EU levy on ecommerce imports reduces demand and freighter flights

Photo: © Makidotvn The introduction of new fees on low-value ecommerce imports into the EU triggered a sharp contraction in Asia-Europe freighter capacity – though there is confidence the market will eventually rebalance. According to Aevean, APAC/MESA freighter capacity into Europe fell 14% in June, equivalent to around 18 fewer widebody freighter flights a day. Several major European cargo gateways recorded steep declines, with Liège down 16%, Milan Malpensa 24%, Schiphol 12% and Budapest 46%., The figures appear to support reports from airports that the EU charges have dampened demand for cross-border ecommerce shipments. Dario Nanna, commercial aviation manager at Milan Bergamo Airport, told The Loadstar : “We have experienced a 40% reduction in e-commerce cargo movements at our airport, reflecting the immediate impact of the increased costs on the market and the drop of the demand.” While The Loadstar has reported accounts that suggest traffic has been diverted between European gateways, as customs regimes differ and Italy a main beneficiary, Mr Nanna said the country had not escaped the broader downturn. “Italy has been affected to the same extent as other European markets by the introduction of this fee. Fortunately, the Italian government decided to postpone the introduction of the additional €2 levy on each ecommerce item with a value below €150 until October. Had this measure been implemented as originally planned, it would have had a further negative impact on Italy’s ecommerce traffic.” Despite the immediate shock, Mr Nanna said he expected the market to adjust at some point. “In my view, these effects are likely to be temporary. I believe that, over the coming months, the market will gradually adapt to the new environment and establish a new equilibrium. Market participants will identify solutions to improve loads and restore cargo volumes to levels closer to those seen before the introduction of the additional fees,” he explained. However, he warned that options for airports to mitigate the impact remained limited. “Unfortunately, there is very little airports can do directly. The underlying issue is the decline in demand caused by the higher cost of each ecommerce item. “Moreover, airports have a direct commercial relationship with the airline operators, rather than with the ecommerce platforms or shippers. As a result, any mitigation measures would primarily need to be developed in close cooperation with the airlines.”