Is cross-border e-commerce air cargo demand at risk?

Dive Brief

The looming demise of the de minimis exemption could spur higher costs and delays, said Xeneta’s Niall van de Wouw.

Published Feb. 20, 2025

Dive Brief:

• While the de minimis exemption has momentarily returned, a permanent move from President Donald Trump’s administration to nix the provision will significantly impact air freight capacity between the U.S., China and beyond, according to Xeneta’s Feb. 5 report.
• With cross-border e-commerce shipments accounting for more than 50% of cargo capacity from China to the U.S., prohibiting import shipments from de minimis entry would raise costs, add “time-consuming” entry requirements and create customs delays, Xeneta reported.
• “E-commerce products may be slightly more expensive if de minimis is removed, but they will still be cheaper than buying through retailers in the US – but delays in receiving the goods due to operational disruptions could have a bigger impact than price because it takes away the attractiveness for consumers,” Chief Airfreight Officer Niall van de Wouw said.

Dive Insight:

According to van de Wouw, it will “take a sledgehammer” to crack consumer demand — blocking de minimi…