Due to the rapid delivery services offered by e-commerce platforms SHEIN and TEMU, the demand has been stimulated even during the traditional off-season for air cargo, causing air freight rates from China to the United States to rise against the global trend.

SHEIN and TEMU, a subsidiary of the Pinduoduo Group, ship goods directly from Chinese factories to American consumers via air cargo. However, the limited number of flights has already put pressure on the air freight industry, in stark contrast to the practice of American e-commerce giants like Amazon, which ships from domestic warehouses with inventory transported by sea.

The rise of Chinese e-commerce platforms such as SHEIN and TEMU has led to a surge in demand for quick delivery from China to the U.S., driving up air freight prices. For example, increased demand pushed air freight rates from China to the U.S. up by 14% in the first week of May compared to the same period last year. This period is typically considered the off-season, during which global average freight rates dropped by 8% and U.S.-to-China rates fell by 29%.

Industry insiders indicate that historically, air freight prices tend to drop after the peak holiday season in the U.S., from late autumn to Christmas. However, the rise of Chinese e-commerce platforms, offering competitive prices and fast shipping times, has caused a shortage of capacity.

A report released by the U.S. Congress in June 2023 shows that SHEIN and TEMU ship nearly 600,000 packages to the U.S. daily.

Brian Bourke, Chief Commercial Officer of SEKO Logistics, commented on the Christmas holiday, stating, "If demand is already very strong now, the traditional peak season in the fourth quarter, especially during the Christmas holiday, will be very challenging."

Recently, air freight company Atlas Air partnered with YunExpress to launch three weekly flights between Miami and Xiamen to meet e-commerce demand.

In 2023, global air cargo capacity has largely returned to pre-pandemic levels, but routes between China and the U.S. have not yet fully recovered. Industry experts suggest that although any increase in capacity is welcome, the high prices of air cargo routes between China and the U.S. may become the new normal.

Air freight prices have risen, but the number of flights between China and the U.S. has been slow to recover due to geopolitical tensions, putting pressure on the air cargo market between the two countries.

Airlines are avoiding Russian airspace, reducing cargo capacity to save fuel for longer routes. Due to geopolitical tensions, the recovery of passenger flights between the U.S. and China has also been slow. Currently, there are fewer than 100 weekly flights, compared to over 300 per week before 2020. Brian Bourke noted that while any additional passenger flights between the U.S. and China may not significantly impact the air cargo market, they will certainly help.

In May, the number of weekly passenger flights allowed between China and the U.S. increased from 70 to 100. Although only 83 are currently operating, this still brings weekly passenger flight capacity to 22% of pre-pandemic levels.

Air freight forwarders are doing their best to increase capacity between the U.S. and China, but it remains unclear how much the increased supply can offset the growing demand.

Furthermore, sea shipping delays caused by the conflict in the Red Sea have led logistics companies to compete with e-commerce companies for air cargo space, further driving up prices.

Niall van de Wouw, Chief Air Freight Officer at Norwegian logistics analysis provider Xeneta, said, "We cannot underestimate the importance of e-commerce growth, which shows no signs of slowing down on its most prominent routes."

In its latest monthly report, Taiwanese freight company Dimerco stated that its shipping capacity from mainland China to the U.S. and Europe is sold out for the rest of the year. With a massive influx of e-commerce goods into South China airports quickly expanding to other regions of China, the air freight market will continue to soar.

To meet the growing e-commerce demand, airlines, freight forwarders, and logistics companies are actively expanding air freight capacity, increasing flight frequencies and cargo space to ensure timely delivery. To improve transport efficiency and service quality, these companies are also continuously introducing new technologies and innovative solutions, such as automated cargo handling systems and intelligent transport solutions.

In conclusion, the rise of cross-border e-commerce has had a positive impact on the air cargo market, driving its continuous development and expansion. As e-commerce continues to grow and consumer demand for fast, reliable shipping services increases, the air cargo market is expected to maintain strong growth momentum.

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Cross-border e-commerce logistics Bai xiaosheng