Cassel Salpeter Facilitates Reorganization of Eco-Friendly Air Freshener Company Enviroscent Through Chapter 11 Plan

MIAMI – August 26, 2025 – The special situations practice group of Cassel Salpeter & Co. (“Cassel Salpeter”), an independent investment banking firm that provides advisory services to middle market and emerging growth companies in the United States and worldwide, announced that it has successfully assisted in facilitating the reorganization of Enviroscent, Inc. (“Enviroscent”), an eco-friendly air freshener company, through a plan of reorganization under a  Chapter 11 bankruptcy proceeding in the U.S. Bankruptcy Court for the Northern District of Georgia.

Headquartered in Atlanta, Georgia, Enviroscent develops and manufactures eco-friendly branded and private label air freshening products sold to consumers via omnichannel and subscription-based offerings. Enviroscent’s patented technology enables the consistent distribution of fragrance without the use of toxic chemicals.

Enviroscent filed for Chapter 11 bankruptcy protection in December 2024 and Cassel Salpeter was engaged by the Debtor to assist in exploring strategic alternatives. Ultimately, the best outcome for the estate was filing a plan of reorganization which allows the company to continue operations, restructure its balance sheet, and return to its former growth trajectory via distribution and licensing opportunities and products under development.

The Cassel Salpeter team was led by Managing Director Philip Cassel, with the assistance of Director Laura Salpeter and Senior Associate Edward Kropf.

The Enviroscent team was led by CEO Kevin Coen with the assistance of CFO Yogi Pai. Cameron McCord of Jones & Walden LLC served as counsel for the debtor.

CASE STUDY: ENVIROSCENT, INC.

  • Background: Enviroscent, Inc. (“Enviroscent”), headquartered in Atlanta, GA, is an eco-friendly nontoxic air freshener company manufacturing and selling products for use in the home, car, and more. In December 2024, Enviroscent filed for Chapter 11 bankruptcy protection.
  • Cassel Salpeter:
    • Served as investment banker to the company
    • Conducted a global sales process, identifying and contacting a broad group of more than 140 public and private companies, focused on consumer products, specifically fragrance and air-care goods
    • Facilitated management calls and due diligence by interested parties
  • Challenges:
    • Identifying suitable buyers in a highly-specialized, fragmented market
    • Communicating the value of the company’s differentiated brand and nontoxic scent and scent diffusion technology
    • Evolving tariff policies disrupted supply chains, making future growth projections challenging to forecast
  • Outcome: In August 2025, the court approved Enviroscent’s plan of reorganization, funded by a group of investors.

Cassel Salpeter Facilitates Chapter 11 Sale of Restaurant Chain PLANTA 

MIAMI – August 26, 2025 – The special situations practice group of Cassel Salpeter & Co. (“Cassel Salpeter”), an independent investment banking firm that provides advisory services to middle market and emerging growth companies, announced that it has successfully facilitated the sale of substantially all of the assets of CHG US Holdings LLC, parent company of restaurant chain PLANTA, to New CHG US Holdings, LLC, a newly formed entity affiliated with Anchorage Capital Group. The sale was effectuated through a Chapter 11 Section 363 process in the U.S. Bankruptcy Court for the District of Delaware.

Founded in Toronto in 2016, PLANTA is a premier operator of upscale, full-service plant-based restaurants across high-profile locations in the United States and Canada. Operating under a portfolio of multiple concepts, including PLANTA Global, PLANTA Queen, and PLANTA Cocina, the brand is recognized for its vegan cuisine, luxurious décor and seating, and vibrant bar programs, with liquor licenses secured at each location. PLANTA elected to file for protection under Chapter 11 of the U.S. Bankruptcy Code in the District of Delaware in May of 2025.

Cassel Salpeter was retained by PLANTA to lead an accelerated post-petition marketing process, targeting a broad spectrum of potential strategic and financial buyers. The process generated strong interest from multiple parties, culminating in the selection of a bid received by New CHG US Holdings, LLC,which was determined to offer the best outcome to maximize value for stakeholders and ensure business continuity.  As a result of the successful restructuring, eight locations across North America will remain in operation. Additionally, Cassel Salpeter facilitated the sale of ancillary assets, including a newly issued liquor license and lease rights for one location.

The Cassel Salpeter team was led by Chairman James Cassel and Managing Director Philip Cassel, with the assistance of Director Laura Salpeter, Senior Associate Edward Kropf and Associate Charles Davis.

The PLANTA team was led by Steven Salm.Joseph C. Barsalona II, Michael J. Custer and Katherine Beilin of Pashman Stein Walder Hayden P.C.served as counsel for the debtor. Wen Rittsteuer, Alex Cariveau and Logan Brinks of NOVO Advisorsserved as financial advisors to the debtor, with Rittsteuer serving as Chief Restructuring Office of CHG US Holdings LLC.

The committee of unsecured creditors was represented by Peter Hurwitz, Lee Rooney and Jack Poynter of Dundon Advisers LLC as financial advisors. Gianfranco Finizio, Kelly E. Moynihan and Carolyn M. Gauvin of Lowenstein Sandler LLP and Christopher M. Samis, Aaron H. Stulman and Maria Kotsiras of Potter Anderson & Corroon LLP served as counsel for the unsecured creditors.

CASE STUDY: PLANTA GROUP

  • Background: CHG US Holdings LLC d/b/a PLANTA GROUP (“Planta”), headquartered in Miami, FL, is an upscale 100% plant-based vegan restaurant group with locations throughout North America. In May 2025, Planta filed for Chapter 11 bankruptcy protection.
  • Cassel Salpeter:
    • Served as investment banker to the company
    • Conducted a global sales process, identifying and contacting a broad group of more than 90 public and private companies focused on hospitality and/or upscale dining
    • Provided assistance throughout all phases of the Chapter 11 Section 363 sale process, due diligence, and closing
  • Challenges:
    • Identifying suitable buyers in a highly-specialized, niche market, with changing consumer preferences
    • Communicating the value of the unique vegan dining concept, despite underperforming locations following the COVID-19 pandemic
    • Expedited sale process due to limited funding for the bankruptcy
  • Outcome: In August 2025, the court approved the sale of certain assets to New CHG U.S. Holdings, LLC (“New CHG U.S. Holdings”), an affiliate of Anchorage Capital Group. Planta plans to continue operating several strong-performing locations across the United States and Canada.

U.S. ends $800 de minimis exemption, imposing duties on all low-value imports, effective August 29

Between 2015-2024, the volume of de minimis shipments into the U.S. rose from 134 million shipments to more than 1.36 billion shipments

By Jeff Berman
August 29, 2025

Effective today, August 29, the de minimis exemption, which allows shipments under $800 sent to the United States to not be subject to tariffs, officially will be removed. That was the edict delivered in a White House executive order in late July.

As previously reported by LM, the White House said that this action, which initially focused on U.S.-bound shipments originating from China and Hong Kong, is being taken to closed what it called a catastrophic loophole used to evade tariffs and funnel deadly synthetic opioids and other unsafe or below-market products that harm American workers and businesses into the U.S.  

And it added that effective August 29, “imported goods sent through means other than the international postal network that are valued at or under $800 and that would otherwise qualify for the de minimis exemption will be subject to all applicable duties.”

What’s more, it explained that between 2015-2024, the volume of de minimis shipments into the U.S. rose from 134 million shipments to more than 1.36 billion shipments, with U.S. Customs and Border Protection processing more than 4 million de minimis shipments into the U.S. on a daily basis. And it added that volume from de minimis shipments that are also from countries that historically have not abused the de minimis exemption has seen significant increases, at 309 million in fiscal year 2025, through June 30, whereas they came in at 115 million in fiscal year 2024—which the White House said resulted in significant lost revenue for the U.S.

This executive order followed a May 2 action by the White House in which it suspended the de minimis treatment for low-value packages from China and Hong Kong that it said represent most de minimis shipments entering the U.S., which was expected—and subsequently has—had a major impact on online retailers like Shein and Temu, which rely on sending goods directly to U.S. shoppers without paying tariffs. 

In an April 8 executive order, the White House stated that the initially-announced tariff of 30% of an item’s value or $25 per item, whichever is more, would be increased to 90% and $75 or more, effective on or after 12:01 A.M. ET on May 2. And it added that fee per postal item containing goods will be increased from an initially-announced $50 to $150, effective, was set to take effect on or after 12:01 A.M. ET on June 1.

Under the Biden administration, the White House in 2024 said it was taking steps towards changing the rules around imports claiming the $800 de minimis exemption.

Noting that the majority of shipments claiming the import exemption originate from several China-founded e-commerce platforms (like Shein and Temu, among others) the White House proposed changes in which the de minimis exemption might not be allowed for products to which Section 201, 301, and 232 duties might otherwise apply.

What’s more, in the weeks leading up to the removal of the de minimis exemption, various reports indicated that more than 25 countries have suspended outbound postal services to the U.S., due to uncertainties regarding the removal of the de minimis exemption. A China Daily report pointed to confusion and insufficient clarity about implementing the new rules.

In its executive order, the White House stated that with the de minimis exemption no longer applying as of 12:01 AM ET on August 29, commercial low-value shipments, regardless of origin, value, or entry method, will be subject to applicable duties and required to go through formal customs entry.

For non-postal shipments moving through an integrator like UPS, FedEx, or DHL, they now will go through Customs via the Automated Commercial Environment (ACE) and also may require entry filings and bonds. And for shipments moving through international postal services, a duty will be placed on packages based on the tariff rate of the shipment’s country of origin, with a flat fee of $80, $160, or $200 per package contingent on the country’s IEEPA tariff rate.

In an interview, John Haber, Chief Strategy Officer at Transportation Insight, noted that a key driver for the removal of the de minimis exemption was that the White House likely felt as if people were circumventing the effect of it and pushing through low-cost and cheap labor goods into the U.S., essentially flooding the market.
“This should not be too surprising, as it has been sort of telegraphed that this was going to happen,” Haber told LM, adding that when the executive order was issued, it was somewhat surprising to see that the removal of the exemption was going to apply to all nations shipping into the U.S.

Craig Reed, SVP of Global Trade at Toronto-based Avalara, said that the decision by the White to eliminate the longstanding $800 de minimis exemption marks a transformative shift in U.S. trade policy, ending the expedited, duty-free entry of low‑value goods that has been in place since March 2016—adding that with its removal, micro-importers are now subject to formal custom processes, meaning e-commerce platforms and small importers will now need to apply the proper rate of duty for goods shipped to the U.S., regardless of value. 

“For businesses, the implications are substantial: tariff impacts, additional handling fees, and more complex customs entry protocols that negatively affect operational agility,” said Reed. “Consumers can expect to see as a result elevated costs and extended delivery timelines for goods purchased from e-commerce merchants. This shift will ripple through supply chains, and the competitive landscape may tilt toward sellers who can absorb or effectively communicate these new burdens. To navigate this new landscape and stay competitive, agility and automation will be crucial. Because these businesses are now responsible for assigning the correct HTS (tariff) code to their products and ensuring compliance with entry requirements, it can be challenging to keep up with the different rules and processes that vary by product, country, and other factors.”

From an air cargo perspective, data from aviation specialist investment bankers Cassel Salpeter observed that air cargo volume between China and the U.S. have fallen 60% since reciprocal tariffs went into effect—which it said has forced a reshaping of global trade routes. It also noted that tariffs are impacting e-commerce bookings, as evidenced by a roughly 50% decline in May.

“The elimination of the $800 de minimis exception for imported goods, combined with increased tariffs, is expected to send air cargo volumes plummeting for low-value e-commerce shipments: a major component of China-U.S. airfreight traffic,” the firm said. “With de minimis exemptions unlikely to return, Chinese e-commerce leaders like Alibaba, Shein, and Temu now send products into the U.S. via bulk sea freight shipments to U.S.-based warehouses and distribution centers, abandoning their use of individual air shipments for direct-to-consumer fulfilment that previously drove cargo aviation growth. There is new reallocation of aircraft from the China-U.S. market to European and other regional routes as cargo airlines reconsider fleet deployment strategies and network planning in response to tariff-induced trade flow changes.”

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Rubicon Technology, Inc. to acquire Janel Group LLC

Source: Rubicon Technology, Inc.
August 20, 2025

BENSENVILLE, Ill. and NEW YORK, Aug. 20, 2025 (GLOBE NEWSWIRE) — Rubicon Technology, Inc. (OTCQB:RBCN) (“Rubicon”) and Janel Corporation (OTCQX:JANL) (“Janel Corp”) today announced that they have entered into a definitive merger agreement, pursuant to which Rubicon will acquire Janel Group LLC (“Janel Group”) with Janel Group becoming a wholly owned subsidiary of Rubicon and Janel Corp receiving shares of Rubicon common stock.

Janel Group, based in Garden City, New York, and originally founded in 1974, is a wholly owned subsidiary of Janel Corp. Janel Group had revenues of approximately $181.3 million and operating income of approximately $8.7 million for the 12-month period ended June 30, 2025. The company is a non-asset based, full-service provider of cargo transportation logistics management services. Its management team will remain in place as part of Rubicon.

The transaction allows Rubicon to acquire a profitable business and better access to capital. Janel Corp shareholders will benefit from its ownership of Rubicon.

The transaction, which was approved by the Rubicon board, including its independent directors, is subject to approval by the majority of Rubicon’s disinterested stockholders.

Additional Transaction Details
Janel Corp will sell all of the issued and outstanding equity of Janel Group to Rubicon in exchange for 7,000,000 shares of Rubicon common stock, at a value of $4.75 per share. Rubicon will assume approximately $23 million of Janel Group indebtedness and net working capital liabilities and gain access to a total of $35 million in borrowing capacity as part of a revolving credit facility under Janel Corp’s existing credit line.

Prior to this transaction, Janel Corp owned 1,108,000 shares of Rubicon common stock, representing approximately 46.6 percent of all outstanding Rubicon common stock. Following this transaction, Janel Corp will own approximately 86.5 percent of Rubicon’s common stock. Janel Corp and Rubicon will maintain the existing governance, nomination and voting agreement requiring review and approval by Rubicon’s independent directors of related party transactions between Rubicon and Janel Corp, and any of its affiliates, until such time that Janel Corp and/or its affiliates acquire more than 90 percent of Rubicon’s outstanding stock.

In order to protect Rubicon’s ability to utilize its net operating loss carryforwards, Rubicon had previously adopted a stockholder rights plan to limit the ability of any group or person to acquire 5% or more of Rubicon’s common stock (subject to certain exceptions, including acquisitions approved by its board) by any group or person. The board of Rubicon has determined that the transaction will not impair the Rubicon’s net loss carryforwards.

Rubicon shares will continue to be traded on the OTC market.

Janel Corp Tender Offer of Rubicon Common Stock
Contingent upon a successful Rubicon stockholder vote and consummation of the transaction, Janel Corp expects to make a tender offer for an additional 400,000 shares of Rubicon stock at $4.75 per share in cash upon which Janel Corp would own approximately 90.7% of Rubicon’s common stock outstanding.

The tender offer described in this announcement has not yet commenced. This announcement is for informational purposes only and does not constitute an offer to purchase or a solicitation of an offer to sell Rubicon’s common stock. If Rubicon stockholders approve the transaction, Janel will distribute an Offer to Purchase relating to the tender offer following the consummation of the transaction, and any Rubicon stockholder who would like to participate in the tender offer should review the terms of the tender offer set forth in such Offer to Purchase when it becomes available.

About Rubicon Technology, Inc.
Rubicon Technology, Inc., through its wholly owned subsidiary Rubicon Technology Worldwide LLC, is an advanced materials provider specializing in monocrystalline sapphire products for optical systems and specialty electronic devices. Rubicon has expertise in sapphire products with superior quality and precision.

About Janel Group LLC
Janel Group LLC is a non-asset based, full-service provider of cargo transportation logistics management services, including freight forwarding via air, ocean and land-based carriers; customs brokerage services; warehousing and distribution services; trucking and other value-added logistics services. The company operates in the United States with over 25 locations and serves customers globally through its networks of international partners.

Forward-looking Statements
This press release contains certain statements that are, or may deemed to be, “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and that reflect management’s current expectations with respect to the closing of Rubicon’s acquisition of Janel Group, the benefits of the transaction for Rubicon, the continuation of agreements between Rubicon and Janel Corp following the closing of the acquisition, the tax impact of the transaction and Janel Corp’s plans to commence a tender offer following approval of the transaction by Rubicon stockholders. These forward – looking statements may generally be identified using the words “may,” “will,” “intends,” “plans,” “projects,” “believes,” “should,” “expects,” “predicts,” “anticipates,” “estimates,” and similar expressions or the negative of these terms or other comparable terminology. These statements are necessarily estimates reflecting management’s best judgment based upon current information and involve several risks, uncertainties and assumptions. We caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made, and readers are advised that various factors could affect our financial performance, including, but not limited to, those set forth in Janel Corp’s Securities and Exchange Commission (“SEC”) filings, which could cause Janel Corp’s actual results for future periods to differ materially from those anticipated or projected in its SEC filings. While it is impossible to identify all such factors, such factors include, but are not limited to, we may fail to realize the expected benefits or strategic objectives of this transaction, or that we spend resources exploring acquisitions that are not consummated; risks associated with litigation and indemnification claims and other unforeseen claims and liabilities that may arise from an acquisition; changes in tax rates, laws or regulations and our acquired companies and subsidiaries’ ability to utilize anticipated tax benefits; the impact of rising interest rates on our investments, business and operations; conflicts of interest with the minority shareholders of our business; we may not have sufficient working capital to continue operations; we may lose customers who are not obligated to long-term contracts to transact with us; instability in the financial markets; changes or developments in U.S. laws or policies (including the imposition of tariffs and any resulting counter-tariffs as well as reductions in federal government funding); competition from companies with greater financial resources and from companies that operate in areas in which we plan to expand; impacts from climate change, including the increased focus by third-parties on sustainability issues and our ability to comply therewith; competition from parties who sell their businesses to us and from professionals who cease working for us; the level of our insurance coverage, including related to product and other liability risks; each of our compliance with applicable privacy, security and data laws; risks related to the diverse platforms and geographies which host each of our management information and financial reporting systems; the Logistic business’ dependence on the availability of cargo space from third parties; the impact of claims arising from transportation of freight by the carriers with which the Logistic business contracts, including an increase in premium costs; higher carrier prices may result in decreased adjusted gross profit; risks related to the classification of owner-operators in the transportation industry; recessions and other economic developments that reduce freight volumes; other events affecting the volume of international trade and international operations; risks arising from each of our ability to comply with governmental permit and licensing requirements or statutory and regulatory requirements; the impact of seasonal trends and other factors beyond our control on the Logistics business; and risks related to ownership of each of our common stock, including share price volatility, the lack of a guaranteed continued public trading market for each of our common stock, and costs related to maintaining Janel Corp’s status as a public company; terrorist attacks and other acts of violence or war and, in the case of Janel Corp, such other factors that may be identified from time to time in its SEC filings. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those projected. You should not place undue reliance on any of our forward-looking statements which speak only as of the date they are made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

For more information contact:

Rubicon Technology, Inc.

Telephone: (847) 295-7000

Email: info@rubicontechnology.com

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Air freight, buffeted by US tariffs, is losing business to ships

By Stas Margaronis
August 18, 2025

One result of the increases in U.S. tariffs on imports is that the air cargo industry is seeing some freight that previously went by air go instead on to ships, according to Joseph Smith, Director, Aviation Services for investment banker Cassel Salpeter & Co, based in Miami, Florida.

In an interview with AJOT, Smith said: “there’s a lot of goods coming from Asia that I think might have in the past been utilizing cheap air freight that now if you can get your supply chain where you can handle 21 days or 28 days or 15 days (by ship) instead of the three to five (by air) … it may take time for companies to be able … to navigate that.”

Smith noted that the International Air Transport Association (IATA) downgraded its 2025 guidance for air cargo demand from its 5.8% growth forecast, issued December 2024, to a revised forecast of near-zero growth for the year.

Two of the biggest US air cargo carriers are UPS and FedEx, Smith said: “So what we’ve seen is a lot of the carriers …whether it be a UPS … and some of the bigger freight carriers, we have seen them significantly … redeploy their routes to other markets.”

Smith told AJOT that the air transport industry supported a total of 86.5 million jobs globally in 2023, including direct, indirect, induced and aviation-enabled tourism jobs.

While air transport carries less than 1% of the volume of world trade shipments, it represents around 33% by value – meaning that goods shipped by air are very high value commodities and often perishable or time-sensitive.

Determining de minimis impact

On August 13, 2025, a report “ State of Air Cargo: Elimination of De Minimis Exception and Increased Tariffs Send Air Cargo Volumes Plummeting” authored by Marina Mayer, Editor-in-Chief of Supply & Demand Chain Executive, warned:

“Air cargo volumes in the United States through May have declined approximately 25%, year-over-year, per estimates from freight forwarders and customs brokers. The decline has accelerated since May 2, when the de minimis exemption ended for goods from China. Since the Trump administration announced reciprocal tariffs in April, China-U.S. cargo volumes have dropped by up to 60%. Tariffs have severely impacted e-commerce bookings, which fell approximately 50% in May 2025.”

The report added that some Chinese importers that utilized air freight are already starting to ship goods by ship: “The elimination of the $800 de minimis exception for imported goods, combined with increased tariffs, is expected to send air cargo volumes plummeting for low-value e-commerce shipments. With de minimis exemptions unlikely to return, Chinese e-commerce leaders now send products into the United States via bulk sea freight shipments to US-based warehouses and distribution centers, abandoning their use of individual air shipments for direct-to-consumer fulfilment that previously drove cargo aviation growth.”

The $800 de minimis rule allowed goods valued at or below $800 to be imported into the US without incurring duties, taxes, or formal customs entry procedures.

The analysis also noted: “The daily number of trans-Pacific air freighters arriving at the Top 18 US airports has decreased by approximately 30% since April, according to Cirrus Global Advisors.”

Key takeaways

Other key takeaways from the report were:

  • Air freight operators might take proactive measures to mitigate tariff impacts by relocating or onshoring some of their operations and adopting hybrid models that combine direct air fulfillment with pre-stocked forward warehouses in key markets. This approach has the potential to establish new partnerships with countries that can reach negotiated settlements and reduced tariffs, which could diversify existing freight routes and generate additional business for air freight carriers.
  • US-based cargo airlines are actively seeking ways to offset higher import costs. Lower fuel prices can provide relief if demand remains stable, while rising jet fuel prices allow airlines to implement fuel surcharges that typically include profits above actual costs.
  • Another cost-reduction opportunity involves consolidating air and ocean shipments under single customs entries, potentially reducing customs brokerage and government processing fees per shipment.
  • Current forecasts suggest the air cargo market could experience a continued downturn in the second half of the year due to the persistence of new U.S.-imposed tariffs and potential retaliatory measures taken by other countries.
  • The impact of new U.S. tariff policy will extend far beyond immediate cost pressures; new trade policy aims to transform international trade and recast global trade routes. As a result, the tariffs have been particularly destabilizing to the airfreight industry, driving price volatility and forcing comprehensive route planning overhauls, particularly within the e-commerce sector.
  • The air cargo sector faces major headwinds within this evolving tariff environment. Cargo airlines must navigate an increasingly complex landscape of disrupted trade flows as manufacturers and retailers reconfigure supply chains in response to new levies. This will reshape network planning, capacity deployment, and aircraft acquisition strategies as carriers adapt to altered trade routes and cargo volumes.
  • The implications of new trade policies are concerning and include declining demand for freighter aircraft and fleet expansion. This may be amplified by a downturn in freighter conversions, driven by rising component costs and procurement delays. Dedicated freighters increasingly dominate global trade volume over passenger aircraft belly cargo; volatility in the freighter market can drive significant systemic impacts.

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US Air Cargo From China Drops 60%, IATA Cuts Forecast

By Óscar Goytia
August 14, 2025

Air cargo  shipments from China to the United States plunged 60% in 2025 following the broad tariffs imposed by the Trump administration, while overall US air cargo volumes fell 25% year-over-year, according to a report by  Cassel Salpeter. Reflecting this disruption, the International Air Transport Association (IATA) revised its global air cargo growth forecast for 2025 from 5.8% to near zero.

The tariffs, which target imports from China, Canada, Mexico, as well as global steel and aluminum, took effect in April 2025 and expanded throughout the year. Key measures include eliminating the de minimis exemption for low-value shipments under US$800 from China, Canada, and Mexico. “Chinese e-commerce shipments that previously fueled air cargo growth have largely shifted to slower, lower-cost sea freight,” the report noted, citing companies such as Shein and Temu.

Prior to the tariffs, the US air cargo sector was on track to reach a record US$1 trillion in revenue. Cassel Salpeter cautioned that “it would be unfortunate and counterproductive to destabilize this important sector and its complex ecosystem,” while noting that airlines could adapt by exploring new routes and operational strategies.

The end of the Civil Aircraft Agreement of 1980 has compounded challenges, raising costs for aircraft parts, maintenance, and fleet expansion. “Higher production costs for aircraft manufacturers and increased acquisition costs for airlines could have a snowball effect, slowing fleet growth and cargo conversions,” the report warned. Tariffs on steel and aluminum further inflate production costs and constrain freighter availability.

In response, airlines are reallocating aircraft from China–US routes to European and regional corridors. Freight forwarders are exploring hybrid logistics models, including pre-positioned inventory near consumers and partnerships with countries offering tariff reductions for new corridors. Lower fuel prices may offset some import cost increases.

The tariffs also triggered frontloading, with shipments accelerated before the measures took effect, temporarily boosting cargo rates. Post-tariff rates from China to the United States could fall from US$5.09 per kilogram to below US$3.65 per kilogram, reflecting the sudden drop in demand and released capacity. Forwarders are delaying long-term contracts and considering alternative sourcing or domestic production, though these measures will take time to implement.

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Q2 2025 Healthcare Report

Miami Investment Banking Firm Cassel Salpeter Issues Healthcare Report South Florida firm publishes Q2 2025 Healthcare Deal Report surveying year’s company M&A, deal flow, and market trends

Read more

State of Air Cargo: Elimination of De Minimis Exception and Increased Tariffs Send Air Cargo Volumes Plummeting

The air cargo sector faces major headwinds within this evolving tariff environment.
By Marina Mayer
August 12, 2025

New trade policies introduced by the United States have ushered in a challenging period for the aviation industry, particularly the air cargo and freight sector.

“The industry was set to build on a record 2024 performance with strong prospects for 2025 and beyond after years of post-COVID rebuilding and growth. It would be unfortunate and counterproductive to destabilize this important industry and its complex ecosystem, and we are hopeful that new international trade agreements can be reached with common-sense exemptions and reduced levies,” according to Cassel Salpeter & Co. “Until tariff uncertainties are resolved, it remains difficult to forecast the future of the industry and supply chains. We are cautiously optimistic that the industry will be able to adapt with new routes and strategies to weather the storm, executing a smooth landing after tariff turbulence.”

Despite the challenging landscape, the air cargo industry is exploring strategies to adapt, while hoping for policy resolution. And, new opportunities may emerge through expansion into additional global markets and premium air cargo pricing, according to datasets released by Cassel Salpeter & Co.

Key takeaways:

  • Air freight operators might take proactive measures to mitigate tariff impacts by relocating or onshoring some of their operations and adopting hybrid models that combine direct air fulfillment with pre-stocked forward warehouses in key markets. This approach has the potential to establish new partnerships with countries that can reach negotiated settlements and reduced tariffs, which could diversify existing freight routes and generate additional business for air freight carriers.
  • U.S.-based cargo airlines are actively seeking ways to offset higher import costs. Lower fuel prices can provide relief if demand remains stable, while rising jet fuel prices allow airlines to implement fuel surcharges that typically include profits above actual costs.
  • Another cost-reduction opportunity involves consolidating air and ocean shipments under single customs entries, potentially reducing customs brokerage and government processing fees per shipment.
  • The International Air Transport Association (IATA) downgraded its 2025 guidance for air cargo demand from its 5.8% growth forecast, issued December 2024, to a revised forecast of near-zero growth for the year. This represents a significant reversal for an industry where air cargo volume for passenger and all-cargo airlines grew 12% in 2024, reaching all-time highs.
  • Air cargo volumes in the United States through May have declined approximately 25%, year-over-year, per estimates from freight forwarders and customs brokers. The decline has accelerated since May 2, when the de minimis exemption ended for goods from China. Since the Trump administration announced reciprocal tariffs in April, China-U.S. cargo volumes have dropped by up to 60%. Tariffs have severely impacted e-commerce bookings, which fell approximately 50% in May 2025.
  • The daily number of trans-Pacific air freighters arriving at the Top 18 U.S. airports has decreased by approximately 30% since April, according to Cirrus Global Advisors. Current forecasts suggest the air cargo market could experience a continued downturn in the second half of the year due to the persistence of new U.S.-imposed tariffs and potential retaliatory measures taken by other countries.
  • The impact of new U.S. tariff policy will extend far beyond immediate cost pressures; new trade policy aims to transform international trade and recast global trade routes. As a result, the tariffs have been particularly destabilizing to the airfreight industry, driving price volatility and forcing comprehensive route planning overhauls, particularly within the e-commerce sector.
  • The elimination of the $800 de minimis exception for imported goods, combined with increased tariffs, is expected to send air cargo volumes plummeting for low-value e-commerce shipments. With de minimis exemptions unlikely to return, Chinese e-commerce leaders now send products into the United States via bulk sea freight shipments to U.S.-based warehouses and distribution centers, abandoning their use of individual air shipments for direct-to-consumer fulfilment that previously drove cargo aviation growth.
  • The air cargo sector faces major headwinds within this evolving tariff environment. Cargo airlines must navigate an increasingly complex landscape of disrupted trade flows as manufacturers and retailers reconfigure supply chains in response to new levies. This will reshape network planning, capacity deployment, and aircraft acquisition strategies as carriers adapt to altered trade routes and cargo volumes.
  • The implications of new trade policies are concerning and include declining demand for freighter aircraft and fleet expansion. This may be amplified by a downturn in freighter conversions, driven by rising component costs and procurement delays. Dedicated freighters increasingly dominate global trade volume over passenger aircraft belly cargo; volatility in the freighter market can drive significant systemic impacts.

Click here to read the PDF.

Click here to read the full article.