Photo: U-Freight
Hong Kong-headquartered freight forwarder U-Freight is positive on the outlook for e-commerce despite the US ending the de minimis exemption for parcels from Hong Kong and China.
The end of the exemption means that from 2 May, packages worth less than $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% 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% 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."
Wong said Ti research shows that the e-commerce logistics and fulfilment market was valued at $569bn 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 putaway and picking accuracy, and reducing labour intensity.
“This information certainly helps to justify our company’s early entry and ongoing investment to meet the ever-increasing challenges of providing logistics services to this rapidly expanding sector of global trade.”
He added that the company is working with a ”growing number of online channels and platforms”, including Fulfilled by Amazon.
