Global Logistics Update May 2025: New EU Fees, Shipping Rate Surges, and Air Cargo Expansion

1. EU Imposes €2 Fee per Parcel, Targeting Low-Cost E-Commerce

The European Union has proposed a new €2 fee on every small parcel entering the region, effective soon.

This move primarily affects Chinese e-commerce platforms like Shein and Temu, as over 90% of such parcels originate from Asia.

The exemption for sub-€150 shipments may also be eliminated, significantly raising logistics costs for cross-border sellers.

Actionable Advice for Foreign Clients:

If you ship low-value goods to the EU, consider consolidating orders to reduce per-parcel fees or explore alternative markets like Southeast Asia, where logistics networks are expanding rapidly.

Negotiate with logistics providers for bulk discounts and assess whether adjusting pricing or absorbing part of the cost is viable to maintain competitiveness.

EU Imposes €2 Fee per Parcel

2. Shipping Rates Surge as US-China Tariffs Drop

Following the reduction of US tariffs on Chinese goods from 145% to 30%, a rush to ship products has caused severe congestion at major Chinese ports (Shanghai, Ningbo, Qingdao), with over 130 vessels waiting.

Rates on the Shanghai-Los Angeles route jumped 96% in a week, potentially reaching $10,000/FEU by June. CMA CGM and Hapag-Lloyd have announced sharp rate hikes for US and Europe routes.

Actionable Advice for Foreign Clients:

Book shipments early and secure long-term contracts with carriers to lock in rates.

Explore alternative routes, such as rail via China-Europe freight trains, which saw a 65% increase in volume. Diversify ports of departure to less congested hubs like Tianjin or Xiamen to avoid delays.

Shipping Rates Surge as US-China Tariffs Drop

3. Air Cargo Expansion: New Routes and Cold Chain Growth

From 2024 to April 2025, China added 243 international air cargo routes, with Asia (50%), Europe, and North America as key markets.

E-commerce, electronics, and perishables (29% of routes) dominate shipments.

JD Air launched new Central Asia routes, cutting delivery times by 1.5 days, while Cainiao’s 1,200 overseas warehouses now enable 85% next-day delivery in Southeast Asia.

Actionable Advice for Foreign Clients:

Leverage China’s growing air cargo network for high-value or time-sensitive goods.

Partner with logistics firms like SF Express (using Poland as a hub) for efficient Europe-bound electronics shipments.

For perishables, tap into cold chain subsidies in Yunnan and Heilongjiang, where farmers receive ¥150/ton incentives.

New Routes and Cold Chain Growth

4. Middle East Tensions Disrupt Red Sea Shipping

Yemen’s Houthis have declared a blockade on Israel’s Haifa Port, escalating regional risks. Shipping lines are rerouting, potentially increasing costs and delays for Mediterranean-bound cargo.

Actionable Advice for Foreign Clients:

Monitor advisories from carriers and insure high-value shipments. Consider transshipment via Dubai or Oman if Haifa is critical to your supply chain.

Middle East Tensions Disrupt Red Sea Shipping

Key Regional Updates

Vietnam-China Cross-Border Transport: New road routes enable same-day delivery, ideal for just-in-time manufacturing.

AEO Mutual Recognition (China-Mongolia): Starting June 1, this will expedite customs for certified businesses.

Mexico’s 15% Tariff: Cars assembled in Mexico for US export now face higher duties—reassess nearshoring strategies.

Actionable Advice for Foreign Clients:

Use Vietnam-China road transport for agile supply chains. Apply for AEO status if trading with Mongolia to reduce clearance times. For US-bound auto parts, evaluate shifting production to avoid Mexican tariffs.

Contact Us for Emergency Logistics

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Wishing You Have a Happy Trade!

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Global Logistics Update May 2025: New EU Fees, Shipping Rate Surges, and Air Cargo Expansion

1. EU Imposes €2 Fee per Parcel, Targeting Low-Cost E-Commerce

Actionable Advice for Foreign Clients:

Negotiate with logistics providers for bulk discounts and assess whether adjusting pricing or absorbing part of the cost is viable to maintain competitiveness.

2. Shipping Rates Surge as US-China Tariffs Drop

Actionable Advice for Foreign Clients:

3. Air Cargo Expansion: New Routes and Cold Chain Growth

Actionable Advice for Foreign Clients:

4. Middle East Tensions Disrupt Red Sea Shipping

Actionable Advice for Foreign Clients:

Key Regional Updates

Actionable Advice for Foreign Clients:

Use Vietnam-China road transport for agile supply chains. Apply for AEO status if trading with Mongolia to reduce clearance times. For US-bound auto parts, evaluate shifting production to avoid Mexican tariffs.

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