With our global presence in the air cargo market and historically strong position in the trans-Pacific trade, the U-Freight Group notes that there has been a sharp decline in trans-Pacific air cargo demand following the U.S. removal of duty-free status for low-value imports from China on May 2.
The change to the “de minimis” exemption, which previously allowed shipments under USD800 to enter the U.S. without duties, has hit cross-border e-commerce flows hard, especially from platforms like Temu, Shein, and TikTok.
This sector had driven global air cargo to a record 12% growth in 2024, with carriers prioritizing high-frequency, higher-yield e-commerce over general freight. But now, traditional markets — already weakened by inflation, trade tensions, and soft consumer demand — are offering little relief.
To an extent airlines neglected their core markets to chase e-commerce. Now that demand is fading, they’re struggling to pivot back.
Airlines are redirecting capacity, with eastbound trans-Pacific freighter volume down 8% year-on-year in mid-May, while Asia-Europe capacity rose 19%, according to Rotate data.
Analysts expect May data to confirm a sharp slowdown, as carriers reassess long-term strategies amid shifting global trade patterns.
For more information about the U-Freight Group’s global air freight forwarding and logistics services, or our e-commerce logistics operations, please visit the relevant pages of this website or contact your local office, details of which can be seen here: https://ufreight.com/locations
