By Jamie Freed

(Reuters.) -The pandemic has already impacted global supply chains. Now, they are experiencing further disruption and price inflation from airspace closings in response to Russia’s invasion.

Because of reciprocal airspace restrictions that prevent European airlines flying above Siberia or Russia, it has made transport between Europe and North Asian destinations such as Japan, South Korea, and China more difficult.

These bans affect 20% of world’s airlines that move air cargo, Frederic Horst (managing director at Cargo Facts Consulting), told Reuters Tuesday.

German airlines Lufthansa and Air France KLM (OTC) have cancelled cargo flights to North Asia. However, major Asian carriers such as Korean Air Lines, ANA Holdings, and Japan’s ANA Holdings continue to use Russian airspace.

Airspace bans are also applicable to pure cargo carriers, such as Russia’s AirBridgeCargo Airlines (Russia) and Luxembourg’s Cargolux (Luxembourg). This is a move which could push air freight rates – already higher due to insufficient passenger capacity during pandemics – even further.

The International Air Transport Association (IATA) reported that air cargo rates in December were 15% higher than 2019 levels. These figures add to inflation which has an impact on industries and economies all over the world.

Global supply chains will likely be disrupted further by sanctions imposed upon Russia following its invasion in Ukraine.

Horst indicated that Russia’s AirBridgeCargo only moves 4% global air cargo. The majority of this international air cargo is moved between Europe, Asia and North America.

Horst explained that if you add up all the cargo flying between Asia and Europe, it could mean about 25% less air freight.

The yields of this route are sufficient to fly a longer one via South Asia, Southeast Asia, or the Middle East. However, it will not take capacity from the market.

IATA reported that the air cargo demand was 6.9% more than it was in 2019. This is due to increased ecommerce during the pandemic, and shipping container shortages, and bottlenecks, which led to more goods being shipped by air. IATA stated that December’s air cargo rates were 1500% higher than 2019 levels.

EVA Airways, Taiwan said Tuesday that its European cargo flights were running normally. It also stated it will be looking at adding services to satisfy market demand. China Airlines also has a Taiwan base and stated that it will continue to monitor the world’s economic and political conditions and adjust its cargo capacity as necessary.

Asia-North America cargo routes should be affected less than European routes according to analysts. This is because most carriers currently use Anchorage (Alaska) as a stopover point and cargo hub.

Japanese automakers Toyota Motor (NYSE) Corp and Nissan Motor Co (OTC) said Tuesday that they are monitoring any disruptions to supply chains due to Russia’s “special operation in Ukraine”.

U.S.-based United Parcel FedEx Corp and Service Inc (NYSE) have stopped deliveries to Russia.