HONG KONG forwarder U-Freight remains positive about e-commerce prospects despite the US ending de minimis exemptions for parcels, reports London's Air Cargo News.
The end of the exemption means packages worth less than US$800 will no longer be able to enter the US duty-free and with minimal customs scrutiny.
This has led to airlines cancelling charter operations and a decline in volumes from China and Hong Kong of 16 per cent year on year in week 16, ahead of the rule change, according to data provider WorldACD.
However, U-Freight chief executive Simon Wong remains positive on e-commerce, pointing out that market research firm Transport Intelligence (Ti) still expects a 15.5 per cent increase in the e-commerce logistics and fulfilment market this year.
'Whilst President Trump's intention to abolish the de minimis rules and impose tariffs on imports has introduced significant uncertainty into the market, the sector shows no signs of being blown off course.
'That mirrors the U-Freight Group's current experience where changes in demand patterns associated with the ongoing emergence of e-commerce are also driving development in merchandising, warehousing, and distribution patterns.'
He added: 'Consumer habits have transformed, and this will power domestic and cross-border e-commerce and e-fulfilment needs for years to come.'
Mr Wong said Ti research shows that the e-commerce logistics and fulfilment market was valued at US$569 billion in 2024, double the market value recorded just before the pandemic in 2019.
The company has been investing in its e-commerce operation over the past few years, including developing its warehouses to act as e-commerce fulfilment centres (EFCs).
In Hong Kong, for example, the company has an ongoing investment programme in an autonomous mobile robot (AMR) fleet and an intelligent racking system.
These are used to move inventory shelves and pallets to workstations, eliminating the need for operators to leave their stations, improving put away and picking accuracy, and reducing labour intensity.
SeaNews Turkey
The end of the exemption means packages worth less than US$800 will no longer be able to enter the US duty-free and with minimal customs scrutiny.
This has led to airlines cancelling charter operations and a decline in volumes from China and Hong Kong of 16 per cent year on year in week 16, ahead of the rule change, according to data provider WorldACD.
However, U-Freight chief executive Simon Wong remains positive on e-commerce, pointing out that market research firm Transport Intelligence (Ti) still expects a 15.5 per cent increase in the e-commerce logistics and fulfilment market this year.
'Whilst President Trump's intention to abolish the de minimis rules and impose tariffs on imports has introduced significant uncertainty into the market, the sector shows no signs of being blown off course.
'That mirrors the U-Freight Group's current experience where changes in demand patterns associated with the ongoing emergence of e-commerce are also driving development in merchandising, warehousing, and distribution patterns.'
He added: 'Consumer habits have transformed, and this will power domestic and cross-border e-commerce and e-fulfilment needs for years to come.'
Mr Wong said Ti research shows that the e-commerce logistics and fulfilment market was valued at US$569 billion in 2024, double the market value recorded just before the pandemic in 2019.
The company has been investing in its e-commerce operation over the past few years, including developing its warehouses to act as e-commerce fulfilment centres (EFCs).
In Hong Kong, for example, the company has an ongoing investment programme in an autonomous mobile robot (AMR) fleet and an intelligent racking system.
These are used to move inventory shelves and pallets to workstations, eliminating the need for operators to leave their stations, improving put away and picking accuracy, and reducing labour intensity.
SeaNews Turkey
