IATA’s 66th edition of the Dangerous Goods Regulations, which came into effect on January 1, 2025, imposes the strictest controls on lithium battery transport ever. This has multiple impacts on importers and exporters of 3C electronic products.
Below, Weefreight provides a detailed analysis, hoping it will be helpful.
The most significant impact is an increase in international logistics costs for shipments containing lithium batteries. Details are as follows:
Increased Certification Costs: The new regulations require all shipments containing lithium batteries to undergo UN38.3 certification, increasing the certification fee by US$112-169 per shipment.
Increased Packaging Costs: For high-capacity batteries exceeding 2.7 Wh, five new packaging strength tests, including a 3-meter stacking test, are added. Packaging materials must possess composite properties such as puncture resistance, anti-static properties, and flame retardancy, resulting in a 40% increase in packaging costs. Increased transportation costs: Airlines are implementing a “passenger-cargo separation” system for cargo containing lithium batteries, restricting transportation to cargo aircraft only. Freight rates (CAO) are 30%-50% higher than the benchmark rate for general cargo. A Shenzhen-based cross-border e-commerce company calculated that air freight costs for lithium battery products have increased by 45%, with logistics costs rising from 18% to 26%.
Extended transportation times: Average transportation times on Southeast Asian routes have increased from 3-5 days to 7-10 days, while those on European and American routes have increased by 3-5 days due to increased transit times. A leading mobile phone brand’s European warehouse replenishment cycle has increased from 15 days to 30 days, and channel inventory turnover has decreased by 40%.
Increased compliance risks: Due to stricter new regulations on lithium battery transportation, the export of 3C electronic products faces higher compliance requirements. The return rate for lithium battery products in the EU market due to non-conforming tests increased from 8% to 12%. The number of cases investigated by the US FAA for illegal transportation increased by 83% year-on-year. The cost of handling returns due to non-conforming tests in the EU market rose from 8 euros per unit to 33 euros.
Transportation Mode Shift: Due to new regulations, my country’s lithium battery exports by air plummeted from 42% to 28% in January-February 2025, while rail transport increased by 27% year-on-year during the same period. Some companies are exploring new transportation methods. For example, TCL Electronics uses the “Yuxinou + Air” rail-air intermodal transport model, shortening the transport time from Chongqing to Duisburg to 18 days and reducing costs by 28% compared to pure air transport. Maersk Line has launched a dedicated container for lithium batteries, which meets the UL9540A ocean safety standard. Some companies are also considering shipping 3C electronics products by sea.
So, does your company’s cargo contain lithium batteries? How significant will the impact be?
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