British "Financial Times" article on December 14, original title: The West's love for Shein and Temu platforms promotes the e-commerce boom of cargo airlines. Western countries are interested in fast fashion and electronic products sold on Chinese online platforms such as Temu and Shein (Xiyin). Booming demand for business goods has pushed up air freight rates and sparked fierce competition among logistics companies shipping from Asia.
During the epidemic, consumers in the United States and Europe began to purchase more products from Chinese e-commerce platforms, and some orders were delivered within a week. This demand continues, supporting air freight prices and supporting logistics companies in an otherwise weak freight market. In some cases, some e-commerce platforms are willing to pay nearly twice as much as regular freight customers to ensure there is enough capacity to adhere to strict delivery schedules, some logistics executives said. Jacob Cook, co-founder and CEO of e-commerce consulting firm WPIC, said, "Consumer behavior has changed... Apps such as Temu and Shein are the most downloaded apps (in the United States). And these (platform transactions) It’s all done by air.”
Air cargo and logistics executives say the impact of China's e-commerce boom can be seen in comparisons of air freight rates and ocean freight rates. Air freight rates rose significantly in the second half of 2023, while ocean freight rates fell sharply since the supply chain chaos caused by the epidemic was resolved.
"This year, especially the air freight market in South China, has been relatively strong in recent months, which is largely driven by strong e-commerce business." Wilson, editor of air freight data provider TAC Index, said that in most cases On routes, e-commerce may account for about 40% to 50% of freight volume, and in some cases even as high as 70%.
Chandler Su, director of North Asia freight for France's GEODIS International Group, said that platforms such as Temu and Shein, which attract Western customers with cheap fast fashion designs, have discovered the "hidden needs" of European and American consumers. "This e-commerce model also creates demand for air cargo, which we have never seen before," he said.
Global cargo airlines are investing more in e-commerce management and reallocating aircraft to meet rising bookings. Meanwhile, China's e-commerce platforms have expanded freight services and some domestic manufacturers are chartering flights to ship goods.
Growing reliance on Chinese e-commerce has also raised concerns among logistics groups as they grapple with fraught trade relations between the United States and China. However, some established freight groups are confident that people's demand for e-commerce and fast fashion will continue to provide driving force.