Hong Kong's air freight sector is seeing a sharp decline in cross-border e-commerce volumes, particularly on transpacific routes, as Chinese platforms cut costs and policy changes in the United States raise shipment expenses, reports London's AirCargo Week.

The cancellation of the US de minimis rule has made low-value shipments more expensive, reducing exports to the US and Europe. Platforms such as Alibaba, Taobao, Temu and Shein are shifting logistics strategies to save on air freight costs.

Arthur Antonio da Silva, managing director of Jet-Speed Air Cargo Forwarders (HK) Ltd, said volumes to the United States have dropped significantly, with Europe also showing weak demand. Terminals now face underutilised capacity and unpredictable scheduling.

Hong Kong's role as a transshipment hub is under threat as direct freighter services from Guangzhou, Shenzhen and Macau increase. These routes bypass Hong Kong, changing the regional logistics dynamic.

Intra-Asia e-commerce remains relatively strong, but the overall trend is downward. Tariffs and regulatory changes have compounded the decline, forcing Hong Kong to reassess its competitive position.

Digital tools such as e-AWB, e-CSD and cargo community systems have improved handling speed and visibility, but artificial intelligence and robotics are not yet deployed at Hong Kong terminals.

Mr Da Silva noted that while automation systems are in place at HACTL and CPSL, AI and robotics have not been introduced. The current digital systems help reduce paperwork and improve supply chain transparency.

Security regulations imposed by the Civil Aviation Department and airlines are tightening, raising costs and reducing flexibility for transshipment operations through Hong Kong.

Mainland Chinese airports are gaining ground with lower rates and improved services. Mr Da Silva said Hong Kong still offers better service, but rate competitiveness remains a major challenge.

Without differentiated value or regulatory harmonisation, Hong Kong's edge in reliability and speed may erode further under mounting pressure from mainland competitors.