US air freight forwarders are reporting higher costs and compliance burdens following the removal of the de minimis exemption earlier this year, as networks shift from small parcels to consolidated shipments, reports London's Air Cargo News.

Brandon Fried, executive director of the Airforwarders Association, said the industry is still adjusting to the new operating model. The exemption, which allowed duty-free entry for low-value packages, was removed for China and Hong Kong in May and globally in August.

Mr Fried said AfA members are experiencing higher duties, longer cycle times and more complex returns management. The shift has led to fewer parcels but larger, better-documented shipments.

He noted that fraud has declined, but compliance and working-capital demands have increased. Fried advised forwarders to consolidate smartly, invest in master data and tariff governance, and use Free Trade Zones or Inward Processing Relief for returns.

He also urged forwarders to manage duty cash-flow early and improve visibility across purchase orders to navigate the post-de minimis landscape.

In addition to regulatory changes, forwarders are facing disruption from the US federal government shutdown. Air traffic control and aviation staff are affected, raising the risk of delays and added costs across the supply chain.

Reports indicate that US airport operations are already experiencing delays due to the shutdown.