Oman Air Cargo Adds Fuel and War Risk Surcharges as Middle East Conflict Drives Up Costs

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Oman Air Cargo has introduced fuel and war risk surcharges across its entire network, effective 18 March, citing rising aviation fuel costs and higher insurance premiums tied to the ongoing conflict in the Middle East.

The Muscat-based carrier notified customers that both charges would apply to all shipments originating from, destined for, or transiting through its network. The move signals how regional instability is increasingly translating into direct cost increases for air freight shippers and forwarders operating in and around the Arabian Peninsula.

The Fuel Surcharge will be calculated using the US Gulf Coast Jet A1 price per gallon, based on data published by the US Energy Information Administration, and will be reviewed weekly to reflect market movements. The War Risk Surcharge will be applied on a per kilogram basis, using the chargeable weight declared on the Master Air Waybill.

Oman Air Cargo described the measures as a direct response to increased operating costs. “The measures reflect increased operating costs associated with fuel price volatility and higher insurance and security expenses linked to the current operating environment,” the airline stated.

Both surcharges will be kept under regular review and adjusted in line with changes in fuel markets, insurance costs, and the broader security situation, the carrier added.

The surcharge announcement comes as Muscat International Airport experiences a notable increase in throughput. The head of cargo at Oman Air, Michael Duggan, told trade media that the airport has been operating at above-normal levels, driven not only by elevated passenger demand from people seeking to leave the region but also by a sharp increase in cargo capacity requirements.

Oman Air has responded by adding extra flights, which have in turn generated additional belly cargo space. Shippers moving freight out of the United Arab Emirates have been redirecting volumes through Muscat, according to Duggan, pointing to the role Oman is increasingly playing as an alternative gateway in a disrupted regional air freight market.

The diversion of cargo flows toward Oman reflects a broader pattern seen across aviation and maritime logistics since the escalation of hostilities in the region, with neutral or less exposed hubs attracting volumes displaced from higher-risk locations.

War risk surcharges have become a standard commercial instrument across both air and sea freight during periods of elevated geopolitical tension. In aviation, these charges are typically tied to the insurance premiums carriers must pay to fly in or near conflict zones, costs that can shift rapidly as the security situation evolves.

For shippers, the addition of a weekly-reviewed fuel surcharge alongside a per-kilogram war risk component introduces a dual layer of cost variability that complicates freight budgeting, particularly for high-volume or time-sensitive cargo moving through the Gulf region.

The weekly review cycle for the Fuel Surcharge means that rate visibility will be limited to short windows, a factor that forwarders and contract shippers will need to factor into spot and short-term pricing.

Oman Air Cargo has not disclosed the specific rate levels for either surcharge at this stage.