[May 2025] Major Disruption After De Minimis Rule Abolished! What’s Happening to Air Freight and EC Logistics?

Introduction

In May 2025, the U.S. government abolished the De Minimis rule for imports from China.

This change has dealt a devastating blow to the air transport of low-cost e-commerce goods, and brought a major turning point to the entire logistics industry.

This article explains the background of the rule change and details the impact on the air freight market.

What Is the “De Minimis Rule”?

“De Minimis” is a Latin term meaning “something too small to matter.”

In the context of trade, it refers to a system that exempts low-value shipments from customs duties.

In the United States, shipments under $800 qualified for this exemption, which was considered a very generous threshold.

Chinese e-commerce businesses took advantage of this to ship large volumes of low-cost goods tax-free into the U.S.

Abolishment and New Surcharge Introduced

On May 2, 2025, the U.S. government ended De Minimis benefits for shipments from China.

This decision was fueled by growing domestic dissatisfaction with China’s perceived preferential treatment.

Additionally, a $100 surcharge per shipment was introduced starting May 14.

As a result, the import of low-cost e-commerce goods to the U.S. has virtually come to a halt. Shipments that previously reached 100,000 tons monthly by air have sharply declined.

What’s Happening on the Ground in Air Freight?

After the policy change, there has been a notable shift in air cargo traffic. During the week of May 12–18, Asia-to-North America cargo volume dropped 8% year-over-year.

Conversely, Asia-to-Europe volumes increased by 19%.

This has forced airlines to rethink and restructure their routes. Many charter flights are being reduced or canceled as a result.

From EC Priority to General Cargo Focus

Until now, airlines had prioritized booming e-commerce logistics.

Securing space for general cargo was difficult and came with high costs.

As a result, some forwarders and shippers shifted to ocean freight.

However, due to the latest change, airlines are expected to reallocate space to general cargo. The trend is moving toward focusing on B2B shipments and high-margin freight.

Shift Toward High-Value Cargo

Going forward, high-value goods such as pharmaceuticals, semiconductors, and precision equipment will likely dominate air freight.

The question of “Why air freight?” is becoming more relevant than ever.

In scenarios like just-in-time logistics and emergency transport, air shipping will remain justified.

But low-value goods will face increasing challenges in using air transport.

Structural Reform Ahead for Air Cargo Industry

The air cargo industry is now under pressure to restructure its business model.

To move away from EC reliance, airlines must review cargo types and customer segments.

Flexible strategies that factor in inflation and currency fluctuations will be essential.

The collapse of EC logistics bound for North America is prompting a broader reevaluation of air transport as a whole.
Ongoing developments must be closely monitored.