costs are directly related to the weight and dimensions of the cargo. For inexpensive goods, the rise in transportation costs can make imports economically unfeasible.

Particularly sensitive are low-margin products, seasonal items, components with limited demand, and oversized goods. If delivery constitutes a significant portion of the final price, any increase in rates affects the product's competitiveness.

Perishable Goods

Food products, pharmaceuticals, biomaterials, and flowers require fast delivery and stable temperature control. For such cargo, it is impossible to simply switch to a slower mode of transport. Even with high air freight costs, the shipper is forced to use an airplane, as delays can lead to spoilage and even greater losses.

Additional expenses arise from specialized packaging, dry ice, temperature sensors, refrigerated warehouses, and priority handling. The energy crisis increases the cost of all these operations, so when dealing with perishable goods, it is essential to calculate a budget reserve in advance.

Electronics and Expensive Equipment

Electronics are often transported by air due to their high value, compact size, and the need for quick delivery. However, manufacturers and sellers are facing rising costs for transportation, insurance, and protective packaging. For large equipment, additional expenses for special loading, securing, and compliance with size restrictions are incurred.

When choosing a delivery method, it is important to weigh the shipping cost against the value of the cargo. For expensive electronics, air freight may still be justified even at a high rate, as it reduces turnaround times and decreases the need for large inventory stocks.

How businesses can reduce air freight costs

It is impossible to completely eliminate the impact of the energy crisis, but companies can mitigate its effects. This requires analyzing the entire logistics chain rather than just trying to save on the airline's rate. Key factors include planning, consolidation, packaging, proper route selection, and transparent comparison of offers.

The first step is to request a detailed quote. It should separately list the base rate, fuel surcharge, terminal fees, documentation processing, customs services, delivery to the airport, and delivery to the recipient. This allows you to see what elements make up the shipping cost and avoid unexpected charges.

Consolidation of shipments

If a company is sending several small batches, they can be combined into one consolidated shipment. This helps to use cargo space more efficiently and reduces the costs associated with processing each individual shipment. It is important to monitor timelines, product compatibility, and packaging requirements.

Consolidation is particularly effective for regular shipments from one country or region. The logistics operator forms a consolidated cargo, delivers it to the destination, and then distributes individual batches among the recipients. This format often proves to be cheaper than individual transportation of small volumes.

Optimizing packaging

Proper packaging reduces dimensional weight, protects the product from damage, and simplifies handling at the terminal. Durable yet not overly heavy materials should be used, boxes should be sized according to the product, and empty space should be minimized.

For palletized cargo, it is important to adhere to allowable dimensions and height. Improper stacking can result in the cargo taking up more space and being charged at a higher rate. Professional packaging calculations can lead to significant savings in regular international shipments.

Planning shipments in advance

Expedited shipping almost always costs more than standard shipping. By forecasting product demand in advance and reserving space on flights, a company gains more options for rates and routes. Advance planning also reduces the risk of shipping through an expensive transit hub.

It is advisable to create a delivery schedule considering seasonal peaks, holidays, production cycles, and potential increases in fuel surcharges. For critically important cargo, it is wise to allow for extra time and have an alternative route.

The role of ship247.world in organizing air freight

In times of unstable rates and complex international situations, it is especially important for companies to work with a logistics partner capable of comparing routes and anticipating all costs in advance. The ship247.world platform can be used as a tool for organizing international delivery, selecting the appropriate shipping option, and coordinating logistics operations.

The main advantage of engaging a specialized service lies in its comprehensive approach. The sender does not have to interact independently with multiple carriers, terminals, brokers, and courier services. The logistics operator helps to combine the main stages: cargo pickup, document preparation, air transportation, customs clearance, and delivery to the final address.

What to clarify before placing an order

Before ordering air freight, it is necessary to provide accurate information about the cargo: product name, number of packages, packaging dimensions, actual weight, value, country of origin and destination, nature of the cargo, and desired timelines. Additional documents will be required for hazardous, temperature-sensitive, or valuable goods.

It is also important to clarify in advance whether the fuel surcharge is included in the calculation and what fees may be charged separately. Transparent pricing allows for proper comparison of offers from different carriers and helps avoid situations where the initial price significantly differs from the final invoice.

Why consulting a specialist is important

Choosing a route independently does not always lead to the lowest cost. A cheaper flight may require expensive transportation to the airport, have a long transit time, or include additional terminal fees. A specialist evaluates the entire route as a whole and helps find the optimal balance between time, reliability, and price.

For regular businesses, fixed schedules, agreed tariffs, and advance booking are especially beneficial. This helps reduce the impact of sharp market changes and makes international logistics costs more predictable.

Prospects for Air Delivery After the Energy Crisis

The aviation industry continues to seek ways to reduce dependence on traditional fuel. Airlines are updating their fleet, implementing more fuel-efficient aircraft models, optimizing routes, and increasing load factors. The market for sustainable aviation fuel, produced from recycled materials and other alternative sources, is developing.

However, transitioning to new technologies requires significant investments. In the near future, the cost of air delivery will depend not only on oil prices but also on the costs of production, certification, and supply of alternative fuels. Therefore, expecting a quick and sustainable reduction in tariffs is not always feasible.

Increasing Transparency of Tariffs

In the future, clients will pay more attention to the price structure. Logistics companies and carriers strive to separate the base rate, fuel surcharge, and additional fees. This transparency allows businesses to better forecast expenses and compare delivery options.

Digital platforms help track shipment status, obtain cost estimates, manage documents, and analyze tariff history. For companies, this creates conditions for more accurate planning of procurement and transportation budgets.

Development of Multimodal Solutions

Multimodal logistics will become one of the main ways to reduce costs. Combining road, rail, sea, and air transport allows for selecting the optimal option for each part of the route. For example, the urgent part of the shipment can be sent by air, while the bulk can be transported by a more economical mode.

This approach reduces dependence on a single delivery channel and helps businesses maintain flexibility amid fuel price changes, airspace restrictions, and schedule disruptions.

The energy crisis has a direct and complex impact on the cost of air delivery. Rising oil and aviation fuel prices increase fuel surcharges, while the rising cost of electricity and ground transportation raises expenses for handling, storage, and delivery of cargo. Additional pressure comes from currency fluctuations, reduced flight frequency, route changes, and increased transit operations.

For businesses, this means the need to plan international logistics more carefully. It is important to consider not only the base air tariff but also the dimensional weight, fuel charges, terminal expenses, customs clearance, and the last mile. Significant savings can be achieved through cargo consolidation, packaging optimization, early booking, choosing alternative airports, and using multimodal schemes.

Collaborating with a professional logistics operator, including services like ship247.world, helps control all stages of transportation and assess potential costs in advance. In an unstable energy market, comprehensive route analysis, transparent calculations, and flexible planning are essential for maintaining delivery reliability and minimizing shipping costs.