The conflict involving the United States and Israel against Iran, which began on Saturday, is already causing disruptions to air cargo traffic in the Middle East. This region serves as a crucial freight corridor connecting Asia and Europe and is home to two of the world's largest cargo airlines. The escalating situation raises the potential for a significant increase in air freight rates.

Airlines are currently suspending flights, rerouting traffic to avoid the conflict zone, and are unable to utilize key transload hubs in Dubai, Abu Dhabi, and Qatar due to retaliatory missile attacks by Iran. Further adjustments to flight schedules are anticipated in the coming days.

These longer routes necessitate increased fuel consumption, which in turn reduces the amount of cargo that aircraft can carry to remain within weight limits. Some airlines are expected to incorporate additional refueling stops.

"We are anticipating a potentially significant movement in rates, particularly on the Asia-Europe routes, if the situation persists with large-scale flight cancellations," stated Neil Wilson, editor of the global price reporting agency TAC Index, in an email exchange.

FedEx (NYSE: FDX) has temporarily halted flights to and from Bahrain, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, Qatar, the United Arab Emirates, and Saudi Arabia.

"The safety and well-being of our team members is our highest priority. Consequently, pickup and delivery services in Bahrain, Kuwait, Iraq, Qatar, and the United Arab Emirates have been temporarily suspended until further notice. Shipments to and from other markets throughout the region may experience extended transit times," the company announced.