Vatry Airport (LFOK) in France has seen a significant 65% decrease in its air cargo volumes within a mere ten-week period. This sharp decline is attributed to France's premature introduction of a new EU-wide tax targeting small parcels originating from major e-commerce platforms like Shein, Temu, and AliExpress. The tax, intended for broader EU implementation, was brought into effect early by the French government.
In response to this severe reduction in business and to mitigate the risk of potential closure, Vatry Airport has initiated a comprehensive restructuring plan. This plan involves several cost-cutting measures, including workforce reductions, with 17 out of 97 employees facing redundancy. Additionally, the airport will implement reduced operating hours to further streamline expenses and adapt to the lower cargo throughput.
For freight forwarders and logistics professionals, this situation at Vatry Airport highlights the immediate and substantial impact that new taxation policies can have on air cargo operations and routing. The sudden drop in volumes suggests that shippers of small e-commerce parcels are rapidly diverting their cargo away from French entry points to avoid the new tax. This could lead to increased volumes at other European airports where the tax is not yet in effect, potentially shifting capacity and demand dynamics. Forwarders handling e-commerce traffic into Europe should monitor similar tax implementations across other EU member states, as this could influence gateway choices and overall supply chain strategies for small parcel distribution.