Cathay Pacific expects a decline in air cargo demand on its routes between China and the United States. The company cited the impending new tariffs between Washington and Beijing, which are scheduled to take effect in May, as the main reason. As a result of this development, the airline plans to redeploy its cargo aircraft to other routes.
Cathay Pacific stated that the ongoing tariff situation, coupled with the lifting of the so-called de minimis rule starting in May, is expected to lead to a decline in air cargo volumes between mainland China and the United States. This rule previously excluded import duties on goods valued at less than $800 and was heavily used by Chinese e-commerce companies such as Shein and Temu. The lifting of this exemption will mean significant changes for these companies and their logistics partners.
Cathay Pacific has benefited from the strong growth of the e-commerce sector in China in recent years and has recorded correspondingly high cargo volumes on its trans-Pacific routes. The airline expressed concern that the changed trade tariffs could not only affect cargo demand, but also potentially impact travel demand, leading to rising costs and strains on global supply chains. It is expected that other airlines with significant cargo business between China and the US could consider similar capacity adjustments.
Cathay Pacific's response to increase its cargo capacity on other routes indicates a strategic reorientation to offset the expected losses on its US routes. The airline has not yet disclosed in detail which routes this will affect.
and 