Analysis-China-US Air Freight Tumbles on ‘De Minimis’ Tariff; Airlines Adjust Routes

Analysis-China-US air freight tumbles on ‘de minimis’ tariff; airlines adjust routes

By Lisa Barrington SEOUL (Reuters) -Air freight capacity between China and the U.S. dropped by almost a third after a tax-free exemption for low-value items out of China was removed this month, industry data showed, denting a significant revenue stream for Asia’s major airlines. Air cargo carriers including Cathay Pacific, China Southern, Air China and Korean Air have profited from booming volumes of e-commerce, led by fast-fashion retailers suc…

Air freight transport between the United States and China has dropped sharply since the Trump administration revoked the de minimis rule for small imports from China. The de minimis rule applies when the declared import value is $800 (approximately 110,000 yen) or more.