HONG Kong's Cathay Cargo has reported reduced air cargo demand from Hong Kong and the Chinese Mainland in May following tariff and de minimis changes, but said volumes from other parts of its network are helping to fill the gap
HONG Kong's Cathay Cargo has reported reduced air cargo demand from Hong Kong and the Chinese Mainland in May following tariff and de minimis changes, but said volumes from other parts of its network are helping to fill the gap. Writing in the company's monthly performance wrap-up for April, chief customer and commercial officer Lavinia Lau gave an early preview into its performance for this month: 'Turning to May, we have seen steady replacement cargo from other parts of our network, including Southeast Asia, during the first half of the month amidst reduced demand from Hong Kong and the Chinese Mainland.
'We will continue to closely monitor the ongoing developments in the second half.'
WorldACD data shows airfreight volumes from China and Hong Kong to the US have declined since the end of the de minimis exemption covering Chinese e-commerce packages in early May, reports London's Air Cargo News.
The US and China have since paused their trade war for 90 days, reducing tariffs from 145 per cent to 30 per cent.
Non-postal e-commerce packages from China are subject to the 30 per cent tariff rate while packages being transported through postal networks face a 54 per cent (or a US$100 flat fee) rate.
Ms Lau added that 'the latest announcements regarding the tariffs between China and the US provide some reassurance to the market in the near term' and said the airline would adjust freighter capacity if necessary.
While it's not yet clear what impact trade disruption will have on Cathay Cargo's airfreight volumes this month, in April, Cathay achieved a 13.6 per cent year-on-year increase in air cargo volumes.
In addition to tariff and de minimis challenges, the Association of Asia Pacific Airlines (PA) recently called for governments to tackle supply chain disruption that is delaying deliveries of new aircraft, constraining capacity and threatening Asia Pacific trade growth.
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