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Friday, 10/10/2025, 11:35 (GMT +7)
AfA: Air Freight Industry Scrambles to Restructure After the End of the 'De Minimis' Era
The air freight industry is still struggling to realign in the wake of the terminated 'de minimis' tax exemption policy, with the resulting compliance burden and increased costs reshaping the entire sector, the Executive Director of the Airforwarders Association (AfA) has warned..webp)
Speaking to delegates at the FIATA World Congress 2025 in Hanoi, Brandon Fried said that AfA members have reported higher tariffs, longer cycle times, and increased complexity in managing returns since the de minimis threshold ended on August 29.
"The industry has moved overnight from light-touch clearance to full formal entry," said Fried.
"We are seeing fewer parcels but larger, better-documented shipments. Fraud has dropped, but working-capital and compliance burdens have climbed sharply."
“Realignment is far from finished.”
Fried urged freight forwarders to consolidate intelligently, invest in master data and tariff governance, and design solutions for returns utilizing Free Trade Zones or temporary import bond mechanisms.
He stated that forwarders must address the cash flow implications of tariff payments early and enhance visibility across entire purchase orders to effectively manage the post-de minimis environment.
Over 1,000 delegates from more than 100 countries attended the FIATA World Congress 2025 this week to network and hear from experts on the theme of "Green and Resilient Logistics".
The AfA continues its global advocacy on behalf of forwarders, ensuring their voice is heard on issues shaping international logistics, trade policy, and supply chain resilience.
The AirCargo Conference, co-hosted by the AfA, will take place in Orlando, Florida, in February 2026, bringing together airlines, airports, forwarders, and regulators to discuss the next phase of industry modernization and collaboration.
See more:
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- International Shipping and Logistics Market Update Week 40/2025 | Phaata
- WorldACD: Global Air Cargo Volumes Up 4% in Q3 2025, Super Typhoon Challenges Supply Chains in Late September
- Maersk Partners with 50 Shipowners to Modernize 200 Chartered Vessels, Targeting Lower Costs and Emissions
- FedEx Launches Two New Asia Routes, Reallocating Capacity Amidst Falling Trans-Pacific Demand
- South Korea's Intra-Asia Container Trade Sees Nearly 6% Drop in August, while Malaysia Bucks the Trend with Strong Growth
- U.S. Government Shutdown Looms: Essential Freight Operations to Continue, But Risks Remain
- COSCO schedules: Vietnam - North America in Oct 2025
- SITC updates Vietnam-Intra Asia sailing schedules in Oct 2025
- COSCO updates Vietnam-North Europe sailing schedules in Oct 2025
Source: Phaata.com (According to Air Cargo Week)
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45
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16
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