China’s E-Commerce Air Cargo Flights Are Being Canceled!

Following the Lunar New Year, air cargo volume from China to the US experienced a sharp decline. According to data tracking organization WorldACD, a weekly decrease of 20% was recorded at the end of January, followed by an additional 28% drop at the beginning of February. On an annual basis, tonnage decreased by 41%. WorldACD reported that air cargo volumes from China and Hong Kong to the US had declined for four consecutive weeks; during the week ending April 20 (Week 16), volumes fell by 7% compared to the previous week.

“E-Commerce Shipment Volume Dropped by 50%”

WorldACD also shared the following information: “Compared to Week 16 of last year, total traffic from China and Hong Kong to the US has dropped by 16%. In contrast, shipments from the entire Asia-Pacific region to the US only declined by 3%. This was due to strong exports from countries such as Vietnam (up 42%), Taiwan (up 30%), Thailand (up 24%), and Japan (up 12%). These figures do not include increased charter activities.”

Overall, e-commerce shipment volume has fallen by about 50% since mid-April compared to the same period last year. This decline in air cargo coincided with the US government’s suspension of the Section 321 “de minimis” exemption, which allowed low-value goods from China to enter duty-free.

Air Cargo Charter Flights Canceled

In response to the drop in demand, many e-commerce platforms and logistics providers canceled their charter flights. Global logistics company Dimerco reported ongoing cancellations of BSAs (block space agreements) and charters, particularly for shipments to the US, due to excess capacity relative to demand. The Loadstar described the market as “complete chaos” and added that Chinese shippers, due to falling air cargo rates, were looking to move from contracted rates to spot rates.

“Many Companies Avoid Placing New Orders”

Kathy Liu, Vice President of Global Sales and Marketing at Dimerco Express, stated: “Many shippers have entered a wait-and-see mode for shipments to the US. Due to uncertainty surrounding new tariffs between the US and China, many companies are avoiding placing new orders. Interestingly, however, demand out of Southeast Asia and Taiwan has remained relatively stable. We believe this is likely due to the 90-day tariff exemption granted by the US government for shipments from this region. This provides shippers there with a breathing space.”

Shift Toward Southeast Asia

As trade tensions between the US and China escalate, companies are restructuring their supply chains. German container shipping company Hapag-Lloyd announced that 30% of shipments from China to the US have been canceled and that demand is shifting toward Southeast Asian countries such as Vietnam, Cambodia, and Malaysia. This trend reflects businesses’ efforts to diversify production bases and reduce dependence on China.

Fluctuations in Air Cargo Will Continue!

Industry experts predict that fluctuations in the air cargo market will continue.
The combination of declining e-commerce demand, changing trade policies, and restructured supply chains suggests that the current downturn may persist in the short term.

Stakeholders are closely monitoring developments, noting that further disruptions could occur if trade tensions increase or if demand fails to recover. This situation once again highlights the fragility of global supply chains and the need to adapt to changing economic and geopolitical conditions.

“De Minimis” Exemption Expected to End on May 2

The “de minimis” exemption applicable to goods from China and Hong Kong is expected to end on May 2. Meanwhile, the US has implemented customs duty exemptions for smartphones and other technology products imported from China. These products are typically transported via air cargo.

Trump Administration Ends Duty-Free Status for E-Commerce Shipments from China