Tariff tensions to soften cargo demand: Cathay
Cathay Pacific says it is taking proactive steps to be in the best possible position in facing external challenges. Photo: RTHK
Cathay Pacific on Wednesday said it expects air cargo demand between the mainland and the US to "soften" in the coming months due to tariff tensions as well as the axing of the de minimis rule.
The comments came as the world's two largest economies remain in a stand-off over tariff disputes, although US President Donald Trump indicated that the levies on China will not remain at 145 percent.
Speaking in a statement, the carrier noted that its cargo business saw strong growth last month.
However, it cautioned that the latest developments on trade tariffs are creating uncertainties and might cause disruptions.
'We expect a softening of general air cargo demand between the Chinese mainland and the United States due to the ongoing tariff situation and de minimis rule changes from early May," said Lavinia Lau, the group's chief customer and commercial officer.
"We are taking proactive steps to put ourselves in the best possible position in facing and mitigating these external forces as we remain aligned, agile and responsive in our approach," Lau added.
Following the axing of the de minimis rule, small parcels valued under US$800 shipped from the SAR and the mainland that were earlier exempted from American import taxes, will be subject to duties from May 2.
Her remarks came as Cathay reported that its cargo transport grew by 10.6 percent year on year to 148,807 tonnes in March, while passenger numbers jumped 19.8 percent year on year to 2.25 million.
Lau noted that although March marked a "quieter month" for the group's travel business due to the absence of long-weekend holidays in the SAR, demand for its "premium cabins" remained robust, thanks to various mega-events and exhibitions in the city, including Art Basel.
'The Hong Kong Sevens also generated strong inbound demand to our home city, especially on many of our long-haul routes," Lau added.
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