Apr. 21 at 9:54 PM
US plans next month to cancel tariff-free access for low-value parcel shipments from China & HK, coupled w/ a new 145% tariff rate on China imports, could bleed more than
$22B in revs from the air cargo sector over 3 years & put thousands of online sellers w/ DTC fulfillment models out of business
IATA: E-com shipments acct for an est'd 50% to 60% of China-US air volumes & an est'd 20% of global air cargo volumes
Total air cargo revs on the China-US trade lane will decrease more than 30% b/c of the lower volumes caused by the new US trade policies & the lower yields that will follow
Starting next Friday, retailers will need to file formal customs entries, which require much more info & time than the fast-track de minimis process, to clear individual shipments
National Foreign Trade Council calculates that without de minimis, the avg
$50 package would require
$31 in paperwork, a brokerage fee of
$20, plus tariffs & taxes and could end up costing more than
$200
$INDA $VNM $FXI $MCHI $BABA