Geopolitical Conflicts Drive Up Shipping Costs, China’s Cross-Border E-Commerce Export Growth Slows
Due to rising shipping costs driven by geopolitical conflicts and weakened consumer demand in Europe and the U.S. due to inflation, the growth of China’s cross-border e-commerce exports has stagnated. Additionally, the EU's upcoming low-value package fee policy will further increase operating costs and compliance pressures for cross-border sellers.
What are the key facts?
- 1Influencing Factor: Iran conflict driving up air freight costs
- 2Market Status: Weak consumer demand in Europe and the U.S.
- 3Policy Dynamics: EU to impose €3 fee on low-value packages starting July 1
What happened?
According to Reuters, due to the Iran conflict, air freight costs remain high, combined with weakened consumer demand in the U.S. and Europe due to inflation, the growth of China’s cross-border e-commerce exports has plateaued. Additionally, the EU plans to impose a €3 fee on low-value e-commerce packages starting July 1, further squeezing seller profit margins.
What does this mean for cross-border sellers?
Cross-border sellers need to reassess their logistics cost structure and pay attention to the impact of the new EU regulations on profit margins for low-ticket products.