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Higher EU parcel charges could further strengthen the case for retailers to hold stock in Europe, as reduced China–Europe freighter capacity and elevated airfreight rates add to the cost pressures facing cross-border supply chains.
An additional €2 EU handling fee per product category is expected from 1 November, on top of the €3 customs duty introduced in July on qualifying consignments worth €150 or less.
For a parcel containing three product categories, the combined charges would reach €15 before transport, clearance, and VAT costs. The handling fee would also apply to orders above €150, although those shipments face normal customs tariffs rather than the temporary €3 duty.
The changes could alter the calculation for brands choosing between shipping individual consumer orders from outside the EU and importing inventory for subsequent local fulfilment.
Robert Jeffrey, senior advisor for international structuring at Dutch advisory firm Holdwise, told The Loadstar there was no evidence yet of brands switching.
“It is a little early to see brands switch. The €3 duty started on 1 July, and the €2 fee is expected from 1 November. We expect the first changes when brands plan their stock for next year.”
That planning comes against a backdrop of constrained freighter capacity between China and Europe.
Rotate data shows capacity on the trade down 20% year on year between 18 September and 18 October. Although capacity rebounded 27% last week, compared with the previous week, following China’s Golden Week holiday, it remained 24% below the equivalent week last year.
Meanwhile, WorldACD reported that global spot rates held, at $3.55 per kg, in the week ending 11 October, despite worldwide tonnage declining 1% in a third consecutive weekly fall.
Global volumes were, nevertheless, 9% above the equivalent week last year, while capacity was around 1% higher, and spot rates were up 34%. WorldACD attributed elevated rates to continuing capacity disruption and substantially higher jet fuel costs and associated surcharges.
Those figures illustrate the wider transport cost pressures on retailers’ distribution decisions.
Holdwise provided an illustrative comparison, involving a €90 consumer order containing a Chinese-made T-shirt and watch, bought by the brand for €30. Shipping the order directly from outside the EU would incur €6 in customs duty and an expected €4 handling fee. Adding assumed postage and clearance costs of €7, plus €2.50 for storage, picking and packing, produces a total of €19.50.
Under its alternative model, the brand imports unsold stock into the Netherlands by sea. Holdwise calculated €2 in normal customs duty, 50 cents per order for allocated freight and clearance, €2.50 for warehouse fulfilment and €5 for delivery within the EU: a total of €10.
The illustrative (and assumed) saving of €9.50 per order would amount to €190,000 across 20,000 annual orders.
Bulk replenishment does not necessarily mean abandoning airfreight: the transport mode would remain a separate commercial decision.
Crucially, consolidating existing consumer orders into one shipment does not remove the charges.
“The comparison is for stock that the Dutch company buys and clears at import, before it sells the goods,” Mr Jeffrey explained. Where goods have already been sold to consumers and are then shipped together, the individual orders remain subject to the relevant charges.
The handling fee’s precise start date also remains uncertain. Mr Jeffrey said the delegated regulation setting its amount was still subject to scrutiny and publication, making the change “expected from 1 November”.
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