Air cargo volumes from Hong Kong to Europe experienced a significant 24% year-on-year drop in week 29, extending a five-week downward trend. This decline is directly attributed to new European Union regulations that came into force on July 1. These changes include the elimination of the €150 de minimis exemption for imports, alongside the introduction of new customs fees and stricter reporting requirements. The impact was also observed on the broader China-Europe trade lane, which recorded a 10% year-on-year decrease in air cargo volumes during the same period.
For freight forwarders and operations managers, these new EU rules translate into increased administrative burdens and potentially higher costs for shipments, particularly for e-commerce and smaller parcels. The removal of the de minimis exemption means that more shipments are now subject to VAT and customs duties, requiring more detailed declarations and potentially slowing down customs clearance processes. This could lead to longer transit times and increased operational complexity for forwarders handling goods destined for the EU from Hong Kong and mainland China. Shippers may face higher landed costs for their products, which could affect pricing strategies and consumer demand.