Nov 8, 2024. Weekly Market Updates

Another week, another meet! Dear freight forwarders. 

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Stay ahead in the world of international air freight with Pelicargo's Weekly Market Updates. We provide essential insights into economic trends, air freight demand, rate movements, and everything that matters to keep you informed about the market. 

-Toby Raworth / Commercial Director, Pelicargo (November 8, 2024)

🕓 5 Min Read

Global & Regional Air Freight Rates

Industry News: Trump Presidency Could Potentially Hamper E-Commerce Air Cargo

A rollback of the de minimis exemption for imports under $800 could sharply impact air cargo volumes, especially in e-commerce, if Donald Trump resumes office. Freightos’ Judah Levine suggests this policy shift, previously planned by the Biden administration, could lead to increased tariffs of 7-25% on goods currently exempt, with filing costs rising from around $15 to $50. This would make airfreight more costly and delay deliveries from about seven to nine days to potentially two to three weeks, which could deter e-commerce companies from using air transport, particularly for low-value Chinese imports.

Many e-commerce platforms are moving inventories closer to end markets to navigate these potential disruptions. For instance, there has been a significant increase in ocean cargo volumes from China to Mexico, along with growing fulfillment investments in the U.S. Meanwhile, Trump’s prior tariff hikes during the 2018-19 trade war reached over 25% on Chinese imports, triggering a temporary surge in air cargo as companies rushed goods before tariffs took effect. If tariffs are reintroduced at up to 60% for Chinese imports, and 10% across a broader $3 trillion in U.S. imports, ocean freight will bear the brunt, but some sea-to-air cargo shifts may arise for time-sensitive goods, though larger volumes make airfreight costly.

While the exact impact of these measures remains uncertain, shifting inventory strategies and potential increases in ocean and air freight costs reflect how the industry may brace for policy changes. E-commerce companies are likely to adapt, managing costs while maintaining logistics efficiency under new regulations.

Source: Freightos, Air Cargo News

Selling Rates from North America

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(as of Nov, 8. 2024)

* All-In Rate. Screening Fee not Included. Ch.Weight varies by case.

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Market Updates: Toby Raworth

Editorial Revision: Ken Miao

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