Airlines are sharply raising cargo rates from Asia to the United States and Europe due to the impact of the Iraq war on fuel prices, industry sources said.

Taiwan's two international airlines, China Airlines and EVA Airways, raised rates on shipments by 20 percent to 30 percent, effective today, forwarders said.

CAL is also said to be raising rates to Europe by 20 percent, while EVA is boosting its prices by 45 to 50 percent effective immediately.

Officials at the airlines didn't immediately confirm the increases.

Carriers are also hiking freight rates from China, South Korea and Hong Kong.

Forwarders report backlogs in Beijing and Shanghai. Carriers planning to raise rates out of China include Air China and United Parcel Service, while Korean Airlines is only taking express cargo out of China.

Cathay Pacific Airways plans to increase rates from Hong Kong to the U.S. by HK$1 (US13 cents) a kilo.

Air Canada plans to raise rates by US39 cents a kilo from Hong Kong to North America, effective Thursday.

The flurry of rate increases follows an announcement last week by Northwest Airlines that it was raising rates to the U.S. effective immediately because of strong demand as shippers rushed to move freight before the end of the fiscal quarter.

In addition, Lufthansa Cargo, Cargolux and Singapore Airlines all announced war-risk surcharges to cover higher costs resulting from the war. Two of the world's biggest forwarders, Exel and Danzas AEI, have filed protests with Lufthansa. One forwarder who requested anonymity said he could understand the reason for a surcharge on flights to the Mid-East, but not to the U.S.

Some of the Asian carriers attributed the increases to higher costs because of the need to divert flights around the war zone in Iraq.

Both Taiwan carriers said recently that cargo demand was strong, especially for electronic and information-technology shipments heading to the U.S. and Europe.

"EVA's air cargo capacity is nearing maximum...and market demand is very strong," spokesman Nieh Kuo-wei told the Taipei Times. The paper quoted him as saying U.S.-bound costs also "have room to grow."

By P.T. Bangsberg and William Armbruster