Air cargo shipments from Asia to the United States fell sharply in May after the U.S. ended a tax-free rule for low-value packages from China.
Data from the International Air Transport Association showed a 10.7 percent drop in demand compared to the same month last year.
The decline followed the U.S. decision on May 2 to cancel the de minimis exemption, which allowed goods under $800 to enter duty-free. These packages, often shipped by Chinese platforms such as Shein and Temu, were taxed at rates as high as 145 percent before dropping to around 30 percent after a mid-May trade agreement.
Estimates from air cargo consultancy Aevean showed a 43 percent fall in low-value shipments from China to the U.S. in May compared to April. Shipments to other markets, including Europe and Southeast Asia, increased during the same period.
Direct freighter capacity between China and the U.S. in June was 11 percent lower than in March, removing the growth seen over the past year. Airlines reduced flight frequencies, with some cutting from three to two weekly charters.
Dimerco Express reported that its e-commerce bookings fell 50 percent in May and June, leading to continued cancellations of scheduled cargo flights.
The de minimis rule dates back to 1938 and had been used to support cross-border trade in low-value goods. In recent years, it allowed a growing share of goods from Asia to enter the U.S. by air.
By 2023, such shipments accounted for 55 percent of all goods shipped by air from China to the U.S., up from just 5 percent in 2018.
The U.S. has since eased some export restrictions on software, ethane, and aerospace products ahead of a July 9 deadline to reimpose wider tariffs on several countries. Companies continue to shift shipments to other regions amid ongoing trade negotiations.
