Air Cargo

Asia-Europe Air Cargo Plunges 17% as E-Commerce Supply Chains Shift

Air cargo volumes from China and Hong Kong to Europe declined sharply in October, falling 17% year-over-year. The decline reflects structural changes in cross-border e-commerce logistics. Shipments from mainland China dropped 8%, while Hong Kong-origin cargo fell 32%, pressuring a traditionally strong e-commerce gateway. The European Union's €3 charge on items valued under €150, implemented in July, prompted major platforms to redirect low-value shipments. Companies are now favoring consolidated business-to-business models via ocean freight and alternative transport modes rather than individual parcel flights. An additional €2 handling fee beginning November 1 is expected to further constrain air import volumes. Despite declining tonnage, airfreight rates from China to Europe rose 9% month-over-month and 14% year-over-year to $4, driven partly by elevated jet fuel costs. The US market showed resilience, with China-Hong Kong cargo to America up 8% annually.