Stricter proposed limitations on e-commerce imports to the U.S. are already starting to be reflected in air freight volumes and freight forwarder planning. February air cargo demand increased by 4% year over year. But a foreshadowing of possible things to come is reflected in the decline of 29% in month on month Shanghai to US air freight rates. Shanghai is likely to be the first origin to see the impact of lower e-commerce volumes. Other origins, such as Vietnam, could see rates increase if companies look to move away from China in order to avoid tariffs. Freight forwarders have already delayed signing BSA contracts with the airlines until U.S. policies become more concrete.
