Airspace closures stretch global supply chains

Global supply chains, already hit hard by the Covid-19 pandemic, are facing further disruption and cost inflation as airspace closures after Russia's invasion of Ukraine affect the air freight industry.

Transport between Europe and north Asian destinations like Japan, South Korea and China has become particularly problematic due to reciprocal airspace bans that bar European carriers from flying over Siberia and Russia airlines from flying to Europe.

Airlines responsible for moving around 20% of the world's air cargo are affected by those bans, Frederic Horst, managing director of Cargo Facts Consulting saod.

Germany's Lufthansa LHAG.DE, Air France KLM AIRF.PA, Finnair FIA1S.HE and Virgin Atlantic have already cancelled north Asian cargo flights over airspace issues, though major Asian carriers like Korean Air Lines 003490.KS and Japan's ANA Holdings 9202.T are still using Russian airspace, as are Middle Eastern airlines.