EXTRANS GLOBAL - Air Freight News - Week 17 2025

Air Cargo General

1) HKG Post Suspends Receipt of Mail to the U.S.

The Hong Kong Post has announced the suspension of mail receipt to the U.S., which is expected to significantly impact e-commerce logistics.
Mail transported by sea will be suspended from the 16th, while mail transported by air will be suspended starting on the 27th.
This is a response to enhanced customs inspection measures for mail from China and Hong Kong by the U.S. The Trump administration abolished the de minimis threshold for packages under $800 on April 2, instead imposing a 30% tariff on the value of imported goods. They announced a fee of $25 per de minimis package, which will increase to $50 starting June 1.
These measures will officially take effect on May 2. The Hong Kong Post's suspension of mail receipt to the U.S. is interpreted as a reaction to these U.S. actions. However, the Hong Kong Post stated that if the sender covers the additional costs, receipt is possible, and documents can still be sent to the U.S.
Ultimately, the impact on e-commerce volumes from China and Hong Kong is expected to be significant. This influence is likely to present new opportunities for the domestic air logistics industry.

2) Temu and Shein Raise Prices in the U.S. Following the Elimination of Parcel Duty-Free Status

Chinese e-commerce giants Temu and Shein have raised prices in the U.S. market due to pressure from the Trump administration's removal of the tax-exempt status for small parcels from China.
According to a statement posted on their websites on the 16th (local time), the companies announced, "Operating costs are increasing due to changes in global trade rules and tariffs," and stated that they would adjust prices starting on the 25th to continue providing products without compromising quality.
Temu and Shein had been utilizing the "de minimis exemption" that exempted tariffs on goods valued under $800 (approximately 1.14 million won), allowing them to offer products at low prices and grow rapidly in the U.S. market.
The companies import low-cost Chinese clothing and household goods for sale in the U.S., with some products priced under $10, making them popular among American consumers struggling with inflation.
It has also been reported that Temu and Shein have significantly reduced advertising expenditures on major online platforms due to the repercussions of the tariff war. The Financial Times (FT) cited global market research firm CenterSource, stating that Temu reduced its advertising spending on social media by approximately 31% compared to the previous two weeks up to the 13th.

3) ICN Airport Handles an Average of 7,722 Tons of Air Cargo Daily

In the first quarter, Incheon Airport (ICN) handled a total of 695,018 tons of air cargo, a decrease of 0.3% compared to the same period last year. This means an average of 7,722 tons of air cargo was processed daily.
The total number of flights, including cargo flights, increased by 5.7% to 105,817, averaging 1,176 flights per day.
By route, the North America route had the highest volume at 156,423 tons, a decrease of 1.0% compared to the previous year. The second highest was the China route with 127,882 tons, a decrease of 1.7%, followed by Northeast Asia with 127,816 tons, which increased by 2.2%. The fourth highest route from Korea to Europe saw a decline of 9.2% at 115,601 tons.
The fifth highest route was Southeast Asia with 73,091 tons, an increase of 2.0%, followed by Japan with 63,622 tons, increasing by 7.4%, and the Middle East with 17,755 tons, which increased by 4.5%.
The route with the largest increase in air cargo compared to the previous year was Japan, with a 7.4% increase. This was followed by the Middle East route with an increase of 4.5%, Northeast Asia by 2.2%, Southeast Asia by 2.0%, and the China route by 1.7%. However, the Europe route saw a decrease of 9.2%, Oceania by 6.1%, and North America by 1%.

4) UPS and FedEx Impose Surcharges on Cargo from China Ahead of De Minimis Termination

As the U.S. is set to end the de minimis (duty exemption threshold) application for parcels from China, UPS and FedEx have begun imposing additional charges on cargo from China.
Starting April 13, UPS will charge a "surge fee" of $0.29 per pound for packages from China, Hong Kong, and Macau heading to the U.S.
This surcharge is based on the billable weight of the cargo, and a separate fuel surcharge will also apply.
Following this, FedEx will introduce a "demand surcharge" of $0.45 per pound for packages from China, Hong Kong, and the Philippines to the U.S., starting April 15. However, FedEx's surcharge will be temporary and valid only until May 2, when the de minimis exemption for Chinese parcels ends.
Cathy Morrow-Roberson, a senior analyst at logistics market research firm Logistics Trends & Insights, stated that this surcharge is a strategy for maintaining profitability rather than a temporary response to demand. UPS and FedEx have consistently emphasized the need to protect profitability per shipment during quarterly earnings reports, noting that while B2C demand continues to grow, B2B volumes are stagnating.
In fact, the U.S. manufacturing Purchasing Managers' Index (PMI) has entered a contraction phase again in March after a two-month recovery, amid ongoing economic uncertainty.
The issue is that signs of slowing growth are also appearing across the e-commerce market. According to Bloomberg, Amazon has recently canceled numerous orders for household items such as air conditioners and clothing that were to be brought into its U.S. logistics centers from China and Asian countries.

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